Ann: Africa Independents Conference , page-4

This is a quote from a news letter issue by CVN which refers to Pheonix but true generally on all drilling.

"At the conclusion of an exploration well it is common practice to plug the well, to prevent hydrocarbons escaping to surface, and abandon the well as it may not be ideal from a development viewpoint. Again the exploration well is designed to prove up the presence and type of moveable hydrocarbons, and the location of exploration wells are often not ideal for future development."

In particular
"At the conclusion of an exploration well it is common practice to plug the well"

and
"and the location of exploration wells are often not ideal for future development."

Sunbird was planned to prove up the area, which it has done.
As such, the location was chosen to favour exploration not production. So how can it be commercial if it was never intended to be a commercial well.

If they are referring to the fact that the area is not commercial, then why this comment:
"Commercial-sized oil prospects can be pursued now that data on source rocks, timing, etc. has been recovered."

Play on words so as not to reveal the real situation and maintain an edge on business negotiations, that's what I think.

JIMHO. Happy to be corrected.

KKW