Dimensioning Minimum Elk-Antelope Resource. MS report

[Gator]

New flow test data adds conviction to quality and minimum size of

Elk-Antelope resource (at least 7Tcfe), yet Arun comparison points to

upside potential. TOT payment anticipated in mid-2016 vs 1Q16

prior. De-risking of other acreage continues in 2H15.

Full report PDF

[jft310]

Flow tests indicate good connectivity across the field and support the
existence of a substantial resource base; new bottom-hole data
provides clearer understanding of minimum volumes (at least 7Tcfe,
depending on train size) adding conviction to sufficiency for a 2-train
LNG development. High flow rates with little pressure drawn-down and
rapid recovery after shut-in disclosed during June’s AGM, indicated the
existence of significant reservoir potential and productivity. Bottom-holeflow
data from the ongoing flow tests at Antelope, which IOC shared today,
provides an even clearer picture(unlikesurface data which can besusceptible
to distortions such as pressurelosses within the wellbore).Thelargeflow rates
and low pressure drops confirm the permeability and deliverability of the
resource.Strong performanceled management to compare Antelopeto the
prolific Arun gas field in Indonesi