Taghmen Energy Says Work on the Tortugas/Atzam Prospect Progressing

Taghmen Energy provides the following operational update on its operations in Guatemala.

Well 1XA

Operations on well 1XA commenced in late May, 2006. The sidetrack was successfully kicked off at a depth of 5,810 feet. The total depth is planned to be at approximately 10,000 feet and the sidetrack is expected to take 35 days to drill.

Huapac 2X

The bottom hole location for the planned Huapac 2X well has been selected, based on the interpretation of the 2D seismic survey shot earlier this year.

A drilling pad will be constructed whilst the well 1XA is drilling. Huapac 2X is expected to spud in late July 2006.

License 7-05 (Tortugas/Atzam)

Negotiations with the Ministry of the Environment are ongoing to approve the environmental impact assessment. Technical approval has been granted by the Ministry of Mines and Energy to convert the planned 3D seismic shoot to a 2D shoot. Taghmen believes, based on its understanding of the current status of Government approvals, the Tortugas/Atzam seismic acquisition and the first of the three well workovers will commence in late June 2006.