From the Chief Executive Officer

Wahoo Suspended, but Encouraging

We have suspended Wahoo-1, one of three wells we have been drilling in our licences. This does not mean success or failure. We are, however, encouraged by what we have learned.

We expected high pressures based on data from the few wells that have been drilled in the region. We encountered pressures beyond the range of any other well in the area. Drilling ahead would have posed an unacceptable safety risk. Our first priority is the safety of our people and on that we will not compromise.

In exploration, we need three ingredients for success: an effective seal or cap rock that stops hydrocarbons leaking out of the reservoir; evidence of a working hydrocarbon system, sometimes called the source rock or kitchen where the hydrocarbons are made; and a reservoir, or rock that contains the hydrocarbons.

We know we have two of the three ingredients at Wahoo-1. The one we have not yet proved is whether we have a reservoir and this is where we will have to be patient. Our drilling and engineering teams and expert advisers will now consider options for Wahoo.

Dr. Michael Hession