West of Shetlands
8 March 2017

Exploration well on the Loanan prospect, an NE-SW trending inversion structure with a Vaila T35.4 Sandstone objective. The T35.4 Sandstone was drilled at 11,585 ft. A single blocky to fining sand unit had a gross thickness of 36 ft, with 19.2 ft of net gas pay. Pay porosity averaged 21.7% with an average Sw of 41.8%. However, pressure pre-tests indicated very low permeability throughout the sand due to pervasive chlorite cementation and, although gas was indicated on pumping with the XLD Probe, no samples were recovered.

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