Block 48/1a (United Kingdom)
Gas Projects in Development
During 2005, CalEnergy successfully applied for Block 48/1a in the United Kingdom North Sea’s southern gas basin. Adjacent Blocks 48/1c and 47/5b have been subsequently secured. Following a period of studies on Block 48/1a, three prospects were identified: Emu, Platypus and Possum. CalEnergy entered into arrangements with Endeavour Energy UK Limited and Hunt Petroleum UK, Ltd to carry a significant proportion of the well costs on the Emu prospect in return for giving up 45 percent of the permit interest. The Emu well was drilled in the second quarter of 2007, but did not result in a commercial discovery.

After further remapping, CalEnergy entered into an arrangement with Dana Petroleum plc, under which Dana assumed the operatorship of Block 48/1a, and CalEnergy’s interest in Block 48/1a was reduced to 15 percent. The 48/1a-5 Platypus well spudded March 3, 2010, and was suspended May 4, 2010, and has been reported by Dana as a significant gas discovery for the United Kingdom’s southern North Sea.

The 48/1a-5 Platypus well was drilled to a total measured depth of 11,048 feet. The well encountered some 218 vertical feet of porous gas bearing sands.

Dana reports that preliminary analysis indicates that the reserves discovered are in line with predrill estimates of approximately 130 billion cubic feet of gas. The well has been suspended for potential re-entry and future use as a gas production well.

Resource Development
Producing
Gas Fields
Share of Remaining
Reserves as of 1/1/10
Share of Contingent Resources Current Percentage
Greater Zaniemysl Area 7 Bcf - 24.5%
Yolla 54 Bcf 15%
Thylacine 18 Bcf 10 Bcf 5%
Victor 3 Bcf - 5%
Gas Projects
in Commissioning
Share of Remaining
Reserves as of 1/1/10
Share of Contingent Resources Current Percentage
Working Interest
Geographe 13 Bcf - 5%
Gas Projects in Development Permit
Status
Current Percentage
Working Interest
Perth Basin Drilling 2010 100%
Otway Basin Evaluation 2010 5%
Bass Basin Evaluation 2010 - Drilling 2010 8.5%
Block 48/1a Evaluation 2010 - Drilling 2010 15%
Poland Evaluation 2010 - Drilling 2010 100%