Ann: St Landry Canyon Project - Drilling Update , page-8

re: Ann: St Landry Canyon Project - Drilling ... From the brilliant HC post giving the drilling log details, we know that they logged at 11,500ft, 14,700ft and 18,100 ft. They also hit fractures at 12,180ft ("losing mud"), possibly. There might be 2 secondaries.

The operator must have had some reason for logging and they would normally plan to drill through any formation to log its thickness. Perhaps it is routine or paranoia, but they have been regularly testing the blow out protector valves ("BOPS").

In the annual report, this prospect was disclosed as having "high geological risk" so a negative result should not reflect badly on management - nothing ventured, nothing gained but the WI is small (10%) and financial risk is contained. Financial upside is considerable. Let's hope that the logging is a positive sign.

Whilst I would prefer the company to focus on the unconventional EFS with its low or very low geological risk, particularly now that it has built up a significant acreage, I don't feel that the Board can be criticised for pursuing conventional high impact opportunities provided that they contain the financial risk.

Fingers crossed for a good result.