I asked a number of questions this morning about things in the...

I asked a number of questions this morning about things in the Cairn and FAR presentations and received a reply from Cath in between meetings ... brief but comprehensive. As always I won't post all the email but here's an extract or 3 (nothing that we don't know and I didn't ask about PE!!!):

1) VR-1 will in particular add to 1C if successful in the lower 500 series sands. They consider the carbonate play high risk but prudent to deepen the well for incremental cost and to undertand the geology at this point.

2) I asked: In your SNE5 announcement you say that “This result could be of regional significance when considering the broader exploration potential of the JV blocks”. I assume this could also be true for Djiffere?

Cath's answer: At present, we are still absorbing the results however, the key reason why I made that statement is because the performance of the S460 reservoir has now given us considerably more confidence in Sirius ad Spica and in increasing the recovery factor attributed to this unit in the SNE contingent resource calculation. It is difficult to say at this stage how far we can extrapolate this data into the Djiffere block.

My comment: This is excellent news that Sirius (SNE North) and Spica are now upgraded and that the recovery factor for the 460 sands in the CR calculation will be increased = higher 2C.

3) I asked: Also slide 14 in your latest IP (which is a cracker by the way) shows SNE, Sirius and Spica as one mega field at the 460 sand level. Is it mostly the upper sands in the estimates to date for Sirius and Spica? Cairn hinted at this in the transcript.

Cath's answer: Yes, I am glad the significance of the S460 was not lost in the noise. Sirius and Spica sit lower in the section than SNE so it’s unlikely we will have any of the blocky 500 series sands in these prospects. We have the good looking 480 and now 460 as well as other 400 series sands.

My comment: In fact Cairn's presentation shows 6 sand reservoirs that they are targeting at SNE North (Sirius).

My conclusions: Results at VR-1 for the blocky sands will impact the economics of development and the plan. The 400 series sands cover an enormous area ... SNE North and Spica look to have an areal coverage of about 200-250 square km and at SNE they cover 350 square km. Is that an elephant = YES!

H