CalEnergy

CalEnergy Gas participates in three permits in the Otway Basin surrounding the Thylacine and Geographe Fields which are in construction. The three permits – Vic/P43, T/30P and T/34P – are under an intensive evaluation phase, including 3D seismic. The Aragorn 3D seismic survey and processing has been completed in the T/30P and T/34P permit areas. Drilling is targeted for 2009 in T/34P. In T/30P, further evaluation of the Aragorn 3D data is required to mature near field prospects. A data review continues in Vic/P43, with planning for a 3D seismic survey to be carried out in 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%