Drilling / Estimate Questions, page-2

Volumetrics in oil and gas is a tough thing to exact hence the degrees of certainties with reserves. At the first point one must realise in oil and gas is the size of the structure, the likelihood of charge and the likelihood of reservoir.

We then drill. The results of this is then fed back into the seismic to understand volumetrically how much charged reservoir sits with in the closure and whether the interpreted closure is consistent with the result. Hence the field size changes as the seismic has to be retested to the result, this can take a few months and hence a side track of a well is needed to give greater certainty to calibrate seismic velocity to the strata (reservoir unit and capping unit to the oil/gas water contact). Field size changes are common as results rarely meet pre drill expectations.

The PS3 well has been designed to handle the extreme pressure at this discovery, we need to test a further 100-200m of potential reservoir. The shallower oil/gas potential might be encountered but I assume it's not as prospective in size. These oil pools might be 5-10mmbo each, maybe more but are constrained by the structuring with the faults. These could be a produced later if capacity is available in a gas development