Ann: West Erregulla Update, page-14

...don't rubbish the technical spiel on sedimentology...it just tells you they've read the logs and the Wagina reservoir is complex...it also tells you there will be good reservoir sands, in amongst everything else - as it to be expected in these types of depositional environments everywhere they have been found. They've not said anything about fracture density. They have the logs though, and they can take their time to look at it and work it out.

The most important news to come out of this appears to be the geometry of the seismic amplitude "bloom" in the Basal Wagina in relation to existing and proposed well locations. The centre of this target appears to be southwest even of WE-2, and it does not appear to be directly superimposed over the KHC target. So to me this is saying were not going to see the Wagina upside until a hole gets drilled in the guts of the target...next drilling campaign...or maybe during rilling of the SE-1 well, where the seismic shows stacked Wagina/KHC reservoirs. More than happy to wait for this surprise.