bear trap, page-21

PB1 and PB2 are deep vertical exploration wells. The casing design, size and location was meant for a deep well, not a shallow production well needed for Ismay gas production. The casing shoe is in the wrong place to seal off water from adjacent aquifers. It is important to note that the water entering PB1 and PB2 during flow tests came NOT from the Ismay gas formation, but from areas adjacent (next) to the Ismay formation. The Ismay formation only contains gas.

PB3 is designed as a shallow well for Ismay crestal production. Because it is not a deep well like PB1 and PB2, the casing is smaller and the well is specifically engineered to place the casing shoe and barrier in the correct place so that water from adjacent saline aquifers will not penetrate the Ismay formation and thus the production well.

If PB3 design is successful, the company will recomplete PB1 and PB2 by drilling a directional well off the side of the current PB1 and PB2 wells at a determined depth and then into the Ismay formation in the same way as PB3 is completed. The casing and shoe position will be the same as PB3 thus PB1 and PB2 will be able to tap the Ismay formation without water entering the new horizontal well design. The branching off of the new well completion from the existing PB1 and PB2 well is commenced above the point where the current water is entering thus the existing issues with water are not problematic.

In order words, they start branching a new well off the side of the existing PB1 and PB2 wells at an angle like PB3 above the current water issues, and then complete this new horizontal well in a way that water won't be an issue.