Entek provided an update on exploration activities.

NEW ACREAGE ACQUISITION VK818 The Company is currently evaluating and reviewing its Gulf of Mexico assets in order to high-grade the portfolio with a focus on prospects that potentially have a more significant impact on shareholder value. In accordance with this new focus and strategy the Company has secured a 100% working interest in Viosca Knoll Block 818 (VK 818). VK 818 is an important addition to Entek's Gulf of Mexico acreage and has the potential to become a very significant part of the Company's portfolio.

There has been one well previously drilled on the block, which encountered at least 3 potential pay zones. Information sourced from announcements when the well was drilled suggests that potential pay zones intersected and cased while drilling to the primary deeper target could represent significant oil and gas reserves.

The shallowest prospect identified on 3D seismic and intersected in the well has potentially up to 5 MMBOE. The deeper pay zones that were cased in the existing well are still being evaluated but could represent significant additional hydrocarbon reserves, most likely oil based on mudlog shows. The Company believes the previous well may have identified a field that was never fully evaluated or developed.

Geophysical and geological work has begun, and to date the three reservoirs being evaluated are:

J Sand – Prospective Resource estimated by the Company of 5 MMBO or 20 BCFG (pay in existing well) Uvigerina Sand – Estimated Proven reserves of 2.5 MMBO of 25O API Oil (pay in existing well) Big Hum – Pay in the existing well of 38O API oil associated reserves being reviewed The proven pay on the block is encouraging and work is continuing to define its total resource potential.

VR 341/342 OIL PROJECT UPDATE The project has been significantly advanced with drilling expected to start within the next 90 days (subject to final approvals from the Bureau of Ocean Energy Management, Regulation and Enforcement). As part of the development planning an independent evaluation of the proven reserves on the block has been completed.

Previous drilling has established proved (1P) undeveloped reserves of 2.5 MMBO and 3.8 BCFG. The development of these reserves is the objective of drilling this year. The 3P potential on the VR 342 block has been independently evaluated at circa 7.5 MMBO and 9.5 BCFG. The Company expects the extension of the field into the VR 341 block could add an additional 1-2 MMBO, which will be targeted after the development of the existing reserves. Entek has a 50% working interest in both blocks.

Tags: Entek Energy Limited