Sunshine Gas Sees Gas Shows at Narrene 1A Exploration Well

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Sunshine Gas says the Narrene 1A exploration reached a total depth of 3,011 meters on January 1st using Hunt Rig 3.

Intersected elevated gas shows in the basal Rewan, Tinowon, Overston and Lorelle sections. The Overston Sandstone section also exhibited an oil show. These shows were in addition to the elevated gas readings encountered in the Showgrounds Sandstone higher in the well.

Began pulling out of the hole in preparation for wire-line logging. However, gas in the mud system necessitated having to run back in the hole to condition the mud so that wire-line logging operations could safely proceed.

Acquire and evaluate wire-line logs. Depending on the results of the wire-line log interpretation, run open hole test(s).

The Company is very encouraged by the intersection of elevated gas shows in a number of sandstone intervals. Wire-line logging and possible testing over the coming days will help confirm the commercial significance of the shows.

The Narrene 1 exploration well is located approximately 6 kilometers southwest of the Overston Gas Field and has a calculated pre-drill conventional gas-in-place potential in the order of 91 billon cubic feet in the Tinowon Sandstone. The trap at the deeper levels (Permian aged reservoirs) is stratigraphic in nature and in the success case will have very significant implications for the conventional gas up-side potential of ATP 645P.

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