Ann: Alameda-1 Hydrocarbon influx into wellbore, page-247

Rolf there was something like 2.8 billion barrels of oil in place across the three prospects so the areal extent is large and or the areal extent plus depth of oil is large.

Think volume = length x width x depth that gives you the oil in place which then you get a recoverable oil figure from that.

From their wording they seem to be continually surprised by how deep the oil shows have been which tends to suggest the best estimate of recoverable oil of 141 million barrels of oil is light on. For these reasons:

1. Upper sheet play was missed entirely so we are already going to be more than 141m as rather than 3 layers of oil we have 4.

2. Recovery Factor or 5% which is where you get 141m barrels out of 2.8 billion is a Cuban standard based on heavy oil and poor fracturing. In the N zone we have noted good fracturing of the source rock and high pressure so potentially the recovery factor is at least 10%. A 10% recovery factor will double the recoverable oil from 141 to 282m barrels.

3. As mentioned by management it sounds like most structures are containing more oil than anticipated particularly the n zone where we were down dip of the optimal / highest part so that 2.8 billion barrels of oil in place could be light on as well plus the upper sheet assessment needs to be added on. If it's 4 billion oil in place and recovery factor is 10% then it's 400m barrels of oil rather than 141 m barrels.

VOGC values the original amount as worth about 20-30 cents per share to MAY. So if it's double or more then do the maths 40-60 cents etcetera. Hopefully you can see why people are excited and it makes the rest of block 9 more speculative and valuable!