Ann: STX: West Erregulla 2 Update - Kingia Encountered, page-2

WE-2 is interpreted to have reached the upper Kingia sandstone
Drilling breaks with associated elevated mud gas observed whilst drilling through Kingia

4,800m down.

"During the drilling of this section ROP reduced and ultimately thedrilling assembly was required to be changed out and pulled outof hole. Currently, this is ongoing in order to install a new bit andmotor before drilling through the lower half off the Kingia andthen onto the Bit Basher shale and High Cliff sandstone."