The following is a correction to the recent Project Updates. The SRH#3 Tank Battery production rates are currently averaging 51 bbls of oil per day and 637 mcf of gas per day, not 35bbls of oil and 100 mcf gas as reported on page 12. On a barrel of oil equivalent (BOE) basis, the SRH #3 tank battery is producing approximately 114 BOE per day. The production trends on page 3 are reported correctly. The SRH#3 Tank Battery consists of the SRH #2 & the SRH #3 wells. The SRH #2 well, although producing, is still to complete its fracture stimulation program. The produced gas at our Permian Basin project is high BTU (British Thermal Unit) with 1 mcf of wellhead gas containing 1.4MMBTU’s. The high caloric value is due to the presence of Natural Gas liquids (NGLs). NGL composition includes ethane, propane, butanes, natural gasoline, etc. For every 1,000 mcf of wellhead has delivered between 110 and 180 bbls of NGL’s can be extracted. The gross sales price of the liquid rich gas produces is currently approximately USD 7 per mcf. We are currently planning to complete the fracture stimulation of the SRH 1 and SRH #2 wells in July and put them both on full production as out testing programs have ended. The SRH #4 well is still producing frac fluids with oil break thru already started. On April 16 2012, the Company issued an ASX release including a net monthly production chart. The Project Updates announcement released on 12 May 2012 included an updated monthly production chart, however subsequent to the April announcement the Company has determined that the conversion factor for the gas produced at the Permian Basin project should 1: 10 rather than the industry standard of 1:6. This recalculation is reflected in the updated net monthly production graph.
On behalf of the Board of Directors
Steve Graves – Executive Chairman
GGP Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
