10 days until the proposed depth 19,300 ft, ca

LA POSADA DISCOVERY LOGGING UPGRADE
Thibodeaux #1, La Posada Prospect

10 days until the proposed depth 19,300 ft, can't wait for the findings, production commencing early next year.

The Company is pleased to advise that the La Posada discovery well has been logged and fully evaluated to
18,400ft. Porosity tools and sidewall cores have confirmed 248ft net pay in the Cris R massive objective (increased from 176ft net pay). Casing has been set to protect the entire sand package through 18,400ft.

The well is currently drilling ahead with expectations of reaching its proposed total depth of 19,300ft within two weeks. The Company expects production to commence early next year.

The additional pay represents a 40% increase in net pay from previous announcements. In addition, the
joint venture is currently planning to spud a de‐lineation well in first quarter of 2012 to further evaluate
the size of this discovery.