NSE-E2ST1 appraisal well (60% working interest and operator):

This well is a sidetrack of the previously drilled NSE-E2 where the major reservoir target was faulted-out but 15 barrels of oil was recovered from a diverse volcanic zone situated in a separate fault compartment from the NSE-E1 structure that is yet to be appraised.

At least one additional well is intended for the NSE-E1 structure in 2009.

L44-W exploration well (60% working interest and operator):

The L44-W exploration well is now shut-in while a cement plug is being run to separate an upper 36 meter thick volcanic from a deeper 16 meter thick volcanic, the two being separated by 63 meters of intervening shale and thin volcanic stringers. Drilling fluid losses representing good permeability had been encountered in both volcanic zones while drilling.

During test period #1 the well originally flowed at a maximum of 1,200 barrels of fluid per day (bfpd) with a 30% water cut that climbed to about 80% after about three hours. At the termination of the test, flowing casing head and tubing head pressures has reduced to 20-30 psig. A consequent shut-in period saw well head pressures raise to 322 psig.

During test period #2 the flow rate was limited to 540 bfpd originally and then additionally restricted to 250 bfpd with no water (all oil, approximately 32 degree API), the tubing was shut-in and a flowing casing head pressure of 120 psig was observed. After eight hours, the water cut rose instantly to 90% and the test was terminated 9 hours later on.

Initial interpretation of the test data combined with observations from well tests on previous wells suggests that the water is being sourced from the deeper 16 meter thick volcanic zone. This deeper zone is being isolated with a cement plug and testing of the 36 meter thick upper zone is anticipated to begin within the next five days.

Production testing is being carried out under a 90 day production test allowance from the Thailand department of mineral fuels (DMF), as the well is outside any accessible production license.

NSE-H2 appraisal well (60% working interest and operator):

The NSE-H2 appraisal well, drilled into the northern down structure portion of the NSE central fault compartment, is now on production at about 420 barrels of oil per day with a 26% water cut as the well carries on to clean up, much the same as the nearby NSE-H1 well (currently less than 1% water cut).

NSE-I1 appraisal/exploration well (60% working interest and operator):

The NSE-I1 appraisal/exploration well, situated in the NSE north fault compartment is currently drilling ahead at a depth of 64 meters. This is the first well to be drilled in the NSE north fault compartment ever since the modest L44G-D1 discovery made in 2007 The well is situated 1.1 kilometers northwest of L44G-D1 and in a separate down thrown fault compartment associated to, up dip and larger than that of the NSE-E1 discovery made in the previous year.

The targets comprise three different volcanic zones between 731 and 1,100 meters (TVD) within a 1.64 square kilometer structural closure completely outside of the L44G-D1 3P reserve envelope. Success in any one of the three targeted volcanic zones has the potential to considerably raise the reserves at present assigned to the NSE north fault compartment.

Drilling is expected to be concluded in the next 14 days at which time testing of multiple zones, if justified by drilling results, will be started.

NSE-H3 appraisal well (60% working interest and operator)

The NSE-H3 appraisal well is now drilling ahead at a depth of 570 meters true vertical depth (TVD) towards the top of the main volcanic objective at about 850 meters TVD. Drilling is expected to be concluded in the next eight days with testing to begin shortly subsequently.