OFFSHORE PQR FIELD POD

XYZ FIELD LOCATION MAP

PQR

TOP DEPTH STRUCTURAL MAP

Well-02

Well-01

STRUCTURAL CORRELATION
Well-01 Well-02

SUMMARY OF RESERVOIR PROPERTIES

Porosity
Well-01
H Por H*SW H

Well-02
Por H*SW

Ave_POR

Layer-1 Layer-2 Layer-3 Layer-4

0.00 35.50 0.00 2.65

0.00 0.26 0.00 0.23

0.00 9.24 0.00 0.60

2.89 53.61 9.53 4.50

0.16 0.25 0.26 0.32

0.46 13.16 2.48 1.45

0.16 0.25 0.26 0.29

Water Saturation
Well -01
H Layer-1 Layer-2 Layer-3 Layer-4 0.00 35.50 0.00 2.65 SW 0.00 0.37 0.00 0.59 H*SW 0.00 13.26 0.00 1.56 H 2.89 53.61 9.53 4.50

Well-02
SW 0.62 0.48 0.57 0.62 H*SW 1.78 25.71 5.44 2.79

Ave_SW

0.62 0.44 0.57 0.61

NTG (Net to Gross Ratio)

Well-01
H Layer-1 Layer-2 Layer-3 Layer-4 43.71 45.34 27.05 59.97 NTG 0.00 0.78 0.00 0.04 H*SW 0.00 35.50 0.00 2.65 H 16.14 69.26 24.38 78.26

Well-02
NTG 0.18 0.77 0.39 0.06 H*SW 2.89 53.61 9.53 4.50

Ave_NTG

0.05 0.78 0.19 0.05

OIL PORE VOLUME MAP

Well-02

Well-01

GAS PORE VOLUME MAP

Well-02

Well-01

Lab - Capillary Pressure Oil-Water System

150.0 140.0 130.0 120.0 110.0

Pc @ Ka 693 md Phi : 0.275

Pc @ Ka 201 md Phi : 0.260

C apillary P ressure,ps

100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 0 0.1 0.2 0.3 0.4

Pc @ Ka 14.6 md Phi : 0.262

` Pc @ Ka 14.9 md Phi : 0.224

0.5

0.6

0.7

0.8

0.9

Brine Saturation, percent Vp

Gas-Oil Rel-Permeability
1.00 0.90 0.80 Rel-Perm, Krog, Krg 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 0.00

Krg @ Core 107 Krg#Core 127 Krg#Core 130 Krog#Core 130

Krog@ Core 107 Krog # Core 127 Krog#Core 128 Krg#Core128

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

Gas Saturation, Fraction

Oil-Water Rel-Permeability
1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 0.00

Krw @ Core 107 Krow@ Core 107 Krw @Core 127 Krow @ Core 127 Krw @ Core 130 Krow @ Core 128 Krow @ Core 130 Krw @ Core128

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Wa t e r S a t ur a t i on, Fr a c t i on

HYDROCARBON FLUID PVT ANALYSIS

HYDROCARBON ANALYSIS OF SEPARATOR LIQUID SAMPLE
(UNDECANES PLUS)
Component Mol % Weight %

Hydrogen Sulfide Carbon Dioxide Nitrogen Methane Ethane Propane Iso-Butane N-Butane Iso-Pentane N-Pentane Hexanes Heptanes Octanes Nonanes Decanes Undecanes plus Total ......

0.00 0.17 0.02 5.83 3.08 6.95 3.00 5.15 4.09 4.00 7.77 11.66 11.58 6.11 4.47 26.12 100.00

0.00 0.06 0.00 0.73 0.72 2.39 1.36 2.33 2.30 2.25 5.08 8.23 9.26 5.53 4.60 55.16 100.00

Properties of Heptanes Plus

API Gravity at 60 F Density, gm/cc at 60 F Molecular Weight 40.1 0.8245 177.3

Properties of Undecanes Plus

API Gravity at 60 F Density, gm/cc at 60 F Molecular Weight 33.6 0.8572 271.0

Average Total Molecular Weight of Sample = 128.4

HYDROCARBON ANALYSIS OF SEPARATOR GAS SAMPLE

Component

Mol %

GPM

Hydrogen Sulfide Carbon Dioxide Nitrogen Methane Ethane Propane iso-Butane n-Butane iso-Pentane n-Pentane Hexanes Heptanes Octanes Nonanes Decanes Undecanes plus Total ......

0.00 1.07 0.75 77.48 8.64 7.34 1.49 1.81 0.56 0.39 0.26 0.15 0.05 0.01 0.00 0.00 100.00

2.310 2.022 0.488 0.570 0.204 0.142 0.108 0.054 0.020 0.004 0.000 0.000 5.922

Gas Gravity

(air = 1.000)

0.759

Gross Heating Value

BTU / cubic foot of dry gas at 14.73 psia and 60 F

1292.7

VOLUMETRIC DATA (at 176 F) Saturation Pressure (Psat) ......................... 1870 psig Density at Psat .............................................. 0.6503 gm/cc Thermal Exp @ 5000 psig .......................... 1.07295 V at 176 F / V at 60 F

AVERAGE SINGLE-PHASE COMPRESSIBILITIES

Pressure Range
psig

Single-Phase Compressibility
v/v/psi

5000 4000 3000 2000

to to to to

4000 3000 2000 1870

11.87 E -6 14.14 E -6 17.16 E -6 18.92 E -6

DIFFERENTIAL VAPORIZATION
ADJUSTED TO SEPARATOR CONDITIONS*
Solution Gas/Oil Ratio
Rs (A)
Kodeco Energy Company Ltd.
KE-30-1
JFL 2001094

Pressure
psig

Gas Formation Formation Volume Volume Factor Factor

Bo (B) (C)

Differential Vaporization

Oil Density
gm/cc

Oil/Gas Viscosity Ratio

Adjusted to Separator Conditions

1 .8

1 .7

Differential Vaporization Separator Test, 350 psig at 90 F Separator Test, 250 psig at 90 F Separator Test, 150 psig at 90 F Separator Test, 50 psig at 90 F

5000 4500 4000 3500 3000 2500 2200 2100 2000 1900 1870 1600 1400 1200 1000 800 600 400 200 109 0

836 836 836 836 836 836 836 836 836 836 836 723 643 567 494 423 354 283 201 148

1.435 1.443 1.452 1.462 1.472 1.484 1.492 1.495 1.498 1.500 1.501 1.446 1.408 1.371 1.336 1.303 1.269 1.234 1.187 1.153

0.00923 0.01068 0.01263 0.01535 0.01945 0.02626 0.03978 0.07894 0.13928

0.6805 0.6767 0.6725 0.6680 0.6631 0.6578 0.6543 0.6532 0.6519 0.6507 0.6503 0.6627 0.6715 0.6800 0.6883 0.6965 0.7050 0.7141 0.7254 0.7326 0.7598

1 .6

1 .5

1 .4

1 .3

1 .2

18.9 21.2 23.8 26.5 29.6 33.2 38.2 46.7 54.5

1 .1

1 0 250 500 750 1 000 1 250 1 500 1 750 2000

Pre ssure, psig

Figure D-2

: Diffe re ntia l Va poriza tion Adjusted to

Separator Conditions

Formation Volume Factor (Bbl/bbl)

Pre ssure
VS

(psig)
RIES

RESERVOIR FLUID VISCOSITY

(at 176 F) Pressure
psig

Kodeco Energy Company Ltd.

KE-30-1
JFL 2001094

Oil Viscosity
cp

Gas Viscosity
cp

Oil/Gas Viscosity ratio

Reservoir Fluid Viscosity

1 .20

5000 4500 4000 3500 3000 2500 2200 2100 2000 1900 Pb1870 1600 1400 1200 1000 800 600 400 200 109 0

0.346 0.335 0.323 0.312 0.300 0.289 0.282 0.279 0.277 0.275 0.274 0.304 0.327 0.351 0.375 0.402 0.431 0.467 0.520 0.564 1.00

1 .00

0.80

0.60

0.40

0.20 0 1 000 2000 3000 4000 5000

Pressure , psig

0.035

0.0161 0.0154 0.0148 0.0142 0.0136 0.0130 0.0122 0.0111 0.0103

18.9 21.2 23.8 26.5 29.6 33.2 38.2 46.7 54.5

0.025

0.01 5

0.005 0 500 1 000 1 500 2000 2500

Pre ssure , psig

Figure C-1

: Re se rvoir Fluid Viscosity (a t 176 F)

Oil Viscosiy (Cp) a nd Gas Viscosity (Cp)

Pressure
VS

(psig)
RIES

DST-SUMMARY
Well-01 Well-02

ESTIMATED HYDROCARBON RESERVES

HYDROCARBON DISTRIBUTION
Well-01 Well-02

OIIP : 22.2 MMBO EUR : 2.95 MMBO

GIIP 18.9 BCF (FREE-GAS) 19.5 BCF (SOL. GAS) EUR : 13.0 BCF

DEVELOPMENT SCENARIOS

SIMULATION PRODUCTION FORECAST

ANNUAL PRODUCTION FORECAST

YEAR OIL (MBO) 749 1040 544 309 169 89 50 GAS (MMCF) 1195 2970 2964 2552 1741 1022 601

2005 2006 2007 2008 2009 2010 2011

TOTAL

2,950

13,045

COMPLETION

PQR POD Completion Proposal

Artificial Lift Completion will be installed immediately. Select In-situ/Auto Gas lift Completion.

PQR POD Completion Proposal In-Situ/Auto Gas Lift Selection Completion cost considerations (compare with conventional Gas Lift and ESP) Utilize Kujung I gas for gas lift supply to optimize production. Minimize the use of the gas as minimum as possible. Minimize workover for future completion. Minimize wireline works for high angle well.

PQR POD Completion Proposal - Test Data

Kujung I ( Gas Zone) DST Result : Perforation Intervals : 4268' - 4308' / 40 ft (MD/TVD) Chk Size 48/64 48/64" FTP, psi 380 660 BOPD 0 12 MMSCF/D 3.5 7 -9 BWPD 0 100 Test Duration, hrs 6 hrs 8 hrs Res. Press : 1838 psi Remark Before acid After acid

Total Skin : - 2.5

Permeabilty : 3.3 mD

Kujung I ( Oil Zone) DST Result : Perforation Intervals : 4326' - 4348' / 22 ft (MD/TVD) Chk Size 32/64" FTP, psi 500 BOPD 1740 MMSCF/D 0.62 BWPD 2 Test Duration, hrs 12 hrs Res. Press : 1870 psi Remark No acid

Total Skin : 42

Permeabilty : 191 mD

Inflow/Outflow Curves for PQR POD

GOR 400 GOR 600 GOR 800

1700 psi 1600 psi 1868 psi

Inflow/Outflow Curves for PQR POD

PQR Wellbore Angle Strategy

40 ft

Gas

80 ft

64 degree 57 degree 0 degree 40 degree

Oil
64 degree

50 ft

Water

Gas
40 ft

80 ft

Oil

50 ft

Water

Gas will perforated between the two packers

Oil intervals

COMPLETION COST
ITEM ESP US $ 50,000 64,000 60,000 16,000 46,000 SM ART COM PLETION US $ 50,000 64,000

Tubing $ 8.0/ ft Eqpt Surface-Wellhead Electric Submersible Pump Electric Cable Pack er/ SSD/Downhole Safety Eqp. Bottom pack er Hydrow II Dual Pack er Remotely Operated SSD Dual Hydraulic line Downhole safety valve Misc.

10,000 20,000 44,000 22,000 14,000 10,000

Total

236,000

234,000

COMPLETION COST COMPARISON

Dual String (OPTION 1) Wellhead 2-7/8" 9-5/8" dual packer 7" packer Standard Cost per well Total Cost incl. Rig Cost for 7days (US$ 315,000) 75,000.0 105,000.0 Divert from oil well to gas well (OPTION 2) Wellhead 3-1/2" 7" packer 7" packer 75,000.0 75,000.0 Auto Gas lift (OPTION 3) Wellhead 3-1/2" 7" packer 7" packer 75,000.0 91,000.0 Hyd. Flow Control from Surface (OPTION 4) Wellhead 3-1/2" 7" packer 7" packer 75,000.0 130,000.0 Assign one well for gas source only (OPTION 5) Wellhead 3-1/2" 7" packer 7" packer 75,000.0 75,000.0

420,000.00

390,000.00

406,000.00

445,000.00

390,000.00

Oil production reduce Require wireline work to 3 wells in the future works

More expensive but Oil production only from easy to operate 3 wells only

PROJECT

PQR DEVELOPMENT
INTRODUCTION : INSTALL 4 PILE PLATFORM TO ACCOMMODATE MAX. 7 WELLS AND TIE IN TO AW PLATFORM VIA 10 x 25 KM SUBSEA PIPELINE

EQUIPMENT TO BE INSTALLED :
PRODUCTION AND TEST MANIFOLD CRANE WHCP (WELLHEAD CONTROL PANEL) SCADA SYSTEM CHEMICAL INJECTION PRODUCTION SEPARATOR WITH LIQUID AND GAS METERING FOR ALLOCATION MULTI PHASE FLOW METER

PROJECT ACTIVITIES: REVISION OF AMDAL STUDY (RKL / RPL) FEED STUDY PROCUREMENT OF LONG LEAD ITEM PREPARE EPC BID PACKAGE ISSUE TENDER PROCUREMENT AND FABRICATION ISSUE TENDER INSTALLATION FABRICATION OF PLATFORM AND PRODUCTION FACILITIES INSTALLATION OF PLATFORM, PRODUCTION FACILITY AND PIPELINE TIE IN / HOOK UP AT AW PLATFORM COMMISSIONING AND START UP

PROJECT COST :
PQR FOUR PILE PLATFORM Deck & Substructure Engineering, Procurement & Fabrication Installation of Platform Facilities Hook Up PIPELINES 10 inch x 25 Km : PQR to Poleng MISCELLANEOUS Engineering, Certification & QA / QC Project Management US$8,650

US$3,600 US$1,250

TOTAL

US$13,500

PQR DEVELOPMENT PROJECT SCHEDULE

ECONOMICS

1. Economical Aspects
1. The estimated total cost, including three (3) producing wells in 2004 and two (2) wells in 2005, is 27.352 MMUS$.

2. PQR Field is capable of production 2.950 MMSTB of oil production and 10.366 BCF of gas production in Kujung I formation by the end of year 2011 with five (5) producing wells.

3. Oil price was assumed U$$ 22.00 per barrel and gas price of US$ 3.0 per MMBTU.

4. The PQR operating cost is 13.954 MMUS$, which is calculated as the fractional portion of PQR production against the total operating cost of both West Madura and Poleng.

2. Requirements and Proposed Expenditures

1. PQR Four File Platform 8,650

Deck & Substructure eng., Procurement, & Fabrication Installation of Platform Facilities Hook-up 3,600

2. Pipelines 10 OD 25 Km: PQR Poleng

3. Miscellaneous Engineering, Certification, and QA/QC Project Management

1,250

4. Development Drilling and Completion (5 wells)

13,852

TOTAL

27,352

3. Economic Summary
Gross Production Oil Price Gross Revenue Operation Costs Capital Expenditure Total Cost Recovery Contractor NPV (10% D.C.) Payout Time Contractor IRR Pertamina NPV (10% D.C.) Indonesia NPV (10% D.C.) Mbbls US$/bbl MUS$ MUS$ MUS$ MUS$ MUS$ Years % MUS$ MUS$ 2,950 22 96,121 13,954 27,352 48,252 3,669 4.5 26.6 6,933 19,289

4. Sensitivity Analysis
KE-30 Field Development PQR FIELD DEVELOPMENT Sensitivity to Contractor NPV SENSITIVITY TO CONTRACTOR NPV
7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4
45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4

KE-30 Field Development PQR FIELD DEVELOPMENT Sensitivity TOContractor IRR IRR SENSITIVITY to CONTRACTOR

Contractor NPV (@10%), MM$

Oil Price OPEX

SENSITIVITY FACTOR

CAPEX Production

IRR ( % )

SENSITIVITY FACTOR Oil Price CAPEX OPEX Production

KE-30 Field Development PQR FIELD DEVELOPMENT Sensitivity toTO PARTNER NPV SENSITIVITY Pertamina NPV
13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4

KE-30 Field DEVELOPMENT PQR FIELD Development Sensitivity to Government NPV NPV SENSITIVITY TO GOVERNMENT
40.0 35.0

Contractor NPV (@10%), MM$

Indonesia NPV (@10%), MM$

30.0 25.0 20.0 15.0 10.0 5.0 0.0

0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4

Oil Price OPEX

SENSITIVITY FACTOR

CAPEX Production

Oil Price OPEX

SENSITIVITY FACTOR

CAPEX Production