--  The Company reported a substantial increase in the mean estimate of
    gross unrisked prospective resources ("Mean Prospective Resources") in
    the Eocene reservoir at Kurdamir. The revised Mean Prospective Resource
    is now 278 MMbbl of oil as of June 1, 2012 compared to 124 MMbbl
    reported previously. 
--  The Kurdamir-2 well is currently drilling ahead at 3,427 metres. The 9-
    5/8 inch casing was cemented successfully at 3,140 metres. Wireline logs
    were successfully run across the Eocene interval for the first time, as
    this was not possible in the Kurdamir-1 well. The analysis of the
    wireline logs has resulted in the Company substantially increasing its
    Eocene prospective resource assessment. 
--  After eight months on extended well test, Sarqala-1 has produced
    approximately one million barrels ("MMbbl") of light oil.

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Table 1                                                                     
                                                                            
Gross Unrisked                                                              
                            ------------------------------------------------
Prospective Resources(1),(2)      Prospect         Reservoir     Hydrocarbon
                            ------------------------------------------------
Kurdamir Block Oil, Gas                                                 Type
                            ------------------------------------------------
and Condensate                    Kurdamir   Tertiary Eocene             Oil
                            ------------------------------------------------
As of June 1, 2012                                                  MMBOE(7)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Table 1                              Low        Best        High        Mean
                                Estimate    Estimate    Estimate    Estimate
Gross Unrisked                       (3)         (4)         (5)         (6)
                            ------------------------------------------------
Prospective Resources(1),(2)         P90         P50         P10        Mean
                            ------------------------------------------------
Kurdamir Block Oil, Gas            MMbbl       MMbbl       MMbbl       MMbbl
                            ------------------------------------------------
and Condensate                        68         228         547         278
                            ------------------------------------------------
As of June 1, 2012                    87         308         793         392
----------------------------------------------------------------------------
                                                                            
Notes to Tables 1,                                                          
                                                                            
1. The resources presented are the gross volumes estimated for the indicated
   reservoirs without any adjustments for the Company's working interest or 
   encumbrances. For a description of the production sharing terms under the
   PSCs, see the Company's Annual Information Form dated March 26, 2012     
   available at http://www.sedar.com/.                                      
2. Prospective resources are those quantities of petroleum estimated, as of 
   a given date, to be potentially recoverable from undiscovered            
   accumulations by application of future development projects. Prospective 
   resources have both an associated chance of discovery (geological chance 
   of success) and a chance of development (economic, regulatory, market and
   facility, corporate commitment or political risks). The chance of        
   commerciality is the product of these two risk components. These         
   estimates have not been risked for the chance of discovery or for the    
   chance of development. There is no certainty that any portion of the     
   prospective resources will be discovered. If a discovery is made, there  
   is no certainty that it will be developed or, if it is developed, there  
   is no certainty as to the timing of such development or that it will be  
   commercially viable to produce any portion of the prospective resources. 
   In this case, prospective resources are undiscovered resources that      
   indicate development potential in the event the discovery is commercial  
   and should not be construed as reserves or contingent resources.         
3. Low Estimate is considered to be a conservative estimate of the quantity 
   that will actually be recovered. It is likely that the actual remaining  
   quantities recovered will exceed the low estimate. If probabilistic      
   methods are used, there should be at least a 90 percent probability (P90)
   that the quantities actually recovered will equal or exceed the low      
   estimate.                                                                
4. Best Estimate is considered to be the best estimate of the quantity that 
   will actually be recovered. It is equally likely that the actual         
   remaining quantities recovered will be greater or less than the best     
   estimate. If probabilistic methods are used, there should be at least a  
   50 percent probability (P50) that the quantities actually recovered will 
   equal or exceed the best estimate.                                       
5. High Estimate is considered to be an optimistic estimate of the quantity 
   that will actually be recovered. It is unlikely that the actual remaining
   quantities recovered will exceed the high estimate. If probabilistic     
   methods are used, there should be at least a 10 percent probability (P10)
   that the quantities actually recovered will equal or exceed the high     
   estimate.                                                                
6. Mean Estimate is the average from the probabilistic assessment.          
7. Barrels of oil equivalent (BOEs) may be misleading, particularly if used 
   in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl has been used and is
   based on an energy equivalency conversion method primarily applicable at 
   the burner tip and does not represent a value equivalency at the         
   wellhead. The oil equivalent total includes the oil prospective resource 
   reported above, plus solution gas prospective, associated gas, and the   
   associated condensate.