TUNISIA - Other Operations & Blocks.

Cygam Energy's unit, Rigo Oil, in February 2006 acquired a new exploration permit on the Bazma tract. Rigo has a 100% working interest in this and has already received expressions of interest from other firms willing to participate in exploration in its area. Bazma, onshore in south-central Tunisia, is the western extension of the Jorf permit where Rigo currently holds 37.5% and encompasses an area of about 400,000 acres. Available seismic data indicate several potential structures. Prospective Fms include Triassic Tagi sandstones and Permian carbonates. Tagi produces gas and condensate from the Baguel and Tarfa fields immediately adjacent to the south-western corner of Bazma. A northbound pipeline carrying gas and condensate from the Baguel and Tarfa crosses Bazma and joins an eastbound pipeline carrying Ordovician gas from the el-Franig and Sabria 50 km west of Bazma. These two pipelines, after traversing Bazma and Jorf permits, join a major pipeline carrying gas from the giant el-Borma oil and gas field in southern Tunisia to the Gulf of Gabes. A northbound pipeline carrying crude oil from southern Tunisia runs parallel to the eastern boundary of Bazma, on the Jorf block, and connects to La Skhira. Cygam is re-interpreting extensive seismic data on Bazma and will reprocess selected lines to finalise potential drilling locations. Bazma is the fourth block in Tunisia in which Rigo has an interest.

PA Resources (PAR) of Sweden is involved in development and exploration in the Douleb field, the Zarat block and the Tamesmida field. PAR has agreed with ETAP to drill an appraisal on the Elyssa find. Based on meeting this commitment, its permit will be extended by two years to July 24, 2008. To secure the extension, PAR has changed the sequence of its drilling programme by beginning with Elyssa-3 as the first well, before drilling production wells on Didon field. Elyssa is an oilfield with an associated gas cap. The main well target will be at a depth of 3,100 metres. The target for early oil production will be in 2007 rather than the originally planned 2008.