Digitalization & Reinterpretation of Well Logs for Licence  61 Tomsk Neftegazengineering – 2005 Study In 2005 the Company’s Russian Subsidiary signed an agreement with OOO “Tomsk Neftegazengineering” for the digitalization and reinterpretation of vintage analogue well logs from the 14 previous wells drilled on the licence area.  This report accomplished several major objectives including the consolidation of all previous well data into one consistent data base and interpretation using modern log evaluation software.  The interpretation report served as a basis for further exploration and development of the Licence area.  The results of this project were incorporated into various Ryder Scott Petroleum Consultants’ Reports on the Licence area. Tomsk Geophysical Company – 2008 Study In 2008 Imperial Energy successfully tested Lower Cretaceous pay that had been by-passed by previous exploration in the Kiev-Eganskoye field in adjacent Block 80 to the east of Licence 61.  The KE 361 well tested over 1,500 bopd without stimulation or pumping from a  7 m thick Lower Cretaceous sandstone.  Following this successful test PetroNeft commissioned LLC “Tomsk Geophysical Company” (TGK) to reinterpret the geological and geophysical data from select exploration wells in Licence 61.  TGK is the same contractor that identified the by-passed  pay at Kiev-Eganskoye and they interpret potential by-passed pay in both the Cretaceous and Lower to Middle Jurassic sections in the Tuganskaya No. 1 and Traverskaya No. 1 wells.  These structures are located in the southern portion of Licence 61 and are believed to have a similar geological history to the Kiev-Eganskoye structure.   In fact the Traverskaya structure is the western extension of the Kiev-Eganskoye structure and was already believed to have by-passed Upper Jurassic pay in tight reservoir above the field wide oil water contact for the Kiev-Eganskoye field.  The TGK study also confirmed this potential Upper Jurassic pay in Traverskaya No. 1.  The TGK study also identified 8.4 m of potential Upper Jurassic by-passed pay in Sibkrayevskaya No. 1 located in the northeast part of Licence 61.  This is a very large structure and could potentially represent a very significant oil field. Ryder Scott used the results of the TGK study and calculated possible reserves for the Lower to Middle Jurassic and Cretaceous prospects in the Licence area.  These two new potentially productive intervals significantly add to the overall prospectivity of the Licence area.  As a result P3 total 3P (P1+P2+P3) reserves have increased from 350.1 to 529.37 million barrels.