thailand update out., page-2

L44 Concession
Bo Rang "B" Field

BR-4D1 Horizontal Appraisal Well (60% WI and operator)

The BR-4D1 horizontal well is currently on 90 day production test
at a rate of 880 barrels of 22 degree API oil per day and a water cut of
0.05%.

BR-2ST2 Horizontal Appraisal Well (60% WI and operator)

The BR-2ST2 horizontal appraisal well has just completed the
drilling of approximately 350 meters of horizontal section within the main
volcanic reservoir objective. This is the third horizontal well to be
drilled at Bo Rang "B" field and testing operations are anticipated to
commence in the next three days.

Si Thep Field
ST-2 Exploration Well (60% WI and operator)

The ST-2 exploration well was perforated over a deep sandstone
reservoir resulting in flow rates of approximately 14 barrels of 27 degree
API oil and 6 barrels of formation water per day. An additional three
shallower sandstone reservoirs will be perforated and commingled once
testing operations on L53- A well are completed.

Na Sanun East Field
NSE-G2 Exploration Well (60% WI and operator)

The NSE-G2 exploration well is located near the northern boundary
of the NSE Central fault compartment and will commence drilling immediately
after the rig has moved from BR-2ST2. The well will be targeting a 100
meter thick volcanic that sits approximately 400 meters below the main
producing volcanic reservoir at NSE. This target zone was penetrated by the
NSE-G1 exploration well and encountered oil shows throughout the entire 100
meter section but produced only formation water from a highly fractured
zone at the very base of the volcanic. NSE-G2 will be targeting the same
100 meter thick volcanic in a position approximately 120 meters
structurally higher than the NSE-G1 well.

Summary

L44 Concession production is currently at approximately 6,950 bopd
(4,170 bopd net Pan Orient) with an additional approximately 500 bopd (300
bopd net Pan Orient) shut-in awaiting approval of the Bo Rang North
production license application which is anticipated to be granted within
the next 14 days. Additional production is also anticipated from the
testing of BR-2ST2 within the next three to seven days.
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Not bad news at all. POE is progressing also in its own field and trading at yearly highs.

There is always some inevitable news at CVN.

Check out Woodside - short term depressed gas prices and they ask shareholders to kick the tin for their offshore development. No such discomfort at CVN.