Netherlands

Cirrus' focus is to continue to expand our active participation in the Netherlands upstream oil and gas industry. An expanded management and technical team headquartered in The Hague gives Cirrus extensive hands-on experience in-country with a proven track record of success. This greatly strengthens Cirrus’ ability to both identify and source opportunities in addition to having the key personnel necessary for project execution.

We initiated our strategy in March 2005 when Cirrus, in partnership with an established Dutch oil company, Dyas B.V., applied for an exploration licence for Block L16b which was awarded in February 2006. Cirrus, as operator, holds a 30% interest in L16b. Since that time, Cirrus has applied for and been awarded operated interests in a further seven exploration licences (F12, F15b, Q10, Q11, Q13b, Q14 and Q16b). In addition, through six separate transactions, Cirrus has acquired operated interests in six licences (A15a, M1a, M7, L8a, L8b and L11b) which contained, at the time, four undeveloped gas fields. Two of these fields Cirrus has now successfully brought into production.

Development approval for the Cirrus operated M1-A and M7-A gas fields was obtained in July 2007 and production from the M7-A Field commenced on September 12, 2009.

A successful appraisal well, L11b-A06, was drilled from the L11b-A platform on the L8-D Field in February 2009 and tested 30 MMscf/d. The L8-D Group, operated by Cirrus, subsequently acquired the L11b-A production platform from Chevron on August 1, 2009. The platform was then upgraded and production from the L8-D Field commenced in October 2009.

Cirrus, as operator, plans to commence a multi-well drilling programme in the Netherlands in April 2010 which is likely to continue through the balance of the year.