some observations

Hi all

Well # 1 appears to be 6 BOPD. IS this correct or is it 25 - 50 BOPD ? The update on 30/4/2008 stated "To date only Mailisu III #1 has been production tested. Over a period of 40 days the well has produced about 6 bopd. This is lower than initial expectations and further work will be done to optimize the well’s production."


Well # 2 is intersting as it was used to explore the gas potential. My thinking is htat we might have hit a new reservoir as initial indications from historic data was that the remaining gas reserves (whilst commercial and with immediate off take) would require pressurised injection. CIG's drilling crew measures some 200 units and had to increase the SG of the drill fluid dramatically. Looks like the original estiamtes of reserves of gas may well be very underestimated.

Another Q. I am no geoligist but my intuition would tell me that it makes more sense to find gas above the oil and not below. Any thought on this ? Could it be that below the gas there is more oil ?

Whilst on # 2. we have been awaiting a gas well head for some time. Has this not been acquired yet due to it being put lower on the priority list. I would have thought getting this into production ASAP (ie the gas) would be a good idea.

Until the gas well head is acquired it is my understadning that the oil and gas potential production from this well cannot be assessed.

Well #3. This is a deviation of #2 and is IMO there to fast track the oil shows, put oil into production and later use #2 only for gas (saving costs).

I would think that we should see flow rates from #3 pretty soon. On the 16/5/2008 it was reported that CIG needed to close off the lower zone which was showing water, and then free up the oil above. One would think this was imminent now ?

Well #4. Probably at same status as # 3 but may be much better IMO as there was no mention of water shows, so this may mean we can tap into 2 oil sources from the one well.

It is thought that with 20 wells, we should get about 5 to 50 BOPD from each well with very little outlay. (by end of 2009)

I wonder what happend with the status from 12/2/2009 where there was mention of looking at "Ashvaz licence area with the intention to restart production from, or increase the productivity of the wells"

Also, any news on seeking additional rigs ? CIGS initially wanted these up and running late 2008.

I know these are lots of Questions but as a new investor I am trying to get my head around it all.

Certinainly expect heaps of flow rates over the coming days or weaks.

The there are all those other prospects. My understanding is that East Mailisu prospect is next. Whilst apparently a bit smaller, oil has already been discovered recetnly by some Uranium miners.

Skkim