BLOCK PROSPECTIVITY PROJECT

Expressions of interest in exploration for hydrocarbons have been requested by the Government of Negeri Mimpi (GoNM). The attached information (map and borehole data) has been supplied by GoNM and was derived from previous exploration. GoNM is now interested in assisting a new round of exploration.No seismic data are available but it is understood that some further information may be available on an informal basis from GoNM officials if specific questions arise in the preparation of submissions. Talks have also been held with GoNM staff and the writer may be able to add some information to the official GoNM data package.

Our company is interested in preparing an exploration program for submission to GoNM. Although our primary interest is the discovery of oil, we recognise that the longer term future of the Company may depend more heavily upon natural gas. You are requested to prepare a short appraisal of the following:

1.Source potential of the sequences found in each of the sedimentary basins in Negeri Mimpi.2.A summary of the maturation levels and the implications of these levels for the generation of oil and gas.3. An assessment of the thermal history of each basin together with an indication of how the inferred histories may have impacted on:

•A. Charge risk ;•B. Types of hydrocarbons likely to be discovered; and•C. Loss or biodegradation of reservoired hydrocarbons at unconformities.

4. Basin ranking on geochemical grounds.5. Suggestion of locations for the first five boreholes to be drilled with a short appraisal of the targets in terms of oil or gas and the horizons from which these are expected to have been generated.

1.Soekasenang Chief Geologist

x xx

x

MASALAHSEA

50 KMS

PEDASBASINSENANG - 2

GELIS - 1C

BA

DCARBONIFEROUS

SEDIH - 1

SEKAP - 1

EMAS

SUB - BASIN

COBA - 1

JUNO

SUB - BASIN

KRIS

SUB - BASIN

HILANG - 1

GORENG - 1

MALAS-1ULI-1

AYU-1

SUNGAI-1

E

F

J

J

x

Gxx H

x I

K

K

K K

K

J

K

VERDANTBASIN

SAYANG BASIN

PE SCHISTS AND G

NEISSES

0.91.8

2.3

1.1

4.7

0.76

0.67

0.43

0.38

A

B

NO 1

Well data

Pedas Sub basin NO 1

ridge

Emas Sub basin

Juno sub basin

KRIS Sub basin

KRIS Sub basin

verdant sub basin

Sayang sub basin