Warro Joint Venture Operations Update

Transerv Energy is well advanced with its preparatory work for the drilling of Warro-5 and 6. Since the last update, the Warro Joint Venture has executed Access Agreements with both Landowners on whose land the wells are located.

In addition, the Joint Venture has contracted many of the critical services required for the operations. Key amongst these is the well stimulation services which will be carried out by Condor Energy, an Australian company with substantial Cooper Basin experience. Casing and other long lead items have been delivered to the company holding areas.

We note that the Enerdrill-3 rig is now fully operational with AWE announcing the commencement of their drilling operations in the Perth Basin. The Warro Wells will follow on immediately after the AWE operations which AWE indicate will encompass three wells.