Gujarat State Petroleum Corporation, the operator of the KG Block, is in the process of running logs to total depth.
Upon completion of the logging program, GSPC will run casing to total depth. After the casing is run, GSPC anticipates a number of tests based upon log analyses. The results to date are considered by management to be preliminary and exploratory and there can be no assurance that the outcome of these tests and evaluations will demonstrate the presence of hydrocarbons in commercially recoverable quantities or that any hydrocarbons that are present are capable of being recovered.
The KG#8 well is the third well of the 14 well drilling program under the terms of the Production Sharing Contract relating to the KG Block. GeoGlobal has a 5% net carried interest in the wells drilled on the KG Block.
GeoGlobal also previously announced on April 12, 2005 it had acquired a 20% participating interest from GSPC in the onshore CB-ON/2 Exploration Block ("Tarapur Block") located in the Cambay Basin in the State of Gujarat. Pursuant to the Deed of Assignment and Assumption executed on April 7, 2005, GeoGlobal is currently making application to obtain consent from the Government of India for this assignment. GeoGlobal believes that such consent from the Government of India will be forthcoming. In the event such consent is not obtained, the assignment would be terminated and GeoGlobal would seek to enter into other arrangements with GSPC with respect to the investment.
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