Sasanof-1 Target Depth Week Stream, page-529

Hi LTD078,
Thanks. Sasanof is a difficult result to swallow, given the high quality of the subsurface data. The key prospect risk, western, up-dip, lateral seal to form the stratigraphic trap, clearly did not work - no lateral seal. As we know, Operator mentioned that the well was drilled on a 4-way dip closed part of the prospect which should have been successful given the success of the nearby Mentorc discovery; if indeed these was a 4-way dip closure. The subsurface team have their work cut out for themselves to understand why the well is a dry hole (dry hole analysis).

Given the Sasanof prospect covered much of the WA-519P permit, I would say that the JVP will relinquish the block. In my view, remaining prospectivty is minimal. Oil and gas exploration is such a high risk business.



Kind regards OldGeo