Isle of Wight Area: PEDL 239

(Norwest 75% and operator)

The PEDL 239 permit is on the Isle of Wight, southeast of Dorset and east of the Wytch Farm oil and gas field. Norwest has acquired an airborne gravity survey over the licence and has also purchased a substantial amount of additional seismic data covering PEDL 239.

The Company is meshing seismic and gravity interpretations. The island's geology is complex and assessment of this permit's prospectivity is ongoing, but surveys of this block do indicate that large, deep structures with significant potential for oil and gas lie beneath and adjacent to the island. These structures include several four-way closures - classic oil and gas exploration targets that could become drillable prospects.

It is still early in Norwest's work in this permit, but the Company's regional geology and geophysical and resource evaluation for its Wessex Basin blocks (completed in early 2010) has identified one promising lead on the Isle of Wight. On a P50 (50% likelihood) basis, if oil is present in the Razorback structure, it could hold 14.12 million barrels of recoverable oil.