drilling update and beibu starts mid december

Beibu Gulf Block 22/12, Offshore China (FAR 5%*)
Rig contract finalised; Drilling to commence in mid-December
The Block 22/12 Joint Venture has finalised a rig contract for the Premium Murmanskaya jack-up rig to drill four exploration/appraisal wells starting in mid-December.
The first two wells will test the Wei 6-12-West and Wei 6-12 East structural-stratigraphic prospects, 2.5km and 1.7km, respectively, from the 2006 Wei 6-12-South oil discovery.
*The China National Offshore Oil Company ("CNOOC") is entitled to participate up to a 51% funding equity level in any commercial development within Block 22/12.
Schwing #2 Well, South Grosse Tete, Iberville Parish, South Louisiana
Preparing to drill ahead at 3,007 feet – FAR (0-14,500 feet 5%) (>14,500 feet 17.7%)
We have been advised that current operations at the Schwing #2 well comprise preparing to run 13 and 3/8 inch surface casing at 3,007 feet prior to drilling ahead.
The Schwing #2 well is a deviated 14,500 foot Nodosaria test in which FAR has a 5% working interest (for depths between surface and 14,500 feet).
The Schwing #2 well has been engineered in a manner to enable deepening to test the Wilcox formation if the shallower objectives fail to yield a commercial result. The well is targeting gas and is expected to take 52 days at an estimated completed cost of US$6 million. FAR has retained its full 17.7 percent rights below 14,500 feet and will determine its level of participation in any deepening if and when a firm proposal is made.
A potential bail out zone has been mapped at Bolmex horizon at approximately 11,800 feet. This zone is considered lower risk and may assist in defraying well costs.
The project is being operated by Spartan Operating Company, Inc. FAR’s interest is subject to a back-in of 25% after cost recovery is achieved on a full project basis. Other participants include ASX listed Amadeus Energy Limited (AMU).