preopen nc, page-2

SUGARLOAF OPERATIONS UPDATE
Kennedy #1H Well
The 4-1/2 inch liner has been run to a Total Depth of 16,530 feet and been cemented in place. Operations continue to prepare the well for the planned extensive fracture stimulation testing program.
As previously advised, the interpretation of the logs indicates several extended zones of potential pay in the upper part of the Austin Chalk and are encouraging in their own right. As this horizontal well represents the early stage in the appraisal of a new reservoir and stratigraphic play it will require the careful selection of a fracture stimulation program to optimise the flow and recoverability of any hydrocarbons. As such, the testing program at Kennedy is not likely to commence for several weeks.

Sugarloaf-1 Well
Since our last report completion tubing has been re-run and testing has just begun. Early swabbing has recovered hydrocarbons. The significance of the hydrocarbons cannot be determined until the well has stabilized and the test has run for an extended period.



nice to see kennedy finished, and great to see sugarloaf firing up!!