highlights from last presentation , page-13

Hi PCYC

IMO, NSE is not targeting any conventional targets at Nicolay-1 well location. This was stated on NSE's all anns. so far. If a conventional reservoir is hit that would be a bonus.

It should be clearly understood that NSE is exploring the unconventional shale targets in Goldwyer project. Nicolay-1 well is not a conventional drilling well.

Again, IMO, if anyone waits for hitting a conventional target at Nicolay-1 well location it could be his/her own disappointment as it is not going to happen by 90% chance. Yes, I give 10% chance (this is still very high) for hitting a conventional target, but no more. This could happen at around Nita formation as it is made of dolimites. (see core sample 11 on latest presentation)

A free flow is not expected from the Goldyer rocks either as they are known to be very tight. DFITs (Diagnostic Fracture Injection Tests) will be done at the end of this year and it will reveal the porosity and permeability much better than core lab results.

NSE will get the thickness, porosity and permeability (and other property values from the cores and logs) from the all 3 drilling locations for the prospective formations.

Then NSE will measure the area and the volume (in basic terms) and will be able to say the TCF value they can produce (or GIP- Gas in place) from the Goldwyer project.

I think people looking for conventional targets should check the targets of other stocks.

I would like to be wrong by hitting a conventional target tomorrow, or after. I believe NSE management would like the same thing too. You never know, this is O&G business. Anything can happen.