Below is some discussion from the conference call concerning Ant-2's DST-1. I find the second point the most interesting. Initially, I was concerned about the find being 345 higher than expected, because I feared this meant that the whole structure was higher than expected at Ant-2 (which may be the case), which would decrease the odds of oil being found in a high porosity zone. However, the CC states that being higher turns out to be a positive because in increases the gross rock volume. So should I interpret this to mean that for the vertical well it is likely that the oil is in a low porosity zone, but as the larger gross rock volume follows the curve formed by the anticline that the liquid content is expected to be larger than previously thought. And of course, this is one of the reasons for the horizontal drilling equipment at Ant-2. Thanks in advance and the CC comments are listed below.


DST-1 covering the top 164 feet of the reservoir which exhibited very good flow characteristics. One significant outcome of the DST was that the condensate yield measured 16.5 to 20 barrels per mcf, which is 25 to 50 percent than what was recorded in the top of the reservoir in Antelope-1. the fact that we had complete isolation during DST-1 adds to the validity of these condensate yield volumes. the overall results from the top of the reservoir are significant in four main areas.

One, this validates the existence of the reservoir 2.3 miles to the south of Antelope-1, which was one of our main objectives and significantly extends the field.

Secondly, the reservoir being high to prognosis causes us to modify our geologic model which increases the gross rock volume at the southern end of the field, in addition to the increase in condensate yield that was observed in the test, this will have a positive impact on both gas and liquid resource estimates.

Thirdly, we proved our ability to successfully acquire full cores in the carbonate reef which had been, for the most part, unsuccessful in previous wells.

And fourth, this is a disccovery in our PPL 237 license which not only satisfies the drilling commitment, but allows us to declare location and move to combine this area with our proposed development license in PPL 238.