Ann: Cyrene-1 Daily Drilling Report for 24 Januar, page-6

re: Ann: Cyrene-1 Daily Drilling Report for 2... Hi graemi_ie
Iam worried that you may act solely on what Ihave written on HC.Iactually meant any oilshow,oilreservoir,wet gas,oilcontact,but best of all would be an oilcolumn,could/would stimulate buying.That said at a marketcap of $12 million is too cheap.
Enclosed is an excerpt of the Cyrene well with its possible oil shows.
Drilling of Cyrene-1 – Planned 2012
Previous wells in the EP 438 Permit have encountered significant oil and gas shows. Of particular interest to the Company are the wells Hedonia-1, drilled by Gulf Oil in 1984 and the Goldwyer-1 well, drilled by WAPET in 1959.

Hedonia-1 is located on an anticlinal feature and is of significant interest where well developed karstic porosity was intersected in Ordovician aged Willara limestones at a relatively shallow depth of some 1,050 metres. The Hedonia-1 well lost circulation of its drilling fluids upon drilling into the top of this reservoir objective Willara Formation. This severe lost circulation indicates high permeabilities in this limestone reservoir where a significant gas show was recorded. This is an exciting reservoir objective where this formation was never properly tested. The testing programme on Hedonia-1 was terminated prematurely due to weather.

There were also numerous oil and gas shows in the marine black shales of the Goldwyer Formation which demonstrates oil
maturity in these source rocks.

Drilling of Cyrene-1 on the Hedonia Structure is on the Joint Venture agenda for 2012. Native Title Heritage Surveys have been completed and the necessary earthworks required are programmed. The prospectivity of this Broome Arch area is recognised for both mid to large size oil and gas discoveries. Other wells with significant shows in the area include Goldwyer-1 with oil shows in the Willara Limestone, and Willara-1 with oil and gas shows in the Permian Grant Formation.