Morgan Stanley this AM

[petrengr1]

In looking at http://www.interoil.com/iocfiles/documen..._FINAL.pdf slide 18 a little closer I now see that they have drawn in a localized high on the NORTH side of the fault that separates the Antelope Field from the Antelope Deep Prospect.  Maybe this is where we find the extension that can be in communication with the Antelope Field. Perhaps they are trying to say the productive area of the Antelope Field extends all the way to the fault that separates the two structures. So we could either drill one of the appraisal wells on the high just north of the fault to see if the Antelope field extends that far or we could drill the Exploration well on the north side of the fault to test the Antelope structure and then drill a side track hole directionally across the fault to test the Antelope Deep structure.

Or we could just drill two wells from the same surface location to the desired bottom hole location. Or (here is my final scenario) drill the first well vertically to see if the Antelope Block is productive. If the well is productive drill the second well from the surface to test the Antelope Deep structure. If the first well is a dry hole in the Antelope Block then side track that well to test the Antelope Deep.

Pet- Good am to you. I had printed slide 18 for my(growing) IOC file,so I went back and looked it over again.Keen eye,sir. I now see the localized high that I had overlooked.Your thoughts on future drilling plans are great. Please keep up your help to our board.

Palm- Yes it is the small circle but you have to look at this in the context of the scale of the map. Compare it to the size of whole Elk/Antelope Field. This would in effect extend the Antelope Field further South. They have changed the contour lines between the southern fault and the main Antelope Field to show a much flatter top of the limestone. If this is indeed the way it really looks then the field could extend further to the south. In the previous GLJ maps they had the limestone steeply dipping to the south, which would put the top of the limestone below the gas/water contact. Now they are showing it much flatter to the south so the top of the limestone may remain above the gas/water contact.