Ann: Second Eagle Ford Well Testing Begins , page-7

Hi Robbo the geology concepts used in the exploration by TXN and QPN are very different.

QPN was looking for conventional gas fields in salt traps whereas TXN major play the Eagle Ford Shale is an unconventional shale/ carbonate play.

Shale plays have similar characteristics to CBM plays so if you have had any experience with QGC,AOE, SHG, BOW you will have some idea.

These plays are unique in the O&G industry in that drilling risk is much much lower due to the shale fields being very large (EFS is over 150 miles long and 30 miles wide) and changes in the fields tend to be in the kilometre scale.

TXN imho has quite a low risk of well failure due to the fact that wells have already been drilled around the permit which confirms that the leases are in the EFS trend. In some ways it is like all the wells are part of a appraisal plan not an exploration plan.

The Olmos field is also in the appraisal stage of development. It is a conventional field so there will continue to be risks as to where the traps/seals end ect but the risks are much lower than wildcat.

Further down the track other wells such as Cooloongatta and Scarborough are wild cat wells which have risk levels similar to QPN but at this time the SP has attached no implied value to these wells.

Hope this helps

cheers Icharus