PRESS RELEASE

Malabo – June 25th, 2007

BLOCK I DISCOVERY

MALABO, June 25th, 2007.  The Ministry of Mines, Industry and Energy are pleased to announce that a new discovery has been made on Block I, offshore Bioko. The I-1 well, located in 886 metres of water, 40 kilometres east of Bioko Island encountered a high quality Miocene reservoir containing 41.5 metres of net hydrocarbon pay. Production tests of the well yielded flow rates of 34.3 million cubic feet per day of natural gas and 1038 barrels of condensate with production rates limited by test facilities.

The Block I partners consist of Noble Energy (Technical Operator), Atlas Petroleum International Limited (Administrative Operator) and PA Resources.

Additional appraisal work will be necessary to verify the areal extent of the I-1 discovery. Any appraisal work will follow the drilling of an additional exploration well in Block I in the third quarter of 2007.

The I-1 discovery is the second success in the Equatorial Guinea part of the Douala Basin, following the O-1 discovery, located 21 kilometres north of I-1, which was announced in late 2005. The O-1 discovery is scheduled to be appraised by the O-3 well, which will be drilled immediately following the completion of the I-1 well.

The Minister of Mines, Industry and Energy, H.E Atanasio Ela Ntugu Nsa, stated: ‘The Government of Equatorial Guinea is delighted that another discovery has been made in the Equatorial Guinea part of the Douala Basin. The Government believes that this new discovery further confirms the significant hydrocarbon potential of the Douala Basin and highlights the positive investment climate which currently exists within the Republic of Equatorial Guinea. We therefore encourage other potential investors to contract us immediately regarding currently available acreage in the surrounding area’.