Shell Offers Farm-In Opportunity Offshore Brazil

BMS-31 contains a drill-ready prospect with primary objective volumes estimated at 560MMbbls (STOIIP) of light oil. In addition, a number of follow-up prospects have been identified. Total unrisked volumes on the block are greater than 1,000MMbbls STOIIP.

Current working interest holders are Shell, the operator at 55% and Maersk at 45%. Shell is making up to 17.5% interest in BMS-31 available by farm-out to interested parties, and Maersk is making 15% available - for a total up to 32.5%.

BMS-31 is in Exploration Phase II, and carries an outstanding one-well commitment to be drilled by September 2007. Dry hole cost is estimated at approximately USD 50MM. A rig is contracted and the joint venture intends to drill the primary prospect, Jumante, during the first half of 2007.

Brazil is an attractive concession (tax/royalty) regime with "special participation" that enables investors to participate in upsides. Brazil has a strong market for consumption, and the contract enables export to ensure international pricing. Upon success, production is estimated to start in approximately 7-8 years.

This block sits to the NE of the largely untested updip Albian roller play. A series of discoveries have been made in blocks BS-400, BMS-4, BS-500, and BS-4 operated respectively by Petrobras, ENI, Petrobras, and Shell. These surrounding discoveries have proven the presence of thick Albian sandstones and charge.

The primary prospect, Jumante, is a large 4-way closure with the primary target in the Albian-Cenomanian sands age-equivalent to the Namorado in Campos. Abundant hydrocarbons are available to charge the prospect from a large mature kitchen in the pre-salt lacustrine source rocks of the Barremian Lagoa Feia. Upside exists in the Cenomanian-Turonian "subvolcanic" sands and Albian carbonates.

An Information Memorandum, including bid process rules, is available online through IndigoPool. The data-room is located in Shell's Houston offices. Bids will be accepted up to March 2, 2007.

BMS-31 Factsheet

• Acquired: Round 4
• Operator: Shell
• Other Partner(s): Maerks (45%)
• Area: 1060 square kilometers (after 50% relinq.)
• Distance to Coast: 85 km
• 3D Acquired: 1,200 square kilometers
• Water Depths: 150 - 750 m
• Phase 1: Expired Sept. 2005, 0 well commitment
• Phase 2: Ends Sept. 2007, 2 well commitment renegotiated to 1 well to Albian
• Prospect Inventory: 2007 drill-stie +2 additional prospects (unrisked-1000 MMbbls STOIIP)

Key Prospect: Jumante (2007 Drillsite) Objectives:

• Primary: Albian-Cenomanian sands: 560 MMbbls STOIIP
• Secondary: Cenomanian-Turonian sands
• Prospect Area; 40 square kilometers
• Phase: Light Oil
• TD: 5400 m TVDss
• Seismic: PSDM over Jumante
• Water Depth: 515 m
• Spud Date: Early 2007 (rig contracted)

Access to the Information Memorandum, Data Room and any additional information shall only be provided to selected parties who have executed a Confidentiality Agreement. Interested parties are requested to contact the person named below to register their interest, request a copy of the Confidentiality Agreement and request a Data Room invitation and time:

Gregory Mowlds, Houston
713 513 1519
gmowlds@indigopool.com

Miles Dyton, London
44 20 7517 2660
mdyton@indigopool.com

Rob Singh, Melbourne
61 3 9674 7172
rsingh@indigopool.com

Sudha Chetty, Dubai
971 4 306 7217
chetty@dubai.oilfield.slb.com