President Petroleum updated on the drilling activities at the Kafoury 3 well the Northumberland 2 wells.

Kafoury 3, East Lake Verret Field (ELV), Louisiana, USA Drilling operations at President's Kafoury 3 well are still continuing. Although the well has encountered higher than expected pressures, which have caused a significant increase in projected costs, the well is currently drilled to a measured depth of 13687 feet and is considered to be poised to intercept the main target, containing nearly two thirds of the net targeted resources.

During drilling, the well has continued to encounter very high background gas, which has significantly increased with depth. Whilst the Company has not yet identified any commercial hydrocarbon producing sands in the upper two target prospects, this does not in any way affect the prospectivity of the deep section. As it is clear there are hydrocarbons in the system, the decision has been made to drill ahead, despite the challenging conditions.

As more time is now required to explore the main target section, President will update further on the well as soon as a complete picture is obtained.

Northumberland 2, PEL 82, South Australia Preparations for the drilling of the Northumberland 2 well are on schedule and budget and drilling is expected to commence around the end of February. The two reservoir targets for Northumberland 2 are independently estimated to contain total prospective resources of 40 million barrels of oil or 55 billion cubic feet of gas, which represents a very high impact opportunity. President owns the license to 100% of PEL 82, which has total prospective resources assessed as over 400 million barrels.

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