gardanne, st etienne, tuscany csms, page-2

1) Gardanne: target for one exploration well decided , preliminary well planning ongoing. Drilling could start within 6 months. Much has already been been done on this permit, but does EGL have a field exploration strategy defined?

Tuscany: Initial permit still in the limbo of italian administration. The serious studies have not really started yet. Could take 12-24 months.

St Etienne: Nothing has been done on this permit the last 24 months and the last important job dates back from 2005 or 2006. Nothing is planned either.

2)You can infer from above that none of these permits is seen as first priority by EGL. Gardanne permit is currently on renewal and the eastern part where the mines (and possibly the "gas well") are, had to be released as per legislation. However, The FUT HOA obliges EGL to do something, so it does.

The released area seems to be now within the SCHUEPACH permit but the mining area is partly drowned and the CMM potential may not be of interest to it. Schuepach is specialist of tight formation developpment, so it has other targets within it's permit.

Tuscany has no dedicated person and is currently being left aside until the permit status is ascertained. The studies still have to be done.

St Etienne is now considered to be in a poor position,so EGL plans to applicate in another place on this basin. No chance that it undertakes on it's own more work on the current location. If FUT pays for it, it's different.

Cheers
Z