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TRANSCRIPT SPONSOR

Torrent Energy, Corp. (OTCPK:TREN)

Wall Street Analyst Forum

February 13, 2007 9:50 am ET

Executives

Gerry Scott - Wall Street Analyst Forum

John Carlson - President and CEO

Presentation

Gerry Scott

Hi. Good morning, ladies and gentlemen. In our ongoing attempt to adhere to the published schedule, I would like to introduce the next company in this morning's oil and gas program. I mentioned this in -- probably at the last presentation, we have a couple -- it's worth mentioning again, because people who have been in and out of meetings -- a couple of changes that's taken place in our conference.

One is there's a luncheon program now that's dedicated to corporate management, attending investor, luncheon with -- where nothing else is taking place. It's a breakout session onto itself. And all the oil companies have dedicated tables in the room next door. So that's a good opportunity for, sort of, one-on-one each time with them. Some of the analysts have scheduled one-on-one meetings with the management, but if you haven't, it has the same effect. And so that's from 12:25 to 1:15.

Secondly, another change in the conference is that there -- in addition to doing a webcasting of the presentation and Q&A, which is retrievable -- which is live and is retrievable, you can go to my website if who want to re-attend the meeting via webcast.

But the thing that's really new is that we're doing a -- with a relationship with SeekingAlpha.com, which some of the buy-side knows better than the companies do, has become basically (inaudible), and we believe it's the largest online investor community for institutional investors. My guess is probably a third of the buy-side uses them, and probably 20% of public companies, and the numbers are escalating very quickly.

In any case, they're dong the transcripts of the presentation, including the Q&A session, making it web searchable on Yahoo Finance, Google Finance, AOL Finance, on their sites, SeekingAlpha.com, within a few hour following the events. You can actually go and access the transcript, and probably get everything you need in seven minutes on a transcript instead of hanging around a webcast for forty minutes. Transcripts became outdated in the '80s, but they're now current again only to the extent if they're web searchable, because back in the '80s you'd have to mail it to somebody. What kind of an earnings conference is that?

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Unidentified Audience Member

(inaudible)

Gerry Scott

What's that?

Unidentified Audience Member

What's the name of the site?

Gerry Scott

You can go to Google Finance and just click the company's ticker symbol. And on Google Finance, the stock box comes up, so does the stock chart in the left-hand side and the most recent news events. And the transcript will come right to the top because it will be the most recent event that took place there.

Unidentified Audience Member

(inaudible)

Gerry Scott

The presentation and Q&A.

Unidentified Audience Member

Okay.

Gerry Scott

Yes. Google Finance, or you can go to SeekingAlpha directly. But SeekingAlpha has relationship with Google Finance on which it's --

Unidentified Audience Member

It's called SeekingAlpha?

Gerry Scott

SeekingAlpha, SeekingAlpha.com. Not a CSA term, the alpha, seeking the alpha. So that's the name of their website.

In any case, I'd like to introduce the next company in this morning's program, Torrent Energy Corporation. They are a drilling exploration company pursuing the development of coalbed methane reserves in the Northwestern United States. Current -- the company currently is focused on the commercialization of the Coos Bay Basin project in Southwestern Oregon, where Torrent has a land portfolio of over 116,000 prospective acres.

An independent reserve study of the project area suggests gas in place of up to 1.2 trillion cubic feet. The company also is developing two projects in Southwestern Washington State, where Torrent holds substantial lease and lease option commitments on 155,000 prospective acres.

So for further introduction, I'd like to introduce John Carlson, President and Chief Executive Officer.

John Carlson

Thank you. Good morning, ladies and gentlemen. I guess my goal today is to interest you in following our company. By the end of the day, I hope that you have an understanding of who we are and what we're trying to accomplish in part of the country in the United States that's not seen a lot of active exploration. And we've certainly taken bull by the horns and tried to develop an opportunity there. We'll see real value potential coming forward.

Let's start the presentation with a couple of slides here. And what this represents is probably two of the growth industries in Coos County, Oregon. Coos County is about 80 miles north of the California border. It's right on the Pacific Ocean. Coos Bay is the main town. It's the second largest deepwater harbor with direct access to the Pacific Ocean. Its not a place lot of people have heard off. Anybody who is a golfer though he would know that the -- well, three of the top ten golf courses in the United States are located in Coos County at Bandon Dunes. And that's a picture of one of the holes there.

The other picture is actually our project. This is the well that we just put on stream -- on flare, sorry, last week. It's one of our newly drilled well. This is coalbed methane gas that is being flared from one of the wells we drilled. And what we see is there is, generally, opportunities for wealth creation in this part of the Oregon.

As key statistics about the company, we're currently located in Portland, Oregon. Our headquarter is in the field office in Coquille, which is a town in Coos County, and Chehalis, Washington where we have our other project. We are a Colorado company. We're on the OTC Bulletin Board, ticker "TREN."

And that the ranges of our share price over the last year. Currently we have 36.4 million shares fully diluted. That's really common stock and options. Market capitalization currently is about $40 million. Cash on hand at the end of December, which is the end of our third quarter, is $5.2 million, and we'll be adding another $7 million to that tomorrow, I believe, that's when money will be coming through. And currently we have no debt.

Unidentified Audience Member

What's the current share price?

John Carlson

I believe it's a $20 -- $15.

Unidentified Audience Member

[Question Inaudible]

John Carlson

It's from a financing we did last June. It's a third trench of a convertible preferred that we did in June last year. Two pictures this is coal tubing unit doing a stimulation job on one of the wells. And actually it does snow in Oregon ones in the blue moon, and that's the picture that was taken here just not too long ago with snow on the ground.

The company strategy. We have an unconventional gas focus. So we're looking primarily to develop and explore for coalbed methane in Pacific Northwest, that's Washington and Oregon. We do understand and recognize that there are conventional opportunities, specifically in Washington. So we're also chasing those one as they are identified.

We believe we've got the technical expertise relative to CBM to bring these projects into cash generation. A very strong technical team, we have lots of experience. Each of the management team has over 30 years of experience in either CBM or conventional play.

One of the advantages we see at the company, early mover. What we did was find a basin in the United States that had minimal exploration and had a land base that we could acquire significant position in. And that is what we have accomplished in both the areas that we are operating in Washington, Oregon. And then, ultimately, is to take that potential in those basins and create shareholder value from bringing these into commercial projects.

The way the company is structured. It's the parent company Torrent Energy. That's the public vehicle on the Bulletin Board. As part of our connection into the community, we have incorporated private subsidiaries to operate each of our projects, one in Oregon and one in Washington, and that's the companies Methane and Cascadia. And each of the companies has their own unique websites to move their specific audience.

I am not going to spend a lot of time on this as a more reference, but the bios on the management team and Board of Directors are available for you to look at. As I said, they've all had significant experience in the business world, in the oil and gas industry, and the CBM industry.

It's a map of our two project areas. First of all, in Oregon, you can see Coos Bay down in the south part of the map. What we have is a CBM play there. It's relatively a small basin and it's primarily focused on CBM. That's where we spent most of our capital dollars to-date and had most of our success.

Washington is a relatively new area that we've spent a year doing a geological evaluation. The Chehalis Basin is the basin that we're exploring. It's due west to Mount St. Helens. It's bisected by the interstate pipeline system and highway system, so an easy access place to explore. We have two different projects within that area. It is a CBM play primarily, but we've also identified conventional opportunities that we'll be pursuing.

Unidentified Audience Member

[Question Inaudible]

John Carlson

In terms of the activity of the volcano or the activity of the shale in EnCana.

Unidentified Audience Member

Well, I'm not sure.

John Carlson

No. From a geological tech time point of view, we don't see any impact from the volcano itself. We're quite a bit removed. It's still probably 50 miles from the volcano. Certainly, that presents historically volcanic lava flow if one has to drill through. The areas we're looking at, we don't have to drill through the volcanic assault much like EnCana and Sheller are doing on the east side of the Cascades.

Unidentified Audience Member

[Question Inaudible]

John Carlson

Their activity…

Unidentified Audience Member

[Question Inaudible]

John Carlson

Yes, it's helped in terms of bringing services to bear in the area and certainly we see competition now for land acquisition. We know of another company that is planning to drill. I think if EnCana and Sheller announce a success with the well they are drilling that would certainly stimulate activity in Washington.

And we see it in the pricing of leases certainly on the east side of the Cascades we pay hundreds of dollars per acreage around the west side it's a $1 an acre. So we could see a difference there going forward, fortunately tied up most of the land, so it’s not an issue for us.

Going back to Coos Bay, again this a picture of the drilling rig, drilling one of our Westport wells, relatively small basin, only 3,000 acres so that gives a large land position basically all the land was available for lease. It is all primarily working for us. So its sea land there is a little bit of state land involved with it.

We have identified significant coal accumulation, it was a coal mining area that lead 1,800 -- 1,800 that service San Francisco. There is an awful lot of coal drilling for coal. So we have all that data available to us. There were two wells drilled in 1993 for Coalbed Methane, so we have data from that and then we have our drilling programs that we did in 2004, 2005.

One thing that intrigue me when I first found this project for the Company was that the county themselves invested $55 million to build a pipeline into their community, truly unheard off that a community would finance a $55 million pipeline. As far as I can determine it's fulfill the dreams. They see a large deep water harbor. They have a declining industrial base from forestry and fishing, certainly no mining any more.

And they believed for economic development they needed to have natural gas, it was one of the last areas in the United State in the Northwest to be served by natural gas. In February '05 the pipeline came into operation. It is currently delivering relatively small amount of gas into the local community.

All of the town in Coos County have been plum for natural gas and pipe has been run across the harbor to services it. So they are waiting for industry to show up.

Unidentified Audience Member

[Question Inaudible].

John Carlson

It's -- I believe its west of Medford. Medford is more inland, yes, closer to the California border I believe. One thing about the community, we have taken lot of time to understand the community and become part of the community. It is a economically challenged community.

The spin-off is that that provides an opportunity to bring economic development. And generally I think, you know, I don't want to label anybody here, but people in, you know, the mainstream in the United States marketplace things Oregon is full of wild environmentalist and that maybe true some places, but this a resource development area.

They are working for us. People have grown up with resource development for 100 years. They are very interested in having us investigate the opportunity of natural gas production in the areas.

Unidentified Audience Member

[Question Inaudible].

John Carlson

I believe there is.

Unidentified Audience Member

[Question Inaudible].

John Carlson

The University of Oregon, which I think is Corvallis possibly.

Unidentified Audience Member

Actually Eugene.

John Carlson

Eugene. Sorry, I am not from Oregon but…

Unidentified Audience Member

Oregon State.

John Carlson

Yes. One's a beavers and one's a duck that's what I know. Anyway one of their Professor Emeritus from the geological department has been assisting us since we started this project. So they are certainly interested in it.

We provided them core -- all our core data so it's now deposited in the government hands and the university hands for further study. It is kind of a new operation for them. Oregon doesn't have a lot of oil and gas regulatory industry or…

Unidentified Audience Member

[Question Inaudible].

John Carlson

They work the project for about 10 years. My understanding it was a combination of lottery money and just tax money. First of line it has been financed as well. A pretty brave group to do that, you know, pricing.

And they did it when gas prices were probably $3 and $4 when they first planned it, gas prices are $7 and $8 certainly change the economics. It took them a long time to get it built. But it is there, it is operational, it's a modern line with the capacity ultimately of 100 million cubic feet a day.

So a project like ours has instant take away capacity. Pre volumes flowing to the pipeline we have been told are about 5 million a day into the community. So it’s very under utilized right now. The other opportunity for us is because we would be selling gas in the market area that means we can command the premium price for it and currently our negotiations with the local distribution company, which is the Northwest natural have indicated that we would get the rate hog price, which is last year was $8.30 in Mcf, so that would be our well head price. So there is a premium in this particular market because we are a couple of miles away from the market.

Just to look in a more detailed map here at Coos Bay, you can see that a 12 inch line that goes from the William interstate pipelines that comes from basically brings gas from Canada and the Rocky Mountains down into Northern California, and then all the way up to Seattle area.

Currently, we have 118,000 acres of leases and the lease is running anywhere from 3 to 20 years. Its primarily, as I said working for us, so its fee land, all of the waterways in the harbor, and the rivers, our state land, we have leased those. We have 100% of working interest in the project and with the royalty burdens we are down to 82% net revenue interest.

Pretty cheap to acquire the land was $1 an acre and our all in cost of acquiring the company, acquiring the deal putting all the play together, getting all the leases was about $15 an acre. So if you compare traditional oil and gas opportunities in North America this is a very cheap entry into a basin no question, and they are paying in excess of -- well, excess of $100 on the each side of the cascades or land.

Through the process, when we first acquired the project, we engaged independent consultants, grow associates out of Denver, their head office is actually in Calgary, they have quite a bit of coalbed methane experience when their top guys is renowned all over the world in coalbed methane.

So we retain them to do resource report. And it's been done three different times as we required new data. The current study that was completed in April 2006 shows that under our existing land at the time, which is around the 1000 acres we had 1.2 trillion cubic feet gas in place as a resource and that’s in our mind, its quite significant, there is a huge potential reward that we are chasing here.

And again, you can see the interconnection of the pipeline, any gas that we produce in the future not only can we sell it directly in the Coos Bay but we can access all of the markets along the Pacific Northwest.

Couple of key things that we are going to have the successful CBM play, these we think we have accomplished, so we have a large land position. We have significant gas-in-place, we know all the parameters associated with the gas-in-place. Definitely a manageable environment community support is important. We've spend a lot of time on that effort, there is a cost to it. But there is a tremendous payoff. The County is definitely in our favor and the State is on our favor so far.

We have pipeline infrastructure, and I think if you go back to the evergreen story long time ago, their project really succeeded when somebody made a pipeline investment to get that project going. We have a near buy market for gas that is going to grow over time, so we are not market restructured in our view.

And then, finally, the technical side of the coalbed methane and this is what we've been sort of keeping ourselves occupied with the last couple of years. Important to know, that there is permeability in the coals, which means the ability to produces gas.

How much dewatering is going to be associated with the wells? To fill the coalbed methane you have to remove water from the coals? And then how many wells you will drill per section of land per square mile.

So some of these things are ongoing, we will have answers to all of these things we believe within the next few months.

Unidentified Audience Member

[Question Inaudible].

John Carlson

We have drilled anywhere from 2,500 to 5,000 feet. Our current drilling is around 2,500 feet. Our initial projects have drilled as deep as 5,000 feet. And actually this slide, where I can identify those particularly wells.

We started out the project at a place called Beaver Hill, which is the middle red block and we drilled five wells at that location. Those wells are anywhere from 4,000 to 4,700 feet in depth. And we proceeded down to Radio Hill and drilled a two wells pilot down there. We spent a lot of time testing these wells, getting technical information.

Fortunately, they are relatively far remove from that green line, which is Coos County pipeline. There was a plan or there still is a plan to bring a connection down the number 101 highway down to Bandon Dunes where the Gulf course are, which would go right by the Beaver Hill and Radio Hill projects. But that is, it’s not in play yet. It’s down the road somewhere.

So our next project was in that Blue area. We call it the Westport area. We have licensed 20 wells in there. We have prepared recites on 10. We built five to date and currently we are completing these wells as we speak. Two of the wells are now floating gas and pumping water or the reservoir. And you can see that’s we are within very close proximity to the Coos County line. And so that our strategy is to look for commercial production out of these five wells that we drilled initially at Westport in the second quarter of 2007.

I have got a couple slides that just show the timelines. I won’t dwell on these things but it really explains where the Company started and how we’ve acquired our position where we are today. And as I said, two of our wells now are on production and planning. I can’t give you rates because I haven’t seen the charts yet, but they have been on for few days. And certainly we will be getting that data out in the public forum in the next few months.

So what are the next steps for us in Coos bay, well we are definitely commencing the production testing as the Westport wells? We have two more on within next week and then we will do the evaluation. How much to watering, do we have to do? What is the production profile that we will develop overtime? Commenced the gathering system planning in design that is actually underway, we will be working with the local distribution company in North West natural. They will probably be the designer and installer of the gallery facility.

It’s pretty simple stuff. It’s primarily methane gas that we produce. We don’t have to treat it. We are going to put in a plastic gathering system, which will be pipe directly into the city gates and deliver gas their. And in fact that doesn’t even require compression on our part.

Water is always an issue in coalbed methane projects and, you know, there is lot of bad stories in Powder River Basin, a lot of things we have learnt from that. Everybody has to remember the Powder Basin is totally different from any other basin. And those problems may not exist what we have. Currently, we are looking at down-hole disposal like the policy that we have corporately. Two other wells we drilled are currently been tested, in lower zones to inject water in.

However, the community and the government authorities would like to see other alternatives for water handling. And one of the interesting items is that there is a like carbon credits are treating in wetland credits. And there is a proposal to actually build a wetland. And you would put your water in this wetland and because we are beside the ocean water can flow from a wetland into the ocean and that would be our ultimate disposal of our produced water. So we’ll see how that plays out. We have a study that’s been done right now and I believe next week we’ll see the result of that study and see if whether that’s viable opportunity.

Second quarter, we’re going to complete the Westport drilling program. And then we are looking at the anticipated hook-up of the initial five wells. And once we started getting that going then we will start planning for the next round of development drilling. The flare you see that was testing up the Beaver Hill probably last call.

Lot of people like to look for analogies and Coos Bay. And, I guess all I can tell you is a table of data. You can see some similarities maybe the Powder River Basin is probably the most represented of something similar for the rank of the coal. But everybody from a technical point of view that has looked at these coals in Coos Bay really sells with there unique system. There are no analogies for it anywhere in North America. The unique thing is it’s a very young coal but it’s very high to gas content coal.

It’s also thermogenic gas, which mean its coming from the source deeper in the earth and the coal is actually storage reservoir, typical CBM play is its biogenic, which bugs in the coal and create the gas. So we know that there is -- indications that there is gas lower than the coals and that's the source we are up for the gas that we have.

Now, we’re just going to move on over to Washington and talk about that project. We’ve got a summarization 250,000, acres. Again, a large land position was available to us. Again, it’s a working interest --sorry -- that the working forest land. This is the jewel over the warehouse portfolio. It’s the lands that we have now leased.

There is definitively significant coal accumulation. There is large coal mine the centrality of coal mine, which serves the Power Plant it serves city of Portland. And we have done some initial estimates on the CBM potential anywhere from 100 to 440 bcf. And that is just well that gas to some extent from existing core data that's available.

There was a project drilled in the late 1990. Well, 1990, I guess ‘99 by Duncan oil out of Denver. It drilled four wells. They encountered coals and gas contents but they also encountered the conventional play there as well. For whatever reason, Duncan went back and abandoned that project and that really just left those well bores there. We’re currently under negotiation to try and take those wells bores over. We are very close to the Williams Pipe Line system, it bisects our lands. So and priors to this we are about six miles away from media transmission line.

Unique to the Washington plays is that there are two reservoirs already identified in the area. And this gas field is the only field in Oregon that is ever produced gas conventional gas. Its team production is about 80 bcf. And it has been converted to gas storage reservoir. The exemplary, which is within a few miles of our location is also gas storage reservoir. It was filled with water and converted to gas storage overtime.

So we knew that there were two very significant reservoirs that exist within the area. And we know that we have a Hydrocarbon Charge Basin. So we see that there is significant conventional potential as well in the USGS as put our reports suggesting that a 116 bcf and their mean case of conventional gas reservoirs in the Chehalis Basin. So that's another price that were chasing out there. Our current status in the Chehalis Basin, we’ve now acquired 155,000 acres under lease or lease option. We have an additional option on some additional acres another 265,000 acres in warehouse. We are 60% working interest owner in the play.

Our partner is Comet Ridge Energy they are from Australia. There are big CBM player in Australia. We required a significant among a seismic that we have interrupted over the last year. So our currents steps that were underway now are to prior a little bit more land around our drilling locations we proposed. We’re looking for it’s about 4000 acres of portfolio just to tie-up those locations.

The plan is to drill three wells. Initially we have got permits supply for -- I am told that in the next week or two they will be issued by the state of Washington and we have a rig that’s been identified and we hope to spread their first well on March 1st. It may slide the few weeks but it will definitely be within March.

At the three wells that we got proposed we’ll investigate both the conventional and the CBM aspect.

Unidentified Audience Member

[Question Inaudible].

John Carlson

Again, it’s pretty cheap. It’s $1 an acre as the bonus and $1 an acre for rental each year. And the leases are any where from 5 to 20 years depending whether it’s state or warehousing. Actually this slide and this is an analogy of a conventional gas play in the area.

So we have the space and this is in mix gas field, you could see that there are multiple accrual sizes. So you have about an 80% chance of finding up to 2 bcf type tools in the mix field that would be the analogy we would use for our conventional drilling. Again, we got some history on what we have done in Chehalis.

Next slide is the currently what we have budgeted and what we spend to date. We had a $20.8 million budget in our fiscal year which ends March 31st. As of December 31st we’ve expanded about $14 million in drilling, completion, testing some land acquisition. This was financed from the $25 million offering we did -- or the funding we did in June of `06.

And currently at the end of December, so we have $5 million in the [kiddy] and another $7 million is arriving tomorrow. So we are well financed to finish the three wells that we have got, initially proposed in Washington and complete that process in -- the testing process on Tuesday.

And now that I’ve given you some background, this is why I think you should consider following us and keep abreast to the story as it evolves. Definitely, the current share price is $1.15. We think that’s a favorable entry price. So large resource play with large potential and the connection to the pipeline is always important.

You know, we want to be a first stage exploration play. That’s years away from cash flow generation. We don’t think we’re that. The premium price that we can receive in Coos Bay is helpful, because in our minds we are frontier play. We have to bring services from Sacramento, Bakersfield, Wyoming, Canada.

There is no infrastructure in the oil and gas industry in Oregon. And so it is more expensive to drill. You have to develop, keep all that, know what the business is from the regulatory point of view. These are all sorts of things that go with a frontier play that are little bit different.

And we spend a lot of time, solving a lot of these problems. And the cost structure is coming down, but it always is a little more expensive, because of transportation in the area. But the premium price helps offset those costs. We feel that our share price has not really tracked -- it’s not in sync with the energy price cycle and for whatever reason.

It’s a good day today. I guess it’s going to get cold and winter. So maybe that will have some impact. Relatively, liquid stock we believe given our size and our market cap, we have pursued a listing on the AMEX exchange. We have put everything in place in terms of an independent board, SOX compliance, everything we could do except have a $2 price.

So we are unable to get on the AMEX. We have talked with TFX. But we are exploring, moving to an appropriate senior exchange at some point in time.

Now, the key thing in all this is why people should consider investing in our securities. The value proposition at Coos Bay, we have the 1.2 Tcf of resource. I picked a pretty conservative recovery factor on that, 30%. That means 30% of what’s there would be accessible from the drill bit and recoverable.

Current prices for buying gas in the ground, $2 to $3. They have exceeded $3. And so I picked $2 as low. So the potential asset value in Coos Bay alone could be $720 versus our current market cap of 40. If you want to put an exploration -- frontier exploration risk on that, so another 10% against that 72, we’re still $72 million versus a $40 million market cap. So we think there is room to grow the value of the Company from our current asset base.

Chehalis, a little tougher to make those calls, because the CBM is just in its (inaudible) stage, but we do know that there is conventional potential available to us in each of those pools that maybe discovered. If I look at the range of 0.5 to 2 Bcf may have a value of $1 million to $4 million on a net asset value in the ground

So that’s certainly a supplement to the other number I showed you. And we’ll determined with the CBM potential is over time. We need to get it drilled a few wells and get some technical data on that.

And we have retained a couple of IR firms to help us with the story. It’s all about audience filling in my mind, and we want to expose the story to as many of the people as possible. And so we do have an IR firm both in Canada and United State to assist us with that process.

That’s the end of my presentation. And certainly if there is other question you are willing to…

Question-and-Answer-Session

Unidentified Audience Member

[Question Inaudible]

John Carlson

The current funding we did.

Unidentified Audience Member

[Question Inaudible]

John Carlson

That was a funding done in June and it was priced at about $2.

Unidentified Audience Member

[Question Inaudible].

John Carlson

Cornell Capital was our funders. They have been our funders for three rounds. And we have a good partnership with them. I know that some people are concerned about that type of funding, but it has worked for us as a small company. We have managed the conversion over time.

Unidentified Audience Member

[Question Inaudible].

John Carlson

Yes.

Unidentified Audience Member

[Question Inaudible].

John Carlson

Current terms is the conversion price range between $1.67 and $2.50. They will convert at a discount to the marketplace.

Unidentified Audience Member

[Question Inaudible].

John Carlson

They will get a 5% coupon, which we book on our books, but they have taken it in the past in terms of stock.

Unidentified Audience Member

[Question Inaudible].

John Carlson

How much they own? I don’t know that. They definitely stay under the 5% ownership. This current funding, the registration statement was just accepted by the SEC last week. So that conversion will be available to happen somewhere down the road. The other two fundings we did in the past, they have probably converted, and I don’t know what position they retain afterwards.

Unidentified Audience Member

[Question Inaudible].

John Carlson

What the -- okay.

Unidentified Audience Member

Yeah.

John Carlson

That we are taking or…

Unidentified Audience Member

[Question Inaudible].

John Carlson

Well, they do have a conversion -- if it’s below $1.67, they will be able to convert at a higher amount of shares. So -- and it will be at some level of dilution, if they are converting at a lower price.

Unidentified Audience Member

[Question Inaudible].

John Carlson

My ownership, I have a small position in terms of common stock. I own 50,000 shares. And I have quite a few options associated with it. I am a professional engineer by training after 30 years in the business. Primarily, I was in evaluation with engineer, an independent consultant, traveled all over the world, oil and gas exploration economics, risk analysis. That was my primary career. Prior to that, I was involved in gas plant design, construction, natural gas marketing. And then I ran a public company and private company for three years prior to coming to Torrent.

Unidentified Audience Member

[Question Inaudible].

John Carlson

My biggest hit was probably running a company that discovered the second largest oil pool in Northern Canada, a small company sleeping with the lions. And we were partners with Northtock, which was bought by Unocal, EOG, Husky. And it was our play, and we had a small interest over time. And they will right a book about that field that they have discovered up in the Canadian North. And your second question, what was my --?

Unidentified Audience Member

Worst.

John Carlson

Worst? I ran an oil company for [AVO] regional band in Canada, and my failure there was that the community didn’t benefit from the wealth of the oil company. So that was a personal failure. Technical failures? Haven’t seen any technical failures peer-wise. But I never actually had to answer that question (inaudible).

That’s one of the reasons I am strongly focused on making that connection in the community, become partners with community in some fashion in Oregon, because it is a new business for an area that’s not used to oil and gas industry. And we didn’t do a good job in regional community in Canada and wanted to do better job here.

Now, I can’t take credit really for that oil discovery in the North. I was just managing the operation. That was a very small shop. So the play was already being developed prior to my coming on board.

It looks like our time is up. Well, thank you very much.

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