Ann: Gulf Coast Operations Update , page-31

Hi Strikers, just a short clarification: GF3 was not designed and drilled to the test the lower Wx. GF3 reached final depth of
12,100 feet on 29 June.

Lower Wx wells at Rayburn should have a TD of about 16,000 to 17,000 feet - we have tested the lower Wx just once - with D1 - our first Rayburn well (and we had a flowrate of 500 mcfd from the lower Wx - they expected better rates at other locations for lower Wx well - they called it "at sweet spots" at that time).

So, GF3 can't provide a result for the lower Wx.


My current understanding re GF3 is:

* We had a encouraging drilling result:
"Elevated gas readings were recorded over serveral intervals within the Upper and Middle Wilcox formation. Wireline logs confirm the presence of gas. The partners have agreed to set casing and to test the producibility of the zones."

* They tested the well about 6 (!) months.

* The last ann said in the "Highlight bullet points":
"[...] Wilcox Fm - Gilbert-Freeman 3 successfull testing finalised [...]"

* The ann continues with the something contradictory sentence: "Testing of the Gilbert-Freeman 3 well continues".

* Then we got from the ann the results for the Upper Wx only:

- 3 zones within the Upper Wx tested
- the shallowest zones flowed 1.5 mmcfd and 80 bblcd
(which is great results for a shallow production zone)
- the other two Upper Wx zones to be added in the near future
- ... but flow tested at lower rates

(my personal expectation here is, that we will get not more then 1.6 to 1.7 mmcfd as a combined rate from all three Upper Wx zones - but I may be wrong)

* Unfortunately: No word regarding the result of the Middle Wx testing program ...