Area Drilling

Oct. 23, 2006

Cambodia

Cambodia’s National Petroleum Authority awarded Block E in the Khmer basin to Medco International Petroleum Ltd. and JHL Petroleum Ltd.

The block covers 5,000 sq km in the Gulf of Thailand just off the country’s northwest coast. Medco will operate the block with 90% interest, and JHL has 10%.

China

Primeline Energy Holdings Inc., London, completed a 549 sq km 3D seismic survey over the Lishui 36-1 discovery and adjacent areas of Block 25/34 in the East China Sea.

Interpretation is to start in late November 2006, and data will be used to pick future drilling locations on the 7,006 sq km block. Block interests are Primeline 75% and China National Offshore Oil Corp. 25%.

Arizona

High Plains Petroleum Corp., Boulder, Colo., staked a 4,300-ft wildcat in Apache County to test the Permian Supai, Pennsylvanian Naco, and Devonian Martin formations.

The LC State 12-1, in 12-14n-24e, is a follow-up well to a potash well that found oil and gas in four Upper Supai carbonates. The location is on a 12,800-acre anticline in the Holbrook basin.

United Drilling Co. Rig 11 is drilling the first well in a three-well program for oil, gas, and helium in the Holbrook basin with funding by Finley Resources Inc., private Fort Worth independent.

Washington

Two unidentified private companies completed taking a farmout on all lands in Whatcom County held by Rival Petroleum Co., a subsidiary of Blue Parrot Energy Inc., Calgary.

The farmees will earn 100% of Blue Parrott’s working interest with the drilling of the first well, Blue Parrot said. Rival will retain a 7.5% nonconvertible gross overriding royalty interest plus the right to participate for 25% in the drilling of any wells and the acquisition of any areas of mutual interest.

Rival Petroleum has held interests for several years to an acreage block entirely in the US between Bellingham, Wash., and Abbotsford, BC, in the Bellingham basin. The area is thought prospective for shallow sandstone gas and coalbed methane.