poe update, page-2

THAILAND OPERATIONS UPDATE

Concession L44

The Bo Rang "B" horizontal development well BR-4D1 is currently approaching total depth. This is the second horizontal to be drilled into this field with two more horizontal wells planned to be drilled and tested prior to year end. Testing is still underway way at Si Thep-2 with results to be reported when completed in approximately 10 days.

Thailand production volumes for the third quarter of 3,648 BOPD were consistent with the previously announced guidance of 3,300 to 3,700 BOPD. Current production is approximately 3,835 BOPD with an additional 300 BOPD, (4,135 BOPD total production capacity) currently shut-in until the granting of a new production license over Bo Rang, L44-W and NSE-F1, anticipated in late December 2009. Three additional Bo Rang "B" horizontal development wells are anticipated to be drilled and tested prior to year end. The Company anticipates an exit production rate for 2009 of between 5,000 to 6,000 BOPD as stated at the end of the second quarter.

Production is anticipated to ramp up in early 2010 upon the approval of approximately 18 multi well surface drilling pad locations at Bo Rang "B", L44-W and NSE-F1 in late November and the granting of a new production license by year end.