In accordance with the approved work program and budget, ZAAB Invest LLC has been progressing on several projects. The main focus of current works is the Marinskiy license area. In early June a Russian service company completed the processing of the newly acquired 2-D seismic on the Marinskiy license area on behalf of ZAAB Invest. The 2-D seismic data is now being interpreted with the assistance of a western service companies. ZAAB Invest is convinced that with today’s technology the reservoir can be successfully exploited as has been demonstrated with geologically similar deposits in several regions of the CIS.

The other main focus area is the Viselkovskiy-Kubanskiy license area. 625 kilometers of 2-D seismic data has been loaded into an interpretation program together with relevant well information. The re-interpretation of the data will result in an improved prospect and leads map focusing on the producing horizons in the region. The information will help to reduce geological risks of the next exploration well.

ZAAB Invest is evaluating new investment opportunities in the Russian Federation on a constant basis. New opportunities include auctions by Government authorities as well as sales by private companies.