Oil and gas is produced from Htaukshabin Field, Kanni Field and Peppi Field in the FOCUS's PCC area in Tertiary sediments ranging in age from Middle Oligocene through to Early-Mid Miocene. Up to 47 individual producing sands with a combined net pay thickness of 1700 feet have been identified. The sands have porosities in the range 20-30% with permeabilities in the range 150-300 millidarcies, occasionally up to one darcy. The gross thickness of the producing levels varies between 5-333 feet. Individual net pay thickness ranges from 5-85 feet, with a combined net pay thickness of 1514 feet. The oil is trapped in structural traps in supra-thrust and sub-thrust positions adjacent to a major meridionally trending thrust fault.

In our modified PCC Contract, it expires in May 2009. The PCC Contract can be extended for an additional period of 11 years. The technical content of the PCC Contract is for the contractor (FEL) to restore and rehabilitate oil wells within the Htaukshabin-Kanni-Peppi oil and gas fields, and to identify, explore and exploit new development exploration targets within the contract area.

Incremental oil is split MOGE 60: FEL 40. We sell our 40% of the incremental oil to MOGE based on Indonesia Minas Price (Sweet Light Crude) which is currently around USD 55 per bbl.

The comfirmed reserves at Htaukshbin is 144M BBLS and 48M BBLS at Kanni. At present we can only recover less than 15% of the reserves. Daily production is between 2350 and 2400 BBLS, minus the base line production, and uneconomical oil we have c.a. 1950 BBLS net per day.