PT. Bumi Resources Tbk.

Through Gallo Oil (Jersey) Ltd. (“Gallo Oil”), the Company operates two oil and gas exploration concessions in the Republic of Yemen, Block R-2 (East Al Maber) and Block 13 (Al Armah). Gallo Oil acquired 50% of operating shares at Block R-2 and 100% at Block 13.

The East Al Maber concession (Block R-2) covers an area of 2,139 km2, located in the Mukalla High territories, West of Sir Sayun Cove, Masila. In this territory, Gallo Oil drilled six exploration wells, four of which showed hydrocarbon potential, which was promising. The other well-drilling explorations will be done in 2010.
 

Meanwhile, the Al Armah (Block 13) concession covers a 7,417 km2 area, located East of Hadramaut, Yeman. The first well ever drilled in this block was Al Rizq 1. The drilling indicated high gas with high pressure and temperature. Therefore, pressure-proof and temperature-proof testing equipment was required. During the making of this equipment, Gallo Oil commenced drilling on the second well in another drilling location, Al Barakat, in the second semester of 2009, but no oil/gas was discovered.

In the evaluation of the gas discoveries in the first well, Gallo Oil conducted a sidetrack drilling on the first well, with a target of one kilometer (km) from the first well. This was performed in order to find out the distribution of the gas zone, to determine its commercial value. The drilling began in November 2009 and today, Gallo Oil is conducting a test preparation in the skewed well, which is expected to be finalized by March 2010.