Novus is in the process of finalising a detailed analysis of the electric logs and will shortly present the JV with its recommended testing program.

Additional testing of zone four in the LaPlaya Deep-1 well is still progressing after fracture stimulation was attempted early in the week. However, due to as yet unknown factors the stimulation may not have been effective.

The well has now been shut in to allow reservoir pressure to build up while the JV considers appropriate remedial actions which may include repeating the frac. Prior to fracture stimulation the well had flowed gas with no water confirming the deep gas geological model that is the focus of exploration on Padre Island.

Testing of the fifth zone will begin once these issues with zone four are resolved. The participants in these wells are Golden Gate Petroleum 10%, Novus Petroleum (operator) 70% and Mitsui Oil Exploration 20%.