CalEnergy

Following disappointing results for the Eclipse well drilled in May 2003, which significantly downgraded the potential of the southern Perth Basin, CalEnergy Gas has withdrawn from all its southern Perth Basin permits. However, the company was successful in its application for Block EP 437 in the northern Perth Basin together with local operator Arc Energy. Norwest Energy withdrew from the block in 2007. Each participant holds a one-half interest in this permit, which is adjacent to the large Dongara gas field and close to a number of new oil discoveries made in the area in 2002 and 2003. Gravity data has been acquired and processed, and the reprocessing of 2D also was completed. The 2D seismic survey has been completed and processed, an interpretation of the 2D seismic has been completed, and prospective targets have been identified. Drilling has been deferred due to reprocessing of key seismic lines and drilling rig availability.

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%