By e-lodgement5 December 2007Manager AnnouncementsCompany...

By e-lodgement
5 December 2007
Manager Announcements
Company Announcements Office
Australian Securities Exchange
10th Floor, 20 Bond Street
SYDNEY NSW 2000
Via electronic lodgement
Southeast Lost Hills Gas Project in California (USA)
Successful commencement of testing program
Key points:
• 48 hour production test of 3-13 confirms commercially viable production
rates up to 600,000 cubic feet per day
• Program being developed for immediate implementation to test multiple
zones in the remaining wells.
Australian based oil & gas exploration and development company Nuenco NL wishes to advise that
initial testing at the Southeast Lost Hills Gas Project (SELH) in the San Joaquin Basin in California has
been successful. Jack Hamar 3-13 flowed gas at three sustained production rates of 300,000 cubic
feet per day (300 MCFPD), 450 MCFPD and 633 MCFPD over a 48 hour testing period. The longest
test period was at 633 MCFPD with the tubing pressure constant at 1185 psi on a 6/64 inch choke.
The participants in the South East lost Hills project, Nuenco 50% and Operator and 50% partner
Livingstone Energy Inc (wholly-owned US subsidiary of Solimar Energy), are planning to recomplete
and test the other three wells (1-12, 1-13 and 2-13) which encountered gas over numerous intervals
in this prospect area as soon as possible. .
The aim of testing the SELH operation is to confirm commercially viable production rates from these
wells and to ascertain the reserves potential. The target is to prove up and exploit a substantial gas
accumulation in the shallow Pliocene reservoirs that have been uncovered by drilling to date.
The participants are reviewing options and timing to allow the transportation and sale of Gas from the
commercial wells once testing has been completed. Given the ease of access to infrastructure, the
strong gas prices and demand, the participants intend to commercialise this field as soon as possible
South East Lost Hills Project Showing Jack Hamar Gas Wells
ANTHONY KAIN
Managing Director