The Company advises that Electric Logs have indicated net pay of...

The Company advises that Electric Logs have indicated net pay of 31ft of sand in over 3 separate intervals in the Cris R II, unfortunately the logging tool could not reach bottom of the hole to complete logging over the Cris R III. The well is being conditioned to re-run triple combo Electric Logs (which will also provide more reliable pressure data over the Cris R II).
The net pay in the Cris R II is consistent with expectations and net pay in the downdip producer well.
The Desiree Prospect covers an area of 140 acres in Assumption Parish, Louisiana and is being operated by a private US oil and gas company. The operator is the same partner that is managing the Napoleonville Salt Dome project.
This well will be drilled to a total depth of 12,550ft. The Company’s net share of dry hole costs is estimated at ~US$1.1m (total drilling costs are US$3.6m). The Primary objectives are the Cris R II and III which have the potential for 600,000 - 800,000 bbls of oil and secondary objectives in the Cris R IV and V (200,000 bbls oil and 15-30 BCF gas).
The well is updip and 270ft from the largest producer in the Napoleonville Field (2.3 MMBO – Cris R II & III) which was abandoned at low oil prices with split casing while still producing 100 bbls per day (collectively from Cris R II and III). If successful, the project offers long life reserves, with IP’s of 400-800 bbls per day and will have a substantial positive cash flow and reserve impact on the Company.
This is a proven productive fault block with a strong water drive in the primary objectives. The prospect has a significant oil column and long life production potential and was generated from 3D seismic and subsurface support for updip attic structure.