Ethiopia

Blocks 2, 6, 7 and 8 are located in the Ogaden basin, in southwestern Ethiopia. Blocks 2 and 6 are part of the same production sharing contract ("PSC") which encompasses a combined area of 24,420km². Blocks 7 and 8 are part of a separate PSC covering an overall area of 23,162km². The operator for both PSCs is Africa Oil (55%); Black Marlin has farmed in for 30% and New Age Limited has a further 15%. The combined total gross area is 47,582km² (11.8 million acres) and Black Marlin's net area under licence is 14,209km² (3.5 million acres).

Exploration in the Ethiopia area began in the 1970's with Tenneco discovering the Calub and Hilal gas fields approximately 200 kilometers to the east of Block 6. Exploration continued into the 1980's but then effectively ceased until 2007. Three wells have been drilled within the blocks and all were subsequently plugged and abandoned: El Kuran-1, El Kuran-2 and Bodle-1. Both of the El Kuran wells gave indications of hydrocarbons and a small amount of oil was reportedly recovered from the Jurassic, Hamanlei formation. The main potential reservoirs in the basin are clastic sediments of the Carboniferous age Calub formation and the Triassic age Adigrat formation. In addition some permeable Jurassic carbonate rocks in the Hamanlei formation can be considered potential reservoirs.

Blocks 2, 6, 7 and 8 are located on the edge of the Paleozoic - Mesozoic Ogaden Basin. The Ogaden basin has a proven hydrocarbon system as confirmed by the Calub and Hilal discoveries and a number of oil and gas shows reported in the exploration wells drilled in the area. Petronas is currently progressing appraisal and development drilling plans to commercialize the fields, with one well being due for drilling later this year.