GEOLOGICAL & GEOPHYSICAL STUDY

PT.ENERGI MINERAL LANGGENG EML SOUTHEAST MADURA BLOCK

EXECUTIVE SUMMARY

Southeast Madura Block, Northeast Java Basin lies on the South Madura Island, the
Northeastern part of Java Island, approximately 4.567, 34 km2. Geological and geophysical
studies have been executed on the area in order to perform the identification and
characterization of potential reservoir formations on the paleogene to neogene stratigraphic
levels included clastic and carbonate facies of Ngimbang, Kujung, Tuban, Ngrayong, Mundu
and Paciran Formations. The works are comprised of seismic reprocessing of more than 300
km, advanced processing for selected lines and integrated geological interpretation.

The area is part of the Southern Basin province, East Java Basin which was formed by
extensional process during Eocene to Late Oligocene and was then followed by a period of
structural inversion related to a compression process that started from Early Miocene to
recent East Java basinal area. The Southern Basin includes the Rembang zone along with its
eastern continuity offshore, the northern area is influenced by sinistral wrench fault
activities along the Sakala (RMK) Fault Zone, while the southern part remains as deep
bathyal environment.

Based on seismic interpretation the structures of the area are generally E-W, NE-SW and
NW-SE trends. The structures in the Paleogene are predominantly E-W with minor NE-SW
and NW-SE, while in the Neogene are E-W with minor NW-SE. Most the traps are four ways
anticlines and fault bounded anticlines. Several carbonate build ups are also identified both
in Paleogene and Neogene.

Geology and geochemistry works evidences indicate that all necessary requirements for
hydrocarbon generation are available in the East Java Basin, involving all stratigraphic
levels, and could be also evident in the Southern Basin.

The potential targets in the Southeast Madura Block are Late Eocene Ngimbang Clastics
Carbonates, Middle Miocene to Early Oligocene Kujung Carbonates, Late Miocene Tuban
sandstones and carbonates and Pliocene globigerinid of Paciran Formation. The seals
potential are Oligocene Shale of the Kujung Formation, Lower Miocene Shale of Tuban
Formation and Intra formational shales in Paciran Formation.

The Ngimbang Formation of Late Eocene and Kujung shales of late Oligocene age are
believed to be the primary source rocks. But there is still opportunity that the younger
formation; Lower Tuban of Early Miocene age, Tawun Formation of Middle Miocene age and
lower part of Wonocolo Formation of Late Miocene age. The Paleogene potential source
rocks can be expected to generate thermogenic hydrocarbon, while the Neogene are
expected to generate biogenic gas

Executive Summary -i
 GEOLOGICAL & GEOPHYSICAL STUDY
PT.ENERGI MINERAL LANGGENG EML SOUTHEAST MADURA BLOCK

Lead and Prospect identification concluded that Southeast Madura Block has total 32 leads
and prospects, 15 in the northern part and 17 in the southern part, with recoverable
resources ranging between 1 to 127 MMBO for oil case and 3 to 1070 BCF for gas case.

Executive Summary -ii