Yemen Exploration

Block 35

During 2006, a major technical review of Block 35 was undertaken, resulting in the identification of a number of prospects, two of which were considered mature for drilling.

Al Magrabah 1, an updip test of the off-structure Wadi Al Sana 1 well, spudded in April 2007. The well encountered a number of shows while drilling, however two drill stem tests revealed a small volume of gas and water with trace oil, and the well was plugged and abandoned.

The second prospect, Reeb 1 spudded in August 2007. A wireline logging program was run upon completion of the well however this too failed to find any evidence of moveable hydrocarbons and Reeb 1 was also plugged and abandoned.

The results of the drilling/program are currently being reviewed.

Blocks 7 & 74

Blocks 7 & 74 are held in joint venture with Adelphi Energy and a number of other parties.

The grant of these blocks was ratified by the Yemeni Parliament in early 2007. It is intended that seismic surveys will run during 2008, prior to drilling up to five prospects.

The blocks have high prospectivity with a number of prospects that have been defined by the current 2D seismic grid.