Stokes Bay-1 Operational Update

The EP104/R1 Joint Venture has agreed to release CDL Rig 18 and the rig was subsequently released from Stokes Bay-1 at 0900 Hrs on 6th November, 2007.

Testing operations to determine reservoir fluid composition will continue once the rig has been moved from the location and the testing crew obtains access to the well site. It is expected to take from one to two weeks for testing operations to recommence.

Fluids recovered to date still appear from salinity and density measurements to be drilling mud and associated fluids. Some 24% of the 12,000 barrels of drilling fluids lost during drilling and completion operations has so far been recovered.