Licence A7 -2005

Following the completion of all necessary central Government approvals and consents to start work on Licence A7-2005 generally, the Municipality of Coban refused consent for access to the Tortugas area of the licence. The Company has therefore declared force majeure and all operations have been suspended on the licence, with the exception of those related to Atzam-2.

Following the lifting of the force majeure at a future date following the resolution of the existing issues, the Company will complete the work over of two wells on the Tortugas salt dome and shoot 437 kilometres of 2D seismic.

With respect to Licence 6-93, the Company will carry out geological and engineering studies in 2007.