Ann: South Erregulla Update, page-5

Here we go... the most important and exciting well since West Erregulla 2 is on its way...

Here the first update in the "time v depth" graphic where we can track the progress of the South Erregulla drilling and the related announcements in one single and easy to understand picture.

I'm super excited and looking forward to the Wagina/Dongara and the ERCM/Kingia/HC sequences - but it might be worth to keep an eye on the Jurrasic Lesueur/Woodada sandstones as well (Lockyer Deep had elevated gas shows in these sandstones but not tested by ERL)...

As I said earlier, I made some assumptions in this graphic but I will update the doc with all actual figures and information's as soon as they are available:

* The actual well location might be slightly different
* It's a 3 stage well design similar to WE5
* I made assumptions re hole sizes and casing points (each marked with the blue line) but these are in line with WE5

Important, the local elevation is 264m above sea level. Strike reports well progress again in MDT, hence one must deduct 264m from the reported depth to compare such figures with depth measured in subsea (ss) figures.

A bit of a surprise is the revised depth for the top of the Kingia... The Kinga s much shallower expected compared to WE2 (which was my reference...). Hence, I have to rethink the top depth of the different formations in the picture... I will propose a new version soon...


Using the WE5 drilling as a reference for the time vs depth progress we can expect (first draft):

• Reaching first casing point on Wednesday, 19.1. and resume drilling of the intermediate well section on Sunday (23.1.) after 8 operational days
• Reaching second casing point (Kockatea Sh.) on 29.1. (14 operational days; Lesueur and Woodada intersected)
• Resume drilling the production section on 6.2. (23 operational days)
• Intersecting the Wagina on 10.2. (27 operational days)
• Intersecting the Kingia on 17.2. (35 operational days)
• Intersecting the High Cliff on 19.2. (37 operational days)
• TD on 20.2. (38 operational days)

...all indicative of course and we must adjust this schedule depending on the actual drilling progress and I must adjust the revised top depth of the different formations...

But anyway... we are ready to strike the South Erregulla gas volcano...