Downlands-4 Hits Gas Target

The Downlands-4 appraisal/production well reached the total depth of 1873 meters in the basement. Interpretation of wireline logs indicates approximately 4 meters of net gas pay within the interval from 1836 1841 meters in the primary target Tinowon Sandstone. Gas shows of up to 368 units and 5-10% yellow white fluorescence with milky blue white cut were recorded while drilling through this interval. Wireline logs also show that the Tinowon Sandstone is approximately 5 meters updip from the Downlands-2 and Downlands East-1 producing wells which are located 1.6 km to the SW and 1.1 km to the east respectively from Downlands-4.

Based on similarities with other producing wells in the area, the well will not be flow tested and the forward plan is to run 5-1/2" production casing and suspend the well as a future Tinowon Sandstone gas producer. The rig will be released to Sunshine Gas as part of the rig sharing agreement between Mosaic, Ausam and Sunshine Gas.

Downlands-4 will be completed for production by Ensign Workover Rig 5 within the next four weeks.

Downlands-4 is the first well of Ausam's three well PL 119 and ATP 471P Bainbilla Block Farmin Stage 1 program. Ausam will fund the first $1.5 million of the Downlands-4 well costs and then contribute prorated interest for any costs above $1.5 million.


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