Operations since last reportOperations since the last report...

Operations since last report
Operations since the last report included the drilling of 12 ¼ inch hole to a depth of 340m, the running
and cementing of 9 ⅝ inch casing as well as drilling to the current depth of 1123m in 8 ½ inch hole.
The well is progressing in accordance with the drilling program and schedule.
Observations and results
Shallow gas shows have been encountered from approximately 175m onwards and has led to a
requirement to degas the well which resulted in a small delay during the 9 ⅝ inch casing running and
cementing operations. These gas shows are common in nearby oil and gas fields and are caused by
small structural - stratigraphic traps formed by thin interbedded sands and silt stones within the
predominantly shale section of the imbricated Miocene Puchkirchner formations. Further strong gas
shows caused by relatively small, interpreted gas traps are expected to be intersected by the well
until the main oil target is encountered at the top of the Eocene sandstone reservoirs