Lost circulation was encountered at 1,552 and 1,585 meters at rates of 20 and 227 barrels/hour, respectively, with approximately 4,900 barrels of drilling fluid lost into the target formation while drilling and logging.

Live oil was observed at the surface while drilling at 1,503, 1,556, 1,565 and 1,585 meters. Testing is anticipated to be completed after the Aztec 14 rig has been moved off location.