Sentry Petroleum Ltd (SPLM)

[MU_Redskin1]

Plan of Operation - 10QA 12/16/2011

Looks like they better get their act together soon ...

http://ih.advfn.com/p.php?pid=nmona&article=50458201

Our plan of operations for the next twelve months is to continue our work obligations on ATP 862, 864, 865, and 866 in the Adavale basin in Queensland Australia and to continue our assessment of various onshore exploration permits in Australia and Asia.

To further explore the delineated coal and carbonaceous shale deposit in ATP 862 and 864, we plan to drill eight to ten wells by March of 2012, assuming we are able to secure sufficient financing. This program will quantitatively measure original gas in place using canister desorption and core logging methods and we will commence flow testing of one or two of the wells. In addition to exploration of the coal and carbonaceous shale deposit we intend to drill two well to flow test the Winton Sandstone interval intercepted during drilling of Albilbah_CSG1 and we intend to acquire additional seismic data. We expect that in total these activities would cost $10 million. We do not have sufficient funds to complete such activities, however will require additional funding for any future exploration or appraisal work.

In ATP 865 and 866, we plan to undertake a seismic program to advance our prospects during the next 6 months assuming we are able to secure sufficient financing. We further plan to drill one conventional well, the Ravenscourt, to test the Etonvale Formation at a depth of approximately 1,700 meters (5,580 feet) downdip from the Rosebank-1 well and will be targeting a thicker carbonate section. We expect that such activities would cost $3.5 million . We do not have sufficient funds to complete such activities, however will require additional funding for any future exploration or appraisal work.

Our work program includes acquisition of seismic data and drilling of additional wells. The time to complete the acquisition of seismic data and drilling of wells depends on, among other things, the availability of personnel and equipment in Queensland. The associated costs will be determined by the depth of the wells and the amount of seismic data to be acquired.

In addition to our current permits, we are continuously investigating additional opportunities in Queensland and other parts of South-East Asia.

We do not have sufficient funds to carry out our plan of operations for the next twelve months. We rely principally on the issuance of common shares by private placements to raise funds to finance our business. There is no assurance that market conditions will continue to permit us to raise funds when required. If possible, we will issue more common shares at prices we determine, possibly resulting in dilution of the value of common shares.

With our ATP 862, 864, 865, and 866, we are obliged to complete proposed work programs to maintain our interests in good standing. As of August 31, 2011 our committed expenditures over the next year total $19.5 million. However, the completion of the work program is determined for each permit individually and there is no cumulative analysis on work completed.

The following table details the capital expenditure required by February 28, 2012 for us to maintain good standing on our four permits:

ATP 862 ATP 864 ATP 865 ATP 866

Deep Upholes $305,000 $305,000 $- $-
Seismic Reprocessing 406,000 137,000 142,000 142,000
Shooting of Seismic 2,035,000 2,035,000 1,017,000 1,017,000
Drilling of Petroleum wells 2,797,000 2,797,000 2,797,000 3,560,000

$5,543,000 $5,274,000 $3,956,000 $4,719,000



We do not have sufficient capital to satisfy the required future exploration expenditures needed to maintain our four ATP permits in good standing and we will rely principally on the issuance of common stock to raise funds to finance the expenditures that we expect to incur. Failure to raise the required funds to complete our commitments will result in the failure to meet our obligations and the relinquishment of one or more of our permits. We have relied principally on the issuance of our common stock in private placements to raise funds to support our business, but there can be no assurance that we will be successful in raising additional funds through the issuance of additional equity. We have planned and budgeted for the required work and at the date of this report have sufficient time to complete most of the required work prior to February 28, 2012 provided that we are able to obtain sufficient financing on a timely basis.

We do not expect any significant purchases of plant and equipment or any increase in the number of employees in the near future.

We anticipate incurring expenses of approximately $19 million over the next 12 months for our exploration program. There can be no guarantee that we will be able to secure the necessary financing and equipment to undertake the work program within the anticipated time frame. If we are unsuccessful in securing sufficient financing and equipment we may be subject to relinquishment of any one or all of our existing permits.