Ann: Drilling Update 2 - Lake Alice Gas Unit 1 We, page-7

re: Ann: Drilling Update 2 - Lake Alice Gas U... I reckon the market is still vey cautious of risky investments, but this is no risk. They may see LAGU#1 as a wildcat, but it is more like a development well. The hard yards were done at RJ Hunter and lessons learned. RJ Hunter had the goods but the casing collapse and fresh water acquifier made re-entry there unviable. Moving further off to Lagu#1 location with the aid of 3D sysmic was the right thing to do. Everything is as expected with this well. The Yegua sands have been encountered exactly per calculated prediction. Shallow sands gas readings were high and Yegua sands yielded gas immediately on penetration. The log reports will show excellent gas in both zones and very good gas/condensate ratio.
Next week when the drilling update is released, the market cannot fail to take notice.