Area Drilling

Dec. 10, 2007

Falkland Islands

Rockhopper Exploration PLC let a contract to Wavefield Inseis for a site survey over the Ernest prospect in License PL024 in the Atlantic Ocean in the North Falkland basin.

Rockhopper is conducting an environmental assessment on PL023 and PL024 in advance of drilling.

Ernest is a relatively low risk, independent four-way dip closed structure in 160 m of water 100 km off the Falkland Islands. The robust four-way closure covers 2,880 acres within a total area of more than 6,000 acres. It is the lowest-risk prospect in Rockhopper’s portfolio.

Israel

Zion Oil & Gas Inc., Dallas, said its technical staff recommended drilling the proposed Ma’anit-Rehoboth-2 well on the Joseph License to 17,700 ft to test the Permian Arqov formation.

Locating the well 800 m northeast of the Ma’anit-1 well, which Zion drilled in 2005, would put the well in an ideal position to penetrate all three members of the Arqov, which is strikingly similar to the Permian Khuff formation in the Persian Gulf region, said a company staff report. More than 20 Permian oil and gas fields have been discovered on the edges of the Arabian Plate to date, the company said.

Ma’anit-1 went to TD 15,482 ft, which may be within a few hundred meters of the Permian section (OGJ, July 5, 2004, p. 41).

Peru

Gran Tierra Energy Inc., Calgary, began field operations on undrilled blocks 122 and 128, which total 3.4 million acres in the eastern Maranon basin in northern Peru.

A 20,000 line-km airborne gravity and magnetic survey is under way, and results will be used to define exploration leads over which 2D seismic will be shot in 2008. Gran Tierra holds 100% working interest in both blocks.