PESA Luncheon, page-54

There was nothing really confidential in the talk yesterday. Everything Errol spoke about has already been presented in slides and company presentations. It was most helpful for those with geoscience background to get a narrative on the tectonic development of the province, which Errol and his colleagues have explained through the various "cartoons" or schematics in the presentations.

The important thing to come out of the presentation was tat Errol and Co BUCKED the status quo and proved everyone wrong. No one believed their structural thesis. Full points to Errol and Co, and full points to Melbana for backing their geosciensce teams judgement.

Like afawcett said, the seismic coverage is poor and more is needed to get a sense of the potential - but many people on these threads are crazy and dont read or understand and they spam the threads turning them to shit. When people ask for oh is there a resource upgrade? it tells me people still dont understand what the company is saying, nor do they understand how big 6 BILLION Barrels of oil in place is, despite the effort many of us have put in to inform people.

Heres what they've told us:

• 6 billion BBL OIP, in three distinct reservoir units. Amistaad; Marti and Alameda.
• Continual oil shows for HUNDREDS of metres - (more than 1,500 m in aggregate!!!) - go read the announcements.
• HIgh pressure zones in all three reservoir units.
• Fractures are a significant contribution to permeability.
• McDipstick gave them a 5% rec factor, because that is their "rule of thumb" for Cuba. The company believes this is significantly understating it, and they have said so.
• They have also told us the Cuban Govt and their JV partner want to get producing wells up asap, and they now all regard this as a national significance project.

All the above info tells you they have hit a GIANT field. ONSHORE. This is a rarity in this day and age. You will not find any other co on the ASX with a find this good.

Their biggest worry is the jealous eyes on their 30% interest, and the operating difficulties in a country continually being punished by its neighbour.