Ann: Philippines Drilling - Jacob-1 Update , page-6

Emailed Dennis after announcement this is what he said


Sue

No - we have lost mud into the formation into a permeable fracture system. It is good news that we have intersected a zone that has the ability to produce fluids but we are yet to determine whether it contains water or oil as the lost drilling mud has flushed everything back into the fracture system. – we may have to wait until we have completed the wireline logging at total depth to get a better idea. We still have a way to go.



Best regards,



Dennis.