STATOIL/EXXON WELL ADDS TO TANZANIAS OFFSHORE

BOUNTY
Date: Friday, June 15, 2012

Tanzania can add another natural gas discovery to its totals for the year as Statoil and
ExxonMobil record a hit with drilling on Block 2. The partners made a large discovery with
the drilling of the Lavani well. During drilling the Lavani well encountered 95 meters of
excellent quality reservoir sandstone with high porosity and high permeability.

Based on logging results the well confirmed a new high-impact discovery for Statoil and
ExxonMobil with a preliminary resource estimate of 3 Tcf of gas in place.

The result from Lavani, which is only 16 km south of our recent Zafarani discovery,
confirms the high potential in Block 2. We are also pleased to announce that the recently
drilled Zafarani sidetrack added another 1 Tcf of gas in place. This is in addition to the up to
5 Tcf announced in February. The results so far mark an important step towards a possible
natural gas development in Tanzania,' says executive VP of Exploration for Statoil, Tim
Dodson.

The Lavani discovery demonstrates how Statoils strategy of focusing on high-impact

opportunities is paying off and supports the companys ambition for international growth,
Dodson adds.

1|P a g e
The Lavani well, drilled in 2,400-meters water depth, is the second exploration well in Block
2 which covers an area of approximately 5,500 sq km. The well was drilled by Ocean Rig
Poseidon with operations still ongoing.

Statoil operates Block 2 on behalf of TPDC and has a 65% working interest, with
ExxonMobil Exploration and Production Tanzania holding the remaining 35%.

Pweza-1 and Chewa-1 gas discoveries Block 4

Chaza-1 gas discovery in Block 1

2|P a g e
 DEEPWATER, LAND DISCOVERIES HIGH-GRADE EAST
AFRICAN MARGIN

EAST AFRICA EMERGES AS A WORLD-CLASS PLAY.

Sometimes a new frontier emerges with astonishing speed to become an apparent

overnight sensation. In the case of East Africa, the region has been transformed in little
more than a year from a wildcat deepwater province to a world-class exploration hotspot
with major multi-Tcf gas field development plans already in the pipeline.

For at least two decades, any discussion of African upstream potential nearly always took a
turn toward the west coast, where established shallow and deepwater reserves have played
a part in the investment planning of supermajors and independents.

By Alan Petzet

04/02/2012

World-class deepwater natural gas discoveries offshore in the Indian Ocean have turned the
East African margin into one of the planet's hottest exploration theaters.

3|P a g e
Early exploratory wells have uncovered gross gas volumes approaching 100 tcf in place when
the operators' high estimates are combined.

The industry holds licenses in force along a front of more than 800 miles offshore northern
Mozambique, Tanzania, and Kenya (Fig. 1). Drilling density is sparse in the southern part of
the trend and extremely light in the north.

The expanse of the deepwater play takes in, from south to north, the Rovuma, Mafia Deep,
and Lamu basins. Exploration is also scarce in the onshore parts of the basins.

Farther south, the Mozambique Channel between Mozambique and Madagascar is also
receiving closer scrutiny.

4|P a g e
ANADARKO'S EXPLORATION PROGRAM

Anadarko describes its multiple 2010 and 2011 discoveries as extending over tens of miles
and made to order to support LNG projects (see LNG article, p. 122).

The company's "10 incredible wells," as one official described them, have found gas at this
writing in mid-March only in Eocene and Oligocene rocks, leaving the younger Miocene and
older Paleocene portions of Tertiary as targets to be pursued.

Anadarko has 3D seismic coverage of the block's entire deepwater expanse and had collected
2,516 ft of whole core, 95% sand, from its wells by the time it ran the first flow test a few
weeks ago, said Frank Patterson, Anadarko vice-president exploration.

The company said the second rig, brought in to conduct well tests while the first rig continues
drilling, would be looking for the pressure pulses that indicate communication between wells.

The gaseous northern part of the 2.6 million acre Offshore Area 1 is vast in areal extent with
high-quality continuous sands and a very low dip rate.

In 2012, Anadarko will drill the Golfinho and Atum structures, which Patterson said may be
connected to the big field.

It will also drill Orca, a deeper Paleocene prospect. Patterson recalls that the Windjammer
and Barquentine discoveries had Paleocene pay but noted that Anadarko has not yet talked
about their resource size.

Meanwhile, the southern part of the block "could be the development area for a new hub,"
Patterson said. Working its way south, where Patterson noted Anadarko has had shows of
liquids, the company in 2012 will drill an appraisal to its Tubarao discovery. It also has the
Barracuda and Black Pearl prospects ready.

EARLY WORK AND UNITIZATION

Anadarko and its partners expect the large field, which extends into Eni-operated Offshore
Area 4 seaward of Offshore Area 1, to be unitized, said Don MacLiver, Anadarko vice-
president of operations.

Anadarko has already begun a dialog with Eni, he added.

Even with the gentle dip of the reservoir, however, the Anadarko group's advantage is that
Offshore Area 1 is updip and appears to contain the larger share of the resource.

"We look for unitization to deliver efficiency," MacLiver said.

Patterson said Anadarko looks to make a final investment decision on the first two LNG
trains in late 2013 and to begin gas sales in 2018. Meanwhile, Barquenjammer field, as the
company calls its sprawling initial discovery by combining parts of the names of two of the
initial discovery wells, is "massive and growing.

5|P a g e
"Quite frankly, we don't know where this thing is goingit could be much bigger," he said in
mid-March.

Each 5 million tpy LNG train is expected to consume 750 MMcfd or a total of 10-12 tcf of
gas over the life of the project, MacLiver said. The nearest discovery lies only about 30 miles
off the coast.

Cove Energy PLC, which holds exploration and production interests in Mozambique and
Kenya and is selling an interest in Mnazi Bay field in Tanzania to Wentworth Resources Ltd.,
Dar es Salaam, noted that this could become one of the world's largest LNG projects.

BARQUENTINE FLOW TESTS

The Anadarko group's second rig off Mozambique was moving in mid-March to conduct a
second flow and interference test at the Barquentine-1 well (Fig. 2).

6|P a g e
7|P a g e
From there it will continue to the Lagosta and Camarao wells south of Barquentine.

On the first such test, at Barquentine-2, the Deepwater Millennium drillship (cover of this
issue) worked in 5,400 ft of water as the well flowed at an equipment-constrained rate of 90-
100 MMcfd of gas with minimal pressure drawdown (OGJ Online, Mar. 12, 2012).

Anadarko said these "exceptional flow characteristics confirmed the deliverability of this
reservoir and indicated a low density of development wells may be sufficient to produce the
reservoir."

Bob Daniels, Anadarko senior vice-president, worldwide exploration, said, "Using preset
gauges in an offset well, we were able to confirm connectivity and reservoir continuity over a
distance of more than 3 km.

"The test also proves the reservoir has very high permeability, meeting the quality
specifications for the partnership's LNG development plans. This is a very encouraging way
to start our testing program, which is an important component in the reserve certification
process, as we focus on achieving FID (final investment decision) around the end of 2013."

Anadarko's partners in Offshore Area 1 are Mitsui E&P Mozambique Area 1 Ltd., BPRL
Ventures Mozambique BV, Videocon Mozambique Rovuma 1 Ltd., Cove Energy
Mozambique Rovuma Offshore Ltd., and Mozambique's state Empresa Nacional de
Hidrocarbonetos EP.

TANZANIA DEEP WATER

Statoil and ExxonMobil continued to deepen a deepwater wildcat offshore Tanzania in mid-
March after reporting gas shows.

Zafarani-1, first well on 5,500 sq km Block 2 in the Mafia Deep subbasin, is projected to
5,150 m in 2,582 m of water. Without giving a depth, Statoil said the well had "encountered
indications of natural gas in a good quality reservoir."

8|P a g e
The two majors spudded the well in early January 2012 about 80 km off Tanzania and 160
km north-northwest of the Offshore Area 1 and 4 blocks off Mozambique.

The Zafarani well is also 100 km north of the Ophir Energy PLC-BG Group's Chaza gas
discovery on Block 1 about 18 km off Mnazi Bay, Tanzania, in the Rovuma basin. Zafarani is
115-120 km south of Ophir-BG's Chewa and Pweza gas discoveries on Tanzania offshore
Block 4 in the Mafia Deep subbasin and 75 km east-northeast of Songo Songo gas field (OGJ
Online, Apr. 4, 2011).

Ophir-BG have tagged Pweza and Chewa, drilled in 2010, with contingent resources of 1.7
tcf and 611 bcf, respectively, and Chaza, drilled in 2011, with 92 bcf.

Ophir-BG plan to drill as many as five exploratory wells on Blocks 1, 3, and 4 in 2012 and
have said those blocks and the shoreward East Pande block contain numerous untested leads
and prospects with stacking potential.

Ophir said Tertiary-age river deltas along the coast have acted as provenance for high-quality
slope channel and slope/basin-floor-fan (reservoir) sands.

The company said the Ophir-BG discoveries to date have chased stratigraphic plays with a
strong structural influence but that the Anadarko-type basin floor fan purely stratigraphic
play, mapped as extending into Block 1, is untested in Tanzania with 3D seismic yet to be
acquired.

North of Block 4, Petrobras and Shell hold Block 5 off Dar es Salaam, and numerous blocks
are under license even farther north in the Lamu basin off Kenya, which has no hydrocarbon
production.

Statoil operates Block 2 on behalf of Tanzania Petroleum Development Corp. and has a 65%
working interest, and ExxonMobil Exploration & Production Tanzania Ltd. has 35%. Statoil
was awarded the Block 2 license in 2007.

NORTH ALONG TREND

The scarcity of exploratory drilling north of Mozambique in Tanzania and Kenya, including
the near absence of drilling in deep water, leaves untold potential there.

Tullow Oil PLC plans late 2012 drilling on three prospects in Kenya, including one on Block
L8 offshore.

Last fall, a Total SA unit acquired a combined 40% interest in five exploratory blocks in the
Lamu basin off Kenya (OGJ Online, Sept. 21, 2011). That included a 20% stake in the L5,
L7, L11a, L11b, and L12 blocks from Anadarko Kenya Co., which remains operator. Total
acquired a 15% interest in the same blocks held by Dynamic Global Advisors and a 5%
interest from Cove Energy PLC, which retains 10% interest in the permits.

The companies shot 3,500 sq km of 3D seismic on the permits, which cover more than
30,500 sq km in 100-3,000 m of water.

9|P a g e
Afren PLC has a 74% interest in the Tanga block mainly offshore northeast Tanzania in
coastal to shallow water. The Orpheus prospect is on its drilling schedule for 2012. Tanga is
directly south of and adjoins Kenyan blocks L17 and L18 in which Afren holds full interest.

The 756 sq km Mnazi Bay concession in coastal southeastern Tanzania in the Rovuma basin
contains Mnazi Bay and Msimbati gas fields and has Tertiary, Cretaceous, and Jurassic
potential. All four wells drilled to date encountered hydrocarbons, and the MB-1 well is
producing 1.7-2.0 MMscfd of gas to the Mtwara power plant for local power generation.

Wentworth Resources said the Ziwani-1 exploratory well is being drilled 13 km west of the
two gas fields.

Aminex PLC and Solo Oil PLC appear to have extended the Rovuma deepwater play by
drilling gas pay in Cretaceous sandstone with the basin's first onshore discovery at Ntorya-1
in southeastern Tanzania. It was deepening the well to another target at this writing.

Anadarko notes that more than 50 wells have been drilled in and off Tanzania since the
1950s, two of which discovered the coastal Songo Songo and Mnazi Bay gas fields.

More recently, however, wildcats turned up two gas discoveries on offshore Block 4 in 2010
and one gas discovery on offshore Block 1 in April 2011. More drilling is expected this year.

Anadarko sees material potential in the deep water off Kenya, which is undrilled although
drilling is expected to start soon. More than 36 wells have been drilled in Kenya since the
1960s

10 | P a g e
Lamu Basin - Offshore Kenya

Block L8 (15%)

Joint Venture partners: Apache Corporation (50% and Operator), Origin Energy (25%),
Tullow Oil plc (15%)

L8 covers 5,114.9 sq km offshore Kenya in the Lamu Basin in water depths from 100m to
1,300m immediately south of Pancontinental's L6 Block.

A number of new oil and gas discoveries have been made offshore elsewhere in East Africa,
in geological circumstances that are contiguous to those in L8.

In 2005 Origin farmed-in to Pancontinental's interest and funded a 2D seismic program to

earn 50% and subsequently funded a 3D seismic survey to earn a further 25%.

Apache Corporation, a large US major, farmed into Origin's interest in February 2011.

In March 2011 Pancontinental farmed out to Tullow Oil plc, one of Europe's most recently
successful African explorers.

The 3D seismic data set acquired in 2009 has verified that the giant Mbawa structure is intact,
and remains very large at a number of prospective levels. "Flat spots" or "DHI's" can be seen
over the Prospect. Pancontinental's interpretation is consistent with a gas column of about
100m overlying an oil column of approximately 150m but these can only be validated by
further seismic analysis and drilling.

There is an interpreted extensive deep oil and gas generating "kitchen" near the Mbawa
Prospect, extending to the north into area L6. Sea surface "slicks" interpreted from satellite
data support the concept of oil generation, expulsion and migration from the kitchen area and
Mbawa itself. As well as Mbawa, other prospects in L8 also have high volumetric potential
and are also associated with interpreted slicks.

The Mbawa Prospect has world-class potential for oil and gas, with volumetric potential
easily exceeding one billion barrels of oil.

Tullow is earning a 10% interest in the L8 Production Sharing Contract form Pancontinental
by paying US$ 1 million to Pancontinental for reimbursement of past costs and also by
funding the future work programme on its own behalf and up to an agreed expenditure "cap"
of US$ 9 million attributable to Pancontinental's retained 15% interest.

Pancontinental will initially retain a 15% interest in L8, from which Tullow will then have an
option to earn a further 5% by funding Pancontinental's share of any second well to a "cap" of
US$ 6 million.

11 | P a g e
Based on current budgets, the initial expenditures by Tullow will see Pancontinental "free
carried" through a substantial part of the Mbawa drilling.

Initial planning has been undertaken for Mbawa drilling. Pancontinental estimates a mid-
2012 spud date for drilling, operated by Apache, but the actual date will be known when a
number of factors have been clarified, including the timing of rig availability.

12 | P a g e
Mbawa prospect, offshore Kenya, coincides with interpreted natural oil slicks derived from
sea floor pockmarks associated with faulting on the flank of the structure. As well as
Mbawa, other prospects in L8 also have high volumetric potential and are also associated
with interpreted slicks. Water depth over Mbawa is about 800 metres, easily within the range
of modern drilling and production equipment.

After Mbawa, the next largest prospect is Nanaa Central with approximately 40% of
Mbawas volumetric potential. Nanaa Central would provide an additional commercial
opportunity after any Mbawa discovery. The interpreted extensive deep oil and gas
generating kitchen near the Mbawa Prospect extends to the north into area L6 and south
into L10A and L10B. While there can be no direct evidence that the Mbawa Prospect
contains any oil or gas until drilling has taken place, based on volumetric estimates indicating
that, if filled to spill point and subject to risks that include trap integrity and the fact that the
offshore Lamu Basin petroleum system is unproven, Pancontinental estimates Mbawa has in-
place and unrisked potential to contain at the Tertiary- Cretaceous level

up to 4.9 Billion Barrels of oil (P10) plus

a gas cap of 284 Billion Cubic Feet (P10)

Further, Pancontinental estimates that Mbawa has in-place and unrisked potential to contain
at the deeper Top Jurassic level

13 | P a g e
 up to 323 Million Barrels oil (P10) or

525 Billion Cubic Feet gas (P10)

but these are subject to risks that include the fact that there is limited data for reservoir
parameters on the East African margin, there is no control on interpretation of Jurassic
carbonates and the lack of a commercial discovery of hydrocarbons in Jurassic carbonates on
the East African margin.

14 | P a g e
FAR COMMENCES 3D SEISMIC SURVEY OFFSHORE KENYA
STARTUP OF KIFARU 3D SEISMIC SURVEY IN BLOCK L6

Australian listed petroleum exploration company, FAR Ltd commences data acquisition
of their anticipated 3D seismic survey over some of the worlds most keenly sought
petroleum exploration acreage off the coast of Kenya.

The survey will cover 680km2 and is budgeted to cost $13.67M (FAR Ltd share $8.2M). The
seismic survey is scheduled to commence acquisition this Friday (15 June) and to be
completed in early July.

FAR Ltds L6 permit off the Kenya coast lies in the Lamu Basin, north of recent, world scale,
natural gas discoveries totalling around 100 trillion cubic feet off the coasts of Mozambique
and Tanzania.

FAR Ltd managing director, Cath Norman said, Drilling in the Rovuma Basin off the coast
of Mozambique and Tanzania, has so far achieved a near perfect success rate.

Much of that success has stemmed from the use of modern, high quality, 3D seismic data
which is able to provide quality images of potential structures deep beneath the surface.

15 | P a g e
FAR has mapped a total of seven prospects in the L6 permit which we aim to better define
using the 3D seismic and greatly enhance our chance of success in ahead of drilling next
year.

The L6 permit is in the Lamu Basin, offshore Kenya. FAR operates the block with 60%
equity and has a 30% interest in the L9 block. The next well to be drilled in the basin will be
the Mbawa prospect in Block L8 by Apache Corporation in August this year.

Anadarko Petroleum Corporation has announced plans to drill the first of its wells before year
end (Blocks L5, L7, L12, L11A, L11B) and BG is preparing to drill its first well offshore
Kenya at the end of 2012 (Blocks L10A and L10B). FAR will be drilling their first well in
mid 2013 on Block L6.

SIMBA ENERGY SEES HIGH POTENTIAL IN KENYA BLOCK 2A

Sproule Associates Ltd. has completed a technical report in respect of Simba Energy Inc.s
100% interest in the production sharing contract for onshore Block 2A, Kenya, and identified
three prospective leads at four representative seismic horizons. The block is comprised of
7,802 sq km within the Madera-Lugh Basin.

Sproul utilized 500 km of existing 2D seismic and five horizons have been carried in the
interpretation. For this initial assessment, the gross, unrisked, undiscovered petroleum
initially in-place was 1,927.1 million barrels of oil equivalent (MMboe); and the gross,
unrisked, prospective resources was 445.3 MMboe. The total gross, risked, mean prospective
resources was 26.9 MMboe.

As its main conclusion, Sproule's report confirmed the exploration potential of Block 2A and
supported existing plans to further delineate these leads as proposed with additional passive
micro-seismic, 2D or 3D seismic, and gravity gradiometer surveys.

Robert Dinning, Simba's president and chief executive officer, remarked, This block lies
within the junction of two trends that are geologically similar to the successful Ngamia-1
well, recently drilled by Tullow Oil and Africa Oil. As a next step, we see our passive seismic
program as offering a very strong compliment to the existing seismic we have for these leads.
We have an exciting, active and funded exploration program now in place for Block 2A.

16 | P a g e
Table: Initial Resource Assessment of Block 2A - First Three Leads

(Source: Sproule and Associates Ltd.)

Lead Zones Gross Unrisked Gross Unrisked Gross Risked

*Undiscovered **Prospective Mean Prospective
Petroleum Initially Resources (Mean) Resources
In-Place, (Mean) MMboe (Mean) MMboe
MMboe
1 Ken 5 507.2 117.2 10.5
Syn-Rift 2 413.5 95.5 3.8
Syn-Rift 1 326.4 75.4 1.5
2 Ken 5 180.9 41.8 3.8
Syn-Rift 2 128.7 29.8 1.2
Syn-Rift 1 98.3 22.7 0.5
3 Ken 5 272.1 62.9 5.7
Total 1,927.1 445.3 26.9

*Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that

quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet

17 | P a g e
to be discovered. The recoverable portion of undiscovered petroleum initially in place is
referred to as prospective resources, the remainder as unrecoverable.

**Prospective Resources are those quantities of petroleum estimated, as of a given date, to

be potentially recoverable from undiscovered accumulations by application of future
development projects. Prospective resources have both an associated chance of discovery
and a chance of development. Prospective Resources are further subdivided in accordance
with the level of certainty associated with recoverable estimates assuming their discovery and
development and may be subclassified based on project maturity.

As its main conclusion, Sproules report confirms the exploration potential of Block 2A and
supports existing plans to further delineate these leads as proposed with additional passive
micro-seismic, 2D or 3D seismic, and gravity gradiometer surveys.

The Company's exploration plans for Block 2A include:

Continued data gathering and review of technical reports, satellite imagery, and
interpretation of existing 2D seismic, gravity and magnetometer as well as carry out
block-wide field geological and geochemical studies.
GeoDynamics S.R.L. of Italy is conducting an Infrasonic Passive Differential
Spectroscopy (IPDS) seismic survey covering 4,000 sq.km with 250 measurement
points on a variable spacing.
Areas of potential identified by the passive micro-seismic survey will be further
evaluated by conventional 3D or 2D seismic and/or gravity gradiometer prior to
selecting a drill site.
An additional 1,000 km of 2D seismic .
Design a drilling program to evaluate top leads derived from the above seismic
programs.

Robert Dinning, Simbas President & CEO remarks, "we are delighted to provide our
shareholders with this independent opinion from Sproule. It reaffirms our technical teams
initial premise to target Block 2A during the application process as it was highly prospective
with great potential for significant accumulations. While it is encouraging to have Sproules
assessment for exploration potential for this area of interest within Block 2A, including a
very strong lead, we now also believe it is relevant to note how this same area lies within the
junction of two (basin) trends as being geologically similar to the successful Ngamia-1 well,
recently drilled by Tullow Oil and Africa Oil, that is also located at the junction of two
trends. As a next step we see our passive seismic program as offering a very strong
compliment to the existing seismic we have for these leads. We definitely have an exciting,
active and funded exploration program now in place for Block 2A and will look forward to
the work of proving up our resources in the license."

18 | P a g e
VANOIL PROVIDES UPDATE ON BLOCKS 3A AND 3B

Vanoil Energy Ltd. has provided an

update on the first-quarter 2012
program. In 2011, Vanoil contracted
Sproule International Ltd. and
Geoseis Inc., both of Calgary, to
interpret approximately 2,850 km of
seismic data. This data included,
legacy 2,000 km, seismic data shot
in 1975 by Chevron that has proved
to be of immense value after
reprocessing for structural analysis
but lacking the offset range for
amplitude analysis.

Vanoil acquired 850 line km

prospect grade seismic data in 2010
and 2011 at a cost of US$8.5 million
that has adequate offsets for the
purpose of mining geological data
from seismic amplitudes.

19 | P a g e
The data has been relative amplitude and Amplitude Versus Offset (AVO) processed by
Statcom Ltd. of Calgary. Structural leads identified by Sproule and Geoseis are observed
to be coincident with some of the AVO anomalies. This correlation has de-risked and
ranked the Sproule identified 27 leads.

The complete seismic data has been further subjected to advanced reservoir characterisation
techniques (Chimney analysis by dGB / Petro-explorers highly successful in North Sea, Gulf
of Mexico and on shore basins in South America) ranking the 27 leads by their fault sealing
and hydrocarbon charge attributes.

This has led to delineation of an area of approximately 1,700 square km on the South and
South-West flanks of the South Anza basin. The area is analogues to Melut basin in Sudan
and is characterised by 15 leads that are grouped into Eastern, Southern and Western lead
areas.

The Eastern lead area bears strong characteristics to the Adar Yale oil field in Sudan. It
composed of a string of 6 leads which start from the depo center of South Anza basin up
along a rollover structures and ending on a Horst block of a Karoo Graben. Stratigraphic
sequence analysis of seismic data and correlation near the Bahati and Endela wells, which 15
km away from East focus leads and 20 km for the Western focus leads respectively clearly
correlates the likely source and possible reservoir facies. This is fundamentally different
interpretative approach (AAPG approved) from past practices due to advent of seismic
sequence and facies analysis techniques in the 80's. The structural considerations alone has
been the criteria of choosing drilling sites in past failed exploration programs.

In order to properly place the over 75 square km 3D seismic survey (cost $3.5 million) on one
or two of the 15 leads, a 78 km 2D seismic survey at a cost of $800,000 has been designed
and shot in Block 3B along a string of 6 leads identified approximately 15km from the Bahati
well. It was initially targeted for shooting in the last quarter of 2011 but heavy rains and
adverse HSSE issues led to its postponement.

The 2D and 3D seismic data to be acquired in the second and third quarter of 2012 will lead
to more advanced reservoir characterization techniques being applied for the purpose of
choosing an optimum drilling site.

20 | P a g e