Towie this is the only plan mate...from the Annual Report. We...

Towie this is the only plan mate...from the Annual Report. We just need to wait this one out and hope she don't go under in the meantime....

Letter from the Chariman:
On a positive note much progress has been made in the preparation to drill the Fausse Point side-track. The
time taken to drill this well has been frustrating to all; however because Fausse Point is an attractive high
impact prospect with complex geology and challenging engineering conditions it has been necessary to
ensure that all practicable steps be taken to minimise foreseeable problems. The required extensive seismic
and geologic reviews have now been done and final plans for drilling are well progressed.

Review of Investments section:

Fausse Point Prospect (72%)
An external engineering review of the drilling program of the TGR #1 well determined that a sidetrack of the
existing well bore will deliver more flexibility, reduce drilling risks and ensure logging operations and
evaluation can be completed effectively. The initial plans to deepen the well were deemed technically risky
and not allow full evaluation of the formations to be drilled through.
Verus is reviewing the option of a third party drilling engineering company to act as operator.
The deepening planning for the side-track of the Fausse Point discovery well TGR#1 is now fully underway
and a revised AFE is in the final stages of preparation and once complete will be forwarded to all JV partners
for their approval and consent to participate.
It is anticipated that the total drilling, completion and tie-in costs will be approximately US$1.5 million - of
which approximately US$1 million will be VIL’s share.
Verus’ Board is also reviewing the potential benefits to farm down a portion of the Company’s interest in
Fausse Point to offset the costs of participation and in order to prudently manage its funds in difficult capital
and commodity markets.