HispanicBusiness

Hazira Field

Niko is the operator of the Hazira Field and holds a 33.33 percent interest in this field. The field is located close to several large industries about 25 kilometers southwest of the city of Surat and covers an area of approximately 50 square kilometers on and offshore. In addition, Niko and GSPC have constructed a 36-inch gas sales pipeline to the local industrial area. The Company has constructed an offshore platform, an LBDP, a gas plant and an oil facility at the Hazira Field. The Company has one significant contract for the sale of natural gas from the Hazira Field at a price of $4.86/Mcf expiring April 30, 2016, which accounted for five percent of total revenues during the quarter. The commitment for future physical deliveries of natural gas under this contract exceeds the expected related future production from total proved reserves from the Hazira Field estimated using forecast prices and costs. Refer to note 14(c) to the consolidated financial statements for nine months ended December 31, 2012 for a complete discussion of this contingency.

Surat Block

The Company holds and is the operator of a development area in the 24 square kilometer Surat Block located onshore adjacent to the Hazira Field in Gujarat State, India. The natural gas production from the Surat Block commenced in April 2004 and is transferred to the customer via 6-inch pipeline to the customer's facility. The Company has a gas plant at Surat Block and all the production from the Surat Block was sold to one customer with a price of $6.00/Mcf. Sales of natural gas to this customer accounted for one percent of the Company's total revenues during the quarter. Production from the block ceased in November 2012 as the cap on cumulative production in the approved field development plan was reached. The Company plans to relinquish the block.

Madagascar

In October 2008, the Company farmed in on a PSC for a property located off the west coast of Madagascar covering an area of approximately 16,845 square kilometers. The Company will earn a 75 percent participating interest in the Madagascar block and any extension or renewal thereof or amendment thereto and are the operator of this block. The Company has completed a multi-beam sea bed coring and 3,200 square kilometers of 3D seismic on the block. The Company has work commitments for an exploration well and its share of the remaining costs pursuant to the PSC is $10 million prior to September 2015. The actual cost of fulfilling work commitments may exceed the amount estimated in the PSC.

Pakistan

The Company holds and operates the four blocks comprising the Pakistan Blocks, which are located in the Arabian Sea near the city of Karachi and cover an area of 9,921 square kilometers. The Company has acquired 2,142 square kilometers of 3D seismic data on the blocks. The Company has received a one-year extension to the Phase I exploration period through seismic exploration activity.

Kurdistan

The Company held a 49% working interest in the Qara Dagh Block in Kurdistan and in November 2012, the Company and its consortium partners entered into an agreement with the Kurdistan Regional Government to surrender their collective interests in the block. Pursuant to the agreement, none of the consortium partners will have any future obligations or liabilities with regard to the original production sharing agreement, and the Company expects to recover a net amount of approximately $15 million.