Turkey

By OGJ editors
HOUSTON, July 28 – Exile Resources Inc., Toronto, took farmouts on five blocks operated by Aladdin Middle East Ltd., Wichita, Kan., in eastern Turkey on the North Arabian shield near the borders with Syria and Iraq.

Exile refers to the blocks as the Rubai licenses. Aladdin recovered oil samples from the NE Ogunduk-1 discovery well in 2009 but did not test it.

In the first phase of the joint venture, Exile will contribute $600,000 for the reentry and testing of NE Ogunduk-1 using an Aladdin drilling rig and personnel. Aladdin will remain the operator, and Exile will hold a 5% interest in the licenses. If the well tests at a specified target rate, Exile will enter the second phase of the joint venture.

The second phase involves drilling the NE Ogunduk-2 updip appraisal well. Exile’s share of the drilling costs will be $1.2 million. This would earn Exile a further 7% interest in the licenses. If the NE Ogunduk-2 appraisal well is successful in proving the Ogunduk field, the third stage of the joint venture may proceed.

The third stage provides Exile with the option to earn a further 23% in the Rubai licenses by fully funding an appraisal well on a location to be agreed upon by Exile and Aladdin.

In addition to the NE Ogunduk wells, the blocks contain other prospects that could be drilled in the future. A commercial discovery at NE Ogunduk could be put into production quickly, with oil trucked for sale to the nearby Batman refinery.