more gas from gf3, page-28

Hi vaga,

618, in previous comments from company i thought "initial reserves" were due to released around mid year??

That was the initial indication. However, with the delay while drilling HD and subsequently having to redrill HDR1, and the later than expected testing of D2 and GF1, I don't believe they have sufficient production history to provide any meaningful reserve. Based on my understanding, in order to establish 2P reserve, they need to drill several appraisal wells to firm up and calibrate their 3D seismic model. They'd also need stabilised production data from several strategically placed wells to establish paramaters such as porosity and permeability, as well as tracking reservoir pressure to monitor the drawdown/pressure decline. They also monitor a host of other reservoir data.

They is little point in releasing any numbers prematurely because the market may simply mistakenly take the initial numbers as the final total recoverables. Anyway, they have provided some initial indication of 5BCF per well. The art of choosing well location is uiqte complex and very strategic. We already know GF3 was targeting new additional reserves, and I am quite certain D4 and HDGU1 will also provide them with additional info about the aereal extent of various reservoir formations.

By September, they would have D3 and GF2 tested. So that's my bet for the release of their reserve numbers. Of course, I could be barking up the wrong tree, onlt time wil tell - as always :o)

Anyway, I still have my buy order outstanding. So I don't mind if we see some short term retracement :o)

HTH,
618