My notes from the Conference Call:

Twiga South-1 target was 4 km from the bounding fault, fault block with three way dip closure up against the main basin bounding fault; the two reservoir targets were the upper Lokhone sandstone and the lower Lokhone sandstone.

Section of pay 30 m thick was Upper Lakhone sand.  The section penetrated was 70m thick, the upper section is outside of the closure and wasn't oil bearing. Did not hit the lower Lakhone sand, encountered a fractured sand/shale sequence that was somewhat similar to what was encountered deeper in Ngamia-1.  Evaluation of logs found moveable oil in the deeper sections.  Over 700m thick, about 40% sandstone, and oil and gas shows were encountered in the sand intervals.  They are embarking on a testing program to test both the upper Lakhone sand and the lower sequences. 

In both wells every porous interval, even relatively tight sands, are filled with hydrocarbons -- suggests a very strong source rock kitchen.

Lower Lakhone sand is believed to be at the Twiga field but down dip from Twiga South-1. The upper Lakhone sand is the primary reservoir target for the southern string of pearls.

Question on govt. trying to increase it's stake: contract with AOI and TLW is already signed.  Higher govt share, signature fees and the like will apply to new exploration concessions being awarded to new companies wanting access to exploration in Kenya, not the ones already in place.

Question on time delays: The reason why drilling has been so slow is because they have been finding so much oil.  They have been taking more logging runs, more sampling runs, multiple NDPs, doing coring, doing sidewall cores, and that's a good problem to have.  There was an electrical issue that shut down the rig for about a week in October.  But in general they aren't concerned about the time overruns because they have been doing significantly more evaluation due to the large amounts of oil in both of the wells.

After the Paipai well that rig will move to either Kongoni or Kamba.

Question on $300 million equity raise: the timing, the price and the amount has not yet been defined.  With Marathon's payment their cash position is over $80 million.

Question on the selloff: Keith said that they aren't going to drill a Ngamia type well every time, and that 30m of pay would be among the best wells drilled in Uganda.  Looking at the share price reaction people must have been expecting more than 30m and they didn't understand the fractured lower section.  Maybe some people were expecting test results rather than just drilling results.