28 August 2009 – Operations Update # 16

This week, I want to share with you a number of photographs taken during the past week. The photographs, together with my comments, will update you regarding some of our work during the past seven days.

An important part of our geological work during drilling is to continually examine the rock cuttings from the well bore (brought up to the surface by the circulating drilling mud) and match that physical evidence against the ‘expected’ rock cuttings. In our database of scientific information, we maintain a computer model of the expected rock strata.

As more information is gathered, the computer model is amended and in the event of a material difference between the ‘actual’ and the ‘expected’, it may be highly desirable to obtain further information by ‘logging’.

You may remember (from our previous logging) that the definition of ‘logging’ is: ‘to test and evaluate the well, using electrical wireline well logs’.

The ‘sonde’ is lowered down the hole on a ‘wireline’ and various measurements are recorded.

The ‘sonde’ is a cylinder filled with instruments that can sense the electrical, radioactive and sonic properties of the rocks (and their fluids) and the diameter of the wellbore.

The ‘wireline’ is an armored cable with steel cables surrounding conductor cables in insulation. It is reeled out from a drum in the back of the logging truck.

The data from the sonde is transmitted up the cable to instruments in the logging truck and recorded.

Using state-of-the-art Baker Atlas logging equipment, we are able to obtain very high-quality data. This past week, we logged an interval of approximately 500 meters; from a depth of approximately 4,825 meters down to approximately 5,325 meters.

Here are the photographs:

The logging will enable us to make decisions based on scientific evaluation rather than hunches and guesstimates.

So, this past week, we are still at a depth of approximately 17,470 feet (5,325 meters), close to our final target of approximately 18,040 feet (5,500 meters).

Operations on the site of the proposed Elijah #3 Well

This past week we have continued with site preparation work. Using earth moving equipment, we have made the location level and have spread approximately 50 tons of gravel on top of the soil (and that is just the base layer). We need to have a very firm and level surface for the drilling rig to stand on.

The water connection has been completed and the reserve pit has been dug, so we are on schedule.