Ann: Mukuyu 1 & Sidetrack Well Results, Rig Secured for 12 months, page-155

My very quick takeaways on the update webinar

1. Very comprehensive update and lengthy Q&A. Scoy did a great job.
2. Although tool failure prevented us getting a fluid sample, an enormous amount of data has been collected since last report and is being analyzed. On this aspect everything continues to look very good based on raw data. Scott leans towards drilling Muk 2 next as opposed to Baobab initially, but decision will rest with the team. Sounds good to me... a bird in the hand is worth two in the bush.
We have enough info on Muk 1 so far to point to a monster so lets get that proved-up first ( my comment)
3. Drill team have learnt a lot from this first exploratory drilling into the "unknown". Now they know a lot more and can optimize drill parameters in the next round across a range of parameters ( just for example, will switch to synthetic mud rather than water based mud which likely has reacted with clays to cause well bore sidewall deterioration due clay expansion. Plus many other optimizations can be done now they have a clearer understanding of ground conditions at depth
4 The wireline cable snagging was clearly stated to be a differentiation issue ( that is, cable is forced into sidewall due unbalanced pressures) which is most likely due permeability variations in the rock which can only mean there is pressurized gas down there. Now that we know there is this risk, it can be prepared for in future drilling ( my comment)
5. Funds will be required going forward and a farm-in arrangement was said to be a possibility. Stated have already been approached before by several parties but now are in a better negotiating position given the information generated from this first well. I have topped up this morning.