report, page-7

Sugarloaf 1 will never be a commercial vertical well, its designed as a test well if the hosston sands didnt pay. its testing the zones of interest, as for any assumptions no mmcf measurements were gathered, that research is inaccurate imho. The costs they put up for the frac and then subsequent refrac was for the gathering of data on the zone 3 cretaceous formation was not for the aspect of getting a commercial well going as a vertical, if you read the presentations and announcements you will see that the ctitical aspect to development of these formations is entirely on the horizontal aspect alone. regardless of the flow rates, they need the data to design frac programs for the horizontal wells. sugarloaf will be a horizontal well..

i cant agree the annoucnement made on zone 3 is saying there is no gas there. none of the jvp's are saying that zone 3 is not poentially commercial in the use of horizontal wells.. all that is indicated in the announcements so far made. Currently it is that the interference of the edwards fromation water is what is giving them the problems, but the so called zone 3 formation is not being labelled uncommercial at all.

anyone noticed that TCEI has worked out that if they report anything to the JVP's thats news worthy, that the JVP's are duty bound to report it?

This is to our advantage, it means the Conoco/TCEI operators are more likely to test wells not associated to the current sugarloaf AMI. The costs on kunde 3 must be astronomical, but our JVP get to utilise the vast knowledge and data gathered there, and can best utilise it to ensure a very successful frac on kennedy 1H.. IMHO our JVP is very much in the dark on all matters sugarkane. shortly, once the kunde 3 well is tested i think we can expect to hear some noise..

its important to consider just how lucky the jvp is, and understand how patience in this jvp is going to be well rewarded.

all imho and dyor