Good update from XST." Sidi Daher exploration well drilled...

Good update from XST.

" Sidi Daher exploration well drilled safely and made ready for flow rate testing" ------- Good to Know well bore secured for flow testing. Lambouhkah problem not a repeat here.

" Well data indicates potential 30m meter light oil accumulation in good quality reservoir" -------- light oil is premium so expect top money for the grade of the crude oil. Good quality reservoir characteristics is needed for commercial production, so one more box ticked.

Good to know no major incident during the exploration program. Kudos to the company. Drilling rig released 5th oct, so company has been working in the background on how to conduct flow test for the past 2 weeks plus. Evaluation of wireline data and MDT formation testing results ongoing in the background.

" Communities relations were maintained in a constructive way to allow ongoing operations"--------I have worked in several oilfields as a project engineer in West Africa and I know what community problem can cause. They can distrupt your operations, demand for unfavouravble conditions or demand for more pay you can cope with or else they stop your work. That is not the case here.Excellent operations by the company.

" XST has now earned 10% interest---- and will receive the benefits of 10% of future production "---------- XST bullish about the well going into production based on the data they have so far. Happy with that hint.

" These oil samples and other technical measurements, including pressure and rock properties are interpreted to indicate good quality reservoir rocks "------- Excellent revelation here. The well has the necessary ingredient to fully produce in commercial quantities once flow test comes good.

XST, Gulfsands and VIL have all paid there share including cost overruns. Funding for flow test not an issue

" Other zones of interest in the SD well require FURTHER detailed technical investigation and analysis of the EXTENSIVE physical property measurements taken during the drilling"-------- more time needed to finish this up. We need to be patient.

" Some of these zones may also be tested if the above analysis confirms them to be of eceonomic interest"------More than 2 zones has hydrocarbons (outside the 30m oil accumulation). These might not be thick as the 30m column but could be commmercial if permeability and porosity are good. Expect more oil/gas if this comes good. I have always stated that they had multiple hydrocarbon zones and this is reiterating that assumption.

"estimate the range of potential recoverable oil and associated gas "---indication they have gas in the zones. Likely to go comercial if thir initial hunch is right. Need further testing to confirm.

" map the potential oil reservoir"---area extent??. I will be happy if they can give initial upper case and lower case oil/gas in place P10-P90 figures. That is when the sp can move north of these price. If they can do this using existing seismic that will be great. Otherwise another 6 months for appraisal well which is not pleasant for investors.

" The results of the onshore SD well are very encouraging and have CONFIRMED the OIL and GAS prospectivity of the Chorbane Area"---- company more bullish and assertive based on the results they have already. Expect gas in place figures as well(re-confirmation).

" A commercial flow rate of OIL and ASSOCIATED GAS from these tests----".------------ Hint of gas zones in discovery again here.

DYOR

GLA

Abbey.