The proposed drilling program will evaluate the best anomalies that have been identified as a result of the compilation of the recent exploration effort involving seismic and surface geochemical methods.

Based on exploration analysis the features range in area from 800 to 12,000 acres. The drilling program will focus on features that will deliver the best tests of the various play types. Successful drilling will trigger follow up locations on each prospect. Additional features have been mapped in the Blackbush and Skeldon areas using both seismic and geochemical results. One well is planned in each area to test the features.

The following illustrations provide results of the testing that has taken place to determine the drilling locations. A number of tests have been performed integrating geochemical and seismic results to examine various features of the 3 to 6 drilling locations targeted, which are flexible depending on results of these tests. Also undertaken was testing to assay a number of trap styles. Both the geochemical and seismic results were acquired over areas with reasonable access so that drilling could proceed on those areas without undue expenditures incurred on access and infrastructure. It should be clearly understood that with success additional areas are available for exploration within the concession.

Figure 1 - Schematic of Berbice Onshore Geology

This schematic cross sections how the style and trap potential in the Berbice region. The area has potential for a combination of structural and stratigraphic traps as illustrated.

The surface geochemistry is based on three different but related techniques. The primary assertion is that trapped hydrocarbons will leak at very slow rates to surface as a result of the buoyancy effect on the hydrocarbon by the underlying water table (microseepage). The primary method of measurement is microbial which measures the presence and amount of microbes that live on the migrating butane. This is seen in previously published press releases (January 29, 2004), and shown below in Figure 2. Secondarily, the type of source is measured by sorbed gas which shows the likely source of the hydrocarbons (i.e. heavy oil, light oil, wet gas, and dry gas) by evaluating the ratios of C2 to C4 gases present. In our case the anomalous microbial samples were then analyzed. The results were dominantly gas with liquids and light oil. Unfortunately, the acid rich nature of the Guyana soils precludes good carbonate preservation where most hydrocarbons would be adsorbed so in order to reconfirm this measurement during the seismic phase additional geochem samples were taken at greater depths and tested for Benzene ratios. In conjunction with this analysis, available oil samples from the Abary 1 offshore well and the Tambaredjo and Calcutta areas of Suriname were analyzed for the same ratios. It is clear from this secondary analysis (Figure 3) that the anomalies in the Berbice region are closely related to the Abary light oil and not the heavy oil in Suriname . This is encouraging because light oil has a higher market price, is easier to refine, has a higher recovery factor and lower production and development costs on a per barrel basis than heavy oil.

Figure 2 - Geomicrobial Technologies (GMT)
              Geomicrobial Analysis with Seismic Layout

The above map highlights the results of the geomicrobial sample analysis that was undertaken in the fall of 2003 and analyzed in early 2004. This map also illustrates the areas where the seismic program was carried out this past spring.

Figure 3 - Geomicrobial Technologies (GMT)
              Fluorescence Analysis

"GMT's fluorescence analysis indicates light crude. More significantly, the majority of the "anomalous" fluorescence samples have characteristics consistent with normal to light oil.most with calculated API values in the 30's.and characteristics more like the Abary oil than the Suriname oils.GMT"

The 183 km seismic program successfully recorded the first onshore seismic in the Guyana portion of the Guyana Suriname basin in over 60 years. The program was focused on a number of the best features from the aeromag and geochem results. The seismic has good resolution and quality. The seismic tied the two wells (Rosehall 1 and Skeldon 1) which were drilled in the Berbice region historically. The Tambaredjo field in Suriname was studied to aid in understanding the characteristics of that oil deposit to use it as an analogy in Guyana . Proven reserves on the Tambaredjo field are 1.2 mmbbls per sq. km.

Line 1 in the Rosehall area ties the Rose 1 well that was drilled in 1942. The seismic line shown in Rosehall
Line 1 (Figure 4) and Rosehall Line 2 (Figure 5) indicate two basement features with significant relief which are associated with geochem. At the same time they show that the original Rosehall well was drilled in a structural low. The proposed locations also show closure at the level of the correlative section in both the Pre Cambrian and lower Tertiary. Rosehall Line 5 (Figure 6) shows additional features in the Rosehall area which would provide follow up for based on success.