GeoGlobal Signs Four PSCs for Onshore India Blocks

GeoGlobal Resources Inc. has signed production sharing contracts (PSCs) on its four previously awarded exploration blocks in India. The signing, which was held at a ceremony in New Delhi, India on March 2, was part of the signing of production sharing contracts relating to 52 exploration blocks awarded by the Government of India ("GOI") under the sixth round of the New Exploration Licensing Policy ("NELP-VI").

The PSCs signed by the Company each provide for work commitments to be performed over two phases, with the first phase being for periods of four years and the second phase being for periods of three years, except for the contract relating to the DS Block under which the second phase is a period of four years. The Company will be required to fund its proportionate share of the exploration and development costs incurred in fulfilling the work commitments under these contracts. The Company's share of these costs is estimated to total approximately US$28.0 million for all four blocks over the four years of the first phase. The first of these new exploration blocks, Exploration Block KG-ONN-2004/1, also referred to as Block 28 under NELP-VI covers an area of approximately 548 square kilometers ("sq km") onshore in the Krishna Godavari Basin, directly adjacent to and south-west of our existing offshore KG Block, KG-OSN-2001/3. GeoGlobal holds a 10% participating interest ("PI") in Block 28, while OIL, as operator holds the remaining 90% PI. On September 14, 2006, prior to submission of our NELP-VI bids, the Company entered into an agreement with OIL to increase it's PI up to 25% in Block 28, subject to the availability of sufficient net worth and GOI consent.

Under the PSC for the onshore KG Block 28, the Phase I work commitment consists of reprocessing 564 line kilometers ("LKM") of 2-D seismic, conducting a gravity and magnetic and geochemical survey, as well as a seismic acquisition program consisting of 548 sq km of 3-D seismic. This Phase I commitment further consists of the drilling of 12 exploration wells to various depths between 2,000 and 5,000 meters. The Company will be required to fund its proportionate share of the costs incurred in these activities estimated to be approximately US$8.5 million over the four years of the first phase of the work commitment with respect to a 10% PI in the block and approximately US$21.3 million over the four years of the first phase of the work commitment with respect to a 25% PI in the block.

The remaining two PSCs signed in conjunction with the Company's venture with OIL relate to exploration blocks located onshore in the Rajasthan Basin in the northern portion of the State of Rajasthan in north-west India. Exploration Blocks RJ-ONN-2004/2 and RJ-ONN-2004/3, also referred to as Blocks 20 and 21 under NELP-VI cover an area of approximately 2,196 and 1,330 sq km respectively. GeoGlobal holds a 25% PI in these blocks, with OIL as operator holding the remaining 75% PI in Block 20 and 60% PI in Block 21. The remaining 15% PI of Block 21 is held by the Hindustan Petroleum Corporation Limited ("HPCL") of India.

The combined Phase I work commitments under the PSCs, for the two onshore Rajasthan Blocks 20 and 21 consist of reprocessing of a total 926 LKM of 2-D seismic, conducting a gravity and magnetic and geochemical survey, as well as a seismic acquisition program consisting of 560 LKM of 2-D seismic and 1,311 sq km of 3-D seismic. The combined Phase I commitments further consist of drilling a total of 20 exploration wells over both blocks to various depths between 2,000 and 2,500 meters. The Company will be required to fund its 25% proportionate share of the costs incurred in these activities estimated to be approximately US$18.3 million over the four years of the first phase of the work commitments.

The fourth new exploration block, Exploration Block DS-ONN-2004/1, also referred to as Block 27 under NELP-VI covers an area of approximately 2,649 sq km and is located onshore in the northern portion of the State of Maharashtra in west-central India, directly east and adjacent to our Exploration Block DS-ONN-2003/1 awarded under NELP-V. The Company has a 100% PI in both of these adjacent DS blocks and is the operator of both.

Under the PSC for the DS Block 27, the Phase I work commitment consists of conducting a gravity and magnetic and geochemical survey, as well as a seismic acquisition program consisting of 325 LKM of 2-D seismic. The Company further committed to drill 10 core holes to a depth of approximately 500 meters. GeoGlobal will be required to fund its 100% proportionate share of the costs incurred in these activities estimated to be approximately US$1.2 million over the four years of the first phase of the work commitment.

GeoGlobal Resources Inc., headquartered in Calgary, Alberta, Canada, is a US publicly traded oil and gas company, which through its subsidiaries, is engaged primarily in the pursuit of petroleum and natural gas through exploration and development in India. Since inception, the Company's efforts have been devoted to the pursuit of Production Sharing Contracts with the Government of India. Currently, the Company is focused on the development of high potential exploration targets in the Krishna Godavari, Cambay, Rajasthan and the Deccan Syneclise basin areas.

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