ann: td reached

Atzam #5 Well Successfully Drilled To TD –Testing Program Set To Commence

? Atzam #5 well has been successfully drilled to its planned total depth of 4,025 feet, intersecting
the lower C18, C19 and Coban D reservoir sections on structure
? Material oil and gas shows continually generated at surface from drilling final carbonate
sections (see below), despite heavy mud weight used (9.5lbs) to maintain good hole condition
? Atzam #5 well is confirmed at TD structurally high to Atzam #4 (~66 feet) and Atzam #2 (~320
feet)
? Atzam #2 recorded initial flow rates in excess of 1,000 bopd from the primary C18, C19 and
Coban D carbonate sections
? Electric logging suite to be run from 3,600 feet to 4,025 feet to evaluate primary carbonate
reservoir sections - due to commence within 24 hours
? Flow testing program to start immediately following Schlumberger analysis on full suite of
electric logs across all carbonate reservoir sections identified in Atzam #5
? Results of Schlumberger detailed logging evaluation expected within 7 days
? Interpretation by the Operator of initial logs run down to upper C18 carbonate sections at 3,600
feet indicated multiple potential pay zones starting from the C13 carbonates
? Logging indicates highly fractured potential reservoir sections- fracturing in carbonates
normally provides assistance to flow rates