Tuareg Attacks on Military Forces Slow Seismic Progress in Niger

The Operator has reported to TG World that security concerns resulting from the Tuareg attacks on the Government's military forces, beginning in February 2007, prevented further seismic acquisition during the back half of 2007. Also, toward the end of November 2007, the Government of Niger issued a decree extending a security alert over the Agadem region, which includes Tenere operations. The period of the alert lasts until the end of February 2008.

The Operator has advised TG World that, based on discussions with the Niger Government, it expects to be able to resume operations and commence construction of the drilling platform for the Facai - 1 well around the beginning of March 2008. The Operator estimates that drilling could commence approximately two months after the beginning of site construction.

The Operator has confirmed receipt of advice from the Government of Niger that an appropriate period of Force Majeure will be recognized under the Tenere Establishment Agreement, in light of operational delays caused by the local security situation, such that the First Exploration Period will be extended beyond its initial September 8, 2008, expiry. The exact period of the extension has not been determined at this time.