the rumsfeld defence

I thought it might be time to revisit the last activities update to remind myself what we are waiting for – and perhaps how long it might be. In the words of the great, dishonourable Mr Rumsfeld I feel we need to sort out the known knowns from the unknown knowns and of course the known and unknown unknowns!!!

In doing so I am of the opinion that VIL is on the cusp of becoming a great investment. It’s just that in the meantime we wait and languish, most of us on potentially big losses, but also on POTENTIALLY BIG GAINS!!!!

Let’s just rehash why we bought VIL.

The main points are that at SD a testing program is presently being completed by the OPERATOR and it is anticipated it will be undertaken prior to the end of February. We have to WAIT for ADX to tell us when testing will occur. No amount of trying to bully management into an update will speed up this process as far as I can see. ADX are the ones taking their sweet ass time. BUT it is anticipated it will be undertaken prior to the end of February.

At FP we are waiting for info on the final review of the sidetrack prospect to be completed in early February. OK so this is the only piece of info we can chase them up on but in any case the forward plan is: Drill Sidetrack TGR #1 expected in second quarter 2012

Other plays - Verus are waiting for a review of the potential of the Bongo play. OK we can chase them up on this TOO but at the moment it is a sideshow to SD and FP. Bullseye will not be revisited until the middle of the year when J1 and J2 are expected to run out.

THE BIG PLAY: SIDI DHAHER
Encountered several potentially productive formations during drilling;
Reservoir pressure and fluid samples obtained during the electric line logging operations confirmed the presence of oil in the deeper Bireno formation.
Analysis of logs, mud cuttings, formation pressure & fluid samples confirmed a thick, porous and permeable Bireno reservoir with an oil column estimated at 30m.
The Bireno formation in several nearby fields has proven to be very productive.
Mean contingent reserve estimate of 51 mmbbls of oil.
A testing program is presently being completed by the Operator and it is anticipated it will be undertaken prior to the end of February.

Outlook over the next quarter
• Testing of Sidi Dhaher and subject to successful testing an extended well test.
• Ongoing Geological and Geophysical review of prospects on Chorbane Block

THE OLD PLAY: FAUSSE POINT
Verus have upgraded both the understanding of the prospect as well as increasing the potential reserves.
The Verus technical team have completed all the seismic reprocessing and imaging.
Additional information such as local geological data and analogue well data has been recently obtained
Recent information of a nearby analogue well indicates multiple sands more than 100ft thick and the well flow tested at 158 barrels of oil & 6.4 million cubic feet of gas per day.
The primary interval has been mapped and initial evaluation indicates a potential recoverable reserve of up to 21 billion cubic ft of gas (3.8 million barrels of oil equivalent)
There are additional prospective sands indicated above and below the primary target. Importantly this new prospect sits below the previously drilled targets.

Forward Plan
• Final review of sidetrack prospect to be completed in early February.
• Preparation of drilling trajectories, drilling program, sidetrack AFE, sourcing of drilling contractor and services.
• Permitting and preparation to sidetrack.
• Drill Sidetrack TGR #1 expected in second quarter 2012.