summary of drilling report to date

VIC Fairstar Resources Ltd Sea Lake-1 PEP 165 (Sea Lame)
Status: Current Spud Date: 22-Jun-08 Current Depth: 587m Target Depth: 1,000m
Fairstar Resources Ltd(TextOwnership), Knight Industries(TextOwnership).
Onshore Murray Basin, Northern Victoria. Drilling by Hunt Drilling Rig-3. 16/06/08 Sea Lake-1 spudded on 22 June 2008. 24/06/08 Sea
Lake-1 is at a depth of 230 metres and drilling ahead using a 12 1/4 inch bit. Surface casing depth will be set at 254 metres. 25/06/08 Sea
Lake-1 was drilled to 253 metres, cleaning hole, setting out surface casing for preparation to cement. Waiting on surface casing service
company. 26/06/08 Waiting on cementing service company equipment. 27/06/08 Surface casing cementing program completed. Casing
set to actual depth of 180 metres. Waiting on cement to cure. 23/06/08 Sea Lake-1 is at a depth of 335 metres. Drilling ahead in new
formation hole. 01/07/08 Sea Lake-1 is drilling ahead using a new 8 1/2 bit into very hard formation. During the night replaced bit to drill
forward with increased penetration rates into hard formation. Sea Lake-1 is currently at a depth of 345 metres and progressing. 03/07/08
Sea Lake-1 is drilling ahead using 8 1/2 inch bit into formation. Drilling conditions are hard but progressing well through layered rock
formations with hard formation continuing to breakup. The well is currently at a depth of 445 metres and progressing well. 04/06/08 Sea
Lake-1 is drilling ahead to 456 metres. Conducted deviation survey. New bit rigged up at midnight after pulling string out of hole and
reaming hole. Hole in good condition. Running back in drill bit and drill string to bottom of hole to continue drilling. 07/07/08 In Sea
Lake-1 the drilling process has uncovered minor 'shows' of gas indicating proper conditions for hydrocarbon entrapment - natural gas has
been detected at two separate levels(320 metres to 325 metres) and 405 metres to 425 metres). Drilling operations continue below 560
metres. 08/07/08 Sea Lake-1 is at a depth of 587 metres. Planning trip out of drill string to change bit. Continue to drill ahead after change