Ok,I sent this on for further analysis.This is the response from...

Ok,

I sent this on for further analysis.

This is the response from an oil analyst ( I am assuming that the person comes from the oil industry ).

We are just waiting on production tests now. From the swabbing and the shows, there is oil evident so certainly a positive sign.

The testing will show what the formation and reservoir pressure and flow rate is like.

What I take from this is that the announcement was certainly positive. The 44 barrels of fluid was from the built up pressure on a 2 metre section of the overall 55 metre interval. I don't know enough about this to make an opinion except to say that the oil analyst liked the indicators. Certainly is some pressure there so that is a positive sign. I don't know what they do for production and whether they actually acid wash the whole interval or not, I don't have that knowledge. Will ask next time I talk to Phil. Can't get him at the moment, I think he may be overseas.

Remember that ERH are using their JV partner to do the drilling and testing, they have the local knowledge, so with oil shows and fluid retrieved, it would seem to me that oil will be extracted. Just don't know if this is going to come from stimulation of free flow.

The next 4-5 days will tell.

As for why do they test a small section of the overall interval, I have been told by the CEO that it is for tecnhical reasons, they cannot test the whole interval. What I can tell you is that they usually check the part of the interval that shows the greatest porosity as they have done for this section and as they are doing in the next section where they are going to test the sweetest 4 metre section of 20% porosity.

I think the swabbing, the 24 hour rest and the well testing will take until early next week. Mid next week they commence testing the upper carbonates, the sweetest section of all as Snake says. The 39 metre section would still be nearly 5 times the interval size of the 330 discovery.

The market can speculate, I will rely on the knowledge gained and the company's guidance.

I hold and will be buying more.

Regards

Kojasper