2007/2008  Exploration and Appraisal Programme The results of the 2007 drilling programme, along with the seismic programmes undertaken over in 2006 and 2007 have been taken into account in planning the 2008 three well drilling programme.  The programme was designed to further delineate the newly discovered West Lineynoye Oil field and to drill two low risk exploration prospects in the Tungolskoye-Lineynoye oil productive fairway.  The Korchegskaya No. 1 exploration well intersected 4.6 metres of continuous sandstone in the J1 interval which was oil saturated throughout. Detailed analysis indicates that 3.25 meters is considered net pay with good reservoir properties.  An open hole test was run following coring and the well tested at an inflow of 125 bopd.  The oil is high quality with an API gravity of 47.5 degrees which is slightly higher than the other fields in the Licence area.  This new field discovery has been called “Kondrashevskoye” in honour of a famous West Siberian geologist. The Lineynoye No. 8 delineation Well was spudded on 5th May 2008 and intersected the J1 reservoir horizon at a depth of 2,487.5 metres. Based on initial log and core data the well encountered approximately 5 metres of oil bearing Upper Jurassic J1 reservoir sandstone. Subsequent detailed analysis indicates that 4.0 metres is considered net pay.  An open hole test was run on this interval and the well tested at an inflow calculated at 120 bopd. The final well to be drilled was the West Korchegskaya No. 1 exploration well which was the first of 6 wells drilled by the Company that was not oil productive at the primary Upper Jurassic objective which was missing in the well.  However, the log interpretation indicates that the well has potential hydrocarbons in the secondary Lower Jurassic objective.  This is a tight 25 m thick sandstone unit that will need to be fracture stimulated for proper evaluation.  This testing will be delayed until the Company has a fracture stimulation crew in the field associated with the development project in order to carry out the test more efficiently and economically.  In November the Company re-entered and recompleted the Lineynoye No. 1 well which was originally drilled in 1972.  The well head was found to be in excellent condition and upon recompletion the well flowed at a stabilised rate of 271 bopd without the aid of artificial lift or reservoir stimulation.  The test results confirm those achieved in 1972.  The rate can be considerably improved by fracture stimulation and pumping.