PSE Circular for Brokers No. 851-98

April 28, 1998 PSE CIRCULAR FOR BROKERS NO. 851-98 DAILY DRILLING BULLETIN DIMIPAC-1 Well (Northwest Palawan Basin) SOCDET Production Pty Ltd., operator of Geophysical Survey and Exploration Contract (GSEC) No. 77, spudded the Dimipac-1 well last Friday, 24 April 1998. The operator has set the 30-inch casing at a depth of 564 feet and is currently conditioning the 28 inch borehole prior to running and cementing the 20-inch casing. Presently, the deviated exploration well is at a depth of 1,430 feet. The well is located in offshore Northwest Palawan Basin at a water depth of 299 feet (90 meters). Dimipac Prospect is a deviated well and is programmed to be drilled to a total measured depth (MD) of 4,613 feet (1,406 meters) using the semi-submersible rig Atwood Falcon. The primary objective of the Dimipac-1 well is to evaluate the hydrocarbon potential of the Nido Limestone within the Dimipac structure. The secondary objectives are the Batas Sandstones and the Conglomerates within the overlying Pagasa formation. The recoverable reserves for this well are estimated at 54 million barrels of oil. The well is programmed to be drilled in 19 days at an approximate cost of US $ 8.2 Million on a dry hole basis and an additional budget of US $ 4.6 Million for testing. cdlex The Dimipac Well will be the Second Option Well under the GSEC-77 consortium, with the following members and corresponding participating interests: SOCDET Production Pty Ltd. (operator) with 31.57992%; Petroz N. L, 30.00000%; Novus Petroleum Ltd., 23.00000%; Coenco, 8.16850%; PNOC Exploration Corporation, 2.99668%; Dragon (Far East) Limited, 1.38086%; Oriental Petroleum and Minerals Corporation, 1.00000%; Phoenix, 0.75000%; Basic Petroleum Minerals Incorporated, 0.52410%, Palawan Oil and Gas Exploration Incorporated. 0.37500%; and Trans-Asia Oil and Development Corporation, 0.22500%. (SGD.) GRISELDA J. G. BAUSA Director Energy Resource Development Bureau