Target Energy - Australian petroleum exploration and production company.

St Martin Parish, Louisiana - Section 28 Field and Salt Dome

Target has entered into agreements with Cypress Productions, Inc of Texas ("Cypress"), to drill a number of prospects in and around the Section 28 oil and gas field, located approximately 25 kilometres east of the city of Lafayette in Louisiana.

In 1999 the Section 28 field area was covered by the Catahoula 3D seismic survey, 88 square kilometres (34 square miles) of which was later purchased and reprocessed by Cypress. The reprocessing and subsequent remapping of the data revealed a number of prospective drilling targets in which Target is involved.

SML (Snapper) #A-1 Oil and Gas Discovery
(Target Energy 25% working interest)

Snapper A-1 was completed as a producing well and brought online on 2 August 2007. Production commenced at a rate of 1.04 MMCFGD with 3 - 5 BOPD.

Reserves at 31/12/08	Oil (BO)	Gas (mmc)
Proven Reserves	207,710	1,090.4
Probable Reserves	3,920	499.8
Total	211,630	1,591.2
Production 1/1/09 - 31/8/09	237	162.1
Remaining Proved and Probable Reserves at 1/9/09	211,413	1,429.1

SML (Snapper) #A-2 Oil and Gas Discovery
(Target Energy up to 25% working interest)   
           
The Snapper A-2 well was completed as a producing well and brought online on 9 February 2008.

Reserves at 31/12/08	Oil (BO)	Gas (mmcf)
Proven Reserves	187,740	363.3
Probable Reserves	3,920	499.8
Total	209,690	409.9
Production 1/1/09 - 31/8/09	15,9889	123.5
Remaining Proved and Probable Reserves at 1/9/09	193,701	286.4

SML (Snapper) #A-3 Oil and Gas Discovery
(Target Energy 25% working interest)    

Further success in this field was achieved in July/August 2009 when drilling at the Snapper A-3 well encountered 15 metres inferred oil and gas pay in multiple zones (Camerina, Lower third Marg Tex and the Hackberry).

The Snapper A-3 well was tied into production in November, with an initial flow rate of approximately 1 million cubic feet of gas per day (MMCFGD).

This third successful in the field has also significantly added to Target`s production and cash flow.

Beyt #1 Sidetrack
(Target Energy 15% working interest)

Also operated by Cypress Productions of Azle, Texas, the Bayou Berard prospect was tested by the Beyt #1 well. Drilling commenced on 6 December 2007, reaching a total depth at 3,251.6 metres

The well intersected a major fault just before hitting the primary Marg Tex targets and was subsequently completed in the shallower Marg Vag sand.

The operator plans to drill the Beyt #1 sidetrack out from the existing wellbore to intersect the deeper Marg Tex sands.  RISC Pty Ltd estimates that the first, second and third Marg Tex sands have an aggregate potential of more than 750,000 barrels of oil recoverable. 

These high quality sands have potential to flow at rates up to 1,500 BOPD - at US$60/bbl, 1,500 BOPD would net Target over A$10,600 per day.