Ann: Jacka Executes Farmout of Odewayne Block , page-30

This is not my area of expertise and I am sure that Psi has a much better understanding than I do but this is what I understand the process to be:

Mud is pumped down the drill pipe and out nozzles located at the drill bit. The mud is used to cool the drill bit and bring up any formation cuttings to the surface. Along with the cuttings it also brings up water, gas and oil associated with the formation. The mud is returned to the surface via the annular space between the drill pipe and the well wall.

All of this return "fluid" is then sent to the mud shaker which is a vibrating screen that separates the mud from the cuttings. Above the shaker is a gas trap that draws a flow of air and gas from top of the shaker for analysis. The total gas measurement giving in the report from Cooper is the percentage of this gas compared to air, not gas compared to oil or any other fluid. The measure is probably actually quite good as it means we have hit a fracture that has low resistivity and if oil is present it should flow (backed up by oil shows and oil at surface also in the report).

In summary the high total gas is not a measure of gas to oil ratio and does not indicate a high gas / low oil development.

For me the much more concerning point of the presentation is that they are "Aiming for spud mid 2014":
1) "Aiming" is very loose terminology and if they were further along in rig negotiations this would/should have been phrased differently.
2) "Mid 2014" is not necessarily H1 2014 (early, mid, late leads to middle third of the year).
3) "Spud" means only to begin the drill, not complete and flow test.
To interpret this in the WORST possible way (not saying this is the correct interpretation) - "We are trying to start the drill sometime in August 2014".