Eurasia completes development plan field work in Azerbaijan

Two visits were made to the Azerbaijan capital of Baku in September, 2006 by management of Eurasia and Eurasia's consultants, TRACS International Consultancy Ltd. ("TRACS") and Genesis Oil and Gas Consultants Ltd. ("Genesis"). During the first site visit, management and TRACS met with SOCAR's head office personnel, and the geologists and petroleum engineers working for (a) SOCAR's offshore exploration unit responsible for the Block and (b) SOCAR's offshore field development, production and maintenance unit responsible for the Alyat producing field and the non-producing Garasu field. Discussions focused on the analysis of data and information supplied by SOCAR to date and identified further information and data regarding geology, structure of the fields, exploration targets and drilling and production history of wells drilled to date. There were also initial discussions regarding the current and historic costs of developing and operating the producing fields on the Block as the basis for future economic estimates and negotiations for the Exploration, Rehabilitation, Development and Production Sharing Agreement ("ERDPSA").

The second site visit to Baku occurred at the end of September, 2006. Management and TRACS were accompanied by a specialist facilities engineer from Genesis. The main purpose of this visit was to inspect the offshore platforms and oil and gas producing facilities in the Alyat field, and SOCAR's on-shore oil and gas terminal serving the field. SOCAR provided Eurasia's team with a supply vessel and crew for the trip to the offshore Alyat field. The team had the opportunity to inspect various oil and gas producing platforms, gas injection, treatment separation and distribution facilities as well as the recently completed well number 87 and the recently spudded well number 88. The Eurasia team also visited a SOCAR oil and gas terminal which receives, treats, stores and delivers oil and gas from a number of SOCAR offshore and onshore fields. The team inspected the terminal's complete installation from the landfall of the pipelines coming from the Alyat field to the oil and gas export delivery points. This inspection included oil separation and treatment plants and storage tanks.

Photographs from the site visits will be posted on Eurasia's website within the next month. Eurasia expects its development plan for the Block to be completed by the end of October. Management of Eurasia will be returning to Baku in early November to attend scheduled meetings with SOCAR for the purpose of negotiating the main principles of the ERDPSA.

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