Ann: Vietnam - Cua Lo-1 Drilling Update , page-19

We dont know for sure as we dont have access to the well data. But if we accept that 13-2 (HP/HT) is an analogue to Cua Lo then we are likely to experience similar conditions. But its possible its not.

The BoP just provides some amecodtal evidence. Its hard to believe that they didnt test pressure before drilling ahead but at the same time it does make sense if they intersected the payzone higher up than expected. This event reconciles nicely with the decision to sidetrack - they went too far without setting casing to preserve the well.

Normally youd expect to see higher rates of corrosion and or failure at the interface. I.e well tools. Things like metallurgy is important. But we havnt seen this or at least it hasnt been reported.

The economics are often better than normal wells. But its a risk/reward trade-off. You need experience, experience, experience. Exploration is far more expensive and completion of the well is probably x4 the standard. Can take many months to finish it off and any production testing will just add to this. The upside is that these well are more productive.

Can the JV prove the resource? Can they maintain the well integrity? Big risks and this is the tip of the iceberg. Many other items to consider. This is a long term play, there will be learnings from this.