announcement is coming!, page-30

It wont be tomorrow. We have to wait until next week. There have been standard operating delays.

The good news is that the team are relaxed and going about the job methodically. We need to do this right, and do it once running through each step of the process carefully. Doing this will give us more accurate results, and therefore present a clearer picture as to deliverability, composition and reservoir size. Its important for this well in particular as the wireline readings point to a discovery which is commercial from this well alone. We'll need a least another well (appraisal) to better define the resource size (upwards).

DSTs are generally long and expensive to do. We've got 5 zones to test. We'll need to perforate the casing (as the zones of interest are now behind it, due to the HPs previously discussed) - a process which involves lowering the bottom hole assembly/DST tool down and firing the perforating gun outwards to open small sections in the casing. HCs then flow into the pipe and up the DST drill string. Packers on the tool separate the sections of interest as each perforation is completed. There are many steps in between like 'shutting-in' the well to allow pressure to build. A HCs flow test is then completed over a predetermined period. In any case it is a repeatable process over each zone. While not an exhaustive explanation, it goes to show you the task that has been undertaken on this first well in Block 105.

Ca Ngu-1 (Block 120) has been lost amongst the Cua lo-1 excitement. We've got to remember that prima facie, B120 has a higher CoS than B105. I say this because B120 has a (pre-drill) confirmed petroleum system, that was not properly tested or evaluated during the original 120-CS-1X well. Based on this, the obvious question arises; if Cua Lo-1 is a success then Ca Ngu-1 is a surety. The other important point to note is that the Ca Ngu-1 well is targeting the smallest prospect from the NSAI prospect/lead run-sheet. The other prospects make Ca Ngu-1 look like chicken-feed. Clearly NEN want to ensure success, and from this deduction all sorts of scenarios start to surface re; why they want to do this. One other thing; a simple question I asked Ken about 12mths ago that he mentioned not a lot ask (surprisingly). It was; "which one is better, B105 or B120?". Cut to the chase, there wasn't a winner in his view. Both were equally prospective for different reasons.

It really does make you wonder what we have on our hands here. The O&G/E&P sector is all about stock selection - these opportunities are once in 6-7 year events.