Ann: Ceasing to be a substantial holder, page-8

Quarterly update last week. Direct communication with the reservoir. I would be expecting significant initial gas shows very soon.

 Multi-lateral drilling campaign successfully completed with the drilling of Glenaras 10L, 11L and 12L, installation of downhole electric submersible pumps (ESP’s) in Glenaras 10L and 12L, in addition to completion and commissioning of all surface facilities and lease flowlines.
 Glenaras 10L and 12L continue to perform strongly, with excellent water rates in excess of 3,100 BWPD (barrels of water per day) in aggregate from both wells, with the current fluid level at approximately 575m from surface.
 Direct communication has been identified between Glenaras 10L and Glenaras 12L.
 Pressure drawdown continuing in the Glenaras 11L monitoring well.
 Production will continue to be ramped up over the coming weeks to achieve full reservoir drawdown.