ENB Interview with AP 12/12/21 - Review of

Hi All,

Just posting my comments on the ENB Interview with AP on 12/12/21 (Slide 1). In some instances I've included my own comments [.....] to add what IMO is the applicable context and on occasions I may not have interpreted AP "verbatim".

Key points (IMO):
1. Upper Section oil shows have opened up a "new" play type for Block 9 - very significant for further exploration in Block

2. Both gas & oil shows from the higher pressured section to date (would expect gas associated with the oil to flow preferentially to oil i.e. when taking into account the other field's in northern Cuba this is still V likely to be an oil charged structure) - I believe [including material previously released] that this is likely solely the U1 objective and not the N objective being intersected higher than expected. If it is just from the U1 objective then potentially significant as this objective has a lot higher pressure than was previously thought - on success = higher flow rates & V likely better Recovery Factors.

3. On Zapato-1, AP's comments implied to me that a significant objective in drilling Zapato-1 is to investigate if this structure "is the source" for the light oil produced from the Montembo Field. This is significant as a light oil discovery would obviously be significantly more valuable than the usual heavier oil discovered in northern Cuba. I've included in Slide 2 an annotated schematic of what IMO AP is referring to re " Could Zapato structure be the source for lighter oil in the Montembo Field ?.

Geologically the Zapoto structure would not be full of oil source rock - we are hoping its a reservoir. The source for the oil would come from oil source rocks i.e. marine shales etc. deeper in the geological section and have migrated into (hopefully) the Zapato structure. Once the structure is full-to-spill then migrating oil will migrate around the structure's critical spill points(s) and up higher through the geological section; where, if further reservoir rocks within a structural or stratigraphic trap exist it can be trapped i.e. potentially the Montembo Field.

Hope this helps
Cheers
VOGC