whats happening, page-20

longhorn is looking interesting

eureka annual report

KOWALIK-1H

The Kowalik-1H appraisal well was spudded on 18 July
2008 with a surface location some 5 km’s north of the
Kennedy-1H well and on trend from producing wells in the
adjacent acreage. This well has been drilled vertically to
approximately 12,000 feet as a pilot hole where it was
logged, plugged back and sidetracked with the intention
being to drill up to a 6,000 foot horizontal section within
the upper horizon of the chalk.

The pilot hole encountered a chalk section correlated to the Sugarloaf-1 well but some 40% thicker. This was anticipated as the seismic data indicates that the chalk thickens in the northern portion of the AMI. Whilst horizontal operations are not completed at
the date of this Report, higher gas readings and flares
have been observed whilst drilling which have been further
elevated when activities are undertaken that reduce the
bottom hole pressure in the well. This would suggest that
the reservoir is acting in a favourable manner with
hydrocarbon ingress into the well bore. We are encouraged
by the indications received to date and are looking forward
to well completion and production testing.

40% thicker chalks..