Figure 1 shows the Key Milestones to PetroNeft’s work programme on Licence 61 since acquiring the block in 2005.  The Milestones show the step by step approach that the Company has taken with respect to the evaluation of the Licence area.

In 2005 the Company reprocessed 1,392 kms of vintage seismic data in the northern part of the Licence and reprocessed 14 vintage wells drilled on the Licence.  This data was then used to design the 2006 seismic acquisition programme of 515 kms of 2D data.  In 2006 the Company reprocessed 1,262 kms of vintage seismic data in the southern part of the Licence which was used to design the 2007 seismic programme of 540 kms of high resolution 2D data.

One exploration and two delineation wells were drilled in 2007 and one delineation and two exploration wells were drilled in 2008 based on the above data.  The six wells drilled to date complete the exploration drilling obligation for the 25 year term of the licence.

Figures 2 and 3 show the SPE 2P and 3P reserves movement over time as a result of the above work programme.  The 2P reserves have increased from 27.89 to 70.00 million barrels and the 3P reserves have increased from 183.62 to 529.37 million barrels.