Asset - Satu Mare Concession

• 1,138 sq.mile concession bordering on Hungary
• Farm-in agreement:
• Signed April 2008, est. max. commitment $12.5 million to earn 60% in entire concession
• Winstar operates
• Commitment to fulfill 100% of first stage of minimum exploration program by February 2012

Phase 1 Work Commitment

• Re-processed approx. 1,075 km of existing 2-D seismic (completed)
• Acquire 80 sq. km of new 3-D seismic by 2012
• Drill one exploration well

Fiscal and Economic Regime

• Royalty: 3.5 to 13.5%
• Income tax: 16%

Focus

• Quick impact prospects
• Potential to twin wells that have tested hydrocarbons
• High impact exploration
• Seismic acquisition
• One exploration well by 2011