report not the reason, page-2

re: report not the reason...perhaps watso...

I see today's report as more than just a normal progress report.

In my opinion, the important issue is the extra horizontal length they have managed to achieve in the same time frame as was originally intended for the shorter drill...and perhaps more importantly, the implications for the rest of the permit.

As I see it, today's announcement suggests they have encounted few, if any, technical difficulties employing horizontal drilling techniques to the particular geology of the area...which augers well for future drilling.

The bottom line for Huntington 2H is that they now have 987ft of net gas pay intersected and not 600ft as was originally prognosed, which basically means increased flow rates.

This is good news.

Also, just a guess on my part, but the ease and speed of the horizontal section suggest to me they may have encountered greater permiability than might have originally been expected.

I think the market may be looking for better than expected flow rates from this well now.

Add the success of the current re-completion program and suddenly CPC seems to be on a pretty good thing.

Cheers!