update - 2nd production well , page-21

This is an extraction from ann Oct 31st.

"The Sorochynska-202 development well reached total depth of 4,220m on 25 August 2012. Subsequently a suite of wireline logs was acquired and 5 ½” production casing run and cemented to total depth. The primary objective of Sorochynska-202 was to provide an additional production location for the Upper B18 sand. The secondary objective was appraisal of the Lower B19 sand to which flowed gas on test in legacy well Sorochynska-469 and in which Moyes and Co believed held a significant contingent resource.
Evaluation of wireline log data indicated potential presence of hydrocarbons in Lower B19, Upper B19, Lower B18 and Upper B18.

A cased hole test of the Upper B19 over the interval 4186 –4196m produced gas confirming that the Lower B19 was gas saturated. Although on this unstimulated test gas did not flow at a commercial rate, the cause of this is currently unclear and could be due to either a reservoir quality issue or possibly formation damage. The core sample from Sorochynska-202 is being analysed and this will be integrated with well test data to determine the appropriate technology and /or well stimulation techniques to exploit this resource successfully.

The drilling rig has now been released and testing of the other reservoirs will be conducted with a workover unit".

The lower B19 was never going to be stimulated. There was always going to be a workover rig to perforate and test flow rates for the productive B18. There is also a 3rd perforation.

Some seem to be overlooking their statement today:

"The company recently completed the drilling of a second development well, Sorochynska-202, and this is anticipated to be on stream in Q4 2012"

And lastly

"the Company is currently preparing to run a series of 24 hour production tests through various choke sizes"

So news of 20 days ago and today isn't good enough?

What part of 24hr flow rates currently being prepared, dont some understand?

Respectfully, Id like to refer all those that doubt the progress of HOG to their March 2012 Presentation.