Operations

Following the placing of June 2007, the new investors have initiated a comprehensive exploration programme consisting of aerogravity and aeromagnetic surveys, surface geochemistry and acquisition of 2D seismic data. The results of these three surveys will be used for selecting the optimal drilling targets with the beginning of drilling operations anticipated for the 4th quarter of 2008.

Carson Helicopters of Pennsylvania has completed a 9,200 km of aerogravity and aeromagnetic over the 3 CDS blocks and the results of the data interpretation will be available in March 2008.

ETI (Exploration Technology, Inc.) of Texas has commenced a reconnaissance geochemical programme to be finally completed during April 2008.

The seismic data acquisition programme commenced on the Boqueron block is now more than 90% completed in the vicinity of the Emilia prospect. A 500km programme on other parts of the Boqueron block will follow after which the crew will move to the Gabino Mendoza block.

The Minister of Public Works and Communications and the Vice Minister of Mines and Energy, as well as the Governor of the Province of Boqueron, visited the Emilia site and have expressed a high level of interest in the CDS exploration programme.