eme agm in london on 23 may 2007

Note from ADVFN & ASF:-

"SL deep was fracced at upper end of the deep zone (sands) and still no flow of any consequence due to poor permeability. Frank remains keen on the deep zone and does not preclude a return in another drill. EME costs were just under $1M (He confirmed to me that we still have £4.5M in the bank)
For the record SL is contained within “block B”. I shall return to “blocks” later.
The secondaries are in chalk and limestone and had “good” shows. ? 92ft. “may have liquids”
Testing starting “this week” and early results will take 2 weeks approx. “Watch out for announcements”
“Great news and extremely exciting”
Texas crude are excellent partners

“Blocks” – are not geographically clearly defined blocks of acreage, but should (I think) be considered more as “packages” bundled by their land agents
Block A contains the “very well known anonymous American multination” who have a flowing well including liquids. We are not partners in this well but have 7.5% (for 12.5% costs) of the remainder. Texas Crude are partners along with the major multinational (? Expected to declare this find within 2 months but must remain confidential until then).
A further adjacent well in which we are partnered spuds shortly
EME interest in Block A is for the shallows only (cretaceous carbonates and above) at this time. The multinational appears to have limited acreage within A and confined to their existing well.
The wells are drilled with a horizontal and costs are approx. $5M each.

Block B. We have agreed an additional 20% costs for 12% taking our total (excluding SL) to 18%. This includes all depths (remember Frank remains enthused by the deeper zones as well). See also SL above.
Excellent local infra stucture, but initial liquids may first be tankered."