The drill program is on budget and on target. Drilling has been averaging 200-250ft per day without the major circulation losses encountered in the previous well EWA-2X. The drilling technique that is being used involves a combination of light weight drilling mud with the addition of sized calcium carbonate grains to prevent any losses of fluids and cuttings, plus a single remedial cement plug. As of today's date there are no early indications of any commercial quantities of oil in the middle zones thus far. After completion of the intermediate logging of the uncased portion of the hole drilled so far, (approximately 3000 feet), a 9 5/8" casing will be run prior to drilling the important sandstone reservoir targets of the Matulla and Nubia zones and the Company is optimistic that possible commercial quantities of oil may be found. Many adjacent wells in this area have oil in the Matulla and Nubia zones, both in commercial and non-commercial quantities.
No firm assurances can be provided that EWA-3X contains any moveable crude oil, or if such crude oil exists that it can be recovered in a commercially viable manner. In addition, substantial additional capital will be required in order to bring such oil into production, and no assurance can be provided that such capital will be available to Dover Petroleum.
Dover Petroleum Corp.'s wholly owned subsidiary, Dover Petroleum Egypt I Inc., has a 56.25% interest in Dover Egypt I Joint Venture, which is a party to an Option Agreement entitling that joint venture to acquire 100% of the Operator's interest in the East Wadi Araba Concession Agreement.
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