(text taken from 2008 Annual Report)

In November 2007, Pitkin Petroleum amended its proposed farm-in agreement to reflect the consortium partners’ position on certain issues of the contract, including historical costs and the abandonment of existing wells.   Oriental Petroleum and Minerals Corporation (Oriental), the last signatory to the agreement, signed the documents in May 2008.  The same were submitted to the Department of Energy (DOE) on June 2, 2008 for evaluation and approval. 

Pitkin Petroleum also prepared and circulated to the partners for execution the Deed of Assignment reflecting the transfer of farmors’ interest in the block to Pitkin.  The same document was submitted to and approved by the DOE as an addendum to the farm-in agreement. 

Pitkin had identified, finalized and proposed the work program and budget for the First Sub-Phase of the block, consisting of 3D seismic reprocessing and interpretation, petrography, FMS reprocessing and interpretation, sequence stratigraphy study and petroleum and reservoir engineering review.  The Phase I program is for a period of 12 months with a total budget of USD 1.543 MM.  The farming out partners, including PHILODRILL, are carried in the costs of the program.  

Even while still waiting for the approval of the farm-in agreement, Pitkin has started implementing some of the farm-in work commitments including the recently-completed seismic re-processing by Western Geco, as well as the ongoing seismic inversion by contractor Schlumberger.  They have likewise finalized contracts for the sequence stratigraphy studies and petrophysics with ISIS Petroleum Consultants and conceptual engineering works with OPE, Inc. 

Pitkin is looking at reviving production from the West Linapacan Field which last produced in January 1996 at an approximate rate of 2000 BOPD.