As a result of the Acquisitions, the enlarged company will have a significant proven and probable reserve base confirmed by independent engineering reports completed by Petrotech Engineering Ltd. for the offshore assets and Gaffney, Cline & Associates for the onshore assets. Proven and probable reserves for the offshore G5/43 block will be approximately 15 million barrels. Onshore the Phu Horm gas field will provide PWC with a proven and probable reserve base of approximately 64 billion cubic feet of gas and contingent gas resources of approximately 1.2 trillion cubic feet of gas (high estimate). Development feasibility studies conducted by Oceanbridge Marine Pte. Limited are currently being completed for the offshore assets and PWC has recently entered into a Rig Sharing Memorandum of Understanding with Pearl Oil (Thailand) Limited to secure a rig for appraisal drilling to occur in early 2007.
PWC has also confirmed that it has exercised its drilling option over the Cobble Cuesta anticline exploration prospect in Nevada and drilling on the structure is due to commence in late August, 2006. PWC has revised its original agreement which enabled it to earn a 50% interest in the block in return for paying 90% of the drilling costs and will now pay 45% of the drilling costs in return for a 30% equity in the asset.
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