well #2

looking back over old presentations there is some exciting information which does explain a lot regarding well #1 and how good well #2 will be

well #1 targeted the tres isles reservoir rock and mangrullo source rock - both of which are Permian. The tres isles formation is very thin ranging from 2-10m, porosity 24% and perm of 120 mD. The mangrullo is oil prone. So the thin 2m intersection with lower perm then the other areas was probably never gunna be a gusher (isn't it easy to say that now!) and as the announcement today stated it was at the edge of the basin. Basically that tres isles formation is around 5 x thicker in other sections including well #2. I guess the good news is it is oil generating and confirmed.

well # 2 is targeting all the above structures which are thicker (tres isle will be closer to 10m) plus multiple large Devonian structures - the cerrezuelo reservoir rock, thickness is 100-150m, porosity 26% and perm >3000 md!!! In addition there is the la Paloma formation in between tres isles and cerrezuelo. The company lists these Devonian structures at 300m thickness..... at that porosity and perm..... wow. The source rock here are listed as oil and gas prone giving us around 1 bill barrels OOIP + 0.8 TCF of gas!!

So well #2 is going to be a monster with all the right ingredients in place to make it a company maker. Lets hope they nail the drilling.

Its also interest to note that when the original funds where raised to drill - if they didn't raise enough and had to choose out of all 4 wells - only well #2 and well #4 were chosen.... so what does that tell you. Our big gun targets are still coming.