Ann: Hickory-1 TD Reached - Additional Reservoir Identified, page-47

Reading the announcement, it is substantially more upbeat than at the previous 8820ft report.

Net pay is now calculated across all reservoirs, good news as confirmation, but would be in line with expectation pre drill, never the less it is a risk removed

SFS is better than expectation in both thickness (99ft greater), reservoir qualities with a notable upside in finding an unexpected upper SFS zone, this bodes well as does the 15X background gas over the SFS, in other intervals they do not give the number of X for gas readings

BFF is not so clearly positive, as consistent with pre drill expectations, does not mean much if 88E had low expectations of this zone

SMDs now report gross reservoir thickness equal or greater, but the net is still unknown

With LWD giving preliminary net pay, I am surprised these numbers were not given, but respect the choice to wait for confirmation with wireline logging. It may be an indication of a more responsible approach and confidence in what is to come.

Wording shifts do tell a bit of the story, it may be a better spin doctor, but the mood has shifted IMO
Due to the encouraging results.......decision to TD, is quite different from, Given the results....

The well will then be cased, is again quite different from, the earlier, Hickory-1 well is planned to be cased and suspended. ( it is now a definitive action rather than a plan)

The Hickory-1 well will be suspended such that the KUP target can still be drilled and flow tested from the well bore following the flow testing of the upper zones ( this clarifies the intention to revisit and flow test Kuparuk)

• obtain data to optimally design and plan the flow test of Hickory-1.
• Preliminary planning will now commence for the flow test program in the 2023/24 winter season

(in combination, these statements indicate a mind set change towards, these are now in the plan rather than subject too ????)

Overall I regard this as an encouraging move forward, and have amended sentiment

There remains the question of relative values v peers , which may weigh on investors allocations