catches a few out , page-31

Stapleman, from the info on Dongfang that I have reviewed the gas has good and poorer quality product in different locations. They have 26 wells across the field with high nitrogen and carbon dioxide in some and many with very good methane levels.

The original gas in place is thought to have been excellent but later thermal activity has cooked some hydrocarbons to push up levels of some of the unwanted components.

Given we are closer to the source reservoir we have a better chance of avoiding this as I understand it. Nevertheless, Dongfang has now been a good producer for 10 years and shows no sign of ending any time soon. In fact they are still making commercial discoveries. I am not sure the size of the combined fields but it is well over the 3.5TCF of the main field.

Our areal coverage is somewhat larger but shares similar depth characteristics so I am guessing our area could ultimately hold more than the Dongfang fields combined.

Carbon dioxide and nitrogen are present naturally in natural gas, higher levels mean more equipment is required to seperate out the impurities.