Assam Company has ventured into Oil & Gas exploration overseas. The Company is in exploring oil and gas in Australia. The Company is in negotiation with Libya for undertaking Oil & Gas exploration concessions and looking for venture onto Sudan, Myanmar , Kazakistan and some other central Asian countries for its global forays in the oil & exploration business.

Assam Company is also planning to diversify into gas base power generation. The Company is in the process of identifying consultants for drawing up a plan for power generation. The Company said that initial generation capacity would be small to begin with and could be wheeled to grid for trading through some leading power trader.

ACL has been awarded a highly prospective exploration block and a discovered field in the Assam Arakan basin by the Government of India (GOI). Both the exploration block and a discovered field are being operated by the collaborators Canoro Resources Pvt. Ltd., a Canadian company with Oil & Gas business worldwide. Assam Company Oil & Natural Gas Division will commence commercial production of Oil & Gas from the Amguri Field by the end of January 2006.

The exploration activities have been successful and commercially proven reserves have been found in the Amguri block in Assam . The estimated oil reserve in place are 58 million barrel and associated free gas reserve are in the region of 95 billion cubic field.

Assam Company has successfully completed remedial operations and testing of Amguri and AA-ON/7 exploration block. Earlier, commercially proven reserves were found at the Amguri Development Block, the block encompasses an area of 52.75 square kilometers with the estimated oil reserve of 58 million barrel and associated free gas reserve of 95 billion cubic feet in the region. The Assam Company has a 40% working interest in the Amguri Field.