summary

With so much happening, I wanted to get things clear in my mind so I wrote myself a quick summary. Hope this helps you also. Looking very positive indeed.

EXPLORATION PERMIT L44/43

1. CENTRAL block of Na Sanun East (“NSE”)
Additional drilling by year end will define the oil water contact to enable reserves estimation.

L44-H Appraisal Well- first well in this block
Well testing is continuing at a stable rate of 1,265 bbls/day - may be capable of production at even higher rates.

NS8-D1 Appraisal Well-
Currently drilling ahead at a depth of 240 meters, anticipated to take up to 21 days.

2. NORTH block of Na Sanun East (“NSE”)
Large but as yet untested fault compartment of the NSE structural closure.

L44G-D1 Appraisal Well
Now been drilled to total measured depth (“MD”) of 1,136 meters (907 meters true vertical depth (“TVD”)).

Encountered multiple potential volcanic reservoirs at 736-755, 771-804, 836-850, 867-896 and 955-1,136 meters MD. These intervals are in addition to the 80 m volcanic zone in first logging run. Lost circulation (indicator of good reservoir) of 17 bbls/hr at 867 m and 53 bbls/hr at 1,112 m. Numerous oil shows and high mud gas readings observed throughout well.

The well has been completed for well testing anticipated to commence within a week.

L44-G Appraisal Well-
Drilling completed some weeks ago, but flow testing delayed by sidetrack well L44G-D1. Lost circulation was encountered within volcanic section similar to lost circulation in other successfully producing wells.

Testing at L44-G well anticipated to commence within next week.

3. SOUTH block of Na Sanun East (“NSE”)

NS3-D1 Appraisal Well
Extended well testing continuing with rate stable at 420 bbls/day in line with previously reported rates.

NS-4 Appraisal Well
Alterations to ongoing well test at NS-4 have had positive effect with rate stabilised at around 310 bbls/day while water production decreased to negligible levels.

NS2-D1 Appraisal Well
Rigging up on NS2-D1, drilling is expected to commence in 4 days and anticipated to take up to 21 days to complete.


Ongoing Work
- 8 further locations are ready for drilling operations targeting the Na Sanun East structural closure.

- Environmental approval is anticipated for another 19 locations at Na Sanun East and 15 locations at Wichian Buri/POE-6 to be granted in October.

- Another 6 exploration drilling locations are either built and ready, or purchased and awaiting drill pad construction. These exploration wells will be brought into the current drilling program.