Ann: Operations Update, page-73

As is evident, outstanding news. Very pure methane, very small, if any, CO2 or N2, just minor contaminants, possibly inerts. Second rig is what everyone was expecting with the relentless drilling program for the year, good news as they will be able to drill the plan.

The failed test I think is in line with the highly fractured coals. The intent was to isolate particular seams, essentially with perforated pipe, with a packer at the top and one at the bottom. I would think that they had some problems with gettin good seals across the packers due to the fractured rocks, excellent, fractures are good, they provide the permeability.

The fractured rock can also and probably did, cause drilling problems, stuck pipe etc, hence it took a while for this report to come out. They will have learned from this and the drilling programs to be adjusted accordingly to minimize the risks. But then again, sh*t happens but drillers love this.