Silvermere provided the following update on preparations for production from the I-1 well in its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion Production Company LLC (Dominion).

Following some weather-related delays to lifting operations, load out of the tripod and pilings onto the barge on location at Laredo's yard in Galveston was completed on April 23, 2012.

On April 28, 2012 while the lift-boat was en route to Galveston to take on supplies before heading on to Corpus Christi to commence the Mustang Island 818 pile-driving, it struck an unmarked and unreported obstruction which created a three foot hole in its hull. The vessel took on large amounts of water and was completely without engine power as a result. The vessel was towed to Cameron, Louisiana for inspection and the incident, due to its nature, is now the subject of a coastguard investigation. No-one incurred any injuries as a result of the incident.

Tags: Silvermere Energy