news break, page-147

Hi Ashtangi

As Rawk has stated it is believed to 6'section in C17 could flow at up to1000Bopd and it is also believed that it could flow around 450 Bopd without damaging the formation.

A few observations:

1: just because they believe it can flow in the mid 400 Bopd doesn't mean they go to that figure immediately this section could produce for years.

2: The company has been consistant on saying it will be opened gradually to preserve the integrity of the formation.

3: C17 was a secondary target and has supprised to the upside, it has never been flowed from before hence there is a need to understand how it performs, that information will help when they use this zone in other wells. There are another 7' directly above in C17 fhat may be perforated later this year.

4: I don't think storage is an issue but there is a offtake agreement in the pipeline and that could be an influence. Storage will be an issue with #5 initially if it flows well.

5: Both LAR and CTR need money so there is no logical reason to hold production back without good reason.

6: There is no guarantee this section will flow at the expected rate, this is a new and untested section, in oil wells any number of unexpected things can happen. At this stage the section appears to be holding up well under natural pressure which is very positive but at some stage a pump will need to be installed.

Cheers Whisky