Helios Energy Limited has completed a squeeze job using a water blocking polymer sealer in an attempt to isolate the primary target perforated zones in the San Carlos Sandstone Formation. Swab testing immediately after the squeeze job resulted in greatly reduced water inflow and therefore it appeared that the squeeze job had been successful. The well was then re-perforated to re-attempt to recover formation fluids from the San Carlos Sandstone Formation. Post completion of the squeeze job' and the re-perforating, swabbing re- commenced and once again swabbing recovered low temperature and low salinity water. This strongly suggests that the water is continuing to come from a different formation at shallower depth, highly likely caused by channels in the cement behind the casing. Therefore, the squeeze job has not been able to prevent the inflow of this water which is preventing a valid swab test of the primary target zones within the San Carlos Sandstone interval of the Quinn Mesa 113 well from which high porosity oil and gas bearing samples and cuttings were obtained during drilling and whose oil reservoir properties were subsequently corroborated by a full suite of well logs. The Quinn Mesa 113 well encountered oil and gas shows while drilling in an interval of over 100 feet in the San Carlos Formation. Samples analysis at the location had oil shows, subsequent samples analyses in the laboratory post drilling had oil shows and analysis of the electric logs were interpreted to indicate hydrocarbon pay. Testing of the Quinn Mesa 113 well has been suspended so that Helios can assess the results of the testing observed so far. Further testing of the Quinn Mesa 113 well or testing of the Quinn Creek 141 well will now not occur until that assessment has been undertaken and a full interpretation of the recently shot 3D and 2D seismic programme has been completed.