update out

OPERATIONS UPDATE: SUGARLOAF AMI

Eureka is pleased to provide an update on production and operations at the Sugarloaf AMI in which Eureka has a 6.25% working interest.
PRODUCTION UPDATE
The following wells have been on production for a period of 30 days and Eureka is pleased to provide the market with production results.
Working Interest

Total Gas Production (mmscf)
Total Condensate Production (bbls)
Average Daily Equivalent Gas Rate (mmscfe/d)*
Average Daily Equivalent Oil Rate (boe/d)*
Urrutia -1H
6.25%
53
19,395
9.97
830
Kowalik -1R
7.16%
50
16,131
8.52
710

These wells continue to be produced on a small choke setting with limited declines of tubing head pressure and production rates being observed. Eureka will provide a further update on these wells once they reach the 60 day production milestone.
The following wells have been on production for a period of 60 days and Eureka can provide the market with the following production results.
Working Interest

Total Gas Production (mmscf)
Total Condensate Production (bbls)
Average Daily Equivalent Gas Rate (mmscfe/d)*
Average Daily Equivalent Oil Rate (boe/d)*
May -1H
6.25%
115
32,674
8.93
745
Luna -1H
6.25%
120
39,518
10.40
866

These wells continue to be produced on a small choke setting with limited declines of tubing head pressure and production rates being observed. Eureka will provide further production updates in its quarterly reports for these wells.

Direct Assets #1H (6.25% WI)
The remedial operations outlined in our last operational update have now been completed for this well and the final 3 fracture stimulation stages will shortly be carried out leading to a total of 12 stages on this well. Once the stimulation is completed the well will be cleaned up to sales and Eureka will provide an update to the market once stabilized production rates have been achieved.
Gilley #1H (6.25% WI)

Drilling operations on this well have been completed and the first 3 stages have been successfully stimulated. However a casing connection has failed and some remedial work will be required on this well before the