Horn Petroleum Drills Ahead at Dharoor Block

Horn Petroleum Corporation provided the following update on its exploration activities in Puntland, Somalia.

Horn Petroleum is currently drilling its first exploration well in the Dharoor Valley Block. The Shabeel-1 well was spud in January 2012 and is currently at a depth of approximately 4,035 feet (1,230 meters). Casing has been set in the well to a depth of 3,737 feet (1,139 meters) and drilling of the 12 1/4 inch section continues as planned. Drilling of the Shabeel-1 well is expected to be complete during the first quarter of 2012 and testing equipment is currently being mobilized to the site. Assuming successful drilling results, it is anticipated that testing results will be available early in the second quarter of 2012. Upon completion of drilling the Shabeel-1 well, the rig will move to the Shabeel North-1 well, where 30 inch conductor pipe is in place and a 164 feet (50 meter) pilot hole has already been drilled.

These two wells represent the first oil exploration wells to be drilled in the country in over 20 years and will satisfy the first exploration period drilling commitments as required under the Production Sharing Contracts for both the Dharoor and Nugaal Blocks. In order to provide for sufficient time to evaluate drilling results, the Puntland Government has granted an extension of the first exploration period expiry date to October 17, 2012.

The Puntland Government and Dharoor Valley communities are fully supportive of the drilling project and have ensured the Corporation that they will do all necessary to allow the project to move forward safely and expeditiously.