QUARTERLY REPORT FOR THE PERIOD ENDING JUNE 30, 1998

HIGHLIGHTS FOR THE QUARTER

1. Planned PNG drilling in late November 1998 of the Tumuli Prospect with a most likely case 352 million barrel potential target, if hydrocarbons are present.

2. Delineation of the Champion Prospect in PNG permit PPL 202 as a most likely case 385 million barrel potential target, if hydrocarbons are present. Adjacent drilling activity in October 1998 in PPL 157 will test the portion of the Stanley Prospect extending into PPL 202, if the Stanley Prospect is selected for drilling by the PPL 157 Joint Venture.

3. Planned October 1998 drilling of the Gouaro Prospect, subject to farmout. The Gouaro Prospect is a major oil and gas prospect, onshore New Caledonia, with the most likely case potential to contain 592 billion cubic feet of gas or 369 million barrels of oil, if hydrocarbons are present.

4. Delineation of potential 80 million barrel Cougar Prospect in San Joaquin Basin Project, California in addition to Raven and Kingfisher Prospects with cumulative most likely case reserve potential of 9 million barrels of oil and 20 million cubic feet of gas up to a maximum of 23 million barrels of oil and 42 billion cubic feet of gas, if hydrocarbons are present. Drilling of the Raven and Kingfisher Prospects planned for September / October 1998, subject to farmout.

5. Net oil and gas production for the March 1998 quarter estimated at 16,000 barrels of oil-equivalent, equal to 175 barrels of oil-equivalent per day for 26.5% owned Kestrel Energy, Inc., a U.S. Nasdaq public company.

6. Planned participation in up to 14 well drilling program in next 12 months.

7. Continuing investigation of petroleum exploration opportunities in Middle East.

[ Corporate ] [ Drilling Report ] [ ASX ] [ Quarterly Report ] [ Annual Report ]
[ Permit Inventory ] [ Prospect Drilling Schedule ] [ Farmin Opportunities ]
[ Internet Links ] [ Feedback ] [ Contact ]
[ Home ]