Potowar basin target formations are Chorgali and Sekaser limestone, Datta sandstone and Khewra sandstone. Whereas in Kohat basin producing formations are Lockhart limestone, Lumshiwal sandstone, Datta sandstone, Hangu limestone and Khewra sandstone. Early indications are that all these formations are present in Injra, with all formations having their source rocks established in the area as well.
International Sovereign also has 15% W.I. in two blocks with Mari Gas Company Ltd. (the second-largest producer of gas in Pakistan): Sukkur block, which covers an area of 2,435 square kilometers, and Sujawal block, which covers an area of 2,416 square kilometers. Both of these blocks are located in the Sindh Province of Pakistan.
Mari Gas has already acquired seismic data in the Sukkur block, which is being interpreted, and two wells are expected to be drilled in the last quarter of 2007. The reservoir rocks of lower Goru and Sui main limestone have combined potential of 0.5 to 10 TCF of gas. Gas pipeline is situated within the block. Sujawal block is located in the Badin area, which contributes more than 50% of the oil production in the country, and numerous oil and gas discoveries exist to the east of the block; drilling of one exploratory well is expected in the third quarter of 2008.
In Ecuador, implementation of the modified work program for the Charapa Concession requires an updated environmental baseline study, along with environmental impact studies for the areas to be covered in the pending seismic program, as well as the access and drill pad location for the initial drill target in the Conejo section of the Concession (Conejo 1 well). This target is based on existing seismic data. Work is scheduled to commence in April 2007.
The Charapa Concession is located north of the producing Lago Agrio field, which has produced 145 million barrels of light oil since 1972--primarily from the cretaceous Hollin formation. Cumulative past production from the Charapa field was some 1.694 million barrels of oil, primarily from the Caliza "B" reservoir. The Charapa block contains three prospective untested structures, which are the primary areas of interest within the Concession, namely: Conejo, Charapa S.W. and Halcon.
Domestically, one of the main areas for production expansion in 2007 is Berwyn, Alberta. Three additional sections of land were acquired in the first quarter of 2007. This purchase provides two to three locations for drilling in the third quarter of 2007, plus a twin well in an existing section. The objective for this area is to increase production with new wells which, when combined with existing production, could reach over 5 mmcf/d (833 boed) from Berwyn field in order to justify tie-in to the nearest pipeline. A technical and economical study of the development of this field is underway. The Company has also acquired 3-3/4 sections of land in the Boundary Lake (40 % W.I.) and the Windfall (100 % W.I.) areas in Alberta, for further drilling in the third and fourth quarters of 2007.
The Company has entered into an agreement with General Research, a corporation incorporated in Germany, to develop and execute a market awareness program for the Company in Europe. The agreement is for three months at a monthly fee of 33,000 Euros per month, and 100,000 stock options to purchase common stock of the Company at an exercise price of $2.00 per share; these options are granted under the Company's existing stock option plan. This agreement may be extended upon written mutual consent between the parties for an additional term.
International Sovereign's Annual Information Form (AIF) for the year ended December 31, 2006 was filed on SEDAR on March 30, 2007. The AIF includes the disclosure and reports relating to reserve data and other oil and gas information required pursuant to National Instrument 51-101. The AIF can be accessed through the SEDAR website at www.sedar.com.
International Sovereign Energy Corp. is an oil and gas exploration development and production company with offices in Vancouver, British Columbia, Calgary, Alberta, and Islamabad, Pakistan. It is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally.
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