Paloma Offshore

Focus Area	Matagorda Island Block 665 Field
Dates	February 2005 to May 2006
Financial Partner	Macquarie Americas Corp
Project Highlights	Acquired 14,000 net acres and two platforms from ExxonMobil Increased production from 3 mmcfgpd to 12mmcfgpd Identified an extensive inventory of development opportunities Tripled net proved reserves to 33 bcfg
Disposition	Sold to Anglo-Suisse Offshore Partners, LLC