Ann: SPRIGG-1 Exploration Well and Forward Progra, page-2

re: Ann: SPRIGG-1 Exploration Well and Forwar... Within days we'll know if Spriggs-1 is a hit & then within the month Pirraminta-2 exploration well will be drilled to test the hydrocarbon potential of the Murta Formation on a large 4-way dip closure. No doubt SXY has chosen both targets on the basis of high success probability & relative close distance to production facilities, in-line with their 2014 objective to increase oil production.

Northern section of PEL 514, still undergoing extensive 3D seismic work, thus PGS is well placed with $9M free-carry, portion of $45M in total oil exploration in PEL 514, so any positive analysis of Cordillo/Dundinna will see PGS participate in wells without cash requirement.

All we need now is commercial success at Spriggs-1 to get the ball rolling......GLTA