Ann: Quarterly Report and Mining Notice , page-2

I notice there has been a change in priority following the flow testing of 330 PACA2.

I spoke to Phil Galloway about this last night.

The company has decided to drill the up dip appraisil well at 430 TATU2. This is going to give all shareholders more bang for their buck because the results are going to more high impact than the flow testing of the top section at 430 TATU1 location.

They have sorted out the drilling mud and the well flushing for flow testing following experience at TATU1 and also the knowledge gained from the multinationals next door in Block 429.

I think you will find that this is going to benefit all shareholders and option holders.

They are very excited about the up dip appraisil well.

Regards

Kojasper