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We are pleased to announce that we have been retained by Kuwait Foreign Petroleum Exploration Company (“KUFPEC” or the “Company”) for the purpose of seeking a Joint Venture partner to participate in the development of KUFPEC’s Seram (Non-Bula) PSC on Seram Island, eastern Indonesia (the “Offering”).




BACKGROUND

KUFPEC, a subsidiary of Kuwait Petroleum Corporation, is focused on international exploration, development and production activities the Middle East, Africa, Asia, and Australia. KUFPEC has assumed both operator and non-operator positions in its projects with participating interests typically 30% to 40%. KUFPEC has held its Seram position in Indonesia (through its wholly-owned subsidiary, Kufpec, ( Indonesia) Ltd (“KIL”)) for approximately 20 years and is geared towards expanding its position in Indonesia. To this end we believe the Offering presents you with a good opportunity to participate in the realization of the full potential of the Seram (Non-Bula) PSC.


OVERVIEW

KUFPEC owns and operates a 97.5% working interest in the Seram (Non-Bula) PSC, which includes the producing Oseil oil field, its associated facilities and significant exploration potential over a large area. The development of the Oseil oil field follows successful drilling of several horizontal and vertical oil wells into the Jurassic Man usela Carbonate (please see attachment for details).

Utilizing newly reprocessed seismic information and production optimization techniques, KUFPEC is in a position to pursue further development of the Oseil field with a partner who is expected to contribute both technically and financially to the exploitation of the existing and future reserve bases. Substantial investments have been made in acquiring seismic data, drilling and facilities and $278 million remain fully cost recoverable under the terms of the PSC agreement.

To support its initiatives, KUFPEC has completed the construction of a 22,000 bbl/day topping plant with export and storage facilities. Crude is processed onsite into naphtha and high sulphur fuel oil and sold on the open market via shipments from KUFPEC’s marine terminal. KUFPEC’s facilities are unique to the region and may attract third party oil for both processing and marketing activities. KUFPEC’s facility allows for increased production sales revenues and facilitates incremental production gains in what was previously a remote area for exploitation activities in eastern Indonesia.

KUFPEC has identified significant exploration potential through an inventory of prospects and leads which is supported by a geophysical data base comprised on 3-D and 2-D seismic data as well as gravity data covering a large part of the PSC area.

KUFPEC is seeking a Joint Venture partner interested in acquiring ~40% of its interest in the Seram (Non-Bula) PSC and in working together to accelerate the development of the Oseil field as well as to assess new drilling initiatives for further development and exploration.

Key Highlights of the Offering

An opportunity to acquire a ~40% working interest in the development of the Oseil field and access to broader PSC exploration opportunities
KUFPEC is flexible under which terms are presented for Oseil including production milestones benefits and is receptive to partial exchange of exploration acreage in the region
Current daily production of ~4,000 bbl/day (gross) of 22 degree API oil at the Oseil field
Prior sunk costs of ~$280 million (100%) which is fully recoverable under the PSC
Further developmental drilling scheduled to continue in 2006
Recent 3-D seismic evaluation indicates reservoir upside through improved placement of wells
Recently completed facilities include a topping plant and a marine export terminal
Large inventory of prospects and leads
Additional inventory of production optimization opportunities
Established operating team based in Jakarta
The Offering represents a not-to-be-missed opportunity to acquire a ground floor position in an oil development project with significant reserve and production upside. The additional inventory of identified exploration opportunities further enhances the long-term viability of the project.