Ann: St Landry Canyon Project - Drilling Update , page-15

re: Ann: St Landry Canyon Project - Drilling ... Absolutely nothing can be derived from this announcement. A decision to extend the TD can be taken as a positive (they found something and have not hit the oil/gas-water contact) or negative (found nothing of commercial amount to date but possibly sufficient amount to warrant extending the well depth). Just bear in mind that they are not the operator, so they can only disclose info that is deem relevant and not speculative. My guess is that they will provide all the necessary details once we have hit TD and they have some preliminary data from the deepened well, with some definitive info on whether it is dry hole or they have hit some gas that's worth pursuing.

My gut feel is that it's probably a sub-commercial discovery. If they hit nothing at all, they wouldn't have bothered extending the TD. Bearing in mind that to calibrate their seismic model, it is far cheaper to extend the well than to drill a new well. So they have probably encountered a far deeper reservoir formation than expected, and have decided to extend the well depth to collect the geological data - which will then be incorporated back into their seismic model to better define it for analysis and determination of future course of actions.

Again, all conjecture for now. Let's see what the well brings in a couple of weeks time.

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