Ann: Operational Update, page-9

Just to reiterate once again, the Sheritt well currently being drilled in block 10 is a very complex highly deviated well being drilled from an onshore wellpad  targeting an offshore reservoir structure.

I note they are suffering from further wellbore stability issues.

They however obviously feel it is worth it , with the costs seen on this well now over $25 million in what looks like now on a 3rd sidetrack to me.

I am sure there would have been option to utilise an offshore jackup and drill this well vertically or at a less deviated angle which may likely have encountered less wellbore issues and I guess decisions have been made at Sheritt to go for a cheaper onshore location drill utilising their own onshore rig and going near Horizontal into the offshore reservoir  , this looks to me to be a wrong decision....

Melbana’s Block 9  wells are onshore locations, targeting multi zone onshore reservoirs and whilst there will be step outs to target multiple zones, they do not have large deviations or Horizonal sections... 

Solid update for me... All operations on track . I would have loved to have seen some verbiage on corporate strategy though.