WARRO 3 – FLOW TESTING UPDATE 2

The Warro 3 flow testing program is continuing to recover substantial quantities of natural gas and fluids during the well clean up operation.
The coiled tubing was removed from the well bore on Thursday, as the coil tubing unit was due to be released to another location. Removal of the coiled tubing increases the volume of the well bore, and therefore the volume of water in the
well bore, and was expected to cause a significant drop in the gas flow rate and well head pressure.

Upon recommencement of the flow testing on Friday the well flowed gas at an average rate of two million three hundred thousand cubic feet per day (2.3mmcfp/d), with a well head pressure of 240 psi, and the choke opened to 58/64ths. This was a significantly better gas flow than anticipated. Also, the fluid flow rate has declined to 750 barrels per day.
The well was shut in on Saturday for static pressure testing, expected to take a few days, with flow testing to recommence thereafter.

Commentary

The well has now demonstrated an ability to flow gas to surface without the assistance of coiled tubing and/or nitrogen lift. It is important to note that the potential gas flow rate is significantly higher once the recovery of fluids from the
reservoir ceases, as this inhibits gas flow. The well performance to date continues to be in line with expectations, albeit the well clean up process continues to take time.

The full Warro 3 flow testing program commenced on May 2 and is expected to take up to 60 days. The Company will continue to provide regular progress updates.