oil,gas and pressure, page-2

All,

Given the lack of movement / action in today's trading I think the market is being very cautious with the latest announcement and if you read the back-to-back announcements carefully we may all get an indicator why;

>12th May

Gas2Grid Limited is pleased to advise that the Malolos-1 swabbing unit began operations over the weekend and oil has already been produced to surface. At this early stage, additional drill water still needs to be swabbed from the well. This operation will further reduce the back-pressure on the oil bearing formations and as this is done the percentage of oil recovered and the production rate will increase.

>>Today's announcement

Gas2Grid Limited is pleased to advise that swabbing operations continued at the Malolos-1 well. Whilst drill water is still being swabbed from the well the percentage of oil has continued to increase.

Swabbing fluid from the production tubing and lowering the fluid level reduces the back-pressure on the oil bearing formations and as this is done the percentage of oil recovered and the production rate will likely increase.

It is the last line of Today's announcement which has me thinking deeply about whether or not the team has been a little underwhelmed by the flow-rates etc.

All, I'm no expert on this process so would welcome any additional feedback on the importance of the pressure at the well-head after shut-in and the variance in the announcements noted above.

I continue to hold but with a little less confidence then prior to today's announcement.

Regards

HW