Ann: Weekly Drilling Update - Red Gully North-1, page-3

Not a duster yippy

Progress

The RGN-1 well has been drilled to a final total depth (TD) of 4410m.

Since last reported on 8 December, 920m of new 8 1⁄2” hole has been drilled to a total depth of 4410m. Indications of hydrocarbons were recorded while drilling (mudlogs and logging while drilling) and included elevated gas readings over multiple sands within the well’s primary objective interval, the Jurassic aged Cattamarra Coal Measure. These preliminary indications are considered encouraging, based on the drilling data currently available. Their significance will now be evaluated by running a full suite of wireline logs, in the 8 1⁄2” hole section, over all zones of interest.

Participants

Empire Oil & Gas 100%.

Forward Plan/Next Steps

Run a full suite of wireline logs and evaluate, prior to making a decision to run and cement in the hole the 7” casing to TD. If a decision is made to run and cement 7” casing in the well, RGN-1 will then be suspended and Enerdrill Rig 3 released, prior to planning a future completion and test program for the well utilising a smaller and less expensive rig.