Ann: Operations Update, page-2

The Joint Venture has agreed that the first well in the drilling program will be Ungani 6 with the design of the well currently under detailed review. The well will be drilled in either a high angle deviated or a horizontal configuration from an already cleared location beside the Ungani Production Facility. The second well in the program has been agreed by the joint venture as a wildcat exploration well on the regionally significant Yakka Munga structure. Yakka Munga 1 will be drilled to a total depth of some 2,100 metres with its principal objectives being the Reeves Formation sandstones which are oil bearing in the Ungani Far West 1 well. The Reeves Formation is an emerging play in the Canning Basin and the Reeves section in the Yakka Munga 1 well is 2 Contact us T +61 8 9215 1800 | E [email protected] | PO Box 1903, West Perth WA 6872 | ABN 71 130 651 437 prognosed to be over 700 metres thick, with a substantial part of the section never previously penetrated in the Basin. The well following Yakka Munga 1 is still subject to joint venture agreement and the results of Ungani 6, but is planned to be the Ungani 7 production well. The configuration of this well is also subject to further analysis, and review of the results from the Ungani 6 well.

C'mon YM!