The field was discovered with the Atala-1 well in 1982.
	The field is in OML 46, which is leased to the SPDC/Agip/Elf/NNPC joint venture partnership with Shell as the operator.
	The field is located on the Dodo River; northwestern Bayelsa State covering 34 km2
	Operated by Bayelsa Oil & Gas Company Ltd, Hardy is technical partner holding 20% WI

Atala is located within OML 46 which is located in a mangrove swamp on the Dodo River, a coastal area
of NW Bayelsa State. The concession area is 34 km². The Atala field was discovered in 1982 with the drilling of the Atala-1 well to a total depth of 4,058 m. Hydrocarbons were encountered and the well was cased but not tested or completed.

OML 46 is held by a joint venture operation between NNPC, SPDC, ELF Petroleum Nigeria Limited and
Nigerian AGIP Oil Company Limited (the ‘‘OML 46 Joint Venture Parties’’).

Pursuant to a farm-out agreement dated 27 April 2003 between the OML 46 Joint Venture Parties and
Bayelsa, (‘‘Atala Farm-out Agreement’’), Bayelsa is the operator of the Atala field and has responsibility for undertaking the exploration, prospecting, winning, working and carrying away of petroleum in respect of the Atala field. The terms of this agreement are for an initial five year period from 27 April 2004, subject to an extension of the term of the Atala Farm-out Agreement if approved by the Nigerian Department of Petroleum Resources.

On 28 July 2005 HON entered into a farm-in agreement with Bayelsa (‘‘Atala Farm-in Agreement’’)
pursuant to which Bayelsa agreed to farm out a 20 per cent. participating interest in the Atala field to HON.

HON also agreed to act as technical partner for the development and operation of the Atala field. The
terms of this agreement are for an initial five year period from 27 April 2004 with the possibility to extend the term if the Atala Farm-out Agreement is approved by the Nigerian Department of Petroleum
Resources.

The working interests (per cent.) of the field are as follows:

© Copyright 2005 Hardy Oil and Gas plc