update

Time of Reporting: 0600 hrs, WST 5 November 2007
Operations Since Last
Report:
Since the last report on 1 November, production tubing has
been run in the well and a production flow test commenced at
17:00 hours on Sunday 4 November.
The well has been flowing at relatively steady rates of some
3,000 to 4,000 barrels of fluid per day at a well head pressure of
some 30 psi. Fluids recovered to date appear from salinity and
density measurements to be drilling mud and associated fluids.
Current Operations: Running flow test
Hydrocarbon indications: No hydrocarbons have been observed to date.
Comment: In excess of 12,000 barrels of drilling fluids were lost during
drilling and completion and approximately 2,400 barrels have
been recovered. The test will be continued until formation fluids
are identified.