Gas production. Three gas wells were recently drilled and up to four more are planned in 2008. GU#38 was spudded on 23 December 2007 and achieved planned total depth of 11,000 feet (3,352 metres) on 9January in deep Frio sands which had not been reached by the three previous wells drilled in the current programme. Drilling was achieved in 16 days, well ahead of the target drilling time of 25-30 days. Logs give strong indications of several potentially gas-bearing zones. Casing is currently being set and preparations made for testing and for possible fracturing of the deepest zone if necessary. Upon completion of GU #38, the joint venture will commence drilling GU#39, the next well in the programme, which will test even deeper prospective formations. | 
