500mMD…“Testing of the Oil Intervals in Alameda-1The Alameda-1...

500mMD…

“Testing of the Oil Intervals in Alameda-1The Alameda-1 exploration well has thus far identified two significant intervals of potential oil and gas pay, which are proposed to be tested in the following manner and sequence.The preliminary evaluation of the first interval that occurred in the Upper Sheet indicated a potential net oil and gas of at least 48m across 11 zones within a 415m gross section1. The second interval occurred in the N structure just drilled, indicating a potential gross reservoir interval of possibly as much as 500mMD (450mTVD)2 subject to the results of the logging run currently being undertaken.Once the Alameda-1 exploration well has reached its total depth the following actions will be taken:1. Run logs over the interval of the Alameda structure;2. Flow test any oil interval that may be encountered in the Alameda Structure (if applicable and if warranted); and,3. Flow test the oil interval in the N Structure.The testing of the oil interval in the Upper Sheet would require a new shallow appraisal well to be drilled, potentially from the Alameda-1 well pad. Planning and design work for this appraisal well is advanced in case the joint operation partners wish to drill this well immediately following the conclusion of the Zapato-1 exploration well. A decision on when to test this interval in the Upper Sheet will likely be influenced by the results of the prior flow test in the N Structure (and, we hope, possibly also the Alameda and Zapato Structures) as well as by the completion of the resource assessment of oil contained in the Upper Sheet which is well advanced”