February / March '08 Issue

Investment Proposed and approved for FY 2008-09

      Work Programme

• Drilling of  2  Appraisal Wells
• Drilling of 8 Development Wells
• Workover Operation of 2 Wells.
• Setup of Facilities and Pipelines to facilitate acceptance of increased quantity of quality crude oil.
• Geological and geophysical studies for the development of the field and correlation of the Geological model.

  Budgeted Capital Expenditure
                                                               USD in Million

                                                          Total               ACL Share

•     Exploration Cost

            Geological & Geophysical
            Expenses                                   0.25                    0.10

•      Development Cost

              Drilling of Wells                          63.03                  25.21

•     Facilities Cost

            Setup of facilities, Pipeline and
             Development of other common
             Facilities.                                    1.26                    0.50

•      Service Cost

             Support Services required for
             Operations                                  0.13                    0.04

• General & Administrative

         Expenses                                       2.42                      0.97

Total Capital Expenditure  :-                        67.09                         26.84

AAON/07 Block

Investment Proposed and approved for FY 2008-09

Budgeted Capital Expenditure

                                                               USD in Million

                                                         Total               ACL Share

•     Exploration Cost

            Geological & Geophysical
            Expenses                                 0.096                0.034

            2 D Seismic API                        1.218                 0.426

            Drilling Cost of
            3 Exploratory Wells                   13.807                4.832

            General & Administrative
            Costs                                      2.168                 0.759

            Service facility  Cost                  0.059                 0.020

Trading Approval for Listing in BSE and NSE

The Company has received on 1st April 2008 trading approval from NSE and BSE for 81,000000 Equity Shares (on conversion of share warrants).Subsequently, the Company has also received on 8th April 2008 trading approval from NSE and BSE for 51,45,703 Equity Shares (on conversion of FCCB).

The Directors of India Based Petroleum explorer and its J V Parter Adelaide-based petroleum explorer, Austin Exploration Limited (ASX: “AKK”) are pleased to announce that the first three gas wells drilled to target at the flagship Park City gas project in Kentucky , USA have produced commercial quality results.

This third well is delivering gas under natural pressure and will now be scheduled for acid stimulation treatment and delivery pipeline connection. The well has undergone a pre-acidized flow test and produced an Absolute Open Flow of 320 thousand cubic feet per day (Mcf/day) and is anticipated to produce 960 thousand cubic feet per day (Mcf/day) after standard acid treatment just prior to pipeline connection.

Austin’s Park City drill schedule envisages that up to 44 producing wells will be completed by the end of calendar 2008 with the opportunity to drill more than 200 wells in total on the field by the end of 2011.

Park City , Kentucky Project Highlights to date include :

After logging results on the Amguri 13 appraisal well, ACL is going to sidetrack the well.Amguri 13 is expected to expand the main Barail reservoir towards the eastern block boundary. A successful sidetrack should significantly increase the field’s reserves and production potential, while setting up additional drilling locations.

The initial well drilled directionally in a southerly direction, came in 10m lower than anticipated from seismic interpretation. Despite this, the well encountered a 3 meter zone immediately above the main sand showing hydrocarbon potential based on mud and log data. With these results, an open hole test was attempted, however open hole testing is difficult to achieve successfully and the company was unable to complete a successful test. A northerly sidetrack, beginning at approximately 1460m, is believed will achieve the original well objectives and demonstrate a geographical extension to the productive reservoir.