Five tests have been conducted on either specific oil sands or commingled ones. The 15D well also has six gas sands, the lowest gas sand being in close vertical proximity to the upper oil section. Upon finalization of the tests, the 15D well was completed with a single production string in three of the oil sands that were successfully tested, leaving two accessible oil sands to be added at a later date and the two uppermost oil sands isolated from the producing sands. The well has been averaging approximately 1,200 barrels of oil per day (bopd). This initial average production rate for the 15D well is a preliminary number. The volume could decrease or increase depending on the performance over time of the well. A mechanical deficiency in the production string allowing gas to flow into the completion has been identified and partially resolved. Further analysis is ongoing and will allow the Company to decide what further actions to take on the well. The Company believes that production rates may increase once the mechanical deficiency has been successfully resolved, as demonstrated by the results of the individual tests. The gas sands will remain behind pipe until needed for the gas-to-power project the Company is pursuing.

It is important to note that this is only the fifth oil well in the Corvina field, and the independent reserves engineers have estimated that a total of 14 oil wells will be needed to deplete the Proved SEC oil reserves.

Corvina Operations

The Company has begun the CX11-20XD workover which, as previously announced, will attempt to eliminate gas channeling from gas sands located in close proximity above the oil zone, which has been limiting oil production from the well. The 20XD has been shut in for the past few weeks due to the excessive gas being produced. The well was reopened at a reduced choke three days prior to the workover to verify its condition and averaged approximately 1,500 bopd due to the channeled gas. This tested average production rate could decrease or increase depending on the performance over time of the well. The Company expects the workover to take approximately one month to complete. During this period of time the well will be off-line.

In addition, the Company successfully upgraded both production flow lines from the CX-11 platform in Corvina to the floating production, storage and offloading barge (FPSO). The new lines have enhanced capacity to handle the combined production of oil, gas and water from the CX-11 platform in a safe and efficient manner.

Albacora

The Albacora platform refurbishment is nearing completion and the Company intends to mobilize the new rig, upon completion of the ongoing acceptance test, to the platform in late June or early July.