Area Drilling

Jan. 8, 2007

Kenya

A group led by Woodside Petroleum Ltd., Perth, has spudded an exploration well on the Pomboo prospect on Block L-5 in the Indian Ocean off northern Kenya.

The Lamu basin well is projected to 5,000 m in 2,200 m of water. After drilling Pomboo, the drillship is to move to Block L-7 to drill the Sokwe South prospect.

Laos

Salamander Energy Ltd., London, said it is in late stages of negotiating a production sharing contract for the Vientiane and Savannakhet exploration blocks in nonproducing Laos.

Salamander holds a 9.5% interest in Hess Corp.-operated Phu Horm gas field in northeastern Thailand. In Indonesia, Salamander operates with 70% interest the Bontang PSC, which has the 1982 Tutung gas-condensate discovery and several leads. It holds 5% interest in the BP-operated Offshore Northwest Java PSC and 5% interest in the CNOOC-operated Southeast Sumatra PSC.

Salamander holds interests in several other blocks in Thailand.

Madagascar

Candax Energy Inc., Calgary, is awaiting presidential ratification of a production-sharing contract on Block 1101 in Madagascar.

Interests in the 15,000 sq km block are Candax Energy operator with 60% and EAX, Dubai, 40%.

The work program is geological and geochemical studies, shooting 2D seismic, and drilling 1 well for total spending of $1.5 million in the 2-year first phase.

Peru

Gran Tierra Energy Inc., Calgary, plans to explore blocks 128 and 122 in the Iquitos Arch Trend of the Maranon basin in Peru.

The company is operator with 100% working interest. The two blocks total 3.2 million acres.

Gulf of Mexico

Medco Energi US LLC, Lafayette, acquired a fifth block in the western Gulf of Mexico and said all five blocks are to be drilled in 2007.

Medco purchased 100% interest in Brazos Block 437 in 60 ft of water from Centaurus Gulf of Mexico LLC. It is a 5-year federal lease.

Medco now holds various interests in noncontiguous Brazos blocks 437, 435, 492, and 514, all in 60-80 ft of water off Matagorda, Tex. The company holds 43.75% interest in Mustang Island Block 758.

Ridgelake Energy Inc. of Louisiana and Lion Energy Ltd., Perth, were to spud an exploratory well on South Marsh Island Block 138.

The well targets multiple Pleistocene age Lentic sands at 9,800-11,800 ft. Projected TD is 11,900 ft.

Colorado

New Frontier Energy Inc., Denver, purchased the operator’s 36.7% working interest in Slater Dome field in the Sand Wash basin for $8 million and plans to drill several wells in the field in 2007.

The purchase covers 8.2 bcf of gas and increases New Frontier’s interest in 11 gas wells and its proportionate share of 32,000 acres.

The field, which extends into south-central Wyoming, produces from six wells in Cretaceous Mesaverde coals. Three wells are shut in awaiting further development work to enhance dewatering, one awaits completion, and one is shut in for hookup.

Washington

Cascadia Energy Corp., a subsidiary of Torrent Energy Corp., Portland, filed intents to drill three wells in the nonproducing Chehalis basin.

The locations are near Winlock, 30 miles south-southwest of Olympia. The spots are in 36-13n-3w, 15- and 36-12n-3w, and 36-12n-3w, Lewis County. Approvals and start of drilling are expected in the first quarter of 2007.

The companies gave no depths but plan to pursue coalbed methane and conventional gas in the basin.

This area is 35 miles north-northeast of Mist gas field in Columbia County, Ore.