a very enviable position

The Hensarling #1 well (Desiree Field) has been placed on Jet Pump and is presently producing at a rate of 390 bbls per day. The operator anticipates the well will sustain this rate and expects production rates between 350 to 400 bbls per day through a 25/64 inch choke.

? Post drill, gross reserves are estimated to be 952,000 bbls oil and 0.4 BCFG in the Cris R II & III. The well is producing from the thicker Cris R III following
which the overlying Cris R II will be completed for production.

Managing Director, Mark Freeman, commented, “The jet pump has added security to the sustainability of flow rates. Production of oil from Desiree Field provides the
Company with additional cashflow estimated at US$250,000 - $285,000 per month (US$3-$3.4 million per year). When added to our existing revenue from D&L#3 and Abita, the Company’s total income from production is expected to be over
$400,000 per month (~$4.9m per year) which is a very enviable position for a Company with a market capitalisation of $4.5m.”