Amity Oil Begins First Production from Cayirdere-1

Amity's joint venture partner, TPAO, has reported that first production from the Cayirdere field occurred earlier this month. Following the discovery at Cayirdere-1 in April 2003, a nine-kilometer pipeline was built to tie the well into the TPAO operated Thrace trunk line. Discovery to first production has taken only 7-1/2 months. Initial production rates have not yet been reported, but are expected to be in the order of 2 million standard cubic feet per day until the plant is fully operational, and additional wells are completed and tied in. The second well on the field (Cayirdere-3) is expected to be spudded within the next week to ten days.

The Cayirdere-1 well is located in Area B of the Thrace Joint Venture, which is owned 50% by Amity and 50% by TPAO. Area B is operated by TPAO.

Cayirdere-1 was spudded on April 16, 2003 and reached a total depth of 907 meters on April 26th. The Cayirdere-1 well discovered a 19 meter gross (16 meter net) gas column in good quality sandstones of the Danismen Formation. The well was perforated over a 9-meter interval between 649 meters and 658 meters. A stabilized flow rate of 3.1 million cubic feet of gas per day was recorded through a 3 /8 inch choke, at a surface flowing pressure of 761 psi and initial and final surface shut-in pressures were both 845 psi. Cayirdere-1 is located about 33 kilometers southeast of the Gocerler gasfield in Turkey.