Red Emperor update
May 1 - from report on the AIMShabeel-1 WellThe last reported depth of the well was 2,953m with casing having been set tocirca 2,700m. The well drilled through primarily tight limestones and shales ofLower Tertiary to Upper Cretaceous age and encountered a 355 metre section ofUpper Cretaceous sands and shales of the Tisje / Jesomma Formations at a depthof approximately 1,660 metres. The sands in this interval exhibited both oiland gas shows and petrophysical analysis of downhole electrical logs indicatesa potential pay zone of between 12 and 20 metres in the section. Attempts tosample formation fluids using a wireline formation tester were not successfuland thus the zone will require cased hole testing to confirm whether they areoil bearing.The Shabeel-1 and Shabeel North prospects are located on a Jurassic aged riftsystem which is part of the same system that has proven to be highly productivein the Masila and Shabwa Basins in Yemen that contain an estimated 6 billionbarrels of oil. Both prospects are very large fault block prospects withinternal estimates of Prospective Resources of over 300 million barrels of oil(mean 100% basis), with Red Emperor's 20% attributable interest being over 60million barrels. Source rocks are expected to be rich Jurassic Kimmeridgianshales in the deep portion of the rift immediately down dip from the Shabeelprospects. Reservoirs are expected to be sandstones and carbonates of the LowerCretaceous and Jurassic systems analogous to Yemen.