Carcetti Capital Corp V.CART.H

Guess no one read the MD&A - got to dig deeper boys.

[2stereo]

Western Ukraine Tysagaz Assets (100% Interest)
During the first quarter, the Company set a retrievable plug at RK-21 above the current open perforations in
the D-2 through D-3 lower reservoirs and opened the D-0 reservoir for production.
In October 2016, the recently purchased used nitrogen rejection unit (“NRU”) arrived in Ukraine and was tested
on-site. For the NRU to become fully operational, the NRU requires two compressors which have been ordered
and are expected to be delivered in late 2016. The Company expects the NRU to be operational in the first
quarter of 2017. 


Tysagaz is planning to re-enter the RK-1 well in the fourth quarter of 2016 with the goal of completing the well
in zones that tested pipeline quality gas but at non-commercial rates during the mid-1980s. The reported tests
indicate the gas will meet today’s pipeline standards without going through the NRU. The estimated cost of the
RK-1 re-entry will be approximately $700,000.