Ashanti Gold Corp. GULSF

RE: Reservoir size

[RJ18]

It was a test well only and it was stated that way from the beginning. I missed that part too and still don't like the plugged and abandon terminology. It sounds too final. Snafur and others have explained how development wells might be done from this point so I won't comment on what I don't know enough about. An interesting thing though. Snafur conservatively estimated 12 million bbls from the primary target. The question keeps coming up about size, if it's commercial, is it worth it, blah, blah, blah. Look at it this way. Other wells in the area are doing 6000+/day. That's pretty good. Any company big or small would like that. GUL also earned into one of them just by participating. If this one formation they just drilled did that, that is 2000 days of production - over 5 years at that rate. That alone is good cash flow to keep things going and to keep drilling to replace and grow reserves. If production is less, it's less cash at hand and longer life. You can figure that out. The one earned today + the one drilled today + new ones to be drilled + ............ I think I'll stick around.