Artumas Wins Rovuma Block in Northern Mozambique

Artumas Group's subsidiary, Artumas Mocambique Petroleos Limitada, has signed an agreement for the Exploration and Production Concession Contract (EPCC) for the Rovuma Onshore Block in the Rovuma Basin in northern Mozambique. The official signing ceremony took place in Pemba between the Government of the Republic of Mozambique, the national oil company, Empresa Nacional de Hidrocarbonetos (ENH), and executives of Artumas.

Artumas was awarded the block in Mozambique's second licensing round in 2006. The Rovuma Onshore Block covers an area of approximately 15,000 square kilometers in the hydrocarbon prospective Rovuma Basin. The Block offsets the Company's Mnazi Bay concession in south-eastern Tanzania.

Under the terms of the contract, Artumas has secured an initial three-year exploration term with two extension terms. The initial exploration period work commitment calls for acquisition of a minimum of 250 kilometers of new 2D seismic and drilling of a deep Cretaceous prospect, representing a projected capital expenditure of US$ 20 Million. In addition, Artumas has the option to re-enter and test the existing Mocimboa-1 well, drilled by Esso in 1986. This well encountered multiple intervals of hydrocarbons shows, and several independent studies on the well logs have identified by-pass gas in the Cretaceous formation.

Artumas has interpreted numerous exploration leads on existing seismic within the Block at several stratigraphic levels, covering various play types. Additional seismic acquisition is planned, targeted to start in late 2007, to high-grade and delineate these leads.

Artumas has begun an environmental impact assessment (EIA) covering the planned seismic and anticipated drilling activities.