E N V O I

(Energy Venture Opportunities International)

Project Synopsis P125

United Kingdom
“Asset Package”

11 License Interests
ONSHORE: Appraisal / Development & Exploration Upside
with ‘Option’ over existing Gas-Power Projects

OFFSHORE: ORRI in Offshore Southern N Sea Gas Basin

Development

Warwick Energy Limited

December 2006
P125 – Warwick Energy ‘Asset Package’ ENVOI

Opportunity to acquire an integrated In 2005 Warwick acquired Archean’s interests in

the exploration assets resulting in Warwick taking
UK upstream Asset Package through
control of the majority interest and operatorship of
corporate sale. (Including: appraisal/ the assets. Their onshore database now is also
development & exploration Onshore + OPTION very good as a result.
on existing production-gas/power projects) +
Offshore, a royalty interest in a gas
development in the Southern N. Sea

Warwick Energy Ltd.

1. EXECUTIVE SUMMARY
Introduction: Warwick Energy Limited is a private
UK company offering its upstream oil and gas
assets for sale through the acquisition of four wholly
owned subsidiary companies. These companies
own between 20% and 100% of the working
interests in 10 License interests onshore (most of
which it also operates) and a royalty interest
offshore UK. The assets include four onshore field
appraisal projects, three main exploration prospects
and an offshore ORRI (Over-Riding Royalty
Interest) in an offshore Southern North Sea block.
This contains a gas field with anticipated
development in 2007/08. Warwick is also offering an
option to acquire its two onshore producing gas to
power projects including another that is currently
shut in (Ref: Table 1 and montages attached for a
summary and location of the assets involved). Asset Resource Potential: Recent review of
Warwick’s upstream assets has been carried out by
Warwick’s decision to sell is the result of a various independent groups that estimate a total
corporate strategy to refocus on renewables resource potential of both the development and
including offshore windfarms (two in process) and exploration potential summarized in Table 1
one onshore gas storage project which now make attached (excluding the ‘optioned’ gas to power
up over 85% of its assets. assets) as follows:
Warwick is inviting interested parties to the data
room in January with indicative offers no later than NET Warwick Resource Potential Estimates
the middle of February 2007 with a view to
negotiations and deal completion by the end of the Appraisal/Developmen GAS (Bcf) OIL (MMbbl)
1st Quarter 2007. t
Potential
History & Data: Many of Warwicks assets were Proven + Probable 13.68 0.64
originally held by Independent Energy, an Possible 14.11 0.60
independent UK company formed in the mid 1990’s SUB TOTALS 27.97 1.24
specifically to produce power from onshore UK gas Exploration Potential GAS (Bcf) OIL (MMbbl)
fields following the deregulation of the UK’s power
industry and to sell direct to end-users. Warwick P50 1.40 24.39
subsequently acquired Independent’s successful
upstream assets following the receivership of TOTAL Net Possible 29.37 Bcf 25.63 MMbbl
Independent Energy in 2000 caused by cash flow
problems in its supply business. The exploration Work Programme & Obligations: Only four Licenses
interests, which had been the subject of a farm out including PEDL 121 (Bolney gas discovery) and
programme to Archean Energy were acquired jointly PEDL 143 (Holmwood Prospect) in the Weald
with Archean. Basin, PEDL 119 (Dibden Prospect) in the Dorset
Basin and PEDL 120 (Wykham Discovery) in the
Prior to the receivership the Archean farm out Cleveland Basin have outstanding obligations
programme had resulted in two dry wells and two requiring ‘drill of drop’ decisions, three by the end of
tested discoveries. 2007 and in the case of PEDL 143 the end of 2009.

2
P125 – Warwick Energy ‘Asset Package’ ENVOI

The latter is the only non-operated working interest Additional Information: Interested parties will be
in their asset portfolio onshore. All other obligations invited to attend a short presentation and data room
have otherwise been fulfilled. review at Warwick’s offices near Wellesbourne,
Warwickshire in the UK (a short train ride NW of
Warwick expect a successful buyer would wish to London) after execution of a confidentiality
progress the evaluation and appraisal / agreement. All expressions of interest and requests
development of the Cowden and Lingfield fields and for a data room review, including an initial copy of
also the potential upside of working over and/or the CA, should be made through Envoi:
appraising the gas to power assets if included in the
Contact: Mike Lakin
deal. The planning consent at Lingfield allows for
the drilling of an appraisal well and a second well Envoi Limited
cellar has already been constructed for this 11 Cowper Road, Hanwell,
purpose. An application has been submitted to London W7 1EL,
extend the current planning consent for the Cowden United Kingdom
site, again to permit appraisal drilling and testing.
Tel : +44 (0)20 8566 1310
Infrastructure & Markets: The license interests are Fax : +44 (0)20 8566 1312
almost all located with in areas of the Weald, E : mail@envoi.co.uk
Dorset, Midlands, Cleveland, Onshore East Irish W : www.envoi.co.uk
Sea and offshore Southern North Sea basin’s where
access to markets for production of either oil and AN ACROBAT VERSION OF THIS SYNOPSIS
gas, or power infrastructure are accessible. IS AVAILABLE FOR REVIEW ON THE
The Offer: The Group would like to find a buyer for ‘ACTIVE PROJECTS’ PAGE OF ENVOI’s WEB
of its upstream assets onshore and offshore UK SITE:
through the sale of its wholly owed subsidiary
companies which own the interests. Warwick ‘s
preference is for a straight cash deal although a part www.envoi.co.uk
cash / tradable stock offer may be considered
depending on the company, its value and listing. Disclaimer: The information in this memorandum is for guidance only. Neither Envoi Limited (Envoi) or Warwick Energy Ltd (Warwick) nor
any director, officer or employee of Envoi or Warwick accepts responsibility for or makes any representation or warranty, express or implied,
Warwick is also willing to include the ‘option’ to with respect to the accuracy or completeness of the information, estimates and opinions contained in this document. This document does not
constitute an offer, and neither this document nor the information, estimates and opinions contained in it shall form the basis of any contract.

acquire their producing gas to power assets Companies wishing to acquire an interest in the project will be expected to make their own review of all documents and form their own
judgements entirely. ENVOI December 2006 C:\ENVOI\P126Warwick(UK)Syn(Final 12-12-06).doc

onshore as part of the deal depending upon the

offer.

3
P125 – Warwick Energy ‘Asset Package’
2. THE ASSETS
Southern Onshore UK Assets
(Weald and Dorset Basins)
2.1.1. PL 055 (Weald Basin)
Lingfield Gas & Oil Discovery:
Overview: Lingfield is a small gas and oil discovery
located in NW Kent. The discovery well, Lingfield-1,
was drilled in 1999 by Archaen Energy, near the
crest of an E-W oriented inversion structure,
mapped on five 2D seismic dip lines. The mapped
closure sits on the uplifted, southern footwall of an
E-W fault, with fault-dependant vertical relief of over
200 ft and potential closure extending over 1,346
acres. The well proved hydrocarbons in two
separate reservoirs in the Upper Jurassic - gas in
the Portland Sandstone, and oil in the deeper
Corallian Limestone - but in both cases the
accumulations are confined to the upper 100 ft or so
of the structural closure.
Warwick Energy holds a 96% working interest in PL
055, which contains the Lingfield discovery. The
license includes a 4% carried working interest
owned by Altwood from whom the asset originated
prior to acquisition by Independent Energy and
subsequently, by Warwick.
The Portland Sandstone Reservoir occurs at 2,108
ft MD (-1943 ft subsea) in the Lingfield #1 well, and
comprises 50 ft of glauconitic marine sands lying
immediately below sealing shales and anhydrites of
the Purbeck. The uppermost 20 ft of the sand was
drill stem tested, and flowed 110 mcf/d of water-free
gas; average porosity in the pay zone is 19% with
calculated permeability of 1.4 mD. A flow rate of
over 400 mcf/d may be possible following formation
damage treatment and stimulation.
Petrophysical analysis of this reservoir is
complicated by the presence of conductive
glauconite which makes the entire interval appear
wet on logs. It is therefore possible that gas may
actually be present below the top 20ft DST interval
and up to an additional 30 ft to the base of the sand
at -1,992 ft, such that the accumulation extends
further downdip on the structure.
The Corallian Limestone Reservoir was penetrated
at -4,329 ft subsea in the well, and comprises 197 ft
of limestones with over 70 ft of well developed
porosity (8 – 16%) towards the top. This underlies a
tight limestone cap and a thick argillaceous unit
which act as topseal. About 19 ft of oil pay is
apparent on logs, overlying a well-defined oil-water
contact at -4,372 ft. The top 10 ft of the zone was
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tested through casing, and recovered a total of 10
bbl oil plus 241 bbl of ‘fluids’.
Hydrocarbon Volumes and potential reserves at
Lingfield are currently classified as Contingent
Resources, representing known accumulations for
which a development plan is pending.
Lingfield - Contingent Resources (Net)
Reservoir Low Best High
Estimate Estimate Estimate
(P90) (P50) (P10)
Portland sst 1.4 Bcf 2.6 Bcf ~5.5 Bcf
Corallian lst 0.21 0.57 MM ~1.1 MM
MM bbl bbl bbl
For the Portland gas reservoir, the Low Estimate
(‘Proved’) case is based on a conservative OGIP of
1.7 Bcf calculated from 20 ft of pay, as seen in the
well, extending updip across the mapped closure of
the structure. The Best Estimate (P50) resource
case assumes gas pay thickens updip where the
entire Portland reservoir is brought above an
inferred gas-water contact at the base of the zone
that was DST’d. However, it remains possible that
the well did not penetrate a water zone as implied
by the logs possibly due a ‘glauconite effect’, where
gas could in fact extend downdip on the structure,
giving a High Estimate (P10) in excess of 6.5 Bcf
OGIP. In all the estimates a 85% recovery factor is
assumed.
For the Corallian oil reservoir, an oil-water contact
is clearly seen in the well. The Low Estimate
(‘Proved’) case assumes 19 ft of oil pay, as seen in
the well, extending across the mapped closure of
the structure above this OWC at –800ms.
However, up to 70 ft of potential reservoir is seen in
the well, and the Best Estimate (P50) case
assumes that this section is oil bearing updip on the
structure, giving an OOIP of about 5.9 MM bbl. In
both cases a conservative recovery factor of 10% is
assumed; a higher recovery (15 to 20% is regarded
as possible) results in a significant larger High
Estimate (P10) case.
The Development Plan under consideration is a
joint development of the Portland gas in Lingfield
and Cowden Fields (the latter is discussed in the
next section), giving access to around 6 Bcf of
Proved and Probable reserves. Two vertical wells
drilled updip from the Lingfield-1 and Cowden-1
locations respectively, are expected to produce
around 1.2 MMscf/d. These would be used to fuel
a small 4 MW power plant, located nearby, with
electrical power exported to the National Grid.
Development of the Corallian oil at Lingfield would
be via a single horizontal well.
P125 – Warwick Energy ‘Asset Package’
2.1.2. EXL 189 (Weald Basin)
Cowden Gas Discovery:
Overview: Cowden is a small gas field located only
5 miles SE of the Lingfield discovery in NW Kent,
with gas discovered in the same Portland
Sandstone reservoir. The prospect was originally
drilled in 1971 by Ball and Collins Ltd, who located
the Cowden-1 well near the crest of a 1,700 acre,
four-way dip closure at Portland level. At the time,
and well before deregulation, their main objective
was the deeper Greater Oolite. This proved to have
no closure and as a result the well was abandoned.
Gas shows were, however, also seen in Upper
Jurassic sands.
The Cowden-2 well was directionally drilled in 1999
by Archaen Energy, from a surface location about
0.6 miles SW of the #1 well, and penetrated the
Portland target only 18 ft downdip. The deeper
Corallian limestone proved to be wet, but the well
tested gas in the Portland sandstone.
Warwick Energy holds a 96% working interest in
EXL 189, which includes the Cowden discovery.
The license also includes a 4% carried working
interest owned by Altwood from whom the asset
originated prior to acquisition by Independent
Energy and subsequently, by Warwick
The Portland Sandstone Reservoir occurs at 1,450
ft MD (-956 ft subsea) in the Cowden-2 well, and
comprises 54 ft (TVT) of glauconitic marine sands
and siltstones lying immediately below sealing
anhydrites of the Purbeck. A 5 ft zone at the top of
the sand was tested through casing, at rates of 180
mcf/d, with no water produced. The sands have
porosities of 16-24% and appear to have significant
gas saturations throughout, although log
interpretation is complicated by the presence of
abundant conductive glauconite; a possible gas-
water contact may occur at –974 ft subsea, where
apparent Sw goes over 60%, although again it is
entirely possible that gas is present to the base of
the sand at –1,008 ft subsea.
Hydrocarbon Volumes and potential reserves at
Cowden are currently classified as Contingent
Resources, representing known accumulations for
which a development plan is pending.
Cowden - Contingent Resources (Net)
Reservoir Low Best High
Estimate Estimat Estimat
(P90) e e
(P50) ( P10)
Portland sst 3.3 Bcf 3.3 Bcf ~7.1 Bcf
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The Low Estimate (‘Proved’) and Best Estimate
(P50) cases are both based on 4 Bcf OGIP
calculated above the assumed gas-water contact
seen at –974 ft in the Cowden-2 well, with 35 ft of
net pay developed at Cowden-1 thickening further
on the crest of the structure. The High Estimate
(P10) case considers that gas may be present
below –974 ft subsea, and could extend downdip
on the structure, with total OGIP as high as 8 to 9
Bcf
2.1.3. PEDL 121 (Weald Basin)
Bolney Gas Discovery:
Overview: The Bolney gas discovery is located
near Crawley in Surrey. It was discovered by Esso
in 1963 which unsuccessfully targeted deeper
Devonian and Carboniferous intervals on a large
anticlinal prospect, but instead tested gas from the
shallow Lower Cretaceous section. While
reasonable flow rates were obtained, this shallow
gas accumulation is very low pressure and was
considered uneconomic at the time. No other deep
wells have been drilled on the structure, although a
BGS borehole on the NE flank of the mapped
accumulation has gas shows in the Lower
Cretaceous sands.
Warwick Energy holds a 100% interest in PEDL
121 covering the northern flank of the discovery
area. The southern flank (including the discovery
well location) is currently open.
The Ashdown Sandstone reservoir occurs at 450 ft
[MD] in the well, and is clean, quartzite sand unit 36
ft thick with good reservoir properties of 20%
porosity and core permeabilities around 400 mD.
Water saturation is calculated to be around 25%,
with no sign of a water leg. A DST of the upper 10
ft of the sand flowed at 500 mcf/d.
Hydrocarbon Volumes and potential reserves at
Bolney are currently classified as Contingent
Resources, representing known accumulations for
which a development plan is pending.
Bolney - Contingent Resources (Net – assuming
50% of mapped closure on PEDL 121)
Reservoir Low Best High
Estimate Estimat Estimat
(P90) e e
(P50) (P10)
Ashdown sst 1.2 Bcf 1.7 Bcf ~2.7 Bcf
P125 – Warwick Energy ‘Asset Package’
The Bolney structure is a relatively simple, dip
closed E-W oriented anticline located between two
major E-W trending faults. Closure is mapped down
to about 280ms at the Purbeck Anhydrite level, and
close to the reservoir sand. The structure extends
over 6 miles E-W with potential closure of around 5
square miles (3,200 acres), but the Low Estimate
(‘Proved’) case recognises only 640 acres (i.e. a
North American ‘gas spacing unit’) with an average
net gas pay of 23 ft, giving an OGIP of 3.0 Bcf. The
proposed field development concept requires only
low operating wellhead pressures, allowing a
recovery factor of 83% and gross ‘Proved’
undeveloped reserves of 2.4 Bcf.
The Best Estimate (P50) case extends the assumed
closure to about 900 acres, lying within
approximately 5,000 ft of the discovery well. This
gives an OGIP of about 4 Bcf, while the High
Estimate (P10) takes potential gas pay out across
the whole mapped closure of 3,200 acres (with
reduced average net pay) and an estimated OGIP
as high as 7 Bcf.
The Development Plan for Bolney is for a small,
onsite gas power generation unit selling electrical
power to the Grid. This allows for very low operating
wellhead pressures. Several wells could be required
to develop the shallow, low pressure gas but
individual wells costs would be modest.
2.1.4. PEDL 143 (Weald Basin)
Holmwood Prospect:
Warwick holds a 20% non-operated interest in
PEDL 143, covering an area south of Dorking in
Surrey, and operated by Europa Oil & Gas Limited.
The license includes a significant exploration
prospect, Holmwood, which is widely recognised as
one of the most prospective undrilled structures in
the Weald Basin.
The Holmwood Structure is a low relief roll-over
feature within the Jurassic section, mapped on 2D
seismic in the southern hangingwall of a major E-W
extensional fault. A single, dip closed feature
covering ca 2,500 acres is mapped at the deeper,
Corallian level. At the shallower Portland horizon it
consists of two smaller, partly fault controlled
closures. Vertical closure is quite small at around
165 ft.
The primary Reservoir target is the Portland
Sandstone, which produces oil in the offsetting
Brockham-1 well immediately to the north. The
overall unit is about 400 ft thick below 2,600 ft and
is expected to contain up to 50 ft of reservoir quality
sand. The deeper Corallian Sandstone, at about
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4,300 ft depth, is regarded as a secondary
objective and may not have been tested by the first
exploration well.
The Source of oil accumulations in the area is
understood to be the Oxford Clay sequence, which
underlies the Corallian. This is only marginally
mature at Brockham but becomes increasingly
mature to the south. Oil migration occurs up section
and northwards via Corallian Sandstone carrier
beds and along some of the basin-bounding faults.
Potential Hydrocarbon Volumes have been
calculated on a Best Estimate basis, assuming 34 ft
of net pay in the Portland with 18% porosity and an
oil saturation of 60%. Corallian reservoir sands are
assumed to be tighter (15% porosity), but in both
cases a 25% recovery factor is assumed.
Holmwood - Prospective Resources (Net)
Reservoir Low Best High
Estimate Estimate Estimate
Portland sst 4.0 MM
bbl
Corallian sst 2.3 MM
bbl
The Exploration Plan for the license is focussed on
drilling a well in 2007, to test the prospect on the
southern Portland Sandstone culmination. A site
has been located, and an Environmental Impact
Assessment is being undertaken prior to submitting
a planning application to the local authority. . The
gross well cost for the 780 m (2,560 ft) TVD,
deviated exploration well is currently estimated to
be £1.5 million.
2.1.5. PEDL 119 (Hampshire / Dorset
Basin)
Dibden Prospect
Warwick holds a 100% interest in the 10th Round
license block PEDL 119 situated in the south
Hampshire / Dorset Basin west of Southampton
Water and extending into the New Forest.
Numerous seismic lines are available in the area,
and a low relief tilted fault block structural lead has
been mapped near the village of Dibden, NW of
some of the chemical plants and refineries in the
area.
Exploration in the area was quite active in the
1980’s, inspired by the billion barrel Wytch Farm
field which lies ca 30 km to the SW. Shows were
P125 – Warwick Energy ‘Asset Package’
encountered in the Jurassic in many wells, although
no major discoveries were achived, probably due to
the drilling of late, post migration structures and the
effects of fault breaching.
The Dibden lead is thought to have potential in both
the Jurassic (Greater Oolite and Bridport
Sandstone) and Triassic (Sherwood Sandstone). Oil
could be sourced from the Jurassic Kimmeridge
and/or Liassic shales, which are mature in both the
Wessex Basin to the SW and the Weald Basin to
the NE. Preliminary evaluations suggest a potential
reserves volume of around 10 MM bbl recoverable.
The Exploration Plan for the license is to evaluate
seismic and geological data to confirm the prospect
prior to consideration of a well.
Northern Onshore UK Assets
(E. Irish Sea & Cleveland Basin)
2.1.6. EXL 269 (East Irish Sea / 2.1.7. PEDL 120 (Cleveland Basin -
Lancashire Basin) North Yorkshire)
Kirkham Prospect
Warwick holds a 96% working interest in EXL 269, a
large exploration license in the Lancashire Basin,
east of Blackpool. Altwood holds a 4% carried
working interest in the licence. A number of
structural leads are mapped on the relatively
abundant 2D seismic in the area, but one feature,
mapped near the town of Kirkham, stands out in
terms of its robust definition and potential size.
The Kirkham Structure is relatively simple, high
relief, south dipping tilted fault block, formed along
the antithetic to a major SW-NE trending normal
fault affecting the Permo-Triassic section. Closure is
entirely fault dependant, but extends over 1660
acres at Triassic (Sherwood) level down to
structural spill point, representing around 900 ft
vertical relief. Closure is larger at deeper levels in
the Permian, up to 2684 acres.
The principal Reservoir target is the Triassic
Sherwood Sandstone, which is regionally developed
with thick sand units of aeolian and fluvial origins
showing high net-to-gross, porosities up to 20% and
permeabilities in the range 13 to 1000 mD. These
sands, sealed by the overlying Mercia Mudstone,
form excellent reservoirs in the East Irish Sea Basin
in fields such as Lennox, 30 km to the SW.
Secondary reservoir targets in the deeper Permian
section include the Collyhurst Sandstone.
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Potential Hydrocarbon Volumes have been
calculated on a Best Estimate basis.
Kirkham - Prospective Resources (Net)
Reservoir Low Best High
Estimat Estimat Estimat
e e e
Sherwood sst 10.4
MM bbl
Collyhurst sst 7.7 Bcf
The Exploration Plan for the license is well
advanced, with planning permission and a site
lease already in-place for a vertical well to evaluate
the Sherwood Sandstone. The gross well cost for a
900 m (3,000 ft) exploration well is currently
estimated to be £1.0 million.
Wykeham Gas Field
Warwick was awarded a 100% interest in PEDL
120 as part of the 10th Onshore Round. This large
license extends E-W along the trend of the
Pickering Fault, with associated gas fields in
Permian carbonate reservoirs such as Pickering
and Lockton immediately offsetting the acreage.
Wykeham is a small gas discovery adjacent to the
license, which current mapping shows extending
onto PEDL 120. The Wykeham-1 discovery well
was drilled following the Lockton discovery in 1966,
but was never put on production.
The Wykeham Structure is a tilted fault block
immediately south of, and analogous to, the
Lockton field. Closure is mapped over 330 acres on
the upthrown, southern footwall of an E-W normal
fault, with vertical relief down to spill point of about
144 ft (44m). The Permian Reservoir is present at
around 5000ft (1,530m) subsea; gas is present in
the Kirkham Abbey Formation (KAF) carbonates,
with up to 35 m of net pay, porosity in the range 9%
to 18% and moderate to good permeability. This
gas may be in communication with Lockton, where
around 11 Bcf were produced prior to its
abandonment.
Hydrocarbon Volumes have been estimated based
on recent re-mapping of the Wykeham structure,
which shows around 50% of the GRV lying on
PEDL 120. They are classified as Contingent
Resources
P125 – Warwick Energy ‘Asset Package’
Wykeham- Contingent Resources
(Net – assuming 50% on PEDL 120)
Reservoir Low Best High
Estimate Estimat Estimat
(P90) e e
(P50) ( P10)
KAF carbonate 1.8 Bcf 3.4 Bcf 5.6 Bcf
The Appraisal Plan for this discovery will have to be
co-ordinated closely with Viking Gas UK, operator of
the offsetting license, but following completion of the
re-mapping of the feature an appraisal well on the
western end of the structure, on PEDL 120, will be
proposed.
PEDL 120 - Exploration Prospects
A number of structural leads have been identified
along the line of the Pickering and Helmsley Faults,
and formed the basis of the original license award.
These target Permian carbonate reservoirs as well
as deeper Namurian sandstones, in tilted fault block
closures on the northern, uplifted footwalls of these
E-W normal faults, and on strike with the Permian
gas field at Pickering.
Remapping of these leads based on all available
seismic data is currently underway, and it is
expected that at least one drillable prospect will be
defined.
Offshore UK Southern North Sea
(Southern Gas Basin)
2.1.8. Block 48/21a
Dudgeon Gas Field
Dudgeon is a small, undeveloped Permian gas
discovery situated on the western edge of the
Leman Sandstone fairway of the Southern Gas
Basin, about 22 miles off the coast of Norfolk in
Block 48/21. The discovery well, 48/21-1, was
drilled in 1967 by Placid and flowed gas at high
rates from good quality Leman sands at the crest of
a low relief anticline. There have been two
subsequent appraisal wells drilled, one each to the
west and east of the structure. Both these
encountered the reservoir below the gas-water
contact, resulting in the field remained undeveloped
until now.
The block has recently been acquired by Bridge
Resources Corporation which has applied to DTI for
operatorship and anticipate appraisal drilling in
2007. Warwick retains an 8% ORRI (over riding
royalty) interest in 48/21a and therefore any future
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revenues from Dudgeon if and when developed are
without any additional financial obligation.
The Leman Sandstone is up to 500 ft thick in the
area, of which the upper 200 to 300 ft are
developed mainly in aeolian dune facies. The
reservoir was encountered at 7,452 ft MD in the
48/21-1 discovery well, and has excellent porosity
in the order of 20% with high permeabilities. The
upper 62 ft is gas bearing above a well-defined
gas-water contact at –2,265 m subsea (7,514 ft
MD), which tested 20.7 MM scf/d with around 30
bbl/MMscf of condensate. A transition zone is
apparent on logs.
Hydrocarbon Volumes and potential reserves at
Dudgeon are currently classified as Contingent
Resources, representing known accumulations for
which a development plan is pending.
Dudgeon - Contingent Resources (Net)
Reservoir Low Best High
Estimate Estimat Estimat
(P90) e e
(P50) (P10)
Leman sst (gas) 2.8 Bcf 3.6 Bcf 5.1 Bcf
Leman sst (cond.) 0.05 0.07 0.11
MM MM bbl MM bbl
bbl
The estimates represent a fairly simple structural
model with a thick reservoir sand developed across
a small, low relief anticline, but also taking into
account the relatively broad transition zone
apparent on logs. Uncertainties in irreducible water
saturation (20% to 40%) and recovery factor (60%
to 80%) in particular have been accounted for using
probabilistic methods, and yield a gross P50 OGIP
of 51 Bcf and Contingent Resources of 36 Bcf.
The Development for Dudgeon is currently being
developed by the operator, but is likely to involve
the drilling of two single horizontal production wells
with some kind of subsea tie-back. Warwick’s costs
are entirely carried through any development to the
point of first commercial gas production.
P125 – Warwick Energy ‘Asset Package’ ENVOI
Table 1

Summary of Warwick Upstream Assets Available & Holding Subsidiaries

The Assets:

License Name Province Warwick Status/Opportu Obligations Obligatio

Interest nity n Value
Est. £
EXL 189 & Cowden & S. England 96% + Op Suspended oil and Fulfilled
PL 055 Lingfield (Weald) gas discovery wells. (Suspended
Fields Probable gas to Wells)
power schemes.
PEDL 121 Bolney Field S. England 100% + Op Undeveloped X 1 well or drop Est £ 1.0
(Weald) discovery – probable end 2007 million
gas to power scheme
PEDL 143 Holmwood S. England 20% + Europa Oil exploration X 1 well or drop Est £ 0.4
Prospect (Weald) prospect – to be end 2009 million
drilled in 2007
PEDL 119 Dibden S. England ( 100% + Op X 1 well or drop Est £ 2.0
Prospect Wessex) end 2007 million

License Name Province Interest Status/Opportu Obligations

nity
EXL 269 Kirkham (Lancashire) 96% + Op Oil exploration None (Same
Prospect East Irish prospect - planning License as
Sea consent and site Elswick)
lease in place
PEDL 120 Wykeham Cleveland 100% + Op Undeveloped X 1 well or drop Est £ 2.0
Discovery Basin discovery +
exploration prospect:
million
export via Viking
infra-structure
Offshore Interests
Blk Dudgeon Southern 8% ORRI Well planned for None
2007
48/21b Field North Sea

Producing Interests (Possibly Available as part opportunity depending on deal & associate offer)

License Name Province Interest Status/Opportunity Obligations

EXL 269 Elswick (Lancashire) 96% + Op Gas to power, NONE
Field East Irish Sea intermittent 1 MW export
EXL 288 Trumfleet East Midlands 96% + Op Gas to power, NONE
Field intermittent 1 MW export
– potential additional
reserves in adjacent fault
compartments and/or
CBM potential
EXL 290 Ironville East Midlands 96% + Op Shut in former gas to NONE
Field power scheme – no
current generation infra-
structure

Subsidiary companies holding the Assets above include:

• Warwick Energy Exploration Limited
• Warwick Energy Exploration and Production Limited
• Warwick Onshore Exploration Limited
• Warwick Integrated Methane Production Limited

9
 NO
PL 055
NORTHERN
RT
H BROCKHAM
PORTLAND
PEDL 143 C.I. = 5 msecs
1 km
Top Purbeck
Anhydrite

COWDEN #2 PEDL 189

LINGFIELD-1 (1999) TESTED 700 mcfd
SE
A
NORTH HOLMWOOD
Warwick 20% WI TESTED 10 bopd Warwick 96% P O RT L A N D S S T Warwick 96%
MID
N . SE
A HIG PORTLAND operated by Europa CORALIAN LST +
110 mcf/d PORTLAND SST WI + Operator 2 5 ft N E T PAY +
G A S PAY I N WI + Operator
H Est. 31.2 MMBO STOIIP (Formation Damage PURBECK LMST
X1 well or drop Est. 0.5 mmcf/d Potential) No outstanding ON LOGS No outstanding
SOUTHERN
HOLMWOOD DEEP
TOP CORALIAN end 2009 obligations obligations
N. SEA Est. 45.9 MMBO STOIIP

SOUTH HOLMWOOD
PORTLAND
Est. 48.5 MMBO STOIIP
BROCKHAM
HOLMWOOD
S SOUTH HOLMWOOD NORTH HOLMWOOD N C.I. = 5 msecs
1 km
PORTLAND TARGET WEALDEN
LINE V81-53
SP 420
HASTINGS
E X PA N D E D A R E A TOP CORALIAN CLOSURE
EST. 1.1 MMBO Rec. PORTLAND CLOSURE
PORTLAND Sst (P50) = 0.57 MMBO Rec. EST. ~ 7.1 BCF Rec.
KIMM. Clay

TOP PORTLAND CLOSURE

EST. 5.5 Bcf Rec.
CORALIAN Sst (P50) = 2.6 Bcf Rec

BLETCHINGLEY PALMERS WOOD SUMMARY OF KEY PETROLEUM GEOLOGY OF

THE WEALD & DORSET BASINS ONSHORE SOUTHERN UK
A’ AGE FORMATION LITHOLOGY PETROLEUM
GEOLOGY
HYDROCARBON
OCCURENCE
KINGS
CLER ALBURY
PLIO-PLEISTOCENE
E-HO NEOGENE

TERTIARY
GSBAC
K
GOODWORTH STOCKBRIDGE
SU PALAEOGENE

CHALK

C R E T A C E O U S
CHANNEL HAMPSHIRE HIGH WEALD BASIN LONDON NE HUMBLY GROVE UPPER GREEN SAND

OO VELO
SW

DE
&
BASIN PLATFORM
D GAULT CLAY

PR E FA ENT
LIT PM
WYTCH FARM HORN DEAN SINGLETON BOLNEY COWDEN BROCKHAM
A PALMERS A’ HERRIARD
L

IMA CIE
LOWER GREEN SAND
WOOD
A

RY S
CHALK WEALDEN

KIMMRIDG. E WEALDEN
STORRINGTON
LIASSIC W R COWDEN

A S
PURBECK
PO
RT
SD
HORNDEAN B I N
BOLNEY
BROCKAM
SCHEMATIC CROSS-SECTION NW-SE ACROSS S. ENGLAND OW PORTLAND R

TQ
NP GODLEY BRIDGE
SHOWING KEY STRUCTURE & STRATIGRAPHIC UNITS

J U R A S S I C
AR S
IS H KIMMERIDGE BLETCHINGLEY
T ING LINGFIELD
E E CORALIAN R
PALMERS WOOD
S OXFORD CLAY S
R N KELLAWAYS / CORNBRASH SINGLETON

O I OOLITES R HUMBLY GROVE

STORRINGTON
WARFLOW OILFIELD
D S LIASSIC S HORN DEAN
(PORTLAND)
A RHAETIC R HUMBLEY GROVE

T R I A S S I C
B SINGLETON KEUPER

MERCIA MUDSTONE
WYTCH FARM Isle of Wight E n g l i s h C h a n n e l
SHERWOOD SST SHERWOOD SS R WYTCH FARM
LIDSEY

TV 10Km
PERM.

CARBONIFEROUS
ZECHSTEIN
ROTLIEGENDES

KIMMERIDGE OILFIELD DEVONIAN

A KEY: Prepared by
PEDL 119 PEDL 121
Warwick 100% WI Warwick 100% WI
WARWICK ACREAGE
ENVOI
OIL & GAS FIELDS
(Energy Venture Opportunities International)
X1 well or drop BOLNEY-1 (1963 ESSO) X1 well or drop
end 2009 TESTED GAS 500 MCF DST end 2009 KEY WELLS
3 M NET ASHDOWN SST

REGIONAL FACIES FAIRWAY

DIBDEN LEAD
BOLNEY #1
REGIONAL STRUCTURE
Montage showing location &
Top Purbeck
BOLNEY ANTICLINE
RR RESERVOIR hydocarbon prospectivity of
EXTENT OF MAPAREA S SOURCE Warwick assets in the
Top PURBECK Closure @ 450 FT
SEAL Weald & Dorset Basins of
Southern England
DIBDEN LEAD Est. 2.4 Bcf Proved / Undeveloped
(SHERWOOD SST) Reserves A’
Est. 10 mmbo Rec. Potential) A REGIONAL CROSS-SECTION

POWER STATION
Top Portland
Compiled by: Mike Lakin Date : November 2006
REFINERY Ref : P125 Warwick Southern Graphics : wave
 NORTHERN NO
RT B
H LOCKTON
FIELD PEDL 120 BLOCK 48/21a
SE WYKEHAM Warwick 100% Warwick 8% ORRI
A
DALBY LEAD UNDEVELOPED WI + Operator in Dudgeon Field
MID (PERMIAN) G A S D I S C O V E RY
N. S X1 drill or drop Expected development
EA H Est. 6.8 BCF Rec
IGH by end 2007 2007/8
Namurian Leads
KIRBY MISPERTON
(NAMURIAN)
SOUTHERN WOMBLETON LEAD A’
N. SEA (PERMIAN)
B’ PICKERING FIELD Block 48/21a DUDGEON
(Onstrike to NW)

B EXTENT OF MAP AREA SE A COAST HEWETT

FIELD A’ NW
B’
MALTON FIELD JURASSIC
CRETACEOUS
DUDGEON GAS FIELD
(ZECHSTEIN)
(ROTLIEGENDES) + LW BUNTER
SST
EST. 50+ BCF (3P)
(28 BCF PROVEN)
LONDON
BRABAN
+ R PALA PERMO-TRIAS
HEWETT

E X PA N D E D
MARISHES FIELD MASSIF
+ + EOZOIC SST
ROTLIEG-
(ZECHSTEIN)
+ ENDERS
AREA SST

CLEVELAND 42 S O U T H E R N
BASIN SUMMARY OF KEY PETROLEUM GEOLOGY OF
THE E. IRISH SEA & CLEVELAND BASINS ONSHORE UK
ASKRIGG BLOCK N O R T H S E A PETROLEUM HYDROCARBON
AGE FORMATION LITHOLOGY GEOLOGY OCCURENCE
QUATERNARY

ndes
EAST Limit of Rotliege

C R E T .
TE CHALK
O GA development
R SIN 50 SOLE GROUP
H ARBA 47
IRISH PENNINE YORK
PITT ABSENT

HIGH MARKET KIMMERIDGE

JURASSIC
BASIN CORALIAN

M E S O Z O I C
ELSWICK W E I G H TO N H I G H

ABSENT
LEEDS OXFORDIAN
ESTURINE SERIES
BASIN LIAS
TRUMFLEET MERCIA
MUDSTONE

T R I A S S I C
GROUP
GA R
SHEFFIELD IN
LIVERPOOL
MANCHESTER
SB SHERWOOD OFFSHORE
TR OR SST EAST IRISH SEA
OU OU GROUP (LIVERPOOL BAY)
GH GH S. NORTH SEA
R FIELDS
EAST MIDLANDS

COLLYHURST MANCHESTER
RE

A’

ZECHSTEIN GROUP
P L AT F O R M

MARL
HI

P E R M I A N
N

P A L E O Z O I C
ES

SI

IRONVILLE
BA
CH

T R
W he ELSWICK

SST
NOTTINGHAM
as 52 MALTON
h R K. MISPERTON
LOCKTON
W ID M L O N D O N B R A B A N T MARISHES
A
ROTLIEGENDES
ERPO R CAYTHORPE
OL ABSENT
TROU (+ OFFSHORE
P L AT F O R M WESTPHALIAN

C A R B .
GH S S. NORTH SEA)

NAMURIAN R S K. MISPERTON

KEY: Prepared by
EXL 269 PRODUCTION / POWER GENERATING ASSETS
96% Warwick WI
(Warwick 100% WI + Operator)
WARWICK ACREAGE/ INTERESTS ENVOI
No outstanding obligations (Energy Venture Opportunities International)
X1 prospect targeted ELSWICK GAS FIELD OIL & GAS FIELDS
ELSWICK
GAS FIELD for drilling 0.25 MMCFD PRODUCTION FROM LOWER
(SHERWOOD SST) PERMIAN (COLLYHURST FM) REGIONAL STRUCTURE Montage showing location &
TO 1 Mw POWER GENERATION PLANT
KIRKHAM PROSPECT
ELSWICK REGIONAL FACIES hydocarbon prospectivity of
TRUMFLEET GAS FIELD Warwick assets in the
0.25 MMCFD PRODUCTION FROM NAMURIAN RR
TO 1Mw POWER GENERATING PLANT
RESERVOIR S.N.Sea (offshore) & Midlands,
(1 - 1.5 BCF UPSIDE IN PROVEN BUT UNDRAINED
FAULT BLOCK TESTED BY HISTORIC BP WELL SOUR
Cleveland and E. Irish Sea
S Basins (onshore)
KIRKHAM PROSPECT
IRONVILLE GAS FIELD
SHERWOOD SST + LWR
PERMIAN CLOSURE (1,660 Acres)
EST. POTENTIAL = 108 MMBO FIELD SHUT IN - POSSIBLE FUTURE
SEAL Central England
ENGINEERING UPSIDE A’ CROSS-SECTIONS
A Compiled by: Mike Lakin Date : November 2006
Ref : P125 Warwick Northern Graphics : wave