Ann: Quarterly Activities & Cashflow Reports, page-10

H, thicker is the words I used, I hope CN does not mind me posting her email as below so you can all see what she stated in full.

Zip

Many thanks for your email to our infosite.

You are correct in that Sirius and Spica are both Albian Shelf prospects (note that they are not classed as leads – we have them defined by 3D seismic, successfully drilled the play at SNE and have associated seismic amplitude anomalies that are likely to indicate the presence of hydrocarbons) and that Soleil has now been encompassed into the growing SNE field.

You are also correct that the prospects sit lower in the section than the SNE field and that as we map the play heading north, the thick basal sands in SNE (500 series) are in water and the upper 400 series sands are in the oil leg. The logs from the BEL-1 well hint that some of these 400 series sands could be better developed to the north.

There is a chance that these two prospects could also be part of a greater SNE structure as at some levels in the SNE field, we cannot close the structure to the north implying that it does encompass Sirius and perhaps Spica. Nonetheless, we have discreet amplitude anomalies over the crest of both of these prospects – which at SNE correlated very well with the gas cap over the field with a 100m gross oil leg beneath.

Because of this, we are carrying a 60% chance of success on Sirius, note that our Operator is carrying 67% CoS which is consistent with our view.

The area is certainly exciting. I keep reminding our shareholders that the 500m interval of oil found in FAN-1 (albeit in tight reservoir for the most part) is hugely significant and evidence of a prolific working source rock. Given this and the accumulation at SNE, if we have a valid structure and seal up dip from FAN-1 there is a good chance it will contain oil.

We are only scratching the surface of what is shaping up to be a significant oil province.

Thanks again for your interest and support.

Regards

Cath

DYOR

Zip