2009 Annual Report

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3 October 2008

PEL-182 - (SER 37.6%) ONSHORE PETROLEUM EXPLORATION - COOPER BASIN , S.A
Four wells have been drilled since the permit was awarded resulting in one gas discovery at Vanessa-1 and an oil recovery at Emily-1. Both wells have been cased and suspended for future return and evaluation. The gas at Vanessa occurs in multiple Permian sand layers. Drill-stem tests flowed gas to surface at 5.1 and 3.9 million cubic feet per day. A third test failed to flow gas and may have experienced a tool malfunction. During the third test the test tools became stuck and the well was plugged back and redrilled in a sidetrack. This was cased as a future gas producer.
At Emily, 1.3 barrles of light sweet oil was recovered from a drill-stem test from a 1 metre oil leg at the top of a 6 metre thick Lower Birkhead sand. It is possible that an updip re-drill of Emily-1 will result in a thicker oil column being established.

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