THE ATLAS PETROLEUM AND ORANTO PETROLEUM GROUP MEDITERRANEAN, MIDDLE EAST & AFRICA SCOUT GROUP

Report for January 2011

OPERATED LICENCES IN: NIGERIA, EQUATORIAL GUINEA, CÔTE D’IVOIRE, SIERRA LEONE, LIBERIA, GHANA, MALI, SENEGAL, BENIN, GAMBIA

NIGERIA (Shallow water) OML 109 (JED Exploration Area): Licensees: Atlas Petroleum International Ltd. (operator) Summit Oil & Gas Worldwide Ltd.

70% 30%

Area: 200,000 acres (excluding Ejulebe Field) Award date: 1996 (conversion from OPL-75) Duration: 20 years (1st Phase) Work completed: 325 km2 3D seismic, 1996 Current activity: West Awodi-1 (5o 27’58.4”N 4o 56’ 36.2”E) spudded (Lloyd Noble jack-up) 1-10-09 and reached TD of 10,860’ (9,799’ TVD) on 26-Oct-09. Took kick from overpressured gas/cond sand at TD. West Awodi1ST kicked off 5-Nov-09 and reached TD of 6810’ (6258’ TVD)1600’ step-out to SSW on 8-Nov-09. The well was P&A as a probable overpressured gas/cond discovery. Ejulebe Oilfield Area: (OML 109 NE) Licensees: Atlas Petroleum International Ltd. (operator) 70% Summit Oil & Gas Worldwide Ltd. 30% Tetra Petroleum Oilfield Services Ltd. (Service Contractor) Area: 15,000 acres First Production: Sept 1998 Work completed: 3 development wells (producing) 3 exploration wells (dry) Current activity: Production rate: 450 bopd Currently 2 wells are producing. A step-out satellite well is being considered for drilling in 2011.

NIGERIA (Deep water) OPL 293 (relinquished northern half of Statoil OPL 218, Nnwa Block). Awarded to Oranto 100% on 4-May-07 in 2007 Bid Round. Oranto awaiting to finalise PSC. Contact Simco for further details.

OPL 320 (awarded in Year 2000, Deep Water Round): Licensees:

Oranto Petroleum Ltd. (operator) Orandi Petroleum

65% 35%

Area: 1,789km2 PSC Effective date: 20th Feb 2002 Duration: 7 years (1st Phase, incl 2 year ext) + 3 years (2nd Phase) . Termination date: 20/02/12 Current activity: February 2006. 1st commitment well Echim-1 spudded 23Oct-07 in 6,556’of water. X=175970 Y=101905; rig KB: 85; well TD: 16,486’ MD; rig released 16-Dec-07. Planning 2nd commitment well for the 2nd Phase of the PSC. Comment: Shell’s deep-water Bobi-1X discovery (>140 metres of h/c sands), announced 16-Jul-05, is located ~6 km south of OPL 320 boundary. Recently appraised by Bobo-2, ~ 3 km south of OPL 320 boundary. Technical operator Kosmos has elected not to continue to 2nd Phase. Oranto and Orandi committed to the 2nd period in Nov-09. A dataroom is now available to appoint a new technical operator.

EQUATORIAL GUINEA Block H Licensees: Atlas Petroleum Int. Ltd. (administrative operator) 56.25% ROC Oil Company Ltd. (technical operator) 37.5% Osborne Resources Ltd* 6.25% Area: 991 km2 Award date: 3-Feb-2000 Duration:

5 years (1st Phase) 1 year (2nd Phase) – New extension to 3-Feb-11 approved** 1 year (3rd Phase)

Work completed: 1,385 km2 3D seismic, acquired Feb-Mar 2001, using CGG’s M/V Aker Amadeus Detailed AVO analysis on 800 km2 high-graded 3D swathe Bravo-1, P&A 20-Jun-04. Location 02o16’32.9”N; 09o17’21.0”E. WD 1509m, TD 3222m. Current activity: Drilling of Aleta-1 now planned for 2011. *Extension to Feb-12 formally approved by MMIE in Dec-10 *Wholly owned subsidiary of PA Resources AB EQUATORIAL GUINEA

Block J: Licensees: Atlas Petroleum International Ltd. (operator)

100%

Area: 1,305 km2 Award date: 3-Feb-2000 Duration: 5 years (1st Phase): 2+3 year extension granted to 3-Feb-2010. Further 1 year extension to 3/02/11 approved. Additional one year extension to 03/02/12 requested in Nov-10 and verbally approved. Work completed: Preliminary geological studies 1,084 km 2D seismic acquisition completed on 22-Feb-02 Current activity: 800 km2 of 3D seismic by TGS using the BGP Pioneer, commenced 13-Jan-08 and completed 15-Feb-08. Processing, 3D interpretations and AVO studies now completed. Farm in partners being sought to drill one commitment well by February 2012.

Block I: Licensees: Atlas Petroleum Int. Ltd. (administrative operator) Noble Energy EG Ltd. (Technical operator) Glencore Exploration (EG) Ltd. Osborne Resources Ltd.

29% 40% 25% 6%

Area: 806 km2 Award date: 3-Feb-2000 Duration: Whole area now designated an Evaluation Area until February 2010. Approval for the Aseng (previously known as Benita) Oilfield Plan of Development formally approved by the EG govt on 26-Jun-09. Work completed: 1,049 km 2D seismic acquisition Feb 2002 857 km2 of new 3D acquisition Jan-2004. 6 wells drilled (4 exploration + 2 appraisal). 2 oil/gas/cond discoveries (Aseng & Diega) + 2 gas/cond discoveries (Yolanda, Belinda). Current activity: Development drilling on Aseng commenced 9-Jan-10, using Pride South Pacific. All development wells (2 angle and 3 horizontal. producers plus 3 water injectors completed end 2010) 1st oil (Aseng) anticipated November 2011. Block P Licensees: GePetrol (paying interest) operator Petronas Carigali Equatorial Guinea Ltd. Atlas Petroleum International Ltd. DNO ASA

38.4% 31% 5.6% 5%

GEPetrol – carried through exploration

20%

Area: 1,333 km2 Award date: 17-Apr-2003 Duration: 2 years (1st Sub Period) – extended by 6 months 2 years (2nd Sub Period) – commitment made to continue 1 year (2nd Phase) + 1 year (3rd Phase) Work completed: GEPetrol 3D seismic purchased and interpreted 2003 AVO completed 2004 4 + 1ST wells drilled. P-2 announced as Venus oil discovery 2005 A plan of development for the Venus Oilfield, within a development area of approximately 80 km2 has been rejected by the MMIE Atlas has informed the Ministry of its intent to continue exploration in the remaining part of Block P, together with GePetrol. CÔTE D’IVOIRE Block CI 205: Licensee: Oranto Petroleum Ltd. Lukoil Overseas (operator) Petroci

27% 63% 10%

Area: 2,597 km2 Award date: 21-Jul-2001 (full PSC) Duration: 1st phase: to Dec-03 (860 km2 of 3D seismic) Has elected to continue to: 2nd phase: 2½ years (1 well) Extensions granted to allow for drilling in 2010 (2012 applied for) 3rd phase: 2½ years (1 well) Work completed: Purchase and interpretation of 1,200 km of existing 2D Seismic (includes CI 206) Acquisition of 2,400 km2 of 3D seismic (includes CI 206) Completed 18-Dec-03, using the Western Regent, CGG Acquired 608 km2 of further 3D seismic (NE CI 205) in May/June 2009 Current activity: Planning to drill first commitment well Buffalo-1X in water depths of 2400m to a TD of 5300m in Q2 2011. Projected well cost is $100 million.

Block CI 206: Licensee: Oranto Petroleum Ltd. (operator)

100%

Area: 1,768 km2 Award date: 21-Jul-2001 (full PSC) Duration: 1st phase: to Dec-03 (1,100 km2 of 3D seismic) Has elected to continue to: 2nd phase: 2½ years (1 well) Extension to 31-Jan-12 approved 3rd phase: 2½ years (1 well) Work completed: Purchase and interpretation of 1,200 km of existing 2D Seismic (includes CI 205).Acquired and interpreted 3D seismic. Interpretation and full AVO analyses completed. Comments: Oranto is seeking partners on CI 206 with a data room available in London and Dallas. For further information please contact: Kapo Simonian at Simco Petroleum Management (Tel 0208-878-0212)

SIERRA LEONE Block SL-5 (& Extension): Licensee: Oranto Petroleum Ltd. (operator)

100%

2

Area: 4,022 km

Award date: 20-Aug-2003 (Shoreward Extension granted 8-Sep-03) Duration: 1st phase: 3 years (plus two 1 yr ext granted) (1,500 km2 of 3D) 2nd phase: 2 years (1 well) now entered. New expiry 20/08/2010 3rd phase: 2 years (work depends on previous results) Work completed: Petroleum Agreement executed Current activity: Acquisition of 2,650 km2 (shared 57% SL-5 and 43% SL-4) Survey completed in 2008. 3D interpretation and AVO studies completed. Comment: Farm-out agreement to large international executed and awaiting outcome of arbitration proceedings, started 1-Sep-10, with government on reinstatement of full licence to Oranto.

LIBERIA Block LB-11 and LB-12 (two separate PSC’s) Licensees:

Chevron (operator) Oranto Petroleum Ltd.

70% 30%

Area: 3,295 km2 (each) Awarded 2004 and 2005 respectively; new PSC’s signed 16-Apr-07 Work Programme (each):

1st 4 years: 1,500 km2 3D 2nd 2 years: 1 well 3rd 2 years: 1 well

Work completed: 3,000 km2 seismic survey (including LB-11), operated by TGS completed on 16-Dec-08. Processing by TGS completed. Current activity: AVO processing and interpretation by Weinman (Dallas) to complete by end Q1 2010. Comment:

Farm-out to Chevron ratified by Parliament on 2-Sep-10

Block LB-14 Licensees:

Chevron (operator) Oranto Petroleum Ltd.

70% 30%

Area: 3,121 km2 Awarded 10-Jun-09

Parliamentary ratification, Aug-09

Work Programme:

1st 4 years: 300 km 2D + 1,600 km2 3D 2nd 3 years: 1 well 3rd 2 years: 800 km2 3D + 1 well

Work completed: Evaluated and interpreted existing 2D seismic data Current activity: 1,515 km2 new 3D seismic, acquired during mid Nov-09 to late Jan-10, by BGP Pioneer Comment:

Farm-out to Chevron ratified by Parliament on 2-Sep-10

GHANA Block “Offshore Saltpond (Annulus)”: Licensees: Oranto Petroleum Ltd. (operator) Stone Energy Ghana Ltd GNPC (carried interest)*

87.5% 2.5% 10%

*option to take a further 10% paying interest on development Area: ~1,542 km2 PSC signed May 2008, parliamentary ratification 3 July 2008. Work Programme: 6 ½ year Exploration Phase (in 3 parts): Initial Phase (3 years): 1,000 km2 3D + 1 well 1st Ext (2 years): 25% relinquishment; 1 well 2nd Ext (18 months): 25% relinquishment; 1 well Work completed: All available G&G data collated and technical evaluation. completed. 3D seismic survey using R/V Geo Mariner (SeaBird Exploration) for 250 km2 transition zone data , completed 18-Feb-10. BGP Pioneer completed 750 km2 of 3D in >20m water depth, including Saltpond Platform undershoot in Jun-10. Current activity: CGG due to complete processing of the combined 3D dataset by end Jan 2011.

MALI Block 12 (Fosse de Nara): Licensees: Oranto Petroleum Ltd. (operator) 50% Glencore 50% State of Mali (carried interest)* 10% *option to take a further 10% paying interest if production rises above 80 mbopd Area: 49,467 km2 PSC signed 13th May 2008 Work Programme: 10 year Exploration Phase (in 3 parts): Initial Phase (4 years): Y1: Grav Mag $1.5 mm Y2: Seismic $10.3 mm Y3: Strat well $5.2 mm Y4: Expltn well: $8 mm 1st Ext (3 years): 25% relinquishment; 1 well $8 mm 2nd Ext (3 years): 25% relinquishment; 2 wells $16 mm

Work completed: Accessed and evaluated all available G&G and field data. 10 x 50 km grav/mag airborne survey acquired 2009 Current activity: Interpretation of grav/mag and preparation for 2D seismic acquisition.

SENEGAL Block “Cayar Offshore Shallow” Saloum, Senegal Onshore Sud Licensees: Oranto Petroleum Ltd. (operator) 100% Petrosen (carried interest)* 10% *option to take a further 10% paying interest on development Area: 3,618 km2 PSC signed 3rd December 2008 Work Programme: 8 ½ year Exploration Phase (in 3 parts): Initial Phase (3 years): 500 km2 3D seismic ($5 mm) 1st Ext (3 years): 20% relinquishment; 1 well ($10 mm) 2nd Ext (2 ½ years): 20% relinquishment; 1 well ($10 mm) Blocks “Saloum and Senegal Onshore Sud Licensees: Oranto Petroleum Ltd. (operator) 100% Petrosen (carried interest)* 10% *option to take a further 10% paying interest on development Area: 14,290 km2 (Saloum) and 15,231 km2 (Onshore Sud) PSCs signed 3rd December 2008 Work Programme: 7 year Exploration Phase (in 3 parts): (for each block) Initial Phase (2 ½ years): 750 km 2D seismic ($4 mm) 1st Ext (2 ½ years): 25% relinquishment; 460 km2 3D seismic or 1 well ($6 mm) 2nd Ext (2 years): 25% relinquishment; 1 well ($6 mm) All blocks: Work completed: PSC negotiated and signed Current activity:

Accessing all available G&G data. Technical evaluation.

GAMBIA Onshore Block: Licensee: Oranto Petroleum Ltd. (operator) Area:

100%

PSC will become effective 9th Sept 2010 Work Programme: 7 year Exploration Phase (in 3 parts): Initial Phase (2 years): Reprocessing of 400 km existing seismic 1st Ext (2 years):

Acquisition of 600 km of 2D seismic

2nd Ext (3 years):

Two firm wells

3rd Ext (unspecified): By agreement

BENIN Block 6: Licensee: Oranto Petroleum Ltd. (operator)

100%

2

Area: 3,480 km

PSC signed 25th Nov 2009; parliamentary authorisation awaited Work Programme: 9 year Exploration Phase (in 3 parts): Initial Phase (3 years): Reprocessing of all existing seismic Acquisition of 1000 km of 2D seismic Acquisition of 400 km2 of 3D seismic 1st Ext (3 years):

Acquisition of 1000 km of 2D seismic Acquisition of 600 km2 of 3D seismic One firm well

2nd Ext (3 years):

Acquisition of 400 km2 of 3D seismic One firm well

Block 8: Licensee: Oranto Petroleum Ltd. (operator)

100%

Area: 2,070 km2 PSC signed in 28th April 2010. Further details to follow Work Programme: 9 year Exploration Phase (in 3 parts): Initial Phase (3 years): Reprocessing of all existing seismic Acquisition of 1000 km of 2D seismic Acquisition of 1000 km2 of 3D seismic 1st Ext (3 years):

Acquisition of 1070 km of 3D seismic One firm well

2nd Ext (3 years):

Acquisition of EM survey, One firm well

Block 5: Licensee: Oranto Petroleum Ltd. (operator)

100%

Area: 3,480 km2 PSC signed 7th Oct 2010; parliamentary authorisation awaited Work Programme: 9 year Exploration Phase (in 3 parts): Initial Phase (3 years): Reprocessing of all existing seismic Acquisition of 1500 km2 of 3D seismic One firm well 1st Ext (3 years):

Acquisition of 1980 km2 of 3D seismic One firm well

2nd Ext (3 years):

One firm well

Blocks 5&6: Current activity:

3,000 km of existing 2D data purchased 4,200 km2 of new 3D acquisition contracted to TGS and due for acquisition to commence on 12-Jan-11, using the Fugro Geo-Coral vessel. 1,000 km2 of 3D will be acquired on Block 8 during 2011.

ATLAS BLOCK MAPS

OML 109

OPL 320 and OPL 293 (new award)

I and J Blocks, EG

H and P Blocks, EG

I Block - detail

P Block - Detail

Block CI 205 & 206, Cote d’Ivoire

Blocks SL5 (& Ext), Sierra Leone + LB 11 & 12, Liberia

SL-05 (NE Corner): Meandering deep water Senonian Channel, with positive RMS Far Stack Amplitudes, (WD ~1,800m)

Positive Class II AVO response from 100 msec thick channel. Initial reserves range estimate of 545-1,318-2,361 mmbo (recoverable)

Comparison of seismic sand body in LB 12 with dip line through Mahogany discovery offshore Ghana

Location of “Saltpond Annulus” Licence, Ghana

Location of Bloc 12 (Fosse de Nara), Mali

Location of the 3 blocks (1 offshore – Cayar and 2 onshore – Saloum and Senegal Onshore Sud) in Senegal

Onshore Block, Gambia

Oranto

Location of Blocks 5 (yellow), 6 (green) and 8 (red) in Benin. Other Oranto acreage (outside Benin) in orange