Polyard Petroleum International Group Limited (“Polyard Petroleum” or the “Company”, together with its subsidiaries, “the Group”, stock code: 8011), through its subsidiary China Sino Oil Co., Ltd. (“China Sino Oil”), is nearing completion of civil works and rig-up preparation for the drilling operations on its first exploratory well in Brunei Darussalam. The Mawar-1 will be an exploratory well in Block M onshore Brunei. Mawar-1 has as its primary objective the delineation and appraisal of oil reservoirs adjacent to known discoveries in the Belait Anticline.

On 7 July 2010, a blessing ceremony took place for the drilling in the search for hydrocarbons in the nearby town of Labi. Present at the drilling ceremony were Mr Lai Chun Liang, Chief Executive Officer and Mr Alfred W. Stawicki, Chief Operating Officer of Polyard Petroleum and China Sino Oil. China Sino Oil currently holds a 21% interest in the venture. Other interests are held by Tap Energy Borneo Pty Ltd. – 39%; Kulczyk Oil Ventures Inc. – 36% and Jana Corporation Sendirian Berhad – 4%. Tap Energy Borneo Pty Ltd. is currently the operator for the Joint Venture.

Block M is being explored under a Production Sharing Agreement signed with Brunei National Petroleum Company Sendirian Berhad, the national oil company of Brunei, in August 2006. Block M covers an area of approximately 3,011 sq km in the Baram Delta Basin and is the largest onshore permit in Brunei. The Block contains the Belait Anticlinal Trend along which hydrocarbon seeps occur and oil and gas were produced as a result of previous drilling by the previous operator. The last commercial production on the Anticline was abandoned in 1931.

The Mawar-1 exploratory well is expected to commence actual drilling operations around August and is programmed to reach a total vertical depth of 1300 m within 28 days. If successful, the well will be tested at a later date and will be utilized as a production well.　The Joint Venture currently plans to drill a second exploratory　/　appraisal well in August, 2010.

The drilling of the first well in Block M marks a milestone in the Company’s business development. China Sino Oil and its partners have done a lot of preliminary exploration work on this project. We are optimistic that the drilling of Mawar-1 will ultimately result in the booking of oil reserves and near-term production. ” said Mr Kuai Wei, Chairman of Polyard Petroleum and China Sino Oil.

This is only one of the Group’s initiatives in the energy industry. In addition to this oil project, the Group also holds significant interest in a coal mine and a gas project in the Philippines. Apart from its existing projects, the Group is reviewing opportunities in other oil and gas projects around the world, especially in Southeast Asia” added Mr Kuai.

Updated：2010-07-12