new ann out, page-4

Sorry, but I think what the market understands is that the Willara formation was encountered 20m lower than prognosed.

Potentially the formation at this location is actually situated below the oil-water contact in any potential oil pool.

Personally, I'm not hopeful, taking in the general tone of the announcement.

Just have to ride it out I guess.

On a positive note, the whole drill seems to have gone very well and Key have demonstrated that they can manage the process. The drill has taken longer than expected but this may be because of the drilling capacity of the rig, or perhaps Key were just being ultra-cautious. Nevertheless it has been a good first go and I'm happy to congratulate the team on a job well done.

In my opinion, they made the right call on moving away from daily updates too. I remember a drill in NZ, way back, which had daily reports and similar updates on hydrocarbon indications. The share price was up and down like a yo-yo, a day trader's dream, but it was not good for anyone else. Best to shut down communications when you are drilling through the target zone.

Cheers-hoping my interpretation is wrong 8)