Ann: Sugarloaf Operations Update , page-22

Thanks, guys.

I took another look at the history of Kennedy. There were two previous frac attempts. The first one was "just" sand - 95,000lbs of it. The second one involved 100,000lbs of "high strength proppant" of which half only could be pumped into the formation. That fracc attempt was terminated early because of the "high pumping pressures encountered". Maybe that caused damage or fatigue to the lining that eventually ruptured?

If the current fraccing crew managed to get a result out of that bottom 600 ft section, it is pretty amazing.

The initial flows from that 600ft (only 17ft of perforations) reported after the formation was blocked up was 106bpd and 425kcfgpd.

We have 2,000ft now fracced and we might be in for a pleasant surprise.

As always, we will just have to wait for the headline figures. But hats off to the fraccing crew. This bodes well for a properly designed, drilled and completed well.

Oh, and the history of Kunde 3 on Block A was even worse. COP fracced it unsuccessfully FIVE times. They left it shut in for 2 months, found that it flowed, acid fracced it and then opened the champers.