amex 21/10 , page-14

Thanks Matsim,

Clearly Niobrara is more complex than some had anticipated. The Defender well (Hawk Springs) was associated with high resistivity readings (100+ ohms). As with Kora drill (Ophir - AGC) resisitivity does not directly translate into hydrocarbons BUT Niobrara A and B zones appear to be oil saturated - that should dispell any doubts about presence of hydrocarbons. Commerciality remains to be defined.

CHK with their gun-ho approach missed and are seemingly exiting Niobrara. AS detailed by Schlumberger, targetting the most productive zone(s) in unconventional oil reservoir (Niobrara) requires much PREparation prior to drilling. (See link for better understanding: http://www.slb.com/~/media/Files/dcs/case_studies/niobrara_formation_consulting_services_cs.ashx).

However, a little further west of DJ basin, Entek, another little explorer is reporting success in Green River Basin (ETE ASX release 21/10/2011).

Finally, for those seeking more in depth information or region's prospectivity:

http://pubs.usgs.gov/dds/dds-069/dds-069-p/REPORTS/69_P_CH_2.pdf

MS