Area Drilling

Sept. 8, 2008

Colombia

Solana Resources Ltd., Calgary, was preparing to test the Los Aceites-1 well on the Guachiria block in Colombia’s Llanos basin.

Logs, MDT tests, and sidewall cores indicated oil pay in the Carbonera C-7 formation, where the well found 40° gravity oil.

Los Aceites-1 encountered the same sand package, with better log characteristics, as in the Primavera-1 well 3.3 km north. Primavera-1 tested 650 b/d of oil from the C-7.

Solana operates the Guachiria block with 100% working interest, and Lewis Energy Colombia holds a 30% beneficial interest in the block.

Ghana

The overall capital expenditure for first phase development of Jubilee field off Ghana is estimated at $3.1 billion, excluding the cost of leasing the FPSO, said Tullow Oil PLC.

The field is to start up in 2010 with 17 producing and injection wells and facilities capable of processing more than 120,000 b/d of oil and 160 MMcfd of gas and injecting more than 230,000 b/d of water. The port of Takoradi is being upgraded to support the field’s development.

Produced gas initially is to be split between reinjection to improve oil recovery and shipment to shore for power generation.

New Zealand

Cue Energy Resources Ltd., Melbourne, acquired a 20% interest in the 5,341 sq km PEP 38494 in the southern Taranaki basin of New Zealand.

Cue Energy will earn the interest under a farmout from Todd Exploration by funding 30% of the cost of the Matariki-1 well.

The block is 50 km offshore in 70-100 m of water. Besides the Matariki prospect, it contains the Paua and Pike leads.

Matariki, on the Tasman Ridge, is a four-way dip closure with exploration objectives identified at several levels that are similar to those shown to be hydrocarbon bearing in Maari field 22 km north. It is to be drilled in the second half of 2009.

Pakistan

Heritage Oil Corp., Calgary, took a farmout to earn 54% interest in and became operator of the Zamzama North block just north of 2.3 tcf Zamzama gas-condensate field in Pakistan.

Heritage was awarded a 60% interest in the Sanjawi block in Baluchistan Province near Sui and Pirkoh gas fields in November 2007. A number of oil seeps south of the license give encouragement for the existence of an oil play.

Petroleum Exploration (Pvt.) Ltd. has spud the Sadiq-2 development well on Block 22 in Pakistan’s central gas basin, said 10.5% participant Jura Energy Corp., Calgary.

Target is the Sui Main limestone reservoir at 1,104 m. It is the third well drilled on the block since September 2007 following Hasan-3 and Khanpur-2, which have been on production since early 2008.

Philippines

Otto Energy Ltd., Perth, said its NorAsian Energy unit began site surveys in SC50 and 51 off the Philippines in anticipation of drilling two or three wells in the first half of 2009.

Those wells are Calauit-2 in SC50 and Argao-1 and Bahay-1 in SC51.

The surveys are expected to be complete by September 2008.

Qatar

Qatar Petroleum let a $140 million contract to CGGVeritas to shoot a large, ultrahigh-density, high resolution onshore seismic survey in Qatar.

The 40,000-channel survey will image the Dukhan field reservoir that extends under desert plains, coastal salt flats, transition zones, and shallow water. The 30-month job is to start near the end of 2008.

Romania

Sterling Resources Ltd., Calgary, has spud the Ana-2 appraisal well in the Black Sea off Romania.

The well is to appraise the December 2007 discovery at Ana-1, formerly Doina Sister. Ana-2 is to delineate Ana gas field with a 45° deviation nearly 1 km northwest of the discovery well.

Sterling is using mud line suspension technology and drilling templates for predrilling wells prior to development so that both wells will be accessible from the same platform. A template is set in 69 m of water.

Tanzania

Heritage Oil Corp., Calgary, plans to begin shooting 2D seismic on the Kimbiji and Kisangire blocks in Tanzania in September 2008. Drilling is to begin in the second half of 2009.

Heritage acquired four blocks in April 2008 in Tanzania close to the Mkuranga-1 gas discovery.

Uganda

Heritage Oil Corp., Calgary, was testing the Kingfisher-2 appraisal well on Block 3A in Uganda after it encountered 37 m of net oil pay in what appears to be the lateral equivalent of the three pay zones encountered in the Kingfisher-1 discovery well.

The deeper Kingfisher-2 target was not charged with hydrocarbons, but the company still views the basal sands as an important potential reservoir target for other prospects on Block 3A.

Heritage Oil plans to begin drilling in September on Uganda’s Block 1 with an initial two to three well exploration program.

A structural trend characterized by high amplitude anomalies on seismic can be traced northward from Tullow Oil PLC’s Kasamene-1 discovery well 2.5 km south of Block 1 through the Warthog, Giraffe, and Buffalo prospects on Block 1, Heritage Oil said.

Venezuela

Petroleos de Venezuela SA let a $70 million contract to SCAN Geophysical ASA, Oslo, for 3,300 sq km of 3D seismic surveys off northeastern Venezuela. The contract, SCAN’s largest, is for marine seismic in the Dragon Norte area.

Gulf of Mexico

Probe Resources Ltd., The Woodlands, Tex., discovered commercial reserves in multiple horizons in its East Cameron 36 No. 1 well off Louisiana in the Gulf of Mexico.

TD is 10,450 ft. Gas production is to start in the fourth quarter of 2008, and more drilling is planned late this year.

The company also plans to spud wells in East Cameron Block 246 in August and in South Timbalier Block 214 in mid-September.

Wyoming

XXL Energy Corp., Vancouver, BC, formerly Exxel Energy Corp., completed two acreage acquisitions in the Green River basin of Wyoming.

The acquisitions include acreage contiguous with XXL holdings in the Greater Jade area northwest of Wamsutter in northeastern Sweetwater County. The lands were acquired from a public company in privately negotiated transactions.

Acreage in one transaction is in an area of mutual interest with some of XXL’s partners in the basin and will be offered to them as part of a previous agreement.

After that offering, XXL will have acquired more than 7,000 net acres in the basin, its Jade position will increase to 17,000 net acres, and its overall position in the basin will increase to 35,000 net acres.