drilling program update for georgina basin

Delays in drilling occurred when the bit tracked into the underlying Thorntonian Limestone
Formation after encountering an unexpected fault. Every effort was made to redirect the bit
upwards back into the Lower Arthur Creek "Hot Shale", but the bends in the hole became
too severe for an effective future well completion. The new horizontal section kicked off
along the regional dip established by the plugged back portion of the well and was
successfully steered through the Lower Arthur Creek "Hot Shale". Total gas recorded in
Baldwin-2Hst1 averaged 240 units over the entire horizontal section, commonly peaking
above 1,000 units with maximum recorded values over 2,500 units. The gas recorded
contained heavier hydrocarbon fractions up to pentane ("C5") over much of the horizontal
section. Conventional gas ratio analysis indicates very wet gas to oil for the most of the well
with occasional definite oil signatures in places. However, this interpretation may be biased
to gas due to the nature of the reservoir being intersected.