Pancontinental Oil & Gas NL to provide operations update for the Tulainyo 2-7 gas appraisal well in the Sacramento Gas Basin, California. Pancontinental is earning up to an effective 13.33% interest in the project. The Tulainyo 2-7 well was drilled as planned to a total depth of 5,710 feet (1740 metres). This represented a significant engineering achievement by the Joint Venture due to the challenging over-pressured geological conditions within the very large anticlinal structure. Post well analysis indicates multiple stacked sandstone units, varying as expected in thickness and quality, that are all gas saturated. A two-stage test program will now be carried out with perforations into the selected reservoir intervals using Tubing Conveyed Perforating Equipment or TCPs. Testing will commence across a zone lower in the well with perforations across at least three separate sands with varying, interpreted reservoir quality. Once sufficient data has been captured from the first test, a removable bridge plug will be set to isolate the lower test zone and a second test will be conducted over a shallower, thicker sand package. Overall the flow testing program is expected to take approximately one month to complete. Further information will be released to the market once there is clarity of the test results.