OPERATIONS UPDATESC 44 – PHILIPPINESAPRIL, 2009The Company is...

OPERATIONS UPDATE
SC 44 – PHILIPPINES
APRIL, 2009
The Company is pleased to provide the following SC 44, Philippines operational update:
· The Philippine Department of Energy has approved our SC 44 contract terms variation request
· Nuevo Malolos-1 and Malolos-1 well workovers are planned to be completed by June, 2009
· Seismic data will be acquired late in 2009
Philippines – SC 44 (100%)
The Company has received a positive response from the Philippine Department of Energy regarding our request to
combine the outstanding Service Contract 44 commitments and we are pleased with this outcome. The new contract
terms provide for the planned well workovers to be completed by the end of June, 2009 plus 100 kms seismic
acquisition by the end of December, 2009. This is to be followed by the drilling of one new well by the end of June,
2010 and the drilling of two new wells by the end of December, 2010.
The proposed Malolos-1 and Nuevo Malolos-1 workovers offer the Company the lowest cost and nearest term, low
risk operations to produce commercial flow rates of gas and/or oil. The Company has continued with technical
studies and planning for the operations to remediate the hydrocarbon-bearing sandstone reservoirs in both these
wells. The type of formation damage encountered in these two wells is not uncommon and similar damage has been
successfully overcome in hydrocarbon-bearing sandstones in other sedimentary basins worldwide (eg. Indonesia,
USA, North Sea, Brazil, West Africa and the Middle East).
The 2009 work program will involve the implementation of a multi-reservoir remediation program on both the
Malolos-1 and Nuevo Malolos-1 wells. Finalisation of the remediation program design and sourcing the necessary
equipment and contractors is at an advanced stage. The plan is to commence this operation as soon as possible
and to have completed the workover program on both wells by the end of the 2nd Quarter, 2009.

"operations to produce commercial flow rates of gas and/or oil." .... Ras , I call it 1 each

cheers...