Focus Energy Ltd. (FOCUS), a private company jointly invested and owned by a Myanmar Corporation and a Foreign Corporation, has an exclusive Performance Compensation Contract (PCC) with the Government of the Union of Myanmar to restore and rehabilitate oil wells within the Htaukshabin-Kanni-Peppi Oil and Gasfields, and to identify, explore and exploit new development exploration targets within the contract area. The PCC covers an area of 107 sq kms (26355 acres).

Prior to FOCUS becoming owner of the Contract, the PCC was held by another corporation, Asia Pacific Energy Company Ltd (APEC).

The present outline of the PCC covers an area of 41.2 sq miles (26355 acres) or 106.7 sq kms. FOCUS is currently well advanced in negotiations with the government to include an additional 11 sq miles (7040 acres) or 28.1 sq kms in the contract area.

The Htaukshabin-Kanni-Peppi Fields are situated within the Salin Sub-basin of the Central Myanmar Basin, a sub-basin filled with clastic sediments of Tertiary age. The Myanmar Oil and Gas Enterprise (MOGE) discovered these fields during the period 1975 to 1985. Peak production at Htaukshabin (Dec-1985) and Kanni (Jan-1992) was 10171 and 3532 BOPD, respectively. Collectively, these fields currently produce about 2203 BOPD (May-2001).

Sproule International, an independent consulting firm out of Calgary, assessed the remaining recoverable oil reserves at both Htaukshabin and Kanni at 14.14 MMBBLS (Mar-1998).

The original oil-in-place at Htaukshabin and Kanni was assessed at 140 and 42 MMBBLS, respectively. The original recoverable oil reserves at Htaukshabin and Kanni was assessed at 27 and 12 MMBBLS, respectively, with cumulative production to date at these fields being some 19 and 9 MMBBLS.