SC40 PROSPECTS AND LEADS

In addition to Libertad and Maya, SC 40 (Cebu) also includes a number of prospects and leads. The Central Tañon prospect is located within the Tañon sub-basin of the Visayan Basin offshore west Cebu. PGS have calculated that the prospect has a total field deterministic value for recoverable reserves of 265 mmbbl of oil, calculated assuming a recovery factor of 20% and based on an outline of the Group's reserve estimates.

If the structure was gas bearing, a deterministic gas recoverable reserve volume would be 660 BCF. The Jibitnil Island prospect is in the Central Tañon Strait. PGS has verified the volumes, based on the limited data available to them. These potential recoverable reserves are 85 mmbbl in an oil case and 450 BCF in a gas case. The key risks associated with these prospects are the integrity of the mapped trap and the presence and effectiveness of the reservoir.

Other prospects and leads within the SC 40 (Cebu) acreage include West Malapascua, South Guintacan, West Toledo, Agojo and North Bantayan.