Only One well (OS-04LS) produced from the B-1 reservoir

Monthly Water
Producing Monthly Monthly Cut
Date Days days Oil Monthly Gas Water Gas Oil Ratio (Percent)
STB Mscf STB Mscf/stb %
31/07/2006 1.6 1914.1 0.4 1210.96 20.97 38.8
31/08/2006 1.6 2231.7 0.5 1383.64 21.88 38.3
30/09/2006 0.1 142.5 0.0 1068.75 20 88.2
31/12/2007 47.7 2552.1 534.7 53.57 91.82 2.1
31/01/2008 86.6 4848.6 940.7 56.02 91.57 1.1
29/02/2008 114.1 5291.2 997.6 46.37 89.74 0.9
31/03/2008 123.7 6012.5 932.5 48.59 88.28 0.8
30/04/2008 122.7 6671.4 826.3 54.39 87.07 0.8
31/05/2008 135.9 6650.2 778.4 48.93 85.14 0.7
30/06/2008 138.1 6319.6 795.2 45.76 85.2 0.7
31/07/2008 128.2 6564.1 802.0 51.19 86.22 0.8
31/08/2008 132.2 6644.5 801.9 50.28 85.85 0.8
30/09/2008 174.0 6875.8 816.5 39.52 82.43 0.6
31/10/2008 271.3 6694.2 693.7 24.67 71.88 0.4
30/11/2008 195.3 5834.4 706.6 29.87 78.34 0.5
31/12/2008 202.9 5562.4 593.3 27.41 74.51 0.5
31/01/2009 235.3 6140.9 743.5 26.1 75.96 0.4
28/02/2009 243.6 6554.1 755.2 26.91 75.61 0.4
31/03/2009 269.3 6413.9 744.7 23.82 73.44 0.4
30/04/2009 259.5 7180.8 890.3 27.67 77.43 0.4
31/05/2009 262.2 7017.8 865.7 26.77 76.75 0.4
30/06/2009 254.8 6691.9 853.1 26.27 77 0.4
31/07/2009 234.9 6159.0 723.8 26.22 75.5 0.4
31/08/2009 209.0 4497.6 606.6 21.52 74.38 0.5
30/09/2009 209.0 5408.1 525.9 25.88 71.56 0.5
31/10/2009 205.4 4856.5 527.8 23.65 71.99 0.5
30/11/2009 229.4 6083.3 701.2 26.52 75.35 0.4
31/12/2009 262.9 6237.5 814.6 23.73 75.6 0.4
31/01/2010 277.7 6819.9 799.7 24.56 74.23 0.4
28/02/2010 260.3 5935.4 752.6 22.8 74.3 0.4
31/03/2010 203.5 5287.8 722.3 25.99 78.02 0.5
30/04/2010 132.3 4226.4 638.4 31.94 82.83 0.8
31/05/2010 159.1 4590.3 446.1 28.85 73.71 0.6
30/06/2010 150.6 6070.1 770.2 40.32 83.65 0.7
31/07/2010 155.5 5660.5 747.3 36.41 82.78 0.6
31/08/2010 161.0 6709.5 759.7 41.68 82.52 0.6
30/09/2010 141.5 7667.1 657.6 54.18 82.29 0.7
31/10/2010 136.7 4830.7 620.2 35.34 81.94 0.7
30/11/2010 46.3 1623.5 299.5 35.04 86.6 2.1
31/12/2010 1.6 2093.2 287.7 1324.27 99.45 38.8
31/01/2011 3.7 5148.1 633.8 1399.93 99.42 21.4
 28/02/2011 3.8 5677.0 738.5 1485.57 99.49 20.7
31/03/2011 12.3 6942.9 534.8 566.39 97.76 7.5
30/04/2011 5.9 6605.1 484.6 1125.87 98.8 14.6
31/05/2011 5.5 5910.7 471.9 1084.22 98.86 15.5
30/06/2011 5.0 6516.2 457.0 1303.25 98.92 16.7
31/07/2011 3.9 4916.6 358.0 1270.12 98.93 20.5
31/08/2011 3.9 3416.6 150.7 868.16 97.46 20.3

B1 Reservoir: This is not point data. The water cut has been under 20% for the period 2007 to 2011
(Four years). See Table below.

C2 Reservoir: You perforated 20ft of the reservoir and has a start-up water cut 99%. Is it
unreasonable that you perforate just the top 5ft instead of the entire 20ft, seeing that the 2MMscf/d
start-up rate you desire can be comfortably be delivered by the 5ft of perforation?

Also, worthy of note is the fact that the case with a pseudo well producing till 2018 is coming up with
an average water cut that is about 7% while the case without a pseudo well is coming up with a
water cut of 99%. Logic suggest that a reservoir that has not been flowing for 8 years should come
up with less water cut than one that has been flowing for 8 years. However, the reverse is the case
with the output of your model.