Ann: Zapato-1ST Drilling Update and Option Expiry Reminder, page-16

Looks like drilling has been slower then expected. I am of the opinion that the lack of wording on oil shows after the initial oil in shakers comment combined with logging runs might indicate they have a zone of interest. This volcanics section is an equivalent to the upper sheet at this location and was probably considered a small marginal play. I think we might have another large potential resource if oil is throughout this section.

I think that the geo team has underestimated the fractured nature of reservoirs in this fold/thrust belt environment. Combined with the world class source rock and with in the right oil kitchen window has the ingredients for a significant oil province.