Ann: Philippine Drilling - Jacob-1 Update , page-11

I emailed Dennis after the release and this is what he said below

Hi Sue,

Low porosity means tight rock ie. no holes in it in which to reservoir, oil, gas or water – it is more like a cap rock or seal. We are drilling ahead hoping to intersect some reservoir quality limestone in which we might find some oil and gas. The Cebu Coal Measures are the primary source of the oil and gas in the region and they underlie the Cebu Limestone. We are hoping to intersect this formation and assess whether the formation also contains some reservoir quality sandstone from which oil and gas might be recovered.

The ASX release does not mean that the “game is over”. We have not intersected any reservoir rocks and we are drilling ahead in the hope of finding some - if we do, we have a good chance of success.


After Jacob-1 we still have two other wildcat exploration wells to drill plus complete the Malolos-1 workover and testing program.



Best regards,



Dennis.


Questions I asked Dennis


Dennis the report today



what does low porosity mean ?

tight limestone ?



Underlying Cebu coal measures which are interpetated from seismic data?



Does it over all mean no gas or oil and the whole is dry and you should give up?



regards

sue