Taghmen Energy Updates Guatemala Operations

Taghmen says work continues on Well 3X under the planned long term production test. A 31 feet thick zone was perforated in November 2005 and, as reported, initially flowed at a calculated rate of 100 barrels of oil per day ("bopd") under swabbing operations, rising during this phase of the test to 150 bopd. In January, a down hole pump was installed and the well was tested at various production rates. The well was shut in for a pressure build-up test in late February. Pressure recorders will be pulled within the next few days. Under the planned test program, the second of the three prospective zones in Well

Extended testing of each zone is necessary to allow for the collection of reservoir data and for the assessment of possible damage that may have been caused whilst drilling the well.

Seismic Acquisition

The planned acquisition of 2D seismic over Las Casas, Huapac and Yaxa areas of Contract 6-93 is proceeding on schedule with all lines covering the Las Casas Field having already been recorded and sent for processing. Initial indications are that the data being collected is generally of very high quality. Line clearance and survey operations have been completed over Yaxa and are expected to be finished over Huapac by early April. It is expected that the seismic acquisition on Contract 6-93 will be completed by mid April at which time the seismic crews will immediately move on to License 7-2005 (Tortugas/Atzam) and commence both 2D and 3D seismic operations there.

Well 1XA Sidetrack

The drilling of the side track to well 1X (well 1Xa) is expected to commence on May 1st following the interpretation of the Las Casas seismic to determine the optimal bottom hole location. It is expected that drilling of the sidetrack will take approximately 40 days to complete.

License 7-2005 (Tortugas/Atzam)

The Environmental impact study has been submitted for approval and clearance to commence operations on Contract A7-2005 is expected shortly.

Work has already begun on fabricating workshops, offices and accommodation units which will be transported to the Tortugas area as soon as the approval to commence operations is received. These units will provide a base from which to undertake the work-over of 3 existing wells from which there has been proven production in the past.


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