Buccaneer to Commence Drilling 2nd Well at Kenai Loop

- Buccaneer to Commence Drilling 2nd Well at Kenai Loop

Thursday, August 18, 2011
Buccaneer Energy Ltd.

Buccaneer advised that it is on track to commence drilling of its second well at its 100% owned Kenai Loop project within the next 7 days.

The Company has contracted with Marathon Oil Company for the Glacier Drilling Rig # 1 to be on site for the second well at Kenai Loop, this being the same rig that successfully drilled KL # 1. The rig will mobilize to the location on August 22, 2011 (US time) with the well expecting to spud during that same week.

This second well will be a development well directionally drilled from the same drilling pad as KL # 1. The bottom hole location is expected to be approximately 1,800 feet from that of the KL # 1 well.

In May 2011 Buccaneer drilled the KL # 1 and intersected 26 separate gas pay zones. 2 of these zones were tested being the 9700' and 10000' sands. Due to restrictions on rig availability the Company was unable to test the remaining 24 identified pay zones.

The second Kenai Loop well will have the following primary objectives:

• a step out well to test and possibly extend the known aerial extent of the 9,700' and 10,000' sands;
• flow test additional pay zones (especially those at ~10,600') which were previously untested due to the then rig availability constraints;
• further define reservoir characteristics and reserve potential; and
• complete the well as a second producer in the Kenai Loop field.

The current independent assessment of 2P reserves at Kenai Loop of 38.3 BCF (4.8 MMBOE1) was based solely on the two tested pay zones in the 9,700' and 10,000' sands. The assessed 2P reserves covered an average of 340 acres of drainage area around the KL # 1 well. If the above objectives are successful, the 2P reserves are expected to increase.

The well is expected to take 30 days to reach its target depth of 11,000'. An additional 14 days of testing is anticipated.

Director of Buccaneer Energy, Dean Gallegos said, "The Company is very keen to take full advantage of the recently executed gas sales contract with ENSTAR, which allows for deliveries of up to 15.0 MMCFD.

"The sand in KL # 1 around the 10,600 feet depth look good on the logs and the second well will penetrate these sands in a slightly higher structural position than in KL # 1. These sands and the shallower 9700' and 10,000 foot sands are the most immediate way for us to increase booked reserves and future production capacity.

"In the last 12 months the Company has leased, technically assessed, permitted, execute a gas sales contract and drilled 2 wells. While there will always be delays due to unforeseen circumstances, I think this demonstrates management's capacity to deliver complex projects successfully."

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SacOil: Work Program to Commence at Congo Block III

- SacOil: Work Program to Commence at Congo Block III

Monday, August 15, 2011
SacOil Holdings Ltd.

SacOil provided an operational update on the Block III oil concession ("Block III"), Albertine Graben in the Democratic Republic of Congo ('DRC'), in which SacOil has an effective 12.5 percent interest.

As announced on March 4, 2011, Semliki Energy SPRL ("Semliki"), a 50 percent owned subsidiary of SacOil, successfully concluded a farm-in agreement in March 2011 with Total E&P RDC ("Total") pursuant to which Total acquired an effective 60 percent undivided interest in, and became the operator of, Block III. The Government of DRC holds an effective 15 percent interest and DIG Oil holds an effective 12.5 percent interest respectively in Block III.

Work Program

SacOil announced the establishment of the Block III Operations Committee ("Committee") for the management of Block III joint venture operations. The Committee consists of members from SacOil, Total, DIG and a representative of the Government. The first meeting took place in Kinshasa in June 2011 and further meetings are scheduled to take place on a bi-annual basis to monitor and report back on the execution of the work program.

The work planned and agreed on Block III includes an airborne gravity and magnetic survey over the license area, the results of which are expected in 4Q of 2011. This will form the basis for the next stage of the program which will include the acquisition of a targeted 2D seismic survey. The performance of the work program is subject to first obtaining the relevant ministerial authorization.

Bradley Cerff, Vice President Commercial of SacOil commented, "I am pleased with the progress we are making at Block III with our partners Total. Work will shortly commence on carrying out the preliminary aeromagnetic surveys which is the precursor to targeted seismic surveys. The Block III project in the DRC has an exceptional postcode in terms of recent neighboring discoveries in Uganda. We look forward to updating shareholders on further work programs as we move towards drilling a maiden well on Block III during the first phase of the exploration period."

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PGNiG to Commence Flow Testing at Polish Well

- PGNiG to Commence Flow Testing at Polish Well

Tuesday, August 09, 2011
Aurelian O&G plc

Aurelian provided the following operational update.

Highlights:

• Drilling ends at Niebieszczany-1, the first of a three well program in Bieszczady. Two intervals totaling 60 meters to be put on flow test. Follow up well planned for H1 2012.
  • The operator PGNiG and the Bieszczady partner group have decided to end drilling at 4,219 meters due to high pressure in reservoir.
  • 60 meters of formation that has already produced oil, condensate and gas in earlier drill stem tests will now be put on flow test for up to 14 days.
  • Follow up well in H1 2012 to be designed for high pressures enabling partners to reach original Niebieszczany-1 primary target areas containing up to 100 million barrels (gross) of oil as well as potentially appraising 60 meter test zone.
  • Aurelian cost exposure on drilling and proposed test, limited to €3.5m due to fixed cost turnkey contract.
• Second Siekierki Multi-Fracced Horizontal Well ("MFHW") Trzek-3 fracking operations ongoing.
  • Currently working on final frack of six frack program.
  • Operations currently on budget with no material mechanical issues.
  • 14 - 21 day stabilized flow test expected to commence mid-August.
• First Siekierki South-West well, Krzesinki-1, at 2,007 meters.
  • Current depth 2,007 meters. Target depth of 4,150 meters expected to be reached early Q4 2011.
  • Targeting mid case of 44bcf net to Aurelian.
  • Well on trend with conventional producing fields and at present horizontal drilling and fracking are not planned.

Rowen Bainbridge, Chief Executive commented, "While the primary targets on Niebieszczany-1 were not reached, we are encouraged that the operator, PGNiG, is about to commence the flow testing of 60 meters of formation that has already produced oil, condensate and gas in earlier short term tests. We look forward to the results of these flow tests and to better understand their implications for the design of the follow up well in 2012 and for the potential commercialization strategy for Niebieszczany-1.

The frack operations in Trzek-3 are almost complete and we look forward to commencing the stabilized flow test later this month. We are also making good progress on our Krzesinki-1 well and look forward to reaching target depth early in Q4 2011. Krzesinki-1 is an exciting prospect which, if successful, could add significant conventional gas to the existing 346 bcf (net to Aurelian) in the Siekierki Tight Gas Project."

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Horn Petroleum to Commence Drilling Program in Puntland

- Horn Petroleum to Commence Drilling Program in Puntland

Thursday, August 04, 2011
Range Resources Ltd.

Range announced that its Puntland Joint Venture partner and operator, Africa Oil, through its newly created company Horn Petroleum is currently in final preparations to commence the historic and highly prospective two well drilling campaign in the Dharoor Valley Block in Puntland, with the first well scheduled to spud early in the fourth quarter of 2011.

The drilling locations have been selected over two robust prospects and each well is targeting gross best estimate prospective resources of 300 million barrels and 375 million barrels recoverable for the two prospects (with net attributable prospective resources to Range of 60 million barrels and 75 million barrels respectively). Contracts for the drilling rig and third party services are in advanced stages of negotiation and are expected to be executed in early August.

The Puntland Government and Dharoor Valley communities are fully supportive of the drilling project and have ensured they will do all necessary to allow the project to move forward safely and expeditiously. Specific milestone target dates have been adjusted by the Puntland Government allowing the Company and partners to move the drilling start-up to the fourth quarter of 2011. In addition, partial relinquishments in both the Dharoor Valley and Nugaal Valley agreements have been finalized and approved.

Range Resources Executive Director, Peter Landau commented, "We are delighted that JV partner and Puntland operator, Africa Oil Corp., along with the Puntland Government have settled on mutually agreeable terms that will finally see a well(s) drilled in Puntland, Somalia this year. We look forward to advising the market in the coming week(s) as critical service contracts are entered into and mobilization begins."

"Range is certainly entering into an exciting stage for the Company, with the drilling of the first exploration well in Georgia progressing well, the first well in the 21 well initial Trinidad work program having spudded and scheduled to be completed and on-line mid next week before moving on to the next well in this program. Also with a contractor appointed for the third well on the North Chapman Ranch Project, the Company will have its four operations all active in September and October of this year. "

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Range Commence Drilling at Georgia Well

- Range Commence Drilling at Georgia Well

Thursday, July 14, 2011
Range Resources Ltd.

Range along with its joint venture partners, Strait O&G and Red Emperor has spudded the Mukhiani 1 well in Georgia overnight. Mukhiani 1 is targeting a prospect with a mean estimate of undiscovered oil in place of 115 million barrels (with 46 million barrels attributable to Range's 40% interest).

Range Executive Director, Peter Landau commented, "This is a significant milestone for Range as it is our maiden well spud as an operator and the culmination of a significant amount of appraisal work completed by Strait's operations team."

The drilling operations will run 24 hours with a team of between 40-50 personnel and is expected to take approximately 45-55 days with a target depth of circa 3,500m.

The Mukhiani Well is targeting the Vani 3 prospect which has the following estimated undiscovered stock tank oil-in-place ("STOIIP"):

Vani 3 Prospect - STOIIP (MMbbls)

	P90	P50	P10	Mean
Gross (100%)	41.7	92.7	178.2	115.2
Net Attributable to Range (40%)	16.7	37.1	71.3	46.1

The recently completed geochemical helium survey undertaken by Range confirmed the suitability of the first drill location with oil exploration and development prospectivity complementing the earlier seismic work completed on the target.

Following the successful completion of the Mukhiani 1 well, the rig will then move on to spud the Company's second exploration well as part of the two well highly prospective drilling program in Georgia.

The Company will provide updates on a regular basis as to the progress of the drilling of the Mukhiani well.

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Curlew to Commence Completion Ops at Fairydell Well

- Curlew to Commence Completion Ops at Fairydell Well

Friday, June 10, 2011
Curlew Lake Resources Inc.

Curlew announced completion operations will commence early next week on the New Pool Wildcat well at Fairydell, land conditions having become favorable.

The Curlew FBA 9-14-57-24 W4M well has been drilled and cased to total depth in the Wabumun formation. Drill cuttings and logs have indicated several porous sands with oil staining and/or natural gas indicators in the Mannville formations, which will be tested for potential oil and/or gas production.

The Company also plans to carry out further seismic data acquisition and interpretation in this area. Curlew Lake has a substantial position in Township 57, Range 24 West 4th Meridian where 3-D seismic is expected to indicate multiple targets on our lands.

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FOGL Anticipates Falkland Drilling to Commence in 1Q12

- FOGL Anticipates Falkland Drilling to Commence in 1Q12

Wednesday, June 08, 2011
Falkland O&G Ltd.

FOGL provided the following operational update.
Rig contract

On May 19, 2011, FOGL announced that it had entered into an assignment agreement with Borders & Southern Petroleum plc. ("B&S") and Ocean Rig 1 Inc. to contract the Leiv Eiriksson for two firm drilling slots. The rig is currently expected to arrive in the Falkland Islands in the fourth quarter of 2011. FOGL will utilize the third and fourth slots in the combined B&S and FOGL program and expects to commence drilling in the first quarter of 2012.

Operations and drilling management

FOGL has made significant progress in establishing a strong and experienced drilling team managed by Dave MacKay, who has been appointed drilling manager. Dave has over 29 years of international drilling experience and is a specialist in deepwater drilling having worked for the last 12 years for BHP Billiton. Dave also gained crucial Falklands operational experience as part of the drilling management team on the Toroa well in 2010. Mike Thomas has joined as Operations Manager. Mike has over 30 years oil industry experience with Clyde Petroleum, Paladin Resources and most recently was Chief Operating Officer for Dominion Petroleum Ltd. Mike will be responsible for geological aspects, geotechnical well planning and HSE management.

Northern license area approvals

On May 24, 2011, the Executive Council of the Falkland Islands approved the withdrawal of BHP Billiton from the northern license area and transfer of operatorship to FOGL. They also approved a six month extension of Phase 1 of the northern license area from December 15 to June 15, 2012. This extension requires the final approval of the British Foreign and Commonwealth Office, which is expected shortly.

FOGL is required to make a mandatory relinquishment of 20% of the Northern License area at the end of 2011 as required under the existing license terms. The second phase of the Northern license area does not expire until December 15, 2015 and carries the obligation to drill a single exploration well.

FOGL has already entered Phase 2 of the Southern License area and no further relinquishment is required.

Seismic program and site survey

The latest site survey program has now been completed. A total of five site surveys were completed on the following prospects: Inflexible, Vinson, Scotia, Hero and Loligo.

The site survey on Loligo was the fourth site surveyed on this prospect following three previous site surveys conducted in 2009. Having a range of sites on Loligo will enable us to determine the location of the initial exploration well and also, in the event of encouraging results, potential appraisal drilling sites.

Separately, FOGL is planning to acquire some additional focused 2D seismic over the Scotia and Hero prospects. This data will be used to fine tune the location of an exploration well on either of these two prospects.

Farmout

FOGL is currently in early stage discussions with several parties who have expressed an interest in participating in our exploration drilling program. The Company does not however anticipate concluding any farmout agreement until later this year.

Tim Bushell, Chief Executive of FOGL, commented, "Since becoming operator and 100% owner of our licenses on March 31, we have secured a suitable rig, put in place funding for a 2 well program and have established an experienced drilling management team. We have also accelerated all the other required work streams in preparation for our drilling program which is expected to commence in the first quarter of 2012."

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Otto to Commence Abandonment Ops at Duhat Sidetrack

- Otto to Commence Abandonment Ops at Duhat Sidetrack

Wednesday, May 25, 2011
Otto Energy Ltd.

Otto provided the following update on the progress of the Duhat-1A sidetrack well, located in the Philippines.

Since the last update, the well was drilled to 321 m TVD (True Vertical Depth) in the 12 ¼” section before becoming stuck, again due to unstable hole conditions (similar to those experienced in the Duhat-1 nearby well).

The well was subsequently plugged back to 200 m TVD and abandonment operations have commenced.

Information obtained during drilling from both Duhat-1 and the Duhat-1A sidetrack are very encouraging. In both wells, high general background gas levels have been observed during drilling, consistent with the presence of an oil generative area. These high gas levels, in formations of relatively weak rock strength coupled with unexpected shallow overpressure in the Miocene Tagnocot interval require further study prior to the recommencement of exploration in the block.

Drilling further ahead in Duhat-1A is now considered to be imprudent on safety grounds and abandonment is now in progress.
Otto Energy Ltd and its partners in SC-51 are excited by the geotechnical results of this initial drilling campaign and further work will be programmed once the data from recent operations have been fully analyzed.

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Solimar to Commence Flow Testing Prog. at Guijarral Hills

- Solimar to Commence Flow Testing Prog. at Guijarral Hills

Thursday, May 19, 2011
Blast Energy Services Inc.

Blast announced that a completion rig has moved on location to commence the flow testing program on the Solimar Energy 76-33 well in the Guijarral Hills Field Area located in Fresno County, California. Under the completion plan, Solimar Energy, the operator of the well, plans to perforate and flow test up to three zones within the Gatchell, Avenal and Leda intervals. A total of potential net pay of over 135 feet in six separate intervals was previously reported for the well. The three intervals that have been selected for testing are those deemed most likely to potentially produce commercial quantities of oil.

"We acquired our interest in the Guijarral Hills Project with a target of achieving five million barrels of recoverable light oil resources. We are encouraged by the shows encountered in this first well and are looking forward to the results of this testing program," stated Michael Peterson, acting President and Chief Executive Officer of Blast.

The testing program will involve perforating the selected interval followed by periods when the well will be flowing or shut-in to measure the pressure response and to evaluate fluid properties. The test sequence will involve testing the deepest interval, the Lower Gatchell, first and then working up the well, as necessary, to the shallower Avenal and Leda objectives.

The three intervals selected to be tested have all been productive in the adjacent Guijarral Hills field. Each zone had increased shows of hydrocarbons while drilling and were indicated on wireline logs. While such petro-physical analysis indicates that hydrocarbon pay is present, the flow testing program is necessary to determine whether the reservoir quality will meet commercial production rates.

The testing program for the three intervals is expected to have a gross cost of approximately $530,000, although the total cost will depend on the results and whether any of the intervals require additional procedures, such as fracture stimulation. While Blast has paid two-thirds of the cost to date, Blast is now heads up on this project and will be responsible for 50% of the costs going forward.

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Beach to Commence Shale Flow Stimulation in June

- Beach to Commence Shale Flow Stimulation in June

Thursday, May 19, 2011
Beach Energy Ltd.

Beach will commence flow stimulation of its Holdfast-1 shale well in early June, which will be followed immediately by the flow stimulation of the Encounter-1 shale well.

In preparation for flow stimulation, the Holdfast-1 well has been successfully completed with Encounter-1 completion expected to be finalized within the next week.

The flow stimulation process may take up to two weeks for each well, after which they will be flow tested in preparation for a resource booking in July/August 2011.

Both Holdfast-1 and Encounter-1 are data gathering wells and as such are not designed to flow at levels expected of a production well.
The design of pilot production wells will be based on information gathered from the flow stimulation of, and earlier core samples retrieved from, Holdfast-1 and Encounter-1. The timing of these pilot production wells will be primarily driven by equipment availability, and as such, it is anticipated that the pilot production program will now commence early in 2012.

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Buccaneer: Casing Ops to Commence at Kenai Loop

- Buccaneer: Casing Ops to Commence at Kenai Loop

Wednesday, May 18, 2011
Buccaneer Energy Ltd.

Buccaneer provided the following update on the progress of the Kenai Loop # 1 well:

• Time: 9.00am (Sydney) May 18, 2011 / 3.00pm (Anchorage) May 17, 2011.
• Depth: 10,680 feet Total Vertical Depth (“TVD”)
• Activity: Wire-line logging operations completed. Casing set and flow testing operations are expected to commence within the next 48 hours.
• Results: Wire-line logging has identified a total of up to 173' of gross pay in the Upper Tyonek Formation.

In the interval 9,421' to 10,680' a partial set of logs were obtained confirming a total of 137' of gross pay. Logs over the intervals that were high graded within the 9,421' to 10,680' interval as significant or very significant in an earlier release have been confirmed with wire-line logs and have been defined as Zone 1, Zone 2 and Zone 3.

Zone 1 has an upper sand of 37' of gross pay which logs have confirmed as being quality reservoir with high porosity and good permeability. This upper sand package is in the region where a "gas kick" was experienced during drilling operations. This sand is a high priority test target. There is an additional 12' of lower sand which is a lesser quality sand, but remains attractive.

Zone 2 is an additional massive sandstone zone of approximately 50' of gross pay which logs indicate has good porosity and permeability. This is a high priority test target.

Zone 3 has a confirmed 38' of gross pay which logs confirmed as having good porosity and permeability.

Further logging over the 9,421 to 10,680' interval will be completed now that casing has been set, these logging operations may reveal other promising targets not included in this update.

A full set of logs on the Upper Tyonek Formation down to 9,421' were successful. Those logs have confirmed 4 intervals totaling 36' of gross pay.

The drilling rig must be released June 1. Accordingly, all efforts are currently focused on logging, testing and completing the well within that time frame.

Massive sandstone indicates a relatively thick, uniform, not laminated, sandstone; possibly a channel type of sand with typically very good reservoir characteristics.

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Sonoro Gets Green Light to Commence Asphalt Proj. in Iraq

Sonoro Gets Green Light to Commence Asphalt Proj. in Iraq

Monday, April 25, 2011
Sonoro Energy Ltd.

Sonoro announced that further to the previously announced Management Committee approval of the Company's work program and budget for the first year of the license period in Iraq, the Company has now received an investment permit from the provincial governorate of Salah ad Din allowing the Company to proceed with its asphalt (heavy oil) project. This permit allows Sonoro to immediately commence operations and allows for the importation of necessary equipment and personnel. Finally, this permit sets April 14, 2011 as the commencement date of Sonoro's exclusive five year exploration period as per the License Agreement.

Sonoro's immediate objective is the appraisal of its North Salah ad Din resource prospect. This phase includes the acquisition of seismic data and the drilling of three wells to delineate the field size and to evaluate resource deliverability. The Company has recently identified three additional exploration prospects upon which further seismic and well data is being acquired to facilitate further delineation of these prospects.

President and CEO, Richard Wadsworth, commented, "With this permit our team now has the necessary approvals to commence operations and drilling of at least three wells in Salah ad Din targeted for Q3 2011. Our next steps are to finalize our security and drilling program and to tender out for a rig and related services. The fact that we have identified four distinct prospects in different areas of the province in a short period of time provides confidence in the large resource potential within the province."

Heritage to Commence Multi-Well Exploration Program at Miran Block

Heritage to Commence Multi-Well Exploration Program at Miran Block

Monday, April 18, 2011
Heritage Oil plc

Heritage Oil provided an update on the work program and development options for the Miran Block in the Kurdistan Region of Iraq ("Kurdistan").

Highlights

• Rig secured to commence a multi-well exploration and appraisal drilling campaign on the Miran Block
• Miran West-3 well scheduled to spud in July and is estimated to take 160 days to drill and test
• It is planned to undertake a comprehensive testing program
• 3D seismic program progressing with the first batch of data being analyzed
• 2D seismic program to commence in the summer to define other potential prospects on the Block
• Discussions with the Kurdistan Regional Government (the "KRG") continue regarding fast-track development of the gas

Drilling Program

Heritage has signed a rig contract with DaQing International to supply the DQ037 2000HP rig to commence a multi-well exploration and appraisal drilling campaign on the Miran Block. The first well in this continuous drilling campaign will be the Miran West-3 well, which is an approximate 4 kilometer step out appraisal of the major Jurassic gas discovery made by the Miran West-2 well.

The Miran West-3 well, which is scheduled to spud in July, will take an estimated 160 days to drill and test and is targeting the flanks of the Jurassic structure, with the benefit of the current 3D seismic survey. The well will appraise the Upper and Lower Cretaceous reservoirs whilst drilling to its primary Jurassic objective, with an estimated total depth of approximately 3,800 meters. The well bore will be angled to increase the frequency of fracture penetration and orientated in the optimal direction for the interception of open fractures. It is planned to undertake a comprehensive testing program targeting numerous potential reservoir horizons.

On completion of this well the rig will move to drill the Miran West-4 appraisal well. A second rig is being sourced to drill the Miran East-1 exploration well in the fourth quarter of this year, at which point Heritage will have two rigs operating in country.

Seismic Acquisition

Heritage is currently acquiring 730 square kilometers of 3D seismic across the Miran Block to help define further appraisal drilling locations and fully exploit fracture networks. This is believed to be the largest ever 3D seismic program undertaken to date, in Kurdistan. The data will be analyzed in separate tranches to expedite understanding of the structures and the first batch of 3D seismic data, covering 180 square kilometers, is currently being processed.

In addition, 180 kilometers of new 2D seismic data will be acquired within the Block in the summer of 2011 to define other potential prospects.

Gas Monetization

Discussions with the KRG over the fast-tracked phased development of the Miran Field have continued. The KRG has outlined their favored development options for gas utilization and the initial priority will be to satisfy local gas demand by supplying produced gas on commercial terms to local power stations and other end-users in the Sulymaniyah region in 2013. Early production of the gas will also result in early associated condensate and oil production. This will then be followed by the export of gas to Turkey/Europe and full production of the oil and condensate zones enabling full development of the field.

Tony Buckingham, CEO, commented, "The signing of the multi-well rig contact and expansion of the seismic programs demonstrates our commitment to exploring and developing the Miran Field. The initial discussions with the KRG have been very constructive and could lead to the fast-tracked development of the field, which has the potential to benefit our shareholders significantly, and contribute to the further development of the region as well as generate revenue to be shared by all peoples of Iraq."

Lansdowne to Commence Seismic Survey Offshore Ireland

Lansdowne to Commence Seismic Survey Offshore Ireland

Tuesday, March 29, 2011
Lansdowne O&G plc
by  SubseaIQ

Lansdowne has signed a contract with Polarcus Limited ("Polarcus") for the acquisition of 3D seismic surveys over the Rosscarbery, Amergin and Midleton Prospects in the North Celtic Sea, offshore Ireland, covering an aggregate area of approximately, 300 square km.

The Lansdowne survey is expected to commence in early July and will follow on from the 3D seismic survey acquisition by Polarcus over the Barryroe oilfield in which Lansdowne has a 20% interest.

Beach, JV Partner Commence Seismic Survey Offshore Albania

Beach, JV Partner Commence Seismic Survey Offshore Albania

Friday, March 25, 2011

by  SubseaIQ

Beach Energy Ltd.

Beach and its joint venture partner San Leon advised that they have commenced an 840 square kilometer 3D seismic survey in the Durresi Block, offshore Albania.

San Leon is Operator of the joint venture and, through a subsidiary, holds a 75% interest in the Durresi block with Beach holding the remaining 25%. Beach has agreed to pay 50% of the seismic program costs, rather than its 25% working interest requirement, in exchange for an option which, if exercised after review of the seismic data, will give Beach a 50% working interest in the license moving forward.

Petroleum Geo-Physical AS has been contracted to carry out the survey using the M/V Ramform Vanguard seismic vessel. The 3D seismic program will evaluate a number of prospective targets in the Durresi Block, including the A4-1X discovery, in preparation for drilling in 2012.

The A4-1X gas condensate field was discovered in 1993 and is located 30 km off the southern coast of Albania. San Leon estimates the discovery to contain approximately 38 million barrels of circa 51 API condensate and 150 billion cubic feet of gas. The joint venture is also exploring potentially significant oil and gas targets adjacent to A4-1X.

The Durresi block is situated on the proven Apulian Margin, which extends from Italy into Albania. Southern Albania contains a highly prolific petroleum system, including one of the largest onshore oil accumulations in Europe, the Patos-Marinza field, which is estimated to contain up to 5.7 billion barrels of original oil in place.