Ann: Hydrocarbon gas recovered & evaluation program forward plan, page-320

I listened to the webinar call. See below my notes.

Several key points:

- a gas discovery (under ASX rules) has been made as gas hydrocarbons have been recovered to surface from Pebbly Arkose
- Pebbly Arkose needs to be tested in other parts of the Mukuyu structure with future appraisal wells
- a water sample was recovered to surface from Pebbly Arkose
- encountered an over pressured zone in the deeper Lower Angwa which meant they had to increase the mudweight for safety reasons to prevent a blowout
- sidetrack plan:
- sidetrack drilling to start later this week
- TD will be in Upper Angwa / Top Lower Angwa zone ie. avoiding the overpressure zone in deeper Lower Angwa which caused problems
- further adjustments will be made to the mud weight as they now have better information
- priority will be given to MDT sampling in sidetrack to collect fluid samples vs. running other logs
- fully funded for side track
- side track will be flow tested next year
- option to drill 6" hole to test deeper Lower Angwa at M2 is still on the table
- final results in December

My interp:

The forward plan looks fine from my perspective. If they are avoiding this overpressure zone in the deeper Lower Angwa they will be able to keep the mudweight down and will more easily be able to recover fluid samples from Upper Angwa / Top Lower Angwa. So final results in December on the back of Upper Angwa/Lower Angwa fluid samples looks very likely imho.