TỔNG QUAN VỀ CHƯƠNG TRÌNH THĂM DÒ VÀ KHAI THÁC

It is estimated that over 730 million barrels of recoverable oil and over 2 trillion cubic feet of recoverable natural gas lie in Blocks 102 and 106 in shallow waters 70 miles southeast of Hai Phong Harbor in the Gulf of Tonkin. The Blocks overlie the prospective Song Hong Basin. Exclusive drilling and production rights have been granted to a U.S. company founded by a Vietnamese-American.

Unrestricted access to these reserves is obtainable through an investment and strategic partnership with ATI Petroleum (ATI), for exploratory and production wells. Using years of previous work by Idemitsu, TOTAL, and PetroVietnam exploration firms and the results from several test wells drilled in the area, ATI has been provided extensive and valuable exploration data for locating wells. This area has the highest potential of any block within the Song Hong basin. A natural gas pipeline in the Red River Delta is planned for the future to provide energy to a region of over 40 million people. Numerous discoveries have been made in contiguous areas including a gas field that has been in continual production since 1975.

The Socialist Republic of Vietnam (SRV) through PetroVietnam (PV) has singled out ATI for this choice prospect for the following reasons: United States Involvement—The SRV has placed a high-priority on attracting American companies with their access to capital, technology and marketing. VietnameseAmerican Owner—The Vietnamese born and American-naturalized founder of ATI, Mr. Huu Dinh, represents a rare combination of entrepreneurial and technical skills that forms a bridge between the two cultures. Showcase Project—PV and the SRV have established this venture in Block 106 as a showcase for Vietnam. The strategy is to show that national and foreign owned companies of all sizes can easily do business in the country and record substantial profits. ATI’s success indicates that firms without the bureaucracy of international oil and gas concerns can operate well with the SRV, and PV gains credence as an organization that facilitates growth and profitability.

The contracted area includes over 14,000 square kilometers of shallow (less than 30 meters deep) offshore territory. ATI has inherited 9,200 square km of two-dimensional seismic data and data processing from past exploration activities conducted by TOTAL, Idemitsu, and PetroVietnam exploration companies over the past 15 years. Through this extensive data, we have identified three major oil prospects and one major gas project. Total resource for these four prospects are estimated at 730 MMBO and 2 TCF of gas. The probabilities for finding producible hydrocarbon reserves in these prospects range from 9 percent to 26 percent. Low cost development is anticipated for Block 106 by virtue of the following:

- Proximity to Hai Phong Harbor – approximately 70 km
- Shallow waters (approximately 30 m) will minimize platform costs
- Shallow objective reservoirs (approximately 2000 m) will minimize development costs
- Infrastructure and market – a planned new natural gas grid for the Red River Delta will provide access to a rapidly developing region of over 40 million people.

ATI is a fast growing company with a reputation for excellence in the U.S. energy and engineering services industry. ATI specializes in the management of large projects and has successfully managed turnkey projects for the U.S. government and international Fortune 50 companies such as: NASA, U.S. Department of Energy, Lockheed Martin, Bechtel, Westinghouse, Mobil Oil, Halliburton, SAIC, Brown & Root, and McDermott/BWXT. In late 1998, following an invitation from PV, ATI performed a review of the existing exploration data for Blocks 102 and 106. Our demonstrated engineering and project management proficiency led SRV to award us the reserved contract for exploration and production.

Based on our recently completed Geological and Geophysical evaluation conducted by Petro Vietnam Investment and Development Company (PIDC) under a Technical Service Agreement along with our in-house technical oversight and input, we have identified 3 wildcat well locations. Drilling preparation activities are planned to begin in the fourth quarter of this year. To embark on the drilling phase, ATI is soliciting operating and equity partners to raise approximately USD $60 million.