Videocon Creates Subsidiary for Timor-Leste PSC

Videocan Industries has incorporated an SPV, Global Energy Inc., which is a wholly owned subsidiary of the Company, to explore for, develop and exploit Petroleum Block JPDA 06-103 and the export and marketing of that Petroleum and all activities. As such, Global Energy Inc. is part of the consortium which was awarded the JPDA 06-103 Production Sharing Contract by the Timor Sea Designated Authority.

The Participating Interest of Global Energy Inc., in the JPDA 06-103 Production Sharing Contract is 25%.

The Joint Petroleum Development Area (JPDA) is within the Bonaparte Basin with estimated 23 Tcf (known reserves in Bonaparte Basin stated by the Australian Government during its 2004 Bid Round) of undiscovered EUR Gas Reserves. Besides Gas, there could be substantial Condensate recovery.

There is a gas field in the JPDA, namely Bayu-Undan, with 3.4 Tcf of gas reserves and 400 million barrels of condensate and LPG reserves, which exports dry gas via a 26" pipeline from Bayu-Undan to Darwin in North Western Australia where the dry gas is converted to LNG for export and sales. The condensate and LPG arc stripped from the gas at offshore facilities in the field and exported for sale by tanker.

In Production Sharing Contract 06-103, Leads 103-A and 103-C have been identified with recoverable unrisked potential of 260 million barrels of Oil or 1300 BCF gas and 130 million barrels of Oil or 571 BCF gas respectively.

In JPDA 06-103 a contract for 1657 sq kms of 3-D data acquisition has been awarded at an estimated cost of $18.6 million. 1055 sq kms of reprocessed 3-D data to the north of the block has already been acquired from Fugro. With this it would facilitate zeroing in on the 4 well locations for the commitment wells included in the Minimum Work Program.

Drilling is anticipated to start in 2008. The Company's share in the current Work Program is US $18.9 million.

Partners in JPDA Block 06-13 are Oilex as operator; Gujarat State Petroleum Corporation and Bharat Petroleum.