CalEnergy

CalEnergy Gas has a 18.5 percent interest in exploration permit T/18P in the Bass Basin. This permit, already containing the White Ibis, Gentoo and Rockhopper discoveries, lies juxtaposed to the company's Yolla Gas Field. The T/18P joint venture drilled the successful Trefoil well in late 2004. A 3D seismic program has been acquired as part of an evaluation of the commercial viability of the Trefoil, Gentoo and Rockhopper discoveries. The 3D seismic processing and 2D seismic data reprocessing are complete. Geological, geophysical and engineering studies are to be completed in the third permit year, which ends in May 2008.

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%