Ann: Taroom Trough Coals Flowed for First Time, page-417

I am not expecting a severe drop in the share price when the well test results appear because we have been informed that the recent stabilized flow rate for the Lorelle reservoir has already achieved the required threshold or breakeven point for the well to be economic (2.5 mmscf/d). That means an additional flow contribution due to the 5 zones above the Lorelle will enhance the commerciality, but isn't critical for achieving project approval.

In addition, the seismic data suggest the Lorelle extends down dip in an easterly/south-easterly direction and thickens as it gets deeper. So, in all probability, it is not likely to be a limited size gas reservoir (based on the limited information I have, there has been no mention of a seismic flat spot caused by the presence of an oil-water contact).

I believe as an absolute minimum (my opinion only based on limited info), DD-2 should produce at 5 mmscf/d, and likely a lot higher.

All the best,