origin 3d confirms mbawa prospect..., page-2

Oopsy, this bit did not stick with the rest.


KENYA
OFFSHORE BLOCK L8
Pancontinental Oil & Gas NL - 25%
Preliminary processed 3D seismic data available in the quarter verified the ?flat spot? over the giant Mbawa Prospect seen on previous surveys (Diagram 1) and identified sea floor ?pock marks? consistent with interpreted natural sea surface oil slicks (Diagram 2).
Specialised seismic processing is under way, with results expected end July and interpretation commencing immediately afterwards.

Final results and interpretation are estimated October-
November. The seismic ?flat spot? is consistent with a gas column over an oil or water interface at a drill depth
of about 2,000m below the sea floor and a water depth of 800m.

Dual "flat spots? / "AVO anomalies? on previous 2D data are consistent with a Lower Tertiary / Upper Cretaceous gas column of 55 metres over an oil column of 105 meters.
Preliminary evaluation indicates that the Mbawa structure is intact, remains very large, and is separated into a number of large ?compartments?.

The final 3D data should give much clearer definition of the flat spots, the Mbawa structure itself
and define a drilling location. Drilling is planned to commence in the second half of 2010 at the earliest.

A detailed sea floor bathymetric survey shows ?pock marks? on the sea floor near the site of natural sea surface oil slicks interpreted from satellite data (Diagram 2). These are considered to be the result of the natural expulsion of fluids from below the sea floor and are similar to others in
hydrocarbon producing provinces.

The sea surface "slicks" interpreted from satellite data are considered to be light oil or condensate.
These are thought to be derived from natural sea - floor leakage from Mbawa, suggesting an active petroleum generating system. The interpreted slicks are offset from the pock marks, consistent with the effects of ocean currents. Other prospects in L8 also have interpreted slicks.

The Mbawa Prospect has world-class potential for oil and gas, with modelled P10 potential in the
Lower Tertiary / Upper Cretaceous at about 2,000m drill depth and 800m water depth for-
(i) 3.6 Billion Barrels of oil recoverable or
(ii) 1.5 Billion Barrels oil recoverable plus a gas cap of 400 Billion Cubic feet or (iii) 11 Trillion Cubic Feet gas recoverable Below the Tertiary / Cretaceous, a deeper Jurassic closure has additional very large potential
below 2,800m drill depth (in addition to 800m water depth), with further follow-up potential in other
large prospects in L8.
Pancontinental has a 25% interest in L8 and the Mbawa Prospect and a 40% interest in adjacent
licence area L6.

Regards,

TCG