validation statement from neon, page-11

Dear TShirt,

Following on from the point about more resource potential, this important point is noted in the recent Annual Report p2:-

"Suitable drilling rigs have been selected for each block, with a jack-up rig scheduled to commence drilling the Block 105 Cua Lo prospect mid 2013. The rig contract will be signed shortly. Cua Lo is a very large gas prospect, for which Netherland, Sewell & Associates assess a gross recoverable prospective resource of up to 13.9 TCF of gas1. This assessment was based upon interpretation of two prospective zones on the 2D seismic available at that time.

Subsequently the 3D seismic data has helped identify additional prospective zones, which may result in an increase in prospective resources. The prospect is on trend with a number of Vietnamese gas discoveries and exhibits analogous seismic characteristics to the adjacent 3.5 TCF Dongfang gas field." [footnote ommitted]

Also from 20 May 2013 Block 105 Investor Update:-

"In May 2011 Netherland Sewell & Associates Inc. (NSAI) completed a Prospective Resource Assessment* of Block 105, confirming gross unrisked prospective recoverable resources for Cua Lo of 3.9 TCF gas (best estimate) to 13.9 TCF gas (high estimate). NSAI’s assessment was based upon the 2D seismic data that was available at the time, and is based only on two prospective zones.

While the areal extent of the prospect remains broadly comparable to that assessed by NSAI, the identification of additional prospective zones from the new 3D seismic volume
provides scope for the discovery of additional volumes."

2 prospective zones, not the 5 the company is now drilling along with, "Both Cua Lo and Dongfang are adjacent to, and share, an extensive deep hydrocarbon source “kitchen”.
The main structure at Dongfang hosts reserves of 3.5 TCF gas within fine grained Pliocene clastic reservoirs that have produced at individual well rates of up to 168 mmscfd (million standard cubic feet per day) of gas. Prospective reservoir zones at Cua Lo may be of superior quality to those at Dongfang, as they are believed to have been deposited in a more proximal location relative to the sediment source and are therefore likely to be coarser
grained."!!!

Of course nothing is a given but the signs are positive- we can't ask for more can we?

GLTA