Ann: Alameda-1 intersects 670 metres of oil shows, page-94

Hi All,

My review of today's announcement is summarised below with a few slides following for explanation.

IMO an excellent result so far for the U1 objective and from the information so far provided IMO we have a further likely secondary oil accumulation immediately above the U1 objective.

One of the key issues is to interpret today's results (and all subsequent results) within the context of the information we already have on the U1 objective from existing close by well data - especially Marti-2 - and mapping.

Cheers
VOGC

A few key points:

"oil shows occurred continuously"
- IMO this is what would be expected fromMati-2's well log & the seismic section - THUS,SUPPORTS THAT THE PROGNOSED U1 (Amistad)TRAP EXISTS AS MAPPED AND SUPPORTS U1'sPRE DRILL RESOURCE ESTIMATE.
- Also, a MATERIAL resourcepotentially EXISTS for section above the U1 (Amistad) trap.

"This includes the interval of the anticipated “U1” secondary objective, through which excellent hydrocarbon shows were reported."
- good potential for adequate porosity & permeability & STRONG STATEMENT FROM MANAGEMENT

"At this stage, the significance of these very encouraging shows is uncertain, but they will be evaluated when logs become available at the conclusion of the current hole section."
- an expected cautious statement from management
- BUT, close by offset well Marti-2 HAS LOG DATA WHICH ASSISTED DEFINING THERESERVOIR AND SEAL POTENTIAL FOR THE U1OBJECTIVEi.e. IMO THE OIL SHOWS OVER THE INTERVAL TO DATE CONFIRMS WHATWAS SEEN IN MARTI-2 - THUS, WOULD THINK IT EXTREMELYLIKELY THAT LOGS TO BE ACQUIRED OVER THE U1 SECTION - WILL SUBSTANTIATE WHAT WASPROGNOSED FOR THE U1's RESERVOIR OBJECTIVE PRE DRILL

"Melbana’s onsite geologist describes the shows as good"
- would expect MAY to be using Geos experienced in this region - who would have seen a range of oil shows from these depths & thus are NOT being overly optimistic

"The oil, which appears to be lighter than that normally seen at this depth"
- very positive for a higher Recovery Factor