Ann: Kangaroo-2 Progress Report No 4, page-95

Fvolvo,

2C could b north of 200, apply 65% net to KAR frm that by my estimates. It's a straight fwd block ie 10sqkm prospect & one can break it into 4-5 sub-blocks to firm up the volumetrics in each sub-block. We know the net oilpay at K2 is 135m & 25m at K1. Distance is 4.1 kms betwn them & then there's the slope/dip factor.

They may opt to drill 1 more well, just to suss out the Cretaceous sands water contact, inbetwn these two & 1 more well to the south of K2 to see how thick the net oilpay is in that direction. We don't have actual data other then 3Dseismics. Don't have to flow test these 2 additional wells & they can always use K#2 as a re-entry well in the future as its at the best spot.

I don't really care abt the gascap, seen enough oilfields flow without one with infill drilling & reinjectors in varying porosity reservoirs (12-28) & API (25-60). Leave it upto KAR & Worley to work it out.

Nxt month will b very interesting. K2 should have a combined flow of apprx 8-10k bopd in my view should they test all 3 zones separately & report the figures accordingly.

Remember, they flwd a steady 4675 bpd frm a 9m interval at Maruja-1. At K2, the JV has a thicker net oilpay, so more room to pick the best possible test intervals. Will swingby mid-Dec once more info is released. Not sure how their SP or valuations will trend. I hope it stays steady, what more do they need to tell the mkt simply baffles me. cheers.