Who is attending the Shareholder Briefing today?, page-19

"This reservoir had previously been flow tested at around 8 MMcf/D of gas composed of 97% nitrogen and 3% hydrocarbons"

# Hydrocarbon : "a compound of hydrogen and carbon, such as any of those which are the chief components of petroleum and natural gas."


Pressure Transient Analysis This analysis is complex and is still in a preliminary stage, but there are some early conclusions that can be reached:

1) There is an apparent fluid boundary within the total reservoir. The analysis can’t distinguish between that fluid boundary being oil or water, but given the column height calculated from a different data set, it would be logical for this fluid boundary to be oil rather than water.

2) The total reservoir volume represents a gas in place (GIP) of 35 BCF if the entire container was gas filled. This compares well with the volumetrics calculated from the 3D derived map which returned a GIP of 37 BCF. It is recognized that in both of these calculations, the gas can be replaced by a quantity of oil depending on the establishment of the nitrogen/oil contact.

3) One solution in the transient analysis suggests that the gas reservoir has a volume of 5.3 BCF and accordingly the balance of the reservoir volume would be occupied by oil and would be estimated at 20 million barrels of oil in place. Typical recovery factors are around 25% and thus 5 million barrels might be recovered in this scenario