MB Petroleum - Block 5

completed

Mazoon Petrogas SAOC (Mazoon or the Company) is a closed joint stock company established under Omani law and is engaged in exploration and production of oil and gas. Mazoon and its 50/50 joint operating partner, Mazoon Petrogas BVI Limited (MPBVI) (an indirect wholly-owned subsidiary of China National Petroleum Corporation), explore and produce crude oil in Block-5 through a joint operating company, Daleel Petroleum LLC (the Operator). The operations of Block-5 are governed by a Joint Operating Agreement which stipulates the mutual agreements and obligations of Mazoon and MPBVI. The Operator has proposed a $331 million Development Plan, which Mazoon and MPBVI will jointly fund. The Development Plan proposes to further develop Block-5 and to more than double current crude oil production of 12,000 barrels of oil per day (bopd) by way of waterflood. The proposed project consists of financing a small portion of Mazoon’s 50% share of the capital expenditures envisioned under the Development Plan.