Gorischt-Kocul

Gorischt-Kocul (Current) (crude oil) 15 API

There are 295 existing wells, of which 135 are actively producing. This carbonate field has excellent potential to increase production. Well depths range from 400-1250m. Field production is around 925 bop/d, of which 70 bop/d are attributable to Stream as of February 28, 2009.

Management selected all wells for work-over. Currently, the focus is on production pump upgrades and current average production has been low because of pump work. Site preparation is complete and we are waiting for a new pump. Basic work-over has been complete on Go-255.

The Company plans to take -over more wells in the Q2 2009 in order to continue work over and enhance production.

The Company is running a staged rehabilitation program on 13 producing wells in the field and has taken over another 14 for reactivation.

Gorischt-Kocul  (Background )

The Gorischt-Kocul Field produces 15 API oil from fractured carbonates of Cretaceous-Paleocene age. The oil is reported to contain an average of 6% sulphur. The field is considered a structural trap and to be fully developed with an average well spacing of approximately 2 ha/well (5 acres/well). The field came on production in 1966