Kuparuk Pay Prospectivity ?, page-15

88E annmnt Chales

 In addition to the unconventional HRZ play, a number of conventional reservoir targets were tested by the drilling of the Icewine#1 well with the following key highlights:

o Excellent reservoir was encountered over the Kuparuk sands interval from 11,262’ – 11,320’ with elevated gas readings over a 58 foot gross interval – a detailed petrophysical log interpretation is underway

o Preliminary log interpretation of the Kuparuk sand interval indicates porosities of up to 15% and good permeability

o The reservoir quality in this Kuparuk sand interval is substantially higher than anticipated, which is EXTREMELY positive for deeper conventional prospectivity on the Project Icewine acreage

Take this last annmnt comment as you will BUT the intimation of the word "extremely is just too good to ignore

* They had gas kicks in this zone which indicates Hydrocarbons with gas.

* THEY ARE CURRENTLY DOING/COMPLETED(?) A DETAILED PETRO-PHYSICAL LOG of which

WE'VE HEARD NOTHING ABOUT ???

* porosity/permeability good/excellent again

Is it payable ?

Only an annmnt that states this will confirm any potential payability of the Kuparuk sands

d.