CEO’s Message Quarterly Update

“The Company made steady progress in the quarter against several objectives, including fortifying our balance sheet and maintaining our lowered capital requirements. At Sarqala, our revenue for the year to date is $10 million and we’re pleased that we have received payment from the KRG to the end of September. The Sarqala-1 well has now produced just under four million barrels of light oil with no indications of formation water and no hydrogen sulphide. In the third quarter, we also received $5.5 million of insurance proceeds and further deferred the draw down dates of our debt facility. The revised dates now better align with the anticipated spud of the Sarqala-2 well in the third quarter of next year.

Discussions with our co-venturers on advancing development of the Kurdamir and Garmian blocks continue to progress, with our aim being to advance investment in the region in line with sustained regular payments for production. We are excited to demonstrate the high quality, long-life and strong economics of our projects on both blocks but intend to take full advantage of our increased financial flexibility to hold the pace of spending in line with market conditions.”