The following quote represents British Gas International's (BGI) position concerning Block 5(C) which is stated in the sworn affadavit of Ewen Denning, Vice President Commercial of BG Trinidad and Tobago dated February 9, 2009 as part of the documents submitted to the Court in Calgary into BG application for the appointment of a Receiver. If you are a shareholder of SNG you really need to read this document it is riviting

44. The Victory Well was spudded on June 28, 2007. Flow testing was conducted on the Victory Well and natural gas was discovered on January 14, 2008. However, tests indicated that there are only limited reserves connected to the well and it is BGI’ s view that the Victory Well is likely to be a sub-economic discovery.

45. The Bounty Well was spudded on February 20, 2008. Flow testing was conducted on the Bounty Well and natural gas was discovered on August 13, 2008. In BGI’s opinion, the Bounty discovery on its own is not economic. BGI believes that the Bounty Well may become economic if the Endeavour Well discovers sufficient reserves to make the joint development of the two prospects together economic by reason of costs savings realized through shared infrastructure.

46. The Endeavour Well is the third prospect and was spudded on August 28, 2008.

URGENCY - THREATENED CONTRACT TERMINATION AND DEPARTURE OF RIG

Importance of Well Testing

47. The Endeavour Well is at target depth and the only significant work remaining to be done by Maersk is the testing of the Endeavour Well. CSEI, CEC, and BGI agreed to complete the Endeavour Well including testing. The agreement between CSEI, CEC, and BGI to complete and test the Endeavour Well was memorialized in an email exchange between the parties’ respective representatives on the Operating Committee. The email is attached to this Affidavit and marked as Exhibit “19”.

48. Well logs for the Endeavour Well have demonstrated the presence of hydrocarbons. Without testing, however, reserves cannot be accurately estimated or evaluated. The value of the Endeavour Well and the Intrepid Block remains uncertain pending this information.

49. The reserves associated with the Endeavour Well must be determined so that a decision on development of the entire Intrepid Block can be made and a development plan established. (BGI’s opinion is that the currently discovered reserves in the Intrepid Block are below the economic threshold for development. The PSC terms together with the capital costs and the price which can be realized for the gas are the key determinants of this conclusion).

http://www.deloitte.com/dtt/cda/doc/...

Cheers; Scott