CalEnergy

CalEnergy Gas was successful in an application for License P1242 (Block 48/1a) in the 22nd UK Seaward Licensing Round. The license has been converted to a full license. Following a farmout to Endeavor Energy UK Limited and Hunt Petroleum UK limited, CalEnergy Gas retains a 55 percent interest in the block. The EMU well was drilled in July 2007. Results were disappointing, with only minor gas shows. Log data from the EMU well is being used to reevaluate the remaining prospects in the block.

Resource Development

Producing Gas Fields	Share of Remaining Reserves as of 1/1/08	Current Percentage Working Interest

Greater Zaniemysl Area	9 Bcf	24.5%

Yolla	45 PJ	15%

Victor	5 Bcf	5%

Gas Projects in Commissioning	Share of Reserves	Size in Square Kilometers (Net)	Current Percentage Working Interest

Thylacine/Geographe	45 PJ	133	5%

Gas Projects in Development	Permit Status	Current Percentage Working Interest

Perth Basin	Drilling 2009	50%
Otway Basin	Evaluation - Drilling 2009	5%
Bass Basin	Evaluation	18.5%
Block 48/1a	Evaluation	55%