On January 19, 2012, the Department of Energy (“DOE”) of the Philippines granted Polyard Petroleum International Co. Ltd (“PPIC”) the approval to revise its original workover plan to include a new well drilling plan for its Service Contract 70 (“SC 70”).

DOE accepted PPIC’s report in late 2011 which specified that according to Schlumberger’s recent study, the original workover plan on the flank of the Victoria structure would not be the preferred production point for hydrocarbons trapped in the area. In view of the geological and stratigraphic conditions in SC 70, drilling a new well at the crest of the structure would have a higher probability of success. DOE also approved the extension of the Exploration Sub-Phase 1 to give PPIC ample time to prepare for the drilling of the new well.

PPIC is expected to drill at least 3 exploration wells and acquire, process and interpret 200 line kilometers of 2D seismic data in the next three years for further hydrocarbon reservoir identification and development in SC70.