Al Roidhat

Development of Al-Roidhat continued in preparation for the finalization of the transportation agreements for blended crude. Calvalley worked over the four wells which had previously been completed and tested and completed three additional wells. Extended production tests were conducted to better understand the sustainable production capability of the wells and the field. Six wells are fully equipped and ready to commence production as soon as the Truck Offloading Facility ("TOF") is completed at Block 51. Production from these wells will be accumulated at the field storage tanks and will then be transported by tanker truck to the CPF for blending with lighter oil produced by other fields. The wells are ready to produce.

Hiswah

Two development wells were drilled at Hiswah during 2009. The wells proved to be excellent producers as a result of our improved reservoir modelling and completion techniques. The successful results from these two wells resulted in an upward revision of recoverable reserves from the field by the independent reserve engineers. The initial pilot project for water injection yielded positive results. The second pilot test results are currently being evaluated to determine the optimal injection rate. The second component of the pressure maintenance program at Hiswah involves the reinjection of produced gas to reduce flaring and increase oil recoveries. The gas injection project was delayed due to the inability of manufacturers of key facilities to meet Calvalley deadlines. The shipment of these facilities occurred in Q1-2010. An existing well has been selected to be converted to gas injection and a gas line was constructed from the CPF to the gas injector. The remaining injection equipment is expected to be on-site in the second quarter of 2010.

Qarn Qaymah

The testing programs which were conducted during 2009 established the presence of condensate rich gas and light oil in the Kohlan sands and the Fractured Granitic Basement (FGB). The initial test of the FGB confirmed that the Qarn Qaymah structure lies within a high quality oil system. The zone naturally flowed significant volume of light oil with fluctuating rates up to maximum of 2,350 bopd. However, the test flow rates were not sustainable due to the lack of appropriate downhole equipment. The seismically defined structure covers an area exceeding 37 square kilometres. The estimated hydrocarbon column at Qarn Qaymah 2 (QQ-2) exceeds 380 meters.

The second stage of QQ-2 completion and testing involved the isolation of the FGB and testing the Kohlan Sands. The well flowed condensate-rich natural gas over an extended period with rates ranging up to 3.5 mmcf/d with a condensate yield of approximately 70 bbl per mmcf of gas. Kohlan sands in the Qarn Qaymah fairway display regional blanket sand characteristics with the fairway extending over 34 square km of Block 9.

Ras Nowmah

The technical discovery during 2009 at Ras Nowmah has advanced the location from the exploration phase to the appraisal phase. Based on an independent log interpretation, the well encountered a total of 45 meters of gross oil pay in high quality reservoir rock including 35 meters in the Qishn and 10 meters in the Saar formation. Appraisal of this technical discovery will continue in 2010 with up to two appraisal wells.

Figure 15 - Al Roidhat wadi as seen from plateau

Figure 16 - Al Roidhat Oil Field, Wadi Amd.

Figure 17 - Al Roidhat Oil Field, Wadi Amd.