Ann: Operations Update, page-25

So the LWD indicated where the oil zones were.
The wireline NMR optical fingerprint sensor indicated oil in the sample drawn into the sampling toolstring
Wireline cores in the DHL van on the way to the lab.

We await the lab data, they will test how oily our rock is, ie 15% of the rock is oil etc or they could say 14% water and 1% oil, we just don't know.

We are very fortunate they managed to recover core samples given the wells operational issues. The core samples will give our Oil in place figure (OOIP) and permeability (ability to flow) so with these numbers we can de-risk further.

Oil well testing is a complex process and takes days to weeks, perform wellbore clean up (purges drill mud invasion from sandstone and mud cake from wellbore), record pressure static, flow well rate A, shut in well and record pressure build up, repeat at rate B... repeat rate C etc... with all that info they can believe it or not estimate distance to edge of reservoir, record distance to faults... fascinating stuff. We obviously have not achieved this yet but it is a major goal for oil exploration.

All this data is not to populate some excel spreadsheet, it is to go into the reservoir engineers modelling software which is tweaked and fudged based on our data, seismic and nearby wells data so it requires some brainy folk and in my experience the smartest folk I have ever met. This re assessment of oil volumes (what us PI's care about) will take time.

Will the APDC (Alaska Peregrine Development Company) step up and fund next steps? i'm thinking/hoping yes, they were brave enough previously and no doubt will want a piece of the pie, who would just stand back and say 'we were close' Obviously just my thoughts and i'm not business savvy like many on here to whom i'm thankful.