373 



a lack of potential hydrocarbon reservoir formations in the deeper 

 stratigraphic section and condemned two patch reefs as well as a 

 geophysical bright spot (a possible indication of a gas accumulation). 

 These new data resulted in the elimination of many potential deep 

 stratigraphic prospects and an increase in the risk associated with 

 others. In addition to the new geophysical and geological data, the 

 resource estimates developed for the SID did not include some possible 

 stratigraphic traps that could not be adequately delineated for purposes 

 of a resource economic evaluation. The SID resource appraisal included 

 only those prospects that were being considered for resource economic 

 evaluations prior to the sale. 



It should be pointed out that although resource assessment methodologies 

 may be precise, resource estimates are only rarely accurate, never 

 precise, and they include subjective judgements (probabilities of success 

 or failure) based on the reliability of the data and information 

 available to the evaluator at the time of the appraisal. While the 

 resource estimates previously discussed are conditional on a commercial 

 accumulation within the proposed sale area, they do include subjective 



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