Ann: Drilling update at Alameda-1 - Significant Oil Interval, page-115

Hydrostatic pressure (HP) exerted by the drilling fluid of 1.73sg or conversion to ppg = 1.73sg x 8.33 = 14.4109ppg (MW).

HP of drilling fluid = section TVD x MW x 0.052 = 2970m x 3.281 x 0.052 x 14.4109 = 7,300 psi.

Normally pressured reservoirs are assumed to have hydrostatic gradient so the reservoir pressure with hydrostatic gradient =Pore Pressure (PP) = 2970m x 3.281 x 0.433 (water gradient) = 4,220psi

With information provided the reservoir is overpressured by 7,300psi - 4220psi = 3,080psi (this is big hence huge buys this afternoon).

I am Drilling Engineer with 10+ years experience in O&G industry, holding Masters degree in Petroleum Engineering.

These are only my hand calculations and should not be used as financial advise or decision to buy or sell MAY shares.

DYOR, GLTAH...