Pebercan Completes Seboruco 7 Well in Cuba

Pebercan reports the successful completion of its Seboruco 7 well on May 19, 2004. The target was reached at a depth of 1,500 meters and at 2,000 meters northeast of the shore. The structure was then drilled over a length of 1,090 meters, with an average angle of 85 degrees .

This well, which is presently in the testing phase, is flowing with production rates ranging from 1,400 to 2,400 barrels per day. The test period is expected to end on or about June 25, 2004. The Seboruco 7 production will be tied in to the Seboruco-Yumuri collector station and facility.

On the strength of this new success, Pebercan has announced the start-up of a new well, Seboruco 5, which will begin on May 29 of this year. This well will be drilled targeting the same structure 700 meters west of the Seboruco 7 site.

Pebercan Inc. is involved in the exploration, development and operation of oil reserves in the Republic of Cuba. Its mining domain includes five concessions covering 6,155 km2, including Block 7, the only concession operated to date. Pebercan sells all of its production to the Cuban government.