Development plan for the Dobrich Basin

Park place intends to commence the exploration plan of the Vranino 1-11 block in the Dobrich Basin gas field commencing in 2012 subject to the outcome of the proceedings before the Bulgarian Administrative Court. Park Place intends to focus its exploration on the numerous coal seams and other geological formations that typically contain both conventional and unconventional gas. Natural gas (coal seam methane) is typically found in or about certain types of coal beds and associated sandstone or limestone formations in close proximity. Park Place’s management has over 60 combined years in exploring oil and gas projects world wide. The project design and implementation will be conducted by the company’s chief geologist, Art Halleran, working with other experts in CSM, with local geologists and others who have experience with the Dobrich basin petrographical characteristics. The company has compiled detailed data on the region and has provided a five year exploration program which it intends to implement involving the drilling of at minimum five test wells and the evaluation of the wells along with additional seismic programs using computer technology to compile data further data on the nature of the gas resources that lie within the basin. The approximate cost of the minimum work program over five years is approximately $5m US.

If the results of the exploration program are successful, then the company would commence a development program where it would systematically drill production wells over the next 10-20 years. Wells drilled in CSM fields are typically shallow and closely spaced, resulting in the drilling of numerous wells in a field. Assuming the exploration program is successful, the following could be achieved for a development plan project over the subsequent 10 years:

* During this period, Park Place will primarily conduct exploration drilling to create a model of the potential resource to prove the resource and assess the feasibility of an expansive development plan. Park Place will continue to review and revise additional requirements for capital investment requirements and conduct capital raising to the best of its ability to fund such work programs.

** The development project model is based on successful feasibility of the exploration stage, and assumes that the economic feasibility of the CBM and tight gas resource in the basin. The company will refine the plan based on the resource model as it becomes known during the exploration stage and actual results will vary due to circumstances that occur in the future.

Note: These figures are estimates only and may change due to circumstances, knowledge and actual results, please see the disclaimer for further information on forward looking statements on
this page.