Ann: Backreef-1 Production Test Update - Oil Disc, page-13

re: Ann: Backreef-1 Production Test Update - ... PB, interesting thoughts. While this might be fair speculation on the day of the drill (prior to announcements etc), I doubt GRK would expose themselves to potential legal risk by putting out what in my opinion are clear express statements of the results of the drill.

Any reasonable person reading this announcement/ presentation IMO would conclude that the oil they are refering to comes from the reservoir and not hydraulic oil.

Further more, the statement reads:

"First oil in the Backreef Area proves geological concept and “de-risks” this high potential exploration area"

I must admit however that the market response does not appear to be as positive about the result as what is portrayed in the presentation. Clear divergence of views or might simply be a case of the market expecting more with the first drill. This in itself is interesting as the presentation says the drill results met expectations:

"Result much as expected as pre-test mapping indicated Backreef-1 to be on the edge of an oil accumulation"

So did the market have unrealist expectations of the first drill or misunderstand what the first drill was about? Or does the market know something more?

I am not a petroleum reservoir engineer so I have no idea.