The commencement of the Chinguetti Field development on-time,...

The commencement of the Chinguetti Field development on-time, has been a
significant success for all the parties involved. It has been pleasing to see
the recent amicable resolution to the issues raised by the Mauritanian
Government in relation to PSC's A and B. The technical and operational issues
that have arisen on the Field since first oil are being addressed by the
operator. Based on current information, we remain confident that the project
will meet our projected financial returns. The outcome also bodes well for
other expected development decisions in 2006 on the Tevet and Tiof discoveries,
as well as for our carried interest in the exploration programme, which is
expected to recommence shortly.