Ann: South Marsh Island 74 D-14 Progress Report, page-34

1. Thicker water wet sands at the top of the prospective interval, not within it.
2. Below the water wet sand the drill has encountered 35 gross feet of gross (TVD) sands with oil and gas shows along with high resistivity on the Logging While Drilling downhole tools; reservoir quality to be accessed when porosity tools are run at total depth.
3. The interval of 35 feet ties to a weak seismic amplitude anomaly
4. We will soon be drilling through the primary objective 13,500' TVD subsea sands (Tex X) which have a stronger seismic amplitude anomaly with good down dip conformance to depth structure.
5. It is important, in my view, that the drill has encountered oil and gas shows (35 feet gross) directly above the primary objective at 13,500'.
6. It is important in my view that the 35' TVD oil and gas shows were not above thicker water wet sands.
7. It is important in my view that the thicker water wet sands do not sit directly above the primary objective 13,500' sands.
8. Remember that the 13,500' sands have a stronger amplitude anomaly, not a weak amplitude anomaly that the 35 foot zone has.
9. I remain confident the 13,500' sand will deliver a good outcome/

Kind regards OldGeo