Antrim Energy Inc. ATGYF

RE: Fourth well at Causeway

[Bigbadoil]

Hey Cohoe: To describe what is going on three dimensions, is very difficult to do in a narrative sense as a diagram is always more informative..but i will attempt to do that anyway. I think you are using the wrong term "water cut" as they did not test the 22a-7 well and will subsequently test the 22a-8 well. I interpret that you are meaning "potential for water". As there are 4 fault compartments along the Causeway structure, I think it is reasonable to presume that each fault block will have individual Oil/Water contacts and not one common water line. That is a first order assumption for the whole pool but I will deal with your questions on a compartment level.. Central Compartment In the first well of this program, the 22a-6 well, there was no water cut reported in the test results over the (Lower) Etive and the (middle) Ness members. The (Upper) Tarbutt was not tested but was subsequently said to be water bearing in the 2nd qtr report. Now this adds a second order of complexity to the one I described in my intro. Obviously there is INTERNAL COMPARTEMTALISATION (comp.) within these fault blocks as you have wet sand (Tarbutt) overlying Oil (Ness+Etive) in the 22A-6 well. Whatever causes this (lack of oil charging, leakage, facies change etc), we do not know at this time. As well as vertical comp., we may have lateral comp. too as the Tarbutt has oil on logs in the 22a-7 well. Plus they think the Etive is wet. With the latter info, you could argue that the 22a-7 well has come downstructure compared to 22a-6 well, but the fact that the Tarbutt is oil bearing does not make sense to that theory. The thinner pays suggest there could be more shale breaks in the Tarbutt/Ness sequence increasing the possibility that we have a stratigraphic break btw the 22a-6 and 22a-7 wells. It looks like they will have to drill more wells to drain the central compartment because of the complexity. Hence the 4th well, which will be drilled ( I think?) in the n.part of the central block to try to get the "missing" Tarbutt oil! SW Block. The most recent well (22a-8) was drilled 1.5km n of the old 22a-3 well which tested 5500 BOPD from the (middle) Ness. The results look good and have similiar pays and upstructure. I think the test should be better WITH NO WATER! This block looks like everything worked out as predicted. See Cohoe it isnt easy describing all this stuff.. Bigbadun'