comments by buy md at oil conference re kn1

Good Evening

Took some notes at the O&G conference BUY presented at today........

1.There may not be a need to drill a second well into KN given the quality of the reservoir. The JV may be able to drain the entire KN filed from the KN-1 well. However, further testing and analysis will be required to confirm this view.

2. Excellent pressure within the KN structure. Given it is a separate field to Songo Songo it has not been subject to pressure decline over time due to production.

2.KN field size could potentially add between 3-4 mmboe to BUY's reserves however there were no promises.

3.KN testing to be conducted at the end of May.

4.1-2 exploration wells to be drilled in early 2009 targeting 500bcf to 1tcf (depends on need for appraisal well(s) into KN structure).

5. Cash flow expected from KN-1 in Q4 2008.


I also picked up some excellent depth maps of the Songo Songo/Kiliwani area showing the structural close of KN vs Songo. I'll try to scan them and post the pics. Keep an eye on BUY ann. as they may lodge the presentation. However a couple of the schematics i picked up from the BUY booth were not in the presentation.



Marxist