presentation out, page-11

the hosston sands are not on anyones radar.. it was mentioned by eme last year in their agm..

the acerages were leased for the sugarkane.. the year of waiting was for acreages to be secured, TCEI has long leases, but i think the other brokers did not secure acerages on the great terms tcei has consistantly done.. its given them the both extra time they needed to get larger holdings for not only our jvp, but for their other jvp's as well.. and essentially the extra critical time you need on experimental/appraisal wells.

the eme announcement is the first real indication of what they are doing in terms of strategy.. going in very conservative, using a handful of perfs and doing a gentle mini frac.. and then any result from there has to be considered as invaluable..


kennedy is teaching them a lot, already the mini frac has alerted them to the zone 2 chalks being prospecttive, and there is no reason to say the further frac of the well may perhaps be considered with a more aggressive fracture.

the frac of these chalks is designed soley to produce from the high matrix chalks, not from the traditional way of producing from chalks wells by relying on natural fracture intersections to make a well commercial, the sugarkane is indicating that there is potential for a different completion that can attain commercial flow.. very very exciting for the jvp imho from a mini frac.

its also teaching them that zone 3 is equally becoming prospective as mini fracs would be ideal there as its close to a water source below the chalks..

early days with signs of promise as far as eme is concerned.. and the traditional conservative approach of adi to not ramp the find, and remain very neutral is a good way to remain. kennedy remains an appraisal well and remains invaluable source of data for the jvp..

they have many options open to them, and each one will be carefully considered..


all imho and dyor..