Dunnart 2 Drilling, page-4

2 has been m2 could be a duster but if it is not, the planning of subsequent wells by tying up the rig will be very positive for the sp.

The reason for the positivity could possibly relate to the opinion of the result of DUNNART-1as follows,

"Key’s technical team has identified that both conventional and unconventional pay has been missed in the Dunnart-1 well, drilled by the previous operator.

An estimated section of 10 metres to 15 metres of carbonaceous shale and interbedded sands within the Cattamarra Coal measures contained readings of both methane and ethane with anomalous methane level readings up to 200 parts per million.

Key and Empire also interpreted that an induction resistivity log was used incorrectly by the previous operator to calculate oil saturations within the Bookara Sandstone at Dunnart-1.

This well log is typically not used to evaluate for the presence of hydrocarbons in water based muds and a review of the well data indicates that 5 metres of net oil pay within the Bookara sandstone sequence was encountered in Dunnart-1.

However, mudlogs indicated that oil shows were encountered right through the Bookara Sandstone sequence, indicating potential for a much larger pay interval."