Ann: Operations Update - Project Icewine, page-141

I find it interesting, for want of a better word, that theyd take up that western acreage now.

In the context of the annmnt:

Icewine#2 Operations Update

The Icewine#2 well was shut-in on 10th July for a six week period to allow for imbibition and pressure build up to occur within the HRZ shale. Flow testing is scheduled to re-commence week beginning 21st August.

Additional technical analyses are ongoing and will be communicated once complete.

Lease Position Expanded

The Project Icewine Joint Venture was awarded 109,817 gross acres on 7th July as part of a broader package of successful bids submitted in the December 2016 North Slope lease sale. Of these 109,817 gross acres, 76,996 gross acres (48,864 net to 88E) were recently taken up and paid for.

Given the ongoing testing of Icewine#2, a decision was made to accept award on acreage where the coincidence of prospectivity for both the conventional and unconventional was greatest.

Its not as if someone else can put their foot on this acreage.

I'm tending to be with RAFs sense of smell on this one re the western acreage irrespective of Ice 2V.

DWs exceptionally good at keeping things moving and this may either just keep things moving or could result in some of that oft mentioned cream coming to the top.

Imo the markets having a punt on this all happening not to mention getting close to opening up Ice 2V again.

Ill be looking forward to what they have to say re the technical work done on Ice 2V to date and what they believe is happening down there with any luck, with big qualifiers of course. PB must have some idea of whats the go.

d.