Leni makes oil discovery onshore Spain

Leni announced that the Hontomin 2 well in northern onshore Spain encountered oil at 1350m with oil flowing to surface. The objective of the Hontomin extended well test program is to appraise the long-term production potential of the Hontomin-2 well.

Drilling of the top reservoir formation interval has been completed and light oil has been observed flowing to surface. Full monitoring of the well will be conducted during the next few days prior to recommencement of drilling to open the bottom reservoir formation interval.

All well production from Hontomin will be transported to the central production facilities at the Ayoluengo operations base for processing and oil sales.

David Lenigas, Chairman of LGO stated, "This is an extremely important development for the Company, and oil flowing to surface is an encouraging sign for this well."

"Spain is one of the Company's most important assets and there is a great deal of new work being done between here and the end of the year on the various fields to enhance overall production as a direct result of the extensive reworking of the database this year."

Attack, kidnap occurs at oil field offshore Nigeria

Bourbon confirms that in the night of the Tuesday 21st to Wednesday 22nd September 2010, during an attack on the offshore oil field of Addax off the Nigerian coast, Bourbon Alexandre, together with its 16 crewmembers, have been subject to a joint assault from several speedboats.

Three crew members, of French nationality, have been kidnapped; the 13 other crewmembers have remained on board and nobody has been injured. No claim has been made at this stage.
Bourbon Alexandre, carrying a French flag, is an AHTS Vessel (Anchor Handling Tug Supply).

Bourbon has contacted all families and will keep them informed.

The Crisis Unit of Bourbon in Marseilles, in coordination with the Emergency Unit of Bourbon in Nigeria, is evaluating the situation in real time and working to obtain a rapid liberation in the safest security conditions.

Bourbon is working in close collaboration with the French and Nigerian authorities.

Bourbon will continue to disclose any new information when available and verified and will not make any comment, which could adversely affect the liberation of the crewmembers.

OGX announces the presence of hydrocarbons in Brazil

OGX Petroleo e Gas Participacoes SA, the Brazilian oil and gas company conducting the largest private sector exploratory campaign in Brazil, announced that it has identified the presence of hydrocarbon in the Maastrichtian section of well 1-OGX-20-RJS, located in the BM-C-41 block, in the shallow waters of the Campos Basin. OGX holds a 100% working interest in this block.

Hydrocarbons were identified in two different levels in sandstone reservoirs in the Maastrichtian section of the OGX-20 well, presenting net pay of approximately 9 and 4 m, respectively. The drilling of well OGX-20, also known as the Tupungato prospect, will follow until an estimated final depth of approximately 3,650 m is reached.

The OGX-20 well, located in the BM-C-41 block, is situated approximately 85 km off the coast of the state of Rio de Janeiro at a water depth of approximately 130 m. The rig Ocean Ambassador initiated drilling activities there on September 5, 2010.

Argentina to begin drilling exploratory well in Falklands area

Argentina is preparing to commence exploratory drilling in the South Atlantic's Falkland Basin just over a year after British supported exploratory drilling began in the disputed area.

Argentina's President Cristina Fernandez de Kirchner advised through aides that the exploration operation will begin in December and intends to increase its military presence in the area with naval reinforcements to provide security for the upcoming drilling activities, since it sees the British Navy's presence in the area as "neo-colonialism" and "occupation" by a foreign power, while the UK justifies its presence as protective of British sovereignty over the Falkland Islands as a British Overseas Territory.

The site of the initial well or wells is said to be about halfway between the Malvinas, as the Falkland Islands are known in Argentina, and Tierra del Fuego. To that end, the government has contracted a semisubmersible drilling rig from Swedish company Stensa that is capable of operating in South Atlantic weather conditions. Built to stand ten-meter waves, it is dynamically positioned and has four independent turbines. It will be operating in waters 1,500 meters in depth and will be drilling to a total depth said to exceed 9,843 ft. The drillsite will be the southernmost location of exploratory drilling in Argentina.

Reportedly, Argentina intends to commence its exploration with one or more wells to be drilled by a consortium that includes Yacimientos Petroliferos Fiscales (YPF) de Argentina, a subsidiary of Repsol: Pan American Energy, a joint venture of BP (60%) and Bridas (40%); and Petroleo Brasileiro (Petrobras).

Fugro Airborne Surveys to acquire Falcon data for Beach Petroleum

Fugro Airborne Surveys has been contracted by Beach Petroleum (Tanzania) Ltd., a wholly owned subsidiary of Beach Energy Ltd., for the acquisition and processing of Airborne Gravity Gradiometer (AGG) and High-Resolution Airborne Magnetic (HRAM) data obtained using the FALCON AGG system.

The survey, consisting of approximately 27,000 line kilometers, commenced September 9, and will take approximately three months to acquire the data. The survey will be flown over a 7,160-sq-km block covering the southern portion of Lake Tanganyika in Tanzania.

Naturally occurring seeps and surface slicks are well known on Lake Tanganyika, and significant hydrocarbon discoveries have been made in the Ugandan portion of the Eastern African Rift Zone.

The FALCON AGG system is the only gravity gradiometry system specifically designed and built for airborne use and provides the highest resolution airborne gravity data.

Cairn makes new discovery offshore Greenland

Cairn Energy struck both gas and oil with the Alpha-1S1 well drilled in the Sigguk Block about 175 km offshore Disko Island, west Greenland. The Alpha-1S1 well was drilled to 4,358 m in volcanic sections with the drillship Stena Forth; the well is now being deepened. The company reported gas shows in silty and volcanic sections over several hundreds of meters and oil has been observed intermittently over a 400-m section in the volcanic and volcano-clastic intervals of the well.

Cairn has plugged and abandoned its T8-1 well, which did not encounter hydrocarbons of a commercial volume. The well costs of $84.2 million excluding demobilization costs have been written off. The T4-1 exploration well, third in the Cairn campaign, is drilling ahead at 1,900 m and is located 100 km north of the Alpha well site and T8 site.

Iran-Pakistan-India Gas Pipeline (IPI)

Iran-Pakistan-India (IPI), 2700 km, pipeline is aimed to transfer gas from Iran's South Pars fields in the Persian Gulf to Pakistan's major cities of Karachi and Multan and then further to Delhi, India, with an estimated value of USD 7 billion.

Location	Iran-Pakistan-India - IR
	Investment	7,000,000,000 USD
	Announced	2/15/2002
	Completion	12/15/2015
	Scope	Iran-Pakistan-India (IPI) pipeline project (also called peace pipeline) was aimed at constructing a 1,620-mile (2700 km) pipeline from Iran's South Pars fields in the Persian Gulf to Pakistan's major cities of Karachi and Multan and then further to Delhi, India. Because of Iran is the most geographically convenient supplier of gas to both countries; Iran is offering to cover 60 percent of the construction costs of the pipeline. The total length of 2700 km project would run 1100 km in Iran and 1000 km to Pakistan and in case of agreement with India it will continue 600 km in Indian Territory. This project is expected to greatly benefit India and Pakistan, which do not have sufficient natural gas to meet their rapidly increasing domestic demand for energy. A land-based pipeline would be four times cheaper than any other option, even after taking into account transit fee payments to Pakistan. Pakistan could earn about $200-$500 million annually in transit fees from the pipeline and also would be able to purchase natural gas from the pipeline. The pipeline can carry 110 million cubic meters of gas a day. 50Mln cm meets domestic needs of Iran and the remaining 60Mln cm will go to Pakistan. Iran will initially transfer 30 million cubic meters of gas per day to Pakistan, but will eventually increase the gas transfer to 60 million cubic meters per day.

Development Milestones

	2/21/2009	Iran has increased the price of natural gas it plans to sell to India through Iran-Pakistan-India pipeline to USD 7.2 per mBtu, which makes it the most expensive fuel in the country as of date. Besides, India would have to pay USD 1.1-1.2 per mBtu in transportation cost and transit fee for wheeling the gas through Pakistan, making it the costliest gas in the country, so India had lost interest in the project because it considered that the price proposed by Iran was too high.
	3/21/2009	Economic Coordination Committee (ECC) of the cabinet approved a rationalised gas import price equivalent to 80 percent of the international crude oil price, removing the final obstacle in the $7.8 billion gas pipeline project with Iran.
	4/9/2009	Pakistan Federal Cabinet accorded approval to the construction of Pakistan-Iran gas pipeline and gave the go ahead for purchase of 750 million cubic feet gas from Iran to fulfill the growing local requirements.
	5/25/2009	Iran and Pakistan signed an initial agreement for a USD 7.5bn Iran-Pakistan-India gas pipeline.
	6/5/2009	Iran-Pakistan gas pipeline project has been formally signed in Istanbul. The agreement was signed between National Iranian Gas Export Company (NIGEC) and Pakistani Interstate Gas Company (PIGC).
	8/11/2009	900 km out of 1100 km in Iran has been constructed, with a cost of $700 m.
	1/23/2010	Iran and Pakistan have resolved all issues concerning the long pending IPI pipeline and both the countries are likely to sign a deal soon.
	3/17/2010	Iran and Pakistan have signed a deal paving the way for construction to start on the IPI gas pipeline. Under the terms of the deal, Iran will supply 750 million cubic feet a day of gas to Pakistan for 25 years.
	3/30/2010	China has expressed its keen interest to invest of $2.5 billion in Iran - Pakistan Gas pipeline, it is interested to extend the Gas Pipeline Project into its area.
	3/31/2010	India proposed dialogue with Iran to discuss impediments in implementation of the Iran-Pakistan-India (IPI) gas pipeline. India has been boycotting formal talks on the project since 2007 over security concerns.
	4/11/2010	Designing and construction of remaining part of the Iranian sector of Peace Pipeline will start as of May 2010. The 900 km, 42 inch diameter (IP) gas pipeline will run from the Assaluyen gas field in southern Iran to Pakistan. Requiring a total investment of $US 3.2 billion, the IP pipeline will have a capacity of 750 MMcm/a.
	5/16/2010	India has invited Iran for resumption of dialogue on the long discussed IPI project but Tehran is yet to respond. India has proposed a meeting of India-Iran Joint Working Group between May 23-28 in New Delhi but Tehran has not yet confirmed the dates.
	5/28/2010	Iran and Pakistan signed a "sovereign guarantee" agreement paving the way for the completion of Iran-Pakistan Gas Pipeline. The groundwork of the project would start soon, as the paper work had been completed.
	6/13/2010	Iran and Pakistan formally signed a deal, which commits the Islamic republic to supplying its eastern neighbor Pakistan with natural gas from 2014.

Lane Energy Poland and Schlumberger deliver first shale gas well in Baltic Basin

Lane Energy Poland and Schlumberger have announced an update on the first exploration shale gas well evaluating the shales in the Baltic Basin of Northern Poland. In addition, drilling on a second well in the area is at an advanced stage.

The drilling program operated by Lane Energy constitutes an important milestone for shale gas in Europe. Łebień LE1 is the first of two-wells that Lane is drilling in the onshore Baltic Basin region. Total depth was reached in record time, including coring operations of the target shales. Drilling on the second well, Łęgowo LE1, began on August 27 and operations are proceeding on schedule.

“This is the first time exploration wells have been drilled in the Baltic Basin of Northern Poland specifically to evaluate the potential of shale gas production. Lane is delighted that the mix of locally provided and Schlumberger-managed services helped to deliver the first well under budget and under time,” said Kamlesh Parmar, Lane Energy Poland Country Manager.

Schlumberger will continue to deliver a range of services for both wells, including drilling, logging and cementing. M-I SWACO, a Schlumberger company, is providing drilling fluid services. All services were completed on the Łebień LE1 well with no NPT and in full compliance with local and international standards.

“This is a landmark project in the development of shale gas in Europe,” said Chris Hopkins, vice president, Unconventional Resources, Schlumberger. “To ensure its success, we assigned a local project manager who was responsible for the seamless integration of all services on site. With ready access to the extensive shale gas expertise already gained by Schlumberger colleagues in North America, we were able to apply the knowledge and lessons learned in other plays to best affect results delivered here.”

Schlumberger will be providing Completion, Stimulation and Well Testing Services during the production evaluation phase of the operations. The Completion program has been submitted to the Polish Mining Authority and Completion operations are scheduled for October.

Shell awards Duco with seven-year umbilical contract for North Sea projects

Shell Upstream Europe has awarded Technip’s subsidiary Duco Ltd. a seven-year framework agreement contract for the supply of umbilicals for its southern and central North Sea projects. The contract covers engineering, procurement, project management and associated services for the fabrication and loadout of thermoplastic umbilicals up to 17 km in length.

Combined projects may require an average of over 15-30 km of thermoplastic umbilicals per year based on business planning estimates from 2011 to 2017. The umbilical systems and thermoplastic hoses will be manufactured by Duco Ltd. in its primary business facilities in Newcastle, United Kingdom.

Gazprom discovers new Kirinsky block field with 50 Tcf potential

Gazprom discovered a new field in the Kirinsky block explored within the Sakhalin III project.

A natural gas inflow was reported during the prospecting activities in the exploratory well No.1 drilled to the depth of 2,795 meters. Between 2010 and 2013 it is projected to perform a follow-up exploration and estimation of the field reserves.

Gazprom performs geological exploration within the Sakhalin III project as stipulated by the state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries. The Program was approved by the Russian Federation Industry and Energy Ministry in September 2007. Gazprom was appointed by the Russian Government as the Program execution coordinator.

Gazprom holds subsurface use licenses for the Kirinsky, Vostochno-Odoptinsky, Ayashsky blocks and the Kirinskoye field (located within the Kirinsky block) explored as part of the Sakhalin III project.

Sakhalin III gas reserves and resources are estimated at some 50 trillion cubic feet.

Sakhalin III gas will be fed into the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

Kulczyk completes drilling first well in Brunei's onshore Block M since 1988

Kulczyk Oil Ventures has drilled its Mawar-1 exploration well in Brunei Darussalam's onshore Block M to a measured total depth to become the first well to be drilled on the block since 1988.

Tap Oil, Kulczyk's partner in the project, said today that this is the first of a minimum of two wells that will be drilled on Block M during 2010. It said that the well has penetrated its targeted reservoirs and has reached it total measured depth of 1,292 meters (4,240 ft). Preliminary drilling and log data indicate the presence of hydrocarbons in the well which will be further evaluated over the next few days. Current operations on the rig are proceeding with the electric wireline logging program. The well was drilled with the MB Century Rig 104.

Tap's CEO, Peter Stickland, said Mawar-1 reached the planned total depth ahead of schedule and penetrated all of the planned targets. "Following evaluation of the log data a decision will be reached on the well potential," he said.

The partners in Brunei Block M and in the Mawar-1 well are Kulczyk Oil Ventures Borneo, the operator with 36% interest; Tap Energy (Borneo) with 39%; China Sino Oil with 21%; and Jana Corporation with the remaining 4%.

Libra discovery offshore Brazil could contain 8 billion bbl of oil

The Petrobras Libra Field discovery offshore Brazil in the Santos Basin's prolific pre-salt play has been estimated to contain approximately 8 billion bbl of oil.

Marco Antonio Almeida, Brazil's secretary of oil and gas at the Ministry of Mines and Energy, said yesterday that the Libra Field was independently appraised by Gaffney & Cline at 7.9 billion bbl - considerably more than the previous estimate of 5.5 billion bbl first reported by Haroldo Lima, director general of the government's Agencia Nacional do Petroleo (ANP), and making the field rival the 5-8 billion bbl Tupi Field and become second largest discovery in ten years after Kazakhstan's 17.2 billion bbl Kashagan Field.

Llocated 230 km offshore Rio de Janeiro state northeast of Petrobras' Iara discovery and near the estimated 4.5 billion bbl Franco area that is to provide most of the oil for the Petrobras oil-for-shares program, the Libra area may be included in the first round of tenders for production sharing agreements after the Brazilian Congress approves the new production sharing scheme, Almeida said.

"Libra, which according to estimates has up to 8 billion bbl of recoverable reserves, should be one of the first under the production sharing model," said Almeida, who added that Petrobras' drilling operations in the area should be completed within a month.

He added that he anticipates the first auction of production sharing contracts is likely to be in early 2011 and that he expects the Libra Field along with others to be offered.

Carrizo closes Marcellus Shale JV with RIL subsidiary

Carrizo Oil & Gas, Inc. has closed its previously announced joint venture transaction in the Marcellus Shale with a subsidiary of Reliance Industries Limited (Reliance).

In connection with the joint venture, Reliance acquired a 20% interest in approximately 52,200 net Carrizo acres in Pennsylvania considered highly prospective for Marcellus Shale natural gas at a purchase price of $65 million. Reliance paid $11.4 million in cash to Carrizo at closing with $1.7 million more expected later this year. In addition, Reliance will pay an expected $52 million of Carrizo's share of future drilling, completion, and seismic costs (development carry). The joint venture agreement is effective immediately.

Simultaneous with the closing of this transaction, an affiliate of Carrizo's already existing joint venture partner, Avista Capital Partners ("Avista"), closed on the sale its entire interest in the same properties to Reliance for approximately $327 million. Under the terms of Carrizo's current joint venture agreement with Avista, Carrizo expects to receive approximately $44 million in cash from Avista based on the sale of Avista's approximately 52,200 net acres. The amounts to be received by Avista and Carrizo are subject to adjustment, pending completion of land title work.

The new Carrizo/Reliance joint venture agreement covers approximately 104,400 gross acres in northern and central Pennsylvania. Under the terms of the agreement, Carrizo retains a 40% working interest in the acreage and Reliance owns 60%. In addition to funding its own share of future development obligations, Reliance will fund 75% of Carrizo's portion of these costs over the next two years or until the earlier full utilization of the $52 million development carry, subject to certain conditions and extensions. Carrizo will continue as operator with Reliance having the right to assume operations in certain parts of Central Pennsylvania after one year.

Carrizo's joint venture with Avista Capital will continue, and now covers approximately 140,000 gross Marcellus acres primarily in the states of West Virginia and New York.

CBM gas wells being drilled in Ordos Basin, Northwest China

Sino Gas & Energy Holdings has spudded its TB-08 well step-out well from the successful TB-07 well that flowed at an estimated rate of 2.9 million cf/d. The company reported that the Ordos Basin coalbed methane (CBM) drilling program on the Tuban prospect is being carried out to verify the extent of the same high production gas-bearing reservoir sands encountered in the TB-07 well. It said the TB-08 well is intended to do that as part of the company's reserves upgrading program. Sino Gas' drilling contractor Bohai Drilling Engineering Company has completed mobilization of the rig, associated equipment, and all staff to the site. Sino Gas has now completed an audit and confirmed their acceptance of the rig.

As per the work program, the TB-08 well will now be drilled down to around 2,200 m, completed, and electronically logged before setting casing. This process is expected to take around 25 days. Following completion of the drilling, it is intended that the TB-08 well be flow tested through hydraulic fraccing.

CNOOC approves transfer of South China Sea PSCs from Devon to Chevron and BP

CNOOC has announced the signing of amendment agreements to the Production Sharing Contracts (PSCs) with Chevron China, BP China and Devon Energy for deepwater blocks 42/05, 64/18 and 53/30 in South China Sea. Prior to the amendments, Chevron acquired a 59.18% interest in block 42/05 and a 100% interest in blocks 64/18 and 53/30 from Devon in the exploration phase; and BP acquired the remaining interest of Devon in block 42/05. In 2005 and 2006, CNOOC had signed PSCs with Devon for these three blocks. Block 42/05, located in Baiyun Sag of Pearl River Mouth Basin in the Eastern South China Sea, covers a total area of 6,939 sq km. Blocks 64/18 and 53/30 are located in Qiong Dong Nan Basin in the Western South China Sea with acreage of 7,712 and 6,313 sq km respectively. Water depth of the three blocks ranges from 300 to 2,000 m.
During the exploration period, Chevron will act as the operator in the three blocks. CNOOC Ltd. has the right to participate in up to a 51% interest in the event of any commercial discovery in the blocks. Zhu Weilin, CNOOC Executive Vice President and General Manager of the Exploration Department commented, “We welcome Chevron and BP to become our new partners in these blocks and look forward to the joint exploration of the great deepwater potential in the South China Sea.”

BP investigative report spreads blame for Macondo well blowout

A report released by BP today concludes that decisions made by “multiple companies and work teams” contributed to the accident which it says arose from “a complex and interlinked series of mechanical failures, human judgments, engineering design, operational implementation and team interfaces.”

The report – based on a four-month investigation led by Mark Bly, BP’s Head of Safety and Operations and conducted independently by a team of over 50 technical and other specialists drawn from inside BP and externally – found that:
- The cement and shoe track barriers – and in particular the cement slurry that was used – at the bottom of the Macondo well failed to contain hydrocarbons within the reservoir, as they were designed to do, and allowed gas and liquids to flow up the production casing;
- The results of the negative pressure test were incorrectly accepted by BP and Transocean, although well integrity had not been established;
- Over a 40-minute period, the Transocean rig crew failed to recognise and act on the influx of hydrocarbons into the well until the hydrocarbons were in the riser and rapidly flowing to the surface;
- After the well-flow reached the rig it was routed to a mud-gas separator, causing gas to be vented directly on to the rig rather than being diverted overboard;
- The flow of gas into the engine rooms through the ventilation system created a potential for ignition which the rig’s fire and gas system did not prevent;
- Even after explosion and fire had disabled its crew-operated controls, the rig’s blow-out preventer on the sea-bed should have activated automatically to seal the well. But it failed to operate, probably because critical components were not working.

Commenting on the report, which he commissioned immediately after the Macondo explosion, BP’s outgoing chief executive Tony Hayward said: “The investigation report provides critical new information on the causes of this terrible accident. It is evident that a series of complex events, rather than a single mistake or failure, led to the tragedy. Multiple parties, including BP, Halliburton and Transocean, were involved. “To put it simply, there was a bad cement job and a failure of the shoe track barrier at the bottom of the well, which let hydrocarbons from the reservoir into the production casing. The negative pressure test was accepted when it should not have been, there were failures in well control procedures and in the blow-out preventer; and the rig’s fire and gas system did not prevent ignition.

“Based on the report, it would appear unlikely that the well design contributed to the incident, as the investigation found that the hydrocarbons flowed up the production casing through the bottom of the well,” Hayward suggested. Several ongoing US government investigations have yet to issue their findings. The failed BOP was recovered earlier in the week and has been transported by the FBI to a NASA facility in Louisiana for forensic analysis.

BP’s incoming chief executive Bob Dudley said: “We have said from the beginning that the explosion on the Deepwater Horizon was a shared responsibility among many entities. This report makes that conclusion even clearer, presenting a detailed analysis of the facts and recommendations for improvement both for BP and the other parties involved. We have accepted all the recommendations and are examining how best to implement them across our drilling operations worldwide.

Based on its key findings, the investigation team has proposed a total of 25 recommendations designed to prevent a recurrence of such an accident. The recommendations are directed at strengthening assurance on blow-out preventers, well control, pressure-testing for well integrity, emergency systems, cement testing, rig audit and verification, and personnel competence.

BP said the report was based on information available to the investigating team. It noted that additional relevant information may be forthcoming, for example, when Halliburton’s samples of the cement used in the well are released for testing and when the rig’s blow-out preventer is fully examined now that it has been recovered from the sea-bed. There will also be additional information from the multiple ongoing US government investigations.

The investigation report is available online at www.bp.com, together with an accompanying video.

Sagres Energy estimates Jamaica blocks to hold 3 billion bbl

Sagres Energy has obtained an independent evaluation of the resource potential of certain prospects identified in its blocks 9, 13, and 14 in the shallow waters (20 meters) of the Pedro Bank 120 km offshore Jamaica showing a gross mean prospective resource estimate (oil) of 3 billion bbl.

Chapman Petroleum Engineering prepared the evaluation of prospects identified by Sagres, effective 1 July.

The La Conception prospects straddle the division between Blocks 9 and 13, and as there are no other prospects identified in Block 13, these prospects were grouped with the block 9 prospects for evaluation purposes.

Block 9 contains the La Concepcion and El Angel prospects and the Carrea del Mar lead. La Concepcion is an extremely large prospect that overlaps into Block 13 and has an independent closure of approximately 150 sq km and a fault dependent closure of approximately 390 sq km. The Carrea del Mar lead and El Angel prospect are both large opportunities with areas of approximately 30 sq km and 40 sq km respectively.

Block 14 contains the Regla del Oest and Regla del Este leads. These leads are 40 sq km and 70 sq km in area, respectively.

Sagres has completed its phase one commitments under its production sharing agreements with the Petroleum Corporation of Jamaica with the acquisition and processing of 2,458 km of 2D seismic data over blocks 9, 13, and 14. The interpretation and integration of the new and old data was completed in July. As part of this process, 51 existing seismic lines were digitally scanned and migrated, eight well logs were reprocessed, and two lines of the new seismic data were selected for improved seismic processing.

Geophysical and geological analyses of the data have resulted in a new suite of new interpretations, the definition of two drill-ready prospects, the identification of three additional leads, and a reassessment of the potential resource covered by the blocks.

Sagres is continuing to pursue joint venture partners to further explore and develop its interests in the blocks. Several international energy companies have signed confidentiality agreements with Sagres in order to access the data for the blocks, and evaluate the potential for a joint venture. Over the rest of this year, Sagres plans to continue geologic work to progress exploration opportunities from lead to prospect status, which may include further seismic processing; to begin formative work on the environmental impact assessment and site surveys for exploration drilling; and to complete the annual review and budget process with the Petroleum Corporation for Jamaica.