|   |  |
|--------|--|

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|     |  |
|--------------------|--|

|                                       |                                                          | Page No. |
|--------------------------------------------|---------------------------------------------------------------|----------|
| INTRODUCTION                               | 1                                                             |
|                                       |                                                          |
| 1.   EXECUTIVE SUMMARY           | 6                                                             |
|                                       |                                                          |
| 1.1                                        | Hydrocarbons In-Place                                         | 6        |
| 1.2                                        | Estimated Ultimate Recovery                                   | 6        |
| 1.3                                        | Reserves                                                      | 7        |
| 1.4                                        | Net Present Value Summary                                     | 8        |
|                                       |                                                          |     |
| 2.   GEOLOGY SUMMARY             | 9                                                             |
|                                       |                                                          |
| 2.1                                        | Regional Geology                                              | 9        |
| 2.2                                        | Missan Fields                                                 | 14       |
|                                       |                                                          |     |
| 3.   GEOPHYSICS REVIEW           | 15                                                            |
|                                       |                                                          |
| 3.1                                        | Abu Ghirab Field                                              | 16       |
| 3.2                                        | Buzurgan Field                                                | 17       |
| 3.3                                        | Fauqi Field                                                   |  18 |
|                                       |                                                          |     |
| 4.   PETROPHYSICS REVIEW         | 20                                                            |
|                                       |                                                          |
| 5.   VOLUMETRIC CALCULATIONS     | 21                                                            |
|                                       |                                                          |
| 6.   RESERVOIR ENGINEERING       | 22                                                            |
|                                       |                                                          |
| 6.1                                        | Reservoir and Fluid Properties                                |  22 |
| 6.2                                        | Production History                                            |  23 |
|                                       | 6.2.1      Abu Ghirab                |  24 |
|                                       | 6.2.2      Buzurgan                  | 25       |
|                                       | 6.2.3      Fauqi                     |  26 |
| 6.3                                        | Rehabilitation Plan Summary                                   | 27       |
| 6.4                                        | Reserves Estimation                                           |  28 |
|                                       | 6.4.1      Developed Reserves        |  29 |
|                                       | 6.4.2      Undeveloped Reserves      |  31 |
|                                       | 6.4.3      Production Profiles       |  31 |
|                                       |                                                          |     |
| 7.   COSTS AND ECONOMIC ANALYSIS | 33                                                            |
|                                       |                                                          |
| 7.1                                        | Costs                                                         | 33       |
| 7.2                                        | Economic Analysis                                             |  35 |
|                                       | 7.2.1      Contract and Fiscal Terms |  36 |
|                                       | 7.2.2      Economic Limit Test (ELT) |  37 |
|                                       | 7.2.3      Oil Price Scenario        |  37 |
|                                       | 7.2.4      Entitlement Results       |  38 |
|                                       |                                                          |     |
| 8.   BASIS OF OPINION            | 40                                                            |

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|     |  |
|--------------------|--|

| TABLES   |                                                                                                |
|----------|-----------------------------------------------------------------------------------------------------|
|     |                                                                                                |
| 1.1      | Missan Oilfields, Iraq STOIIP Volumetric Estimation                                                 |  6 |
| 1.2      | Missan Fields, Iraq Estimated Ultimate Recovery Estimation                                          |  6 |
| 1.3      | Missan Oilfields, Iraq – CNOOC’s Net Entitlement Reserves                               |  7 |
| 1.4      | Missan Oilfields, Iraq Gross Reserves                                                               |  7 |
| 1.5      | Missan Oilfields, Iraq – Summary of Post-Tax NPV of Future Revenue from Reserves Net to CNOOC | 8 |
| 2.1      | Missan Oilfields Reservoirs                                                                         |  14 |
| 5.1      | Missan Fields Oil In-Place Summary                                                                  |  21 |
| 6.1      | Proposed New Wells and Well Interventions During Rehabilitation Plan                                |  27 |
| 6.2      | Decline Rate Assumptions for Developed Producing Profiles                                           |  29 |
| 6.4      | EUR and Recovery Factor from the Rehabilitation Plan                                                |  32 |
| 7.1      | Gross Input Cost Profiles Proved Developed Producing and Proved Cases                               |  34 |
| 7.2      | Gross Input Cost Profiles Proved + Probable And Proved + Probable + Possible Cases                  |  35 |
| 7.3      | Missan Oil Price Scenario                                                                           | . 38 |
| 7.4      | Summary of CNOOC Net Entitlement Reserves                                                           |  38 |
| 7.5      | Post-Tax NPV Ranges for CNOOC’s Entitlement Interest in the Missan Fields                     |  39 |
|     |                                                                                                |
|     |                                                                                                |
| FIGURES  |                                                                                                |
|     |                                                                                                |   |
| 0.1      | Missan Fields Location Map                                                                          |  2 |
| 2.1      | Geological Location of Missan Fields                                                                |  9 |
| 2.2      | Stratigraphy and Petroleum System                                                                   |  13 |
| 3.1      | Missan Field Seismic Database                                                                       |  15 |
| 3.2      | Abu Ghirab Depth Structure Map                                                                      |  17 |
| 3.3      | Buzurgan Depth Structure Map                                                                        |  18 |
| 3.4      | Fauqi Depth Structure Map                                                                           |  19 |
| 6.1      | Reservoir Pressure for the Missan Fields                                                            |  22 |
| 6.3      | Abu Ghirab Oil Production History                                                                   |  24 |
| 6.4      | Buzurgan Oil Production History                                                                     |  25 |
| 6.5      | Fauqi Oil Production History                                                                        |  26 |
| 6.7      | GCA Production Profile Estimates for the Missan Asset                                               |  32 |
|     |                                                                                                |
|     |                                                                                                |
| APPENDIX |                                                                                                |
|     |                                                                                                |   |
| I.       | SEC Reserve Definitions                                                                             |   |
| II.      | Glossary                                                                                            |   |
| III.     | CNOOC’s Net Interest Cashflow Analyses                                                        |   |
| IV.      | Technical Qualifications of Person Responsible for Audit                                            |   |

----

|                        |                                                                                                                                                                       |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        | Gaffney, Cline & Associates (Consultants) Pte. Ltd. 80 Anson Road #31-01C Fuji Xerox Towers Singapore 079907 Telephone: +65 6225 6951  www.gaffney-cline.com |
| DSA/AK/dh/L0132/2012/KK1810 | 15th March, 2012                                                                                                                                                      |

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|   |  |
|--------|--|

|   | i.   | The first is appraisal work, including 3D seismic acquisition, processing and interpretation, appraisal well drilling, and geological and engineering studies.                                                                                                                                     |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ii.  | The second is the Rehabilitation Plan, including drilling 20 new wells and conducting 22 workovers, installing 9 ESP’s and 35 stimulation operations as well as reservoir testing, sampling, engineering and construction of new facilities as well as refurbishment of existing facilities. |
|   | iii. | The third is the design and construction of an oil export pipeline from the oilfields to Fao Port.                                                                                                                                                                                                 |

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| 1. | EXECUTIVE SUMMARY |
|----|-------------------|

| 1.1 | Hydrocarbons In-Place |
|-----|-----------------------|

|  Field      | Low        | Best       | High  |
|------------------|------------|------------|-------|
| Oil(MMbbl)       | Oil(MMbbl) | Oil(MMbbl) |
|  Abu Ghirab | 876        | 1,316      | 1,908 |
|  Buzurgan   | 1,889      | 2,917      | 5,039 |
|  Fauqi      | 838        | 1,409      | 2,227 |
|  Total      | 3,603      | 5,642      | 9,174 |

| 1.2 | Estimated Ultimate Recovery |
|-----|-----------------------------|

|  Field      | Cumulative ProductionAs of 31st December. 2011 | Low        | Best       | High   |
|------------------|----------------------------------------------------------|------------|------------|--------|
| Oil(MMbbl)       | Oil(MMbbl)                                               | Oil(MMbbl) | Oil(MMbbl) |
|  Abu Ghirab | 185.2                                                    | 355.2      | 412.1      | 457.6  |
|  Buzurgan   | 188.4                                                    | 487.4      | 579.8      | 654.3  |
|  Fauqi      | 88.8                                                     | 186.2      | 218.6      | 248.2  |
|  Total      | 462.4                                                    | 1028.8     | 1210.5     | 1360.1 |

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|   |  |
|--------|--|

| 1.3 | Reserves |
|-----|----------|

|             | PDP        | PUD        | Total Proved | Probable   | Possible   |
|------------------|------------|------------|--------------|------------|------------|
| Field            | Oil(MMbbl) | Oil(MMbbl) | Oil(MMbbl)   | Oil(MMbbl) | Oil(MMbbl) |
|  Abu Ghirab | 0.0        | 18.6       | 18.6         | 1.4        | 1.0        |
|  Buzurgan   | 0.0        | 23.5       | 23.5         | 3.6        | 2.0        |
|  Fauqi      | 0.0        | 10.9       | 10.9         | 0.7        | 2.1        |
|  Total      | 0.0        | 53.0       | 53.0         | 5.7        | 5.1        |

|             | PDP        | PUD        | Total Proved | Probable   | Possible   |
|------------------|------------|------------|--------------|------------|------------|
|             | Oil(MMbbl) | Oil(MMbbl) | Oil(MMbbl)   | Oil(MMbbl) | Oil(MMbbl) |
|  Abu Ghirab | 50.1       | 119.9      | 170.0        | 56.9       | 45.5       |
|  Buzurgan   | 114.1      | 185.0      | 299.0        | 92.4       | 74.5       |
|  Fauqi      | 28.3       | 69.1       | 97.4         | 32.4       | 29.6       |
|  Total      | 192.5      | 373.9      | 566.4        | 181.7      | 149.6      |

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|   |  |
|--------|--|

| 1.4 | Net Present Value Summary |
|-----|---------------------------|

|  Discount Rate(%) |  Proved |  Proved plus Probable | Proved plus Probableplus Possible |
|------------------------|--------------|----------------------------|-----------------------------------|
| US$ MM                 | US$ MM       | US$ MM                     |
| 7.5                    | 22.1         | 143.5                      | 155.2                             |
| 10.0                   | -31.6        | 102.8                      | 114.5                             |
| 12.5                   | -80.7        | 65.8                       | 78.2                              |

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|   |  |
|--------|--|

| 2. | GEOLOGY SUMMARY |
|----|-----------------|

| 2.1 | Regional Geology |
|-----|------------------|

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|--------|--|

| 2.2 | Petroleum System |
|-----|------------------|

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|  Field                                  |  Block              |  Formation           |  Oil Group Reservoirs |
|----------------------------------------------|--------------------------|---------------------------|----------------------------|
|     Abu Ghirab           |   South (Main) |   Asmari        | Asmari-A                   |
| Asmari-B                                     |
| Asmari-C & Below C                       |
|  North                                  |  Asmari             | Asmari-A                  |
| Asmari-B                                     |
|       Buzurgan |    South  |    Mishrif | Mishrif-MA                 |
| Mishrif-MB1x (MB11&MB12)                 |
| Mishrif-MB21                                 |
| Mishrif-MB22                                 |
| Mishrif-MC (MC1+MC2)                         |
|   North                            |   Mishrif      | Mishrif-MA                |
| Mishrif-MB1x (MB11&MB12)                 |
| Mishrif-MB21                                 |
| Mishrif-MC  (MC1 & MC2)        |
|     Fauqi                |                     |   Asmari        | Asmari-A                   |
| Asmari-B                                     |
| Asmari-C & D                             |
|   Mishrif                          | Mishrif-MA               |
| Mishrif-MB21                                 |
| Mishrif-MB22+MC                              |

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|   |  |
|--------|--|

|   | (a) | 9% of seismic data were not correctly displayed. |
|--------|-----|--------------------------------------------------|

|   | (b) | 30% of seismic lines were not properly projected, even though they were loaded using  the same coordinate system,  as provided  by  CNOOC.   The coordinate system provided was used to load the other seismic data which seems to be correctly.  It is important to mention, that the other 38 seismic lines that cover these fields, do not have apparent projection or displacement issues. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | 40% of the seismic lines displayed over the field structures were not interpreted. |
|--------|-----|------------------------------------------------------------------------------------|

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| Field                        | Block             |  Oil GroupReservoirs   |  GRV (Acre-Ft) |  NTG |  Porosity |  Sw |  FVF |  GCA STOIIP (MMstb) |
|------------------------------|-------------------|-----------------------------|---------------------|-----------|----------------|----------|-----------|--------------------------|
| Low                          | Best              | High                        | Low                 | Best      | High           | Low      | Best      | High                     | Low | Best | High | Low | Best | High | Low | Best | High |
| Abu Ghirab                   | South             | Asm ari-A                   | 838,277             | 1,128,917 | 1,753,652      | 0.41     | 0.43      | 0.45                     | 0.133 | 0.140 | 0.147 | 0.24 | 0.23 | 0.22 | 1.39 | 1.36 | 1.33 | 196 | 301 | 533 |
| Asm ari-B                    | 1,310,841         | 1,590,294                   | 1,767,191           | 0.82      | 0.86           | 0.90     | 0.152     | 0.160                    | 0.168 | 0.30 | 0.29 | 0.28 | 1.39 | 1.36 | 1.33 | 633 | 887 | 1,131 |
| Asm ari-C & Below C      | 184,649           | 357,810                     | 556,921             | 0.36      | 0.38           | 0.40     | 0.200     | 0.210                    | 0.221 | 0.55 | 0.52 | 0.49 | 1.39 | 1.36 | 1.33 | 34 | 79 | 146 |
| North                        | Asm ari-A         | 105,149                     | 298,910             | 401,100   | 0.24           | 0.25     | 0.26      | 0.088                    | 0.093 | 0.098 | 0.53 | 0.50 | 0.48 | 1.39 | 1.36 | 1.33 | 6 | 20 | 31 |
| Asm ari-B                    | 139,848           | 499,792                     | 965,988             | 0.15      | 0.16           | 0.17     | 0.116     | 0.123                    | 0.129 | 0.50 | 0.48 | 0.45 | 1.39 | 1.36 | 1.33 | 7 | 29 | 67 |
|                         | TOTAL             |                        |                |      |           |     |      |                     |   |   |   |   |   |   |   |   | 876 | 1,316 | 1,908 |
|                         |              |                        |                |      |           |     |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Buzurgan                     | South             | Mis hrif-MA                 | -                   | -         | -              | 0.02     | 0.02      | 0.02                     | 0.092 | 0.097 | 0.101 | 0.59 | 0.57 | 0.54 | 1.44 | 1.41 | 1.38 | - | - | - |
| Mis hrif-MB1x(MB11&MB12) | 2,011,378         | 2,926,996                   | 4,656,084           | 0.45      | 0.48           | 0.50     | 0.119     | 0.125                    | 0.131 | 0.35 | 0.33 | 0.32 | 1.44 | 1.41 | 1.38 | 378 | 638 | 1,171 |
| Mis hrif-MB21                | 2,754,152         | 3,021,931                   | 4,138,322           | 0.83      | 0.88           | 0.92     | 0.137     | 0.145                    | 0.152 | 0.24 | 0.23 | 0.22 | 1.44 | 1.41 | 1.38 | 1,291 | 1,626 | 2,542 |
| Mis hrif-MB22                | 209,812           | 505,885                     | 639,304             | 0.29      | 0.31           | 0.32     | 0.130     | 0.137                    | 0.144 | 0.52 | 0.49 | 0.47 | 1.44 | 1.41 | 1.38 | 21 | 59 | 88 |
| Mis hrif-MC (MC1+MC2)        | 436,593           | 860,806                     | 1,073,545           | 0.39      | 0.41           | 0.43     | 0.120     | 0.127                    | 0.133 | 0.53 | 0.51 | 0.48 | 1.44 | 1.41 | 1.38 | 51 | 120 | 178 |
| North                        | Mis hrif-MA       | 37,439                      | 106,892             | 193,866   | 0.26           | 0.28     | 0.29      | 0.187                    | 0.197 | 0.207 | 0.42 | 0.40 | 0.38 | 1.44 | 1.41 | 1.38 | 6 | 19 | 41 |
| Mis hrif-MB1x(MB11&MB12) | 115,340           | 540,324                     | 1,080,477           | 0.45      | 0.48           | 0.50     | 0.135     | 0.142                    | 0.149 | 0.34 | 0.32 | 0.31 | 1.44 | 1.41 | 1.38 | 25 | 136 | 313 |
| Mis hrif-MB21                | 416,706           | 729,584                     | 1,672,970           | 0.61      | 0.65           | 0.68     | 0.138     | 0.145                    | 0.152 | 0.48 | 0.46 | 0.44 | 1.44 | 1.41 | 1.38 | 98 | 203 | 545 |
| Mis hrif-MC (MC1&MC2)    | 95,202            | 518,613                     | 630,378             | 0.44      | 0.47           | 0.49     | 0.118     | 0.125                    | 0.131 | 0.32 | 0.30 | 0.29 | 1.44 | 1.41 | 1.38 | 18 | 115 | 161 |
|                         | TOTAL             |                        |                |      |           |     |      |                     |   |   |   |   |   |   |   |   | 1,889 | 2,917 | 5,039 |
|                         |              |                        |                |      |           |     |      |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Fauqi                        | Asmari            | Asm ari-A                   | 650,759             | 780,595   | 1,140,640      | 0.65     | 0.68      | 0.75                     | 0.124 | 0.130 | 0.137 | 0.33 | 0.30 | 0.29 | 1.24 | 1.22 | 1.20 | 217 | 307 | 540 |
| Asm ari-B                    | 825,476           | 1,235,274                   | 1,457,985           | 0.61      | 0.65           | 0.71     | 0.164     | 0.173                    | 0.181 | 0.48 | 0.44 | 0.42 | 1.24 | 1.22 | 1.20 | 268 | 491 | 710 |
| Asm ari-C & D            | 65,904            | 142,126                     | 237,513             | 0.06      | 0.07           | 0.07     | 0.171     | 0.180                    | 0.189 | 0.41 | 0.37 | 0.35 | 1.24 | 1.22 | 1.20 | 3 | 7 | 13 |
|                         | Sub Total Asmari  |                        |                |      |           |     |      |                     |   |   |   |   |   |   |   |   | 487 | 805 | 1,264 |
| Mishrif                      | Mis hrif-MA       | 65,481                      | 143,472             | 221,414   | 0.56           | 0.59     | 0.65      | 0.110                    | 0.116 | 0.122 | 0.29 | 0.26 | 0.25 | 1.49 | 1.46 | 1.43 | 15 | 38 | 71 |
| Mis hrif-MB21                | 1,654,713         | 2,241,936                   | 2,860,688           | 0.53      | 0.56           | 0.61     | 0.118     | 0.124                    | 0.130 | 0.39 | 0.36 | 0.34 | 1.49 | 1.46 | 1.43 | 327 | 529 | 818 |
| Mis hrif-MB22+MC             | 72,218            | 213,380                     | 357,346             | 0.42      | 0.44           | 0.49     | 0.123     | 0.129                    | 0.136 | 0.49 | 0.44 | 0.42 | 1.49 | 1.46 | 1.43 | 10 | 36 | 74 |
|                         | Sub Total Mishrif |                        |                |      |           |     |      |                     |   |   |   |   |   |   |   |   | 351 | 604 | 963 |
|                         | TOTAL             |                        |                |      |           |     |      |                     |   |   |   |   |   |   |   |   | 838 | 1,409 | 2,227 |
|                         |              | TOTAL MISSAN FIELDS (MMstb) |                |      |           |     |      |                     |   |   |   |   |   |   |   |   | 3,603 | 5,642 | 9,174 |

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|  Field                            |          |  Abu Ghirab |  Buzurgan |  Fauqi | TOTALMISSAN |
|----------------------------------------|---------------|------------------|----------------|-------------|-------------|
|    Deviated producers   | 2011 (actual) | 0                | 4              | 0           | 4           |
| 2012                                   | 28            | 24               | 11             | 63          |
| 2013                                   | 11            | 18               | 21             | 50          |
| Total                                  | 39            | 46               | 32             | 117         |
|    Horizontal producers | 2011 (actual) | 0                | 0              | 0           | 0           |
| 2012                                   | 0             | 3                | 2              | 5           |
| 2013                                   | 0             | 0                | 5              | 5           |
| Total                                  | 0             | 3                | 7              | 10          |
| TOTAL NEW WELLS                        |          | 39               | 49             | 39          | 127         |
| TOTALINTERVENTIONS                     |          |  23         |  21       |  27    |  71    |

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|   |  |
|--------|--|

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|   |  |
|--------|--|

|   Field | Low Case   | Mid Case   | High Case |
|-------------------|------------|------------|-----------|
| Oil(MMbbl)        | Oil(MMbbl) | Oil(MMbbl) |
| b                 | Decline    | b          | Decline   | b | Decline |
| Abu Ghirab        | 0          | 19%        | 0         | 13% | 0.25 | 13% |
| Buzurgan          | 0          | 13%        | 0         | 7% | 0.40 | 7% |
| Fauqi             | 0          | 17%        | 0         | 13% | 0.70 | 13% |

----

|   |  |
|--------|--|

| ● | Aquifer size and activity, which would influence the movement of water through the reservoir towards the wells.   There is very little information available to date regarding the aquifer properties and its dynamic properties. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The probable existence of high permeability streaks throughout the fracture system that would allow water to prematurely reach some wells.  Some wells have shown high water-cut despite being completed near the crest of the structure and a large distance from the contact.   Likewise, wells completed closer to the contact have not shown any water production.  These facts suggest that water flow along the natural fracture system is likely. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

|  Field | Low Case  | Mid Case  | High Case |  DeclineRate |
|-------------|-----------|-----------|-----------|-------------------|
| Oil(bopd)   | Oil(bopd) | Oil(bopd) |
| Abu Ghirab  | 2,350     | 2,700     | 3,240     | 19%               |
| Buzurgan    | 1,925     | 2,226     | 2,605     | 13%               |
| Fauqi       | 1,207     | 1,372     | 1,654     | 17%               |

----

|   |  |
|--------|--|

|                                    | Low Case   | Mid Case   | High Case |
|-----------------------------------------|------------|------------|-----------|
| Oil(MMbbl)                              | Oil(MMbbl) | Oil(MMbbl) |
| STOIIP                                  | 3,603      | 5,642      | 9,174     |
| Cum. Prodn. to 31st December, 2011 | 457.5      |
| Cum RF to 31st December, 2011      | 12.7%      | 8.1%       | 5.0%      |
| Rehab EUR                               | 560        | 740        | 889       |
| Rehab RF                                | 15.5%      | 13.1%      | 9.7%      |

----

|   |  |
|--------|--|

|   | ● | The Petroleum Costs (Opex and Capex components), as well as Supplementary Costs that were provided on an annual basis, were assumed to be incurred in equal amounts in each quarter. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The 2011 Rehabilitation Plan costs have been updated to reflect the estimated actual amounts spent, on the basis of the work completed, as provided by CNOOC. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Rehabilitation Plan is assumed to be carried out by end-2013, and no further Supplementary Costs and Petroleum Cost Capex are expected to be incurred in the subsequent years; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Petroleum Cost Opex (based on US$3.00/bbl) at the end of the Development Period was used to project the annual Opex for the remainder of the contract, and results in costs that are somewhat higher than during the Rehabilitation Phase; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Contractor is assumed not to incur any sustaining Capex or Abandonment costs during the Contract Term. |
|--------|---------|------------------------------------------------------------------------------------------------------------|

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|   |  |
|--------|--|

|   | PDP   | 1P    |
|--------|-------|-------|
| CAPEX  | OPEX  | Supp. | NCR | CAPEX | OPEX | Supp. | NCR |
| 2011   | 166.6 | 44.7  | - | - | 166.6 | 44.7 | - | - |
| 2012   | -     | 203.4 | - | 5.0 | 2,263.0 | 203.4 | 237.0 | 5.0 |
| 2013   | -     | 77.6  | - | 5.0 | 1,874.9 | 226.7 | 334.4 | 5.0 |
| 2014   | -     | 65.7  | - | 5.0 | - | 219.6 | - | 5.0 |
| 2015   | -     | 55.7  | - | 5.0 | - | 184.9 | - | 5.0 |
| 2016   | -     | 47.5  | - | - | - | 156.3 | - | - |
| 2017   | -     | 40.2  | - | - | - | 131.6 | - | - |
| 2018   | -     | 34.2  | - | - | - | 111.1 | - | - |
| 2019   | -     | 29.1  | - | - | - | 94.0 | - | - |
| 2020   | -     | 24.9  | - | - | - | 79.8 | - | - |
| 2021   | -     | 21.2  | - | - | - | 67.4 | - | - |
| 2022   | -     | 18.1  | - | - | - | 57.2 | - | - |
| 2023   | -     | 15.5  | - | - | - | 48.6 | - | - |
| 2024   | -     | 13.3  | - | - | - | 41.4 | - | - |
| 2025   | -     | 11.3  | - | - | - | 35.1 | - | - |
| 2026   | -     | 9.7   | - | - | - | 29.9 | - | - |
| 2027   | -     | 8.3   | - | - | - | 25.5 | - | - |
| 2028   | -     | 7.2   | - | - | - | 21.8 | - | - |
| 2029   | -     | 6.1   | - | - | - | 18.6 | - | - |
| TOTAL  | 166.6 | 733.7 | 0.0 | 20.0 | 4,304.5 | 1,797.6 | 571.4 | 20.0 |

----

|   |  |
|--------|--|

|   | 2P      | 3P      |
|--------|---------|---------|
| CAPEX  | OPEX    | Supp.   | NCR | CAPEX | OPEX | Supp. | NCR |
| 2011   | 166.6   | 44.7    | - | - | 166.6 | 44.7 | - | - |
| 2012   | 2,263.0 | 203.4   | 237.0 | 5.0 | 2,263.0 | 203.4 | 237.0 | 5.0 |
| 2013   | 1,874.9 | 274.9   | 334.4 | 5.0 | 1,874.9 | 317.5 | 334.4 | 5.0 |
| 2014   | -       | 274.3   | - | 5.0 | - | 319.7 | - | 5.0 |
| 2015   | -       | 234.8   | - | 5.0 | - | 274.5 | - | 5.0 |
| 2016   | -       | 201.9   | - | - | - | 237.2 | - | - |
| 2017   | -       | 172.9   | - | - | - | 204.4 | - | - |
| 2018   | -       | 148.8   | - | - | - | 177.2 | - | - |
| 2019   | -       | 128.4   | - | - | - | 154.2 | - | - |
| 2020   | -       | 111.2   | - | - | - | 135.1 | - | - |
| 2021   | -       | 96.0    | - | - | - | 118.1 | - | - |
| 2022   | -       | 83.3    | - | - | - | 103.9 | - | - |
| 2023   | -       | 72.4    | - | - | - | 91.8 | - | - |
| 2024   | -       | 63.3    | - | - | - | 81.6 | - | - |
| 2025   | -       | 55.0    | - | - | - | 72.4 | - | - |
| 2026   | -       | 48.1    | - | - | - | 64.7 | - | - |
| 2027   | -       | 42.1    | - | - | - | 58.1 | - | - |
| 2028   | -       | 37.1    | - | - | - | 52.5 | - | - |
| 2029   | -       | 32.5    | - | - | - | 47.3 | - | - |
| TOTAL  | 4,304.5 | 2,325.1 | 571.4 | 20.0 | 4,304.5 | 2,758.3 | 571.4 | 20.0 |

----

|   |  |
|--------|--|

|   | ● | The Contractor is entitled to be reimbursed for its actual costs and paid a profit element in the form of Service Fees and Supplementary Fees to be taken in cash or in kind; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Service Fees represent the payment of the Remuneration Fee as well as the reimbursement of Petroleum Costs; |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   | ● | Service Fees are payable from 50% of the Contract Area’s Deemed Revenue attributable to the Incremental Production, defined as the production above a contractually specified Baseline Production level that declines by 5% per annum from the Initial Production Rate of 88,000 Bbl/d over the life of the Contract; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Remuneration Fees are generated for each barrel of Incremental Production, according to the sliding scale shown below. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|  R-Factor   | Remuneration Fee(U.S. $/Bbl) |
|------------------|------------------------------|
| < 1.0         | 2.30                         |
| 1.0 – 1.25 | 1.84                         |
| 1.25 – 1.5 | 1.38                         |
| 1.5 – 2.0  | 1.15                         |
| > 2.0         | 0.69                         |

|   | ● | Supplementary Fees provide a separate recovery mechanism for costs that are not strictly Petroleum Costs but nevertheless essential to effective performance of the contract, such as costs associated with de-mining and the removal of war remnants, construction of facilities downstream of the contractually-defined Transfer Point and the remediation of existing environmental problems. Supplementary Fees are payable from 10% of the revenues attributable to the Baseline Production; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Contractor is subject to income tax in the Republic of Iraq.  The Contract also “stabilizes” the Contractor for taxes imposed in excess of 35% of the Remuneration Fees received; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

|   | ● | The Contractor is required to contribute a non-recoverable amount of U.S.$5.00 MM annually for training purposes. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Firstly, if the cumulative Operating Revenue from the Effective Date goes positive at some point, then the volumes can be classified as Reserves |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Secondly, the year in which the Net Operating Revenue goes negative for the last time is the Economic Limit (EL) of the project.  The cumulative production from the Effective Date to the EL is the Gross Reserve volume for the particular case. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

|  Month  | SEC Brent Price(U.S.$/bbl) | Differential(%) | SOMO Iraq Price(U.S.$/bbl) |
|--------------|----------------------------|-----------------|----------------------------|
| Jan-11       | 93.70                      | 97%             | 90.78                      |
| Feb-11       | 100.45                     | 98%             | 98.44                      |
| Mar-11       | 113.22                     | 95%             | 107.13                     |
| Apr-11       | 118.62                     | 96%             | 114.36                     |
| May-11       | 124.89                     | 87%             | 108.26                     |
| Jun-11       | 116.43                     | 90%             | 105.18                     |
| Jul-11       | 109.51                     | 99%             | 108.80                     |
| Aug-11       | 115.98                     | 90%             | 104.92                     |
| Sep-11       | 117.45                     | 89%             | 104.90                     |
| Oct-11       | 104.37                     | 100%            | 104.04                     |
| Nov-11       | 106.66                     | 100%            | 106.60                     |
| Dec-11       | 108.94                     | 97%             | 106.18                     |
| Average/Used | 110.85                     | 95%             | 105.23                     |

|       | PDP        | PUD        | Total Proved | Probable   | Possible   |
|------------|------------|------------|--------------|------------|------------|
| Field      | Oil(MMbbl) | Oil(MMbbl) | Oil(MMbbl)   | Oil(MMbbl) | Oil(MMbbl) |
| Abu Ghirab | 0.0        | 18.6       | 18.6         | 1.4        | 1.0        |
| Buzurgan   | 0.0        | 23.5       | 23.5         | 3.6        | 2.0        |
| Fauqi      | 0.0        | 10.9       | 10.9         | 0.7        | 2.1        |
| Total      | 0.0        | 53.0       | 53.0         | 5.7        | 5.1        |

----

|   |  |
|--------|--|

|    | 7.5% (U.S.$ MM) | 10.0% (U.S.$ MM) | 12.5% (U.S.$ MM) |
|---------|-----------------|------------------|------------------|
| 1P Case | 22.1            | -31.6            | -80.7            |
| 2P Case | 143.5           | 102.8            | 65.8             |
| 3P Case | 155.2           | 114.5            | 78.2             |

----

|   |  |
|--------|--|

----

|   |  |
|--------|--|

----

|   |  |
|--------|--|

|   | (i) | Same geological formation (but not necessarily in pressure communication with the reservoir of interest); |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (ii) | Same environment of deposition; |
|--------|------|---------------------------------|

|   | (iii) | Similar geological structure; and  |
|--------|-------|-----------------------------------------|

|   | (iv) | Same drive mechanism. |
|--------|------|-----------------------|

----

| 1 | Extracted from 17 CFR Parts 210, 211, 229, and 249 [Release Nos. 33-8995; 34-59192; FR-78; File No. S7-15-08] RIN 3235-AK00]. |
|---|-------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

|   | (ii) | Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Gain access to and prepare well locations for drilling, including surveying well locations  for  the  purpose  of  determining  specific  development  drilling  sites, clearing ground, draining, road building, and relocating public roads, gas lines, and power lines, to the extent necessary in developing the proved reserves. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Drill and equip development wells, development-type stratigraphic test wells, and service wells, including the costs of platforms and of well equipment such as casing, tubing, pumping equipment, and the wellhead assembly. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Acquire, construct, and install production facilities such as lease flow lines, separators, treaters, heaters, manifolds, measuring devices, and production storage tanks, natural gas cycling and processing plants, and central utility and waste disposal systems. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Provide improved recovery systems. |
|--------|------|------------------------------------|

|   | (i) | Costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are sometimes referred to as geological and geophysical or "G&G" costs. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Costs of carrying and retaining undeveloped properties, such as delay rentals, ad |
|--------|------|-----------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

|   | (iii) | Dry hole contributions and bottom hole contributions. (iv)Costs of drilling and equipping exploratory wells. |
|--------|-------|--------------------------------------------------------------------------------------------------------------|

|   | (iv) | Costs of drilling and equipping exploratory wells. |
|--------|------|----------------------------------------------------|

|   | (v) | Costs of drilling exploratory-type stratigraphic test wells. |
|--------|-----|--------------------------------------------------------------|

|   | (i) | Oil and gas producing activities include: |
|--------|-----|-------------------------------------------|

|   | (A) | The search for crude oil, including condensate and natural gas liquids, or natural gas (“oil and gas”) in their natural states and original locations; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | The acquisition of property rights or properties for the purpose of further exploration or for the purpose of removing the oil or gas from such properties; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | The construction, drilling, and production activities necessary to retrieve oil and gas from their natural reservoirs, including the acquisition, construction, installation, and maintenance of field gathering and storage systems, such as: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Lifting the oil and gas to the surface; and |
|--------|-----|---------------------------------------------|

|   | (2) | Gathering, treating, and field processing (as in the case of processing gas to extract liquid hydrocarbons); and |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (D) | Extraction of saleable hydrocarbons, in the solid, liquid, or gaseous state, from oil sands, shale, coalbeds, or other nonrenewable natural resources which are intended to be upgraded into synthetic oil or gas, and activities undertaken with a view to such extraction. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The first point at which oil, gas, or gas liquids, natural or synthetic, are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

|   | b. | In the case of natural resources that are intended to be upgraded into synthetic oil or gas, if those natural resources are delivered to a purchaser prior to upgrading, the first point at which the natural resources are delivered to a main pipeline, a common carrier, a refinery, a marine terminal, or a facility which upgrades such natural resources into synthetic oil or gas. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Oil and gas producing activities do not include: |
|--------|------|--------------------------------------------------|

|   | (A) | Transporting, refining, or marketing oil and gas; |
|--------|-----|---------------------------------------------------|

|   | (B) | Processing of produced oil, gas or natural resources that can be upgraded into synthetic oil or gas by a registrant that does not have the legal right to produce or a revenue interest in such production; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | Activities relating to the production of natural resources other than oil, gas, or natural resources from which synthetic oil and gas can be extracted; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | Production of geothermal steam. |
|--------|-----|---------------------------------|

|   | (i) | When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves.  When probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed the proved plus probable plus possible reserves estimates. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Possible reserves may be assigned to areas of a reservoir adjacent to probable reserves where data control and interpretations of available data are progressively less certain.  Frequently, this will be in areas where geoscience and engineering data are unable to define clearly the area and vertical limits of commercial production from the reservoir by a defined project. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Possible reserves also include incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than the recovery quantities assumed for probable reserves. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | The proved plus probable and proved plus probable plus possible reserves estimates must be based on reasonable alternative technical and commercial interpretations within the reservoir or subject project that are clearly documented, including comparisons to results in successful similar projects. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Possible  reserves  may  be  assigned  where  geoscience  and  engineering  data identify directly adjacent portions of a reservoir within the same accumulation that may  be  separated  from  proved  areas  by  faults  with  displacement  less  than formation thickness or other geological discontinuities and that have not been penetrated by a wellbore, and the registrant believes that such adjacent portions are in communication with the known (proved) reservoir.  Possible reserves may be assigned to areas that are structurally higher or lower than the proved area if these areas are in communication with the proved reservoir. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Pursuant to paragraph (a)(22)(iii) of this section, where direct observation has |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

|   | defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves should be assigned in the structurally higher portions of the reservoir above the HKO only if the higher contact can be established with reasonable certainty through reliable technology.  Portions of the reservoir that do not meet this reasonable certainty criterion may be assigned as probable and possible oil or gas based on reservoir fluid properties and pressure gradient interpretations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (18) | Probable reserves.  Probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | When deterministic methods are used, it is as likely as not that actual remaining quantities recovered will exceed the sum of estimated proved plus probable reserves.  When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable reserves estimates.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | Probable reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control or interpretations of available data are less certain, even if the interpreted reservoir continuity of structure or productivity does not meet the reasonable certainty criterion.   Probable reserves may be assigned to areas that  are  structurally  higher  than  the  proved  area   if   these  areas  are   in communication with the proved reservoir.  |
| (iii)  | Probable   reserves   estimates   also   include   potential   incremental   quantities associated with a greater percentage recovery of the hydrocarbons in place than assumed for proved reserves.                                                                                                                                                                                                                                                                                                                   |
| (iv)   | See also guidelines in paragraphs (a)(17)(iv) and (a)(17)(vi) of this section.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

| (19)   | Probabilistic estimate. The method of estimation of reserves or resources is called probabilistic when  the full range of  values that could reasonably occur for each unknown parameter (from the geoscience and engineering data) is used to generate a full range of possible outcomes and their associated probabilities of occurrence. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                      |
| (20)   | Production costs.                                                                                                                                                                                                                                                                                                                                                         |

|   | (i) | Costs incurred to operate and maintain wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities, they become part of the cost of oil and gas produced. Examples of production costs (sometimes called lifting costs) are: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A)    | Costs of labor to operate the wells and related equipment and facilities. (B)Repairs and maintenance.                      |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                       |
|   | (C)    | Materials, supplies, arid fuel consumed and supplies utilized in operating the wells and related equipment and facilities. |
|   |   |                                                                                                                       |
|   | (D)    | Property taxes and insurance applicable to proved properties and wells and related equipment and facilities.               |
|   |   |                                                                                                                       |
|   | (E)    | Severance taxes.                                                                                                           |

|   | (ii) | Some support equipment or facilities may serve two or more oil and gas producing |
|--------|------|----------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

| (22)  |    Proved oil and gas reserves.  Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.  The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The area of the reservoir considered as proved includes: |
|--------|-----|----------------------------------------------------------|

|   | (A) | The area identified by drilling and limited by fluid contacts, if any, and |
|--------|-----|----------------------------------------------------------------------------|

|   | (B) | Adjacent  undrilled  portions  of  the  reservoir  that  can,  with  reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed  program  in  the  reservoir  or  an  analogous  reservoir,  or  other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | The project has been approved for development by all necessary parties and entities, including governmental entities. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (v) | Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

----

|   |  |
|--------|--|

|   | (i) | Reserves  on  undrilled  acreage  shall  be  limited  to  those  directly  offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  |
|--------|--|

----

|   |  |
|--------|--|

| ABEX          | Abandonment Expenditure                                      |
|---------------|--------------------------------------------------------------|
| ACQ           | Annual Contract Quantity                                     |
| oAPI          | Degrees API (American Petroleum Institute)                   |
| AAPG          | American Association of Petroleum Geologists                 |
| AVO           | Amplitude versus Offset                                      |
| A$            | Australian Dollars                                           |
| B             | Billion (109)                                                |
| Bbl           | Barrels                                                      |
| /Bbl          | per barrel                                                   |
| BBbl          | Billion Barrels                                              |
| BHA           | Bottom Hole Assembly                                         |
| BHC           | Bottom Hole Compensated                                      |
| Bscf or Bcf   | Billion standard cubic feet                                  |
| Bscfd or Bcfd | Billion standard cubic feet per day                          |
| Bm3           | Billion cubic metres                                         |
| bcpd          | Barrels of condensate per day                                |
| BHP           | Bottom Hole Pressure                                         |
| blpd          | Barrels of liquid per day                                    |
| bpd           | Barrels per day                                              |
| boe           | Barrels of oil equivalent @ xxx mcf/Bbl                      |
| boepd         | Barrels of oil equivalent per day @ xxx mcf/Bbl              |
| BOP           | Blow Out Preventer                                           |
| bopd          | Barrels oil per day                                          |
| bwpd          | Barrels of water per day                                     |
| BS&W      | Bottom sediment and water                                    |
| BTU           | British Thermal Units                                        |
| bwpd          | Barrels water per day                                        |
| CBM           | Coal Bed Methane                                             |
| CO2           | Carbon Dioxide                                               |
| CAPEX         | Capital Expenditure                                          |
| CCGT          | Combined Cycle Gas Turbine                                   |
| cm            | centimetres                                                  |
| CMM           | Coal Mine Methane                                            |
| CNG           | Compressed Natural Gas                                       |
| Cp            | Centipoise (a measure of viscosity)                          |
| CSG           | Coal Seam Gas                                                |
| CT            | Corporation Tax                                              |
| DCQ           | Daily Contract Quantity                                      |
| Deg C         | Degrees Celsius                                              |
| Deg F         | Degrees Fahrenheit                                           |
| DHI           | Direct Hydrocarbon Indicator                                 |
| DST           | Drill Stem Test                                              |
| DWT           | Dead-weight ton                                              |
| E&A       | Exploration & Appraisal                                  |
| E&P       | Exploration and Production                                   |
| EBIT          | Earnings before Interest and Tax                             |
| EBITDA        | Earnings before interest, tax, depreciation and amortisation |
| EI            | Entitlement Interest                                         |
| EIA           | Environmental Impact Assessment                              |
| EMV           | Expected Monetary Value                                      |
| EOR           | Enhanced Oil Recovery                                        |
| EUR           | Estimated Ultimate Recovery                                  |
| FDP           | Field Development Plan                                       |
| FEED          | Front End Engineering and Design                             |
| FPSO          | Floating Production, Storage and Offloading                  |
| FSO           | Floating Storage and Offloading                              |
| ft            | Foot/feet                                                    |
| Fx            | Foreign Exchange Rate                                        |

----

|   |  |
|--------|--|

| g             | gram                                                               |
|---------------|--------------------------------------------------------------------|
| g/cc          | grams per cubic centimetre                                         |
| gal           | gallon                                                             |
| gal/d         | gallons per day                                                    |
| G&A       | General and Administrative costs                                   |
| GBP           | Pounds Sterling                                                    |
| GDT           | Gas Down to                                                        |
| GIIP          | Gas initially in place                                             |
| GJ            | Gigajoules (one billion Joules)                                    |
| GOR           | Gas Oil Ratio                                                      |
| GTL           | Gas to Liquids                                                     |
| GWC           | Gas water contact                                                  |
| HDT           | Hydrocarbons Down to                                               |
| HSE           | Health, Safety and Environment                                     |
| HSFO          | High Sulphur Fuel Oil                                              |
| HUT           | Hydrocarbons up to                                                 |
| H2S           | Hydrogen Sulphide                                                  |
| IOR           | Improved Oil Recovery                                              |
| IPP           | Independent Power Producer                                         |
| IRR           | Internal Rate of Return                                            |
| J             | Joule (Metric measurement of energy) I kilojoule = 0.9478 BTU)     |
| k             | Permeability                                                       |
| KB            | Kelly Bushing                                                      |
| KJ            | Kilojoules (one Thousand Joules)                                   |
| kl            | Kilolitres                                                         |
| km            | Kilometres                                                         |
| km2           | Square kilometres                                                  |
| kPa           | Thousands of Pascals (measurement of pressure)                     |
| KW            | Kilowatt                                                           |
| KWh           | Kilowatt hour                                                      |
| LKG           | Lowest Known Gas                                                   |
| LKH           | Lowest Known Hydrocarbons                                          |
| LKO           | Lowest Known Oil                                                   |
| LNG           | Liquefied Natural Gas                                              |
| LoF           | Life of Field                                                      |
| LPG           | Liquefied Petroleum Gas                                            |
| LTI           | Lost Time Injury                                                   |
| LWD           | Logging while drilling                                             |
| m             | Metres                                                             |
| M             | Thousand                                                           |
| m3            | Cubic metres                                                       |
| Mcf or Mscf   | Thousand standard cubic feet                                       |
| MCM           | Management Committee Meeting                                       |
| MMcf or MMscf | Million standard cubic feet                                        |
| m3d           | Cubic metres per day                                               |
| mD            | Measure of Permeability in millidarcies                            |
| MD            | Measured Depth                                                     |
| MDT           | Modular Dynamic Tester                                             |
| Mean          | Arithmetic average of a set of numbers                             |
| Median        | Middle value in a set of values                                    |
| MFT           | Multi Formation Tester                                             |
| mg/l          | milligrams per litre                                               |
| MJ            | Megajoules (One Million Joules)                                    |
| Mm3           | Thousand Cubic metres                                              |
| Mm3d          | Thousand Cubic metres per day                                      |
| MM            | Million                                                            |
| MMBbl         | Millions of barrels                                                |
| MMBTU         | Millions of British Thermal Units                                  |
| Mode          | Value that exists most frequently in a set of values = most likely |
| Mscfd         | Thousand standard cubic feet per day                               |
| MMscfd        | Million standard cubic feet per day                                |
| MW            | Megawatt                                                           |
| MWD           | Measuring While Drilling                                           |
| MWh           | Megawatt hour                                                 |

----

|   |  |
|--------|--|

| mya         | Million years ago                                   |
|-------------|-----------------------------------------------------|
| NGL         | Natural Gas Liquids                                 |
| N2          | Nitrogen                                            |
| NPV         | Net Present Value                                   |
| OBM         | Oil Based Mud                                       |
| OCM         | Operating Committee Meeting                         |
| ODT         | Oil down to                                         |
| OPEX        | Operating Expenditure                               |
| OWC         | Oil Water Contact                                   |
| p.a.        | Per annum                                           |
| Pa          | Pascals (metric measurement of pressure)            |
| P&A     | Plugged and Abandoned                               |
| PDP         | Proved Developed Producing                          |
| PI          | Productivity Index                                  |
| PJ          | Petajoules (1015 Joules)                       |
| PSDM        | Post Stack Depth Migration                          |
| psi         | Pounds per square inch                              |
| psia        | Pounds per square inch absolute                     |
| psig        | Pounds per square inch gauge                        |
| PUD         | Proved Undeveloped                                  |
| PVT         | Pressure volume temperature                         |
| P10         | 10% Probability                                     |
| P50         | 50% Probability                                     |
| P90         | 90% Probability                                     |
| Rf          | Recovery factor                                     |
| RFT         | Repeat Formation Tester                             |
| RT          | Rotary Table                                        |
| Rw          | Resistivity of water                                |
| SCAL        | Special core analysis                               |
| cf or scf   | Standard Cubic Feet                                 |
| cfd or scfd | Standard Cubic Feet per day                         |
| scf/ton     | Standard cubic foot per ton                         |
| SL          | Straight line (for depreciation)                    |
| so          | Oil Saturation                                      |
| SPE         | Society of Petroleum Engineers                      |
| SPEE        | Society of Petroleum Evaluation Engineers           |
| ss          | Subsea                                              |
| stb         | Stock tank barrel                                   |
| STOIIP      | Stock tank oil initially in place                   |
| sw          | Water Saturation                                    |
| T           | Tonnes                                              |
| TD          | Total Depth                                         |
| Te          | Tonnes equivalent                                   |
| THP         | Tubing Head Pressure                                |
| TJ          | Terajoules (1012 Joules)                       |
| Tscf or Tcf | Trillion standard cubic feet                        |
| TCM         | Technical Committee Meeting                         |
| TOC         | Total Organic Carbon                                |
| TOP         | Take or Pay                                         |
| Tpd         | Tonnes per day                                      |
| TVD         | True Vertical Depth                                 |
| TVDss       | True Vertical Depth Subsea                          |
| USGS        | United States Geological Survey                     |
| US$         | United States Dollar                                |
| VSP         | Vertical Seismic Profiling                          |
| WC          | Water Cut                                           |
| WI          | Working Interest                                    |
| WPC         | World Petroleum Council                             |
| WTI         | West Texas Intermediate                             |
| wt%         | Weight percent                                      |
| 1H05        | First half (6 months) of 2005 (example of date)     |
| 2Q06        | Second quarter (3 months) of 2006 (example of date) |
| 2D          | Two dimensional                                     |
| 3D          | Three dimensional                                   |

----

|   |  |
|--------|--|

| 4D | Four dimensional                       |
|----|---------------------------------------------|
| 1P | Proved Reserves                             |
| 2P | Proved plus Probable Reserves               |
| 3P | Proved plus Probable plus Possible Reserves |
| %  | Percentage                                  |

----

|   |  |
|--------|--|

----

|   |  |
|--------|--|

| Field:                                                                                                                                                                                                                        | Missan    |    | Nominal Net Present Values |                                 | Nominal Net Present Values |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------|----------------------------|--------------------------------------|----------------------------|
| Case:                                                                                                                                                                                                                         | 1P        |    | as at  31-Dec-10 |                                 | as at  31-Dec-11 |
| G:WYD SmartWare_swstori6C.t65280\Volum e_94000e68 d4e5 11df9341 028037ec0200\Ptoject A'chiv e s\sing2011\k1810_cnooc missan k1810_summar y_010312  xls x)lo_gross | Disc Rate | Pre-Tax | Post-Tax                   |                                 | Disc Rate                  | Pre-Tax | Post-Tax |
|                                                                                                                                                                                                                          |      |    | 0.0%                       | 7.4                                  | -   51.8         |   | 0.0% | 276.2 | 217.0 |
|                                                                                                                                                                                                                          |      |    | 5.0%                       | -    136.9            | -  185.2         |   | 5.0% | 131.7 | 81.0 |
| Comments:                                                                                                                                                                                                                     |      |    | 7.5%                       | -     194.9 | - 238.7                    |   | 7.5% | 69.2 | 22.1 |
|                                                                                                                                                                                                                          |      |    | 10.0%                      | -     245.1 | - 285.0                    |   | 10.0% | 12.3 | 31.6 |
|                                                                                                                                                                                                                          |      |    | 12.5%                      | -     288.7 | - 325.2                    |   | 12.5% | 39.7 | 80.7 |
|                                                                                                                                                                                                                          |      |    | 15.0%                      | -     326.5 | - 359.9                    |   | 15.0% | 87.2 | 125.6 |
| Cost NWI:                                                                                                                                                                                                                     | 85.00%    |    | IRR                        | 0.2%                                 | -   1.6%         |   | IRR | 10.6% | 8.5% |

|   |  Costs Incurred by Company |  Revenue Received by Contractor |   |  Company |
|--------|---------------------------------|--------------------------------------|--------|---------------|

| PeriodBeginning           | Oil           | Field        | CapitalCosts   | OperatingCosts | Supp. Costs | Non-AllowableCosts | Bonus & Training | Tot. Comp.  | Pet.Costs          | Supp. Costs + Int. | Remuner-ation   | Cont-ractor     |  StatePartner |  Comp-any     |  PreTax         | Corp-orate       | PostTax    | Field Revenue less Capex/ Opex/Supp CostsNCFUS$ M M | EntitlementVolume  | EntitlementVolume |
|---------------------------|---------------|--------------|----------------|----------------|-------------|--------------------|----------------------|-------------|--------------------|--------------------|-----------------|-----------------|--------------------|--------------------|----------------------|------------------|------------|-----------------------------------------------------|-------------------------|-------------------|
|                      | ProductionMMB | PriceUS$/Bbl | RevenueUS$ M M | PaidUS$ M M    | PaidUS$ M M | PaidUS$ M M        | PaidUS$ M M          | PaidUS$ M M |  CostsUS$ M M | ReceiveUS$ M M     | ReceivedUS$ M M | ReceivedUS$ M M | RevenueUS$ M M     |  CarryUS$ M M |  RevenueUS$ M M |  NCFUS$ M M | TaxUS$ M M | NCFUS$ M M                                          | Before TaxBbls          | After TaxBbls     |
| Jan-11                    | 29            | 105          | 3,010          | 142            | 38          |               |                 | 89          | 269                |               |            |            |               |               |                 | -  269 |       | - 269                                          | 2,830                   |              |   |
| Jan-12                    | 42            | 105          | 4,458          | 1,924          | 173         | 201                | 4                    | 4           | 2,306              | 827                | 151             |            | 978                |               | 978                  | -1,329           |       | -  1,329                                  | 2,160                   | 9,290,445         | 9,290,445 |
| Jan-13                    | 64            | 105          | 6,759          | 1,594          | 193         | 284                | 4                    | 4           | 2,079              | 2,107              | 240             |            | 2,347              |               | 2,347                | 268              |       | 268                                                 | 4,688                   | 22,306,363        | 22,306,363 |
| Jan-14                    | 62            | 105          | 6,548          |           | 187         |               | 4                    | 4           | 195                | 1,271              | 95              | 160             | 1,526              | 47                 | 1,486                | 1,291            | 42         | 1,249                                               | 6,361                   | 14,121,978        | 13,723,324 |
| Jan-15                    | 52            | 105          | 5,514          |           | 157         |               | 4                    | 4           | 166                | 164                |            | 25              | 189                | 7                  | 183                  | 17               | 7          | 11                                                  | 5,356                   | 1,740,383         | 1,677,150 |
| Jan-16                    | 44            | 105          | 4,661          |           | 133         |               |                 | 4           | 137                | 139                |            | 15              | 154                | 5                  | 150                  | 13               | 4          | 9                                                   | 4,528                   | 1,428,159         | 1,389,647 |
| Jan-17                    | 37            | 105          | 3,922          |           | 112         |               |                 | 4           | 116                | 117                |            | 10              | 126                | 3                  | 124                  | 8                | 3          | 5                                                   | 3,810                   | 1,178,486         | 1,154,151 |
| Jan-18                    | 31            | 105          |  3,314    |           | 94          |               |                 | 4           | 99                 | 99                 |            | 6               | 105                | 2                  | 103                  | 4                | 2          | 3                                                   | 3,219                   | 979,698           | 964,612 |
| Jan-19                    | 27            | 105          | 2,802          |           | 80          |               |                 | 4           | 84                 | 83                 |            | 4               | 87                 | 1                  | 86                   | 2                | 1          | 1                                                   | 2,722                   | 817,512           | 808,539 |
| Jan-20                    | 23            | 105          | 2,379          |           | 68          |               |                 | 4           | 72                 | 71                 |            | 2               | 73                 | 1                  | 72                   | 0                | 1          | 0                                                   | 2,311                   | 686,528           | 681,477 |
| Jan-21                    | 19            | 105          | 2,011          |           | 57          |               |                 | 4           | 62                 | 60                 |            | 3               | 63                 | 1                  | 62                   | 1                | 1          | 0                                                   | 1,953                   | 592,401           | 583,811 |
| Jan-22                    | 16            | 105          | 1,706          |           | 49          |               |                 | 4           | 53                 | 43                 |            | 2               | 45                 | 1                  | 44                   |             | 0          |                                                | 1,657                   | 422,673           | 418,282 |
| Jan-23                    | 14            | 105          | 1,449          |           | 41          |               |                 | 4           | 46                 |               |            |            |               |               |                 |             |       |                                                | 1,407                   |              |   |
| Jan-24                    | 12            | 105          | 1,235          |           | 35          |               |                 | 4           | 39                 |               |            |            |               |               |                 |             |       |                                                | 1,200                   |              |   |
| Jan-25                    | 10            | 105          | 1,048          |           | 30          |               |                 | 4           | 34                 |               |            |            |               |               |                 |             |       |                                                | 1,018                   |              |   |
| Jan-26                    | 8             | 105          | 892            |           | 25          |               |                 | 4           | 30                 |               |            |            |               |               |                 |             |       |                                                | 867                     |              |   |
| Jan-27                    | 7             | 105          | 761            |           | 22          |               |                 | 4           | 26                 |               |            |            |               |               |                 |             |       |                                                | 739                     |              |   |
| Jan-28                    | 6             | 105          | 651            |           | 19          |               |                 | 4           | 23                 |               |            |            |               |               |                 |             |       |                                                | 633                     |              |   |
| Jan-29                    | 5             | 105          | 554            |           | 16          |               |                 | 4           | 20                 |               |            |            |               |               |                 |             |       |                                                | 539                     |              |   |
| Jan-30                    |          | 105          |           |           |        |               |                 |        |               |               |            |            |               |               |                 |             |       |                                                |                    |              |   |
|                      |          |         |           |           |        |               |                 |        |               |               |            |            |               |               |                 |             |       |                                                |                    |              |   |
| Totals:                   | 510           | MMBbl        | 53,672         | 3,659          | 1,528       | 486                | 17                   | 166         | 5,855              | 4,980              | 486             | 227             | 5,693              | 67                 | 5,637                | 7                | 60         | -   52                                    | 47,999                  | 53,564,626        | 52,997,801 |
| As at 31st Dec 2011: | 45,169        | 53.6         | 53.0           |
|                      |          | (MMBbl)      | (MMBbl)        |

----

|   |  |
|--------|--|

| Field:                                                                                                                                                                           | Missan    |    | Nominal Net Present Values |                                 | Nominal Net Present Values |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------|----------------------------|--------------------------------------|----------------------------|
| Case:                                                                                                                                                                            | 2P        |    | as at  31-Dec-10 |                                 | as at  31-Dec-11 |
| G:\WD Sm artWare.s ws tor\GCA65280\Volum e.94090e68.d4e5.11df.9341.028037ec0200\Project Archives \s ing2011\k1810_cnooc m is s an\[Mis s an - v07 - 20120218(pm g010312).xls x]P | Disc Rate | Pre-Tax | Post-Tax                   |                                 | Disc Rate                  | Pre-Tax | Post-Tax |
|                                                                                                                                                                             |      |    | 0.0%                       | 132.7                                | 24.5                       |   | 0.0% | 401.5 | 293.3 |
|                                                                                                                                                                             |      |    | 5.0%                       | 2.4                                  | -  83.0          |   | 5.0% | 278.0 | 188.3 |
| Comments:                                                                                                                                                                        |      |    | 7.5%                       | -     49.0  | - 125.8                    |   | 7.5% | 226.0 | 143.5 |
|                                                                                                                                                                             |      |    | 10.0%                      | -     93.4  | - 162.8                    |   | 10.0% | 179.2 | 102.8 |
|                                                                                                                                                                             |      |    | 12.5%                      | -     131.7 | - 194.9                    |   | 12.5% | 136.9 | 65.8 |
|                                                                                                                                                                             |      |    | 15.0%                      | -     165.0 | - 222.8                    |   | 15.0% | 98.5 | 32.0 |
| Cost NWI:                                                                                                                                                                        | 85.00%    |    | IRR                        | 5.1%                                 | 1.0%                       |   | IRR | 22.7% | 17.6% |

|   |
|--------|

|   |  Costs Incurred by Company |  Revenue Received by Contractor |   |  Company |
|--------|---------------------------------|--------------------------------------|--------|---------------|

| PeriodBeginning           | Oil           | Field         | CapitalCosts   | OperatingCosts | Supp. Costs | Non-AllowableCosts | Bonus & Training | Tot. Comp.  | Pet. Costs         | Supp. Costs + Int. | Remuner-ation   | Cont-ractor     |  StatePartner |  Comp-any     |  PreTax         | Corp-orate       | PostTax    | Field Revenue less Capex/ Opex/Supp CostsNCFUS$ M M | EntitlementVolume  | EntitlementVolume |
|---------------------------|---------------|---------------|----------------|----------------|-------------|--------------------|----------------------|-------------|--------------------|--------------------|-----------------|-----------------|--------------------|--------------------|----------------------|------------------|------------|-----------------------------------------------------|-------------------------|-------------------|
|                      | ProductionMMB | PriceUS$/Bbl  | RevenueUS$ M M | PaidUS$ M M    | PaidUS$ M M | PaidUS$ M M        | PaidUS$ M M          | PaidUS$ M M |  CostsUS$ M M | ReceiveUS$ M M     | ReceivedUS$ M M | ReceivedUS$ M M | RevenueUS$ M M     |  CarryUS$ M M |  RevenueUS$ M M |  NCFUS$ M M | TaxUS$ M M | NCFUS$ M M                                          | Before TaxBbls          | After TaxBbls     |
| Jan-11                    | 29            | 105           | 3,057          | 142            | 38          |               |                 | 89          | 269                |               |            |            |               |               |                 | -  269 |       | - 269                                          | 2,878                   |              |   |
| Jan-12                    | 47            | 105           | 4,987          | 1,924          | 173         | 201                | 4                    | 4           | 2,306              | 1,155              | 151             |            | 1,306              |               | 1,306                | -1,001           |       | -  1,001                                  | 2,689                   | 12,407,023        | 12,407,023 |
| Jan-13                    | 78            | 105           | 8,195          | 1,594          | 234         | 284                | 4                    | 4           | 2,120              | 2,508              | 240             | 139             | 2,888              | 41                 | 2,853                | 733              | 37         | 696                                                 | 6,084                   | 27,109,472        | 26,762,341 |
| Jan-14                    | 78            | 105           | 8,180          |           | 233         |               | 4                    | 4           | 242                | 618                | 95              | 89              | 803                | 26                 | 780                  | 539              | 23         | 515                                                 | 7,947                   | 7,416,521         | 7,193,354 |
| Jan-15                    | 67            | 105           | 6,999          |           | 200         |               | 4                    | 4           | 208                | 208                |            | 46              | 254                | 14                 | 242                  | 34               | 12         | 22                                                  | 6,800                   | 2,300,722         | 2,185,631 |
| Jan-16                    | 57            | 105           | 6,018          |           | 172         |               |                 | 4           | 176                | 178                |            | 30              | 209                | 9                  | 201                  | 25               | 8          | 17                                                  | 5,847                   | 1,909,703         | 1,834,384 |
| Jan-17                    | 49            | 105           | 5,155          |           | 147         |               |                 | 4           | 151                | 153                |            | 21              | 173                | 6                  | 168                  | 17               | 5          | 12                                                  | 5,008                   | 1,599,220         | 1,547,304 |
| Jan-18                    | 42            | 105           | 4,437          |           | 126         |               |                 | 4           | 131                | 131                |            | 14              | 146                | 4                  | 142                  | 11               | 4          | 8                                                   | 4,311                   | 1,350,628         | 1,314,782 |
| Jan-19                    | 36            | 105           | 3,827          |           | 109         |               |                 | 4           | 113                | 113                |            | 10              | 123                | 3                  | 121                  | 7                | 3          | 5                                                   | 3,718                   | 1,146,149         | 1,121,585 |
| Jan-20                    | 32            | 105           | 3,316          |           | 95          |               |                 | 4           | 99                 | 98                 |            | 7               | 105                | 2                  | 103                  | 4                | 2          | 3                                                   | 3,222                   | 979,921           | 963,119 |
| Jan-21                    | 27            | 105           | 2,863          |           | 82          |               |                 | 4           | 86                 | 85                 |            | 13              | 97                 | 4                  | 94                   | 8                | 3          | 5                                                   | 2,782                   | 895,339           | 863,457 |
| Jan-22                    | 24            | 105           | 2,484          |           | 71          |               |                 | 4           | 75                 | 73                 |            | 17              | 90                 | 5                  | 86                   | 11               | 4          | 6                                                   | 2,413                   | 815,796           | 774,349 |
| Jan-23                    | 21            | 105           | 2,159          |           | 62          |               |                 | 4           | 66                 | 64                 |            | 12              | 76                 | 4                  | 73                   | 7                | 3          | 4                                                   | 2,098                   | 692,341           | 662,082 |
| Jan-24                    | 18            | 105           | 1,886          |           | 54          |               |                 | 4           | 58                 | 56                 |            | 9               | 64                 | 3                  | 62                   | 4                | 2          | 2                                                   | 1,832                   | 589,539           | 568,312 |
| Jan-25                    | 16            | 105           | 1,641          |           | 47          |               |                 | 4           | 51                 | 48                 |            | 5               | 54                 | 2                  | 52                   | 1                | 1          | -     0                    | 1,594                   | 498,091           | 484,759 |
| Jan-26                    | 14            | 105           | 1,435          |           | 41          |               |                 | 4           | 45                 | 42                 |            | 3               | 45                 | 1                  | 44                   |             | 1          |                                                | 1,394                   |              |   |
| Jan-27                    | 12            | 105           | 1,256          |           | 36          |               |                 | 4           | 40                 | 9                  |            |            | 9                  |               | 9                    |             |       |                                                | 1,221                   |              |   |
| Jan-28                    | 11            | 105           | 1,106          |           | 32          |               |                 | 4           | 36                 |               |            |            |               |               |                 |             |       |                                                | 1,074                   |              |   |
| Jan-29                    | 9             | 105           | 969            |           | 28          |               |                 | 4           | 32                 |               |            |            |               |               |                 |             |       |                                                | 942                     |              |   |
| Jan-30                    |          | 105           |           |           |        |               |                 |        |               |               |            |            |               |               |                 |             |       |                                                |                    |              |   |
|                      |          |          |           |           |        |               |                 |        |               |               |            |            |               |               |                 |             |       |                                                |                    |              |   |
| Totals:                   | 665           | MMBbl         | 69,971         | 3,659          | 1,976       | 486                | 17                   | 166         | 6,303              | 5,540              | 486             | 415             | 6,441              | 122                | 6,337                | 133              | 109        | 25                                                  | 63,850                  | 59,710,466        | 58,682,483 |
| As at 31st Dec 2011: | 60,972        | 59.710        | 58.682         |
|                      |          | (MMBbl)  | (MMBbl)   |

----

|   |  |
|--------|--|

| Field:                                                                                                                                                                                                                | Missan    |    | Nominal Net Present Values |   | Nominal Net Present Values |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------|----------------------------|--------|----------------------------|
| Case:                                                                                                                                                                                                                 | 3P        |    | as at  31-Dec-10 |   | as at  31-Dec-11 |
| G:\WD SmartWare swstor\GC.to65280\Volume_94090e66.d4 e5.11df93 41 020037edJ200\Project .Archi'lles\sing2011\k1810_cnooc mis san\{k1810_ summar:t_010312.>4sxJ1i_gross | Disc Rate | Pre-Tax | Post-Tax                   |   | Disc Rate                  | Pre-Tax | Post-Tax |
|                                                                                                                                                                                                                  |      |    | 0.0%                       | 276.6  | 112.6                      |   | 0.0% | 477.8 | 313.8 |
|                                                                                                                                                                                                                  |      |    | 5.0%                       | 119.0  | 4.8                        |   | 5.0% | 331.1 | 201.2 |
| Comments:                                                                                                                                                                                                             |      |    | 7.5%                       | 59.8   | - 49.7                     |   | 7.5% | 272.9 | 155.2 |
|                                                                                                                                                                                                                  |      |    | 10.0%                      | 10.0   | - 87.7                     |   | 10.0% | 222.0 | 114.5 |
|                                                                                                                                                                                                                  |      |    | 12.5%                      | 32.2   | 120.1                      |   | 12.5% | 177.1 | 78.2 |
|                                                                                                                                                                                                                  |      |    | 15.0%                      | 68.2   | 147.8                      |   | 15.0% | 137.3 | 45.7 |
| Cost NWI:                                                                                                                                                                                                             | 85.00%    |    | IRR                        | 10.6%  | 4.8%                       |   | IRR | 26.5% | 19.0% |

|                 |                |               |           | Costs Incured by Company | Revenue Received by Contractor |               |                 |        |         |               |            | Company         |
|----------------------|---------------------|--------------------|----------------|--------------------------|--------------------------------|--------------------|----------------------|-------------|--------------|--------------------|-----------------|-----------------|
| PeriodBeginning      | Oil                 | Field              | CapitalCosts   | OperatingCosts           | Supp. Costs                    | Non-AllowableCosts | Bonus & Training | Tot. Comp.  | Pet. Costs   | Supp. Costs + Int. | Remune-ration   | Cont-ractor     | StatePartner | Company | PreTax | Corporate | PostTax | Field Revenue less Capex/ Opex/Supp CostsNCFUS$ M M | EntitlementVolume | EntitlementVolume |
|                 | ProductionMMB  | PriceUS$/Bbl  | RevenueUS$ M M | PaidUS$ M M              | PaidUS$ M M                    | PaidUS$ M M        | PaidUS$ M M          | PaidUS$ M M | CostsUS$ M M | ReceiveUS$ M M     | ReceivedUS$ M M | ReceivedUS$ M M | RevenueUS$ M M | CarryUS$ M M | RevenueUS$ M M | NCFUS$ M M | TaxUS$ M M | NCFUS$ M M |   | Before TaxBbls | After TaxBbls |
| Jan-11               | 29                  | 105                | 3,089          | 142                      | 38                             |               |                 | 89          | 269          | 68            |            |            | 68 |   | 68 | 201 |   | 201 | 2,910 | 642,310 | 642,310 |
| Jan-12               | 52                  | 105                | 5,454          | 1,924                    | 173                            | 201                | 4                    | 4           | 2,306        | 1,388              | 151             |            | 1,539 |   | 1,539 | 767 |   | 767 | 3,157 | 14,629,720 | 14,629,720 |
| Jan-13               | 90                  | 105                | 9,465          | 1,594                    | 270                            | 284                | 4                    | 4           | 2,156        | 2,233              | 240             | 172             | 2,645 | 51 | 2,602 | 446 | 45 | 401 | 7,317 | 24,726,562 | 24,296,957 |
| Jan-14               | 91                  | 105                | 9,533          |                     | 272                            |               | 4                    | 4           | 280          | 658                | 95              | 121             | 874 | 36 | 844 | 564 | 32 | 532 | 9,261 | 8,018,887 | 7,716,600 |
| Jan-15               | 78                  | 105                | 8,185          |                     | 233                            |               | 4                    | 4           | 242          | 242                |            | 67              | 310 | 20 | 293 | 51 | 18 | 33 | 7,952 | 2,782,545 | 2,614,955 |
| Jan-16               | 67                  | 105                | 7,071          |                     | 202                            |               |                 | 4           | 206          | 209                |            | 45              | 254 | 13 | 243 | 37 | 12 | 25 | 6,869 | 2,308,381 | 2,196,349 |
| Jan-17               | 58                  | 105                | 6,093          |                     | 174                            |               |                 | 4           | 178          | 180                |            | 32              | 212 | 9 | 204 | 26 | 8 | 18 | 5,919 | 1,938,841 | 1,859,474 |
| Jan-18               | 50                  | 105                | 5,264          |                     | 151                            |               |                 | 4           | 155          | 156                |            | 23              | 179 | 7 | 173 | 18 | 6 | 12 | 5,133 | 1,645,376 | 1,588,660 |
| Jan-19               | 44                  | 105                | 5,284          |                     | 131                            |               |                 | 4           | 135          | 136                |            | 16              | 152 | 5 | 148 | 13 | 4 | 8 | 4,467 | 1,405,605 | 1,365,011 |
| Jan-20               | 38                  | 105                | 4,027          |                     | 115                            |               |                 | 4           | 119          | 119                |            | 12              | 130 | 3 | 128 | 8 | 3 | 5 | 3,912 | 1,212,128 | 1,182,812 |
| Jan-21               | 33                  | 105                | 3,520          |                     | 100                            |               |                 | 4           | 105          | 104                |            | 21              | 124 | 6 | 119 | 15 | 5 | 9 | 3,419 | 1,132,178 | 1,080,814 |
| Jan-22               | 29                  | 105                | 3,097          |                     | 88                             |               |                 | 4           | 93           | 91                 |            | 28              | 119 | 8 | 112 | 19 | 7 | 12 | 3,009 | 1,062,331 | 993,698 |
| Jan-23               | 26                  | 105                | 2,736          |                     | 78                             |               |                 | 4           | 82           | 80                 |            | 22              | 103 | 7 | 97 | 15 | 6 | 9 | 2,658 | 923,759 | 867,981 |
| Jan-24               | 23                  | 105                | 2,433          |                     | 69                             |               |                 | 4           | 74           | 71                 |            | 18              | 90 | 5 | 85 | 12 | 5 | 7 | 2,363 | 808,754 | 763,353 |
| Jan-25               | 21                  | 105                | 2,160          |                     | 62                             |               |                 | 4           | 66           | 63                 |            | 15              | 78 | 4 | 74 | 8 | 4 | 5 | 2,098 | 705,766 | 669,533 |
| Jan-26               | 18                  | 105                | 1,930          |                     | 55                             |               |                 | 4           | 59           | 57                 |            | 12              | 68 | 3 | 65 | 6 | 3 | 3 | 1,875 | 620,277 | 591,391 |
| Jan-27               | 16                  | 105                | 1,732          |                     | 49                             |               |                 | 4           | 54           | 51                 |            | 9               | 60 | 3 | 58 | 4 | 2 | 2 | 1,683 | 547,229 | 524,424 |
| Jan-28               | 15                  | 105                | 1,565          |                     | 45                             |               |                 | 4           | 49           | 46                 |            | 7               | 53 | 2 | 51 | 2 | 2 | 0 | 1,520 | 486,450 | 468,470 |
| Jan-29               | 13                  | 105                | 1,411          |                     | 40                             |               |                 | 4           | 44           | 41                 |            | 5               | 47 | 2 | 45 | 1 | 1 | 1 | 1,371 | 431,050 | 417,396 |
| Jan-30               |                | 105                |           |                     |                           |               |                 |        |         |               |            |            |   |   |   |   |   |   |   |   |   |
|                 |                |               |           |                     |                           |               |                 |        |         |               |            |            |   |   |   |   |   |   |   |   |   |
| Totals:              | 792                 | MMBbl              | 83,382         | 3,659                    | 2,344                          | 486                | 17                   | 166         | 6,672        | 5,993              | 486             | 625             | 7,104 | 184 | 6,948 | 277 | 164 | 113 | 76,893 | 66,026,148 | 64,469,908 |
| As at 31st Dec 2011: | 73,983              | 65.386             | 63.828         |
|                 |                | (MMBbl)       | (MMBbl)   |

----

|   |  |
|--------|--|

----

|   |  |
|--------|--|

----

|   |  |
|--------|--|

----

----

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|         |                |                                                |                                                | Page No. |
|--------------|---------------------|-----------------------------------------------------|-----------------------------------------------------|----------|
|         |
| INTRODUCTION |                | 1                                                   |
|         |                |                                                |
| 1.           | RESULTS SUMMARY     | 5                                                   |
|         |                |                                                |
|         | 1.1                 | In-Place Volumes                                    | 5                                                   |
|         |                |                                                |                                                |
|         | 1.2                 | Estimated Ultimate Recovery                         | 5                                                   |
|         |                |                                                |                                                |
|         | 1.3                 | Net Reserves                                        | 6                                                   |
|         |                |                                                |                                                |
|         | 1.4                 | Gross Reserves                                      | 6                                                   |
|         |                |                                                |                                                |
|         | 1.5                 | Net Present Values                                  | 7                                                   |
|         |                |                                                |                                                |
|         | 1.6                 | Reserves Reconciliation                             | 7                                                   |
|         |                |                                                |                                                |
| 2.           | PROJECTS SUMMARY    | 10                                                  |
|         |                |                                                |
|         | 2.1                 | Exploration And Appraisal History                   | 10                                                  |
|         |                |                                                |                                                |
|         | 2.2                 | Development Projects                                | 10                                                  |
|         |                |                                                |                                                |
|         |                | 2.2.1                                               | Phase I – Angostura Field Development Project | 10       |
|         |                |                                                |                                                |     |
|         |                | 2.2.2                                               | Phase Ii – Angostura Gas Project              | 12       |
|         |                |                                                |                                                |     |
|         | 2.3                 | Well Status And Plans                               | 13                                                  |
|         |                |                                                |                                                |
| 3.           | ECONOMIC EVALUATION | 14                                                  |
|         |                |                                                |
|         | 3.1                 | Capital Expenditure                                 | 14                                                  |
|         |                |                                                |                                                |
|         | 3.2                 | Operating Expenditure                               | 14                                                  |
|         |                |                                                |                                                |
|         | 3.3                 | Economic Analysis                                   | 15                                                  |
|         |                |                                                |                                                |
|         | 3.4                 | Reserves                                            | 15                                                  |
|         |                |                                                |                                                |
|         | 3.5                 | Economic Test Results                               | 16                                                  |
|         |                |                                                |                                                |
|         | 3.6                 | Summary Report for CNOOC’s Filling to the SEC | 16                                                  |
|         |                |                                                |                                                |
| 4.           | QUALIFICATIONS      | 17                                                  |
|         |                |                                                |
| 5.           | BASIS OF OPINION    | 17                                                  |
|         |

| TABLES |   |
|--------|--------|

| 1.1 | Block 2C – Trinidad & Tobago STOIIP & GIIP Volumetric Estimation                      | 5 |
|-----|-----------------------------------------------------------------------------------------------------|---|
| 1.2 | Block 2C – Trinidad & Tobago Estimated Ultimate Recovery Estimation                       | 5 |
| 1.3 | Block 2C – Trinidad & Tobago CNOOC Net Entitlement Reserves                               | 6 |
| 1.4 | Block 2C – Trinidad & Tobago Gross Reserves                                               | 6 |
| 1.5 | Block 2C – Trinidad & Tobago CNOOC Net Present Values                                     | 7 |
| 1.6 | Block 2C – Trinidad & Tobago CNOOC Net Entitlement PDP and Proved Reserves Summary        | 8 |
| 1.7 | Block 2C – Trinidad & Tobago CNOOC Net Entitlement PDP and Proved Reserves Reconciliation | 8 |
| 1.8 | Block 2C – Trinidad & Tobago Gross PDP and Proved Reserves Summary                        | 9 |

----

| 1.9      | Block 2C – Trinidad & Tobago Gross PDP and Proved Reserves Reconciliation                    | 9      |
|----------|--------------------------------------------------------------------------------------------------------|--------|
| 2.1      | Wells Drilled and Current Status                                                                       | 12     |
| 3.1      | Operating Expenses Forecasts for Economic Analysis                                                     | 14     |
| 3.2      | Block C Gross (100%) Reserves                                                                          | 15     |
| 3.3      | CNOOC’s Net Entitlement Reserves in Block C                                                      | 16     |
| 3.4      | CNOOC’s Pre- and Post-Tax NPV at 10% Discount Rate for its 12.5% Net Working Interest in Block C | 16     |
|     |                                                                                                   |   |
|     |                                                                                                   |   |
| FIGURES  |                                                                                                   |
|     |                                                                                                   |   |
| 0.1      | Block 2C Location in Trinidad & Tobago                                                             | 2      |
| 0.2      | Block 2C Boundaries and Five Fields Location                                                           | 2      |
| 2.1      | Production Facilities Layout of the Greater Angostura Development Plan(Phase I)                        | 11     |
|     |                                                                                                   |   |
|     |                                                                                                   |   |
| APPENDIX |                                                                                                   |
|     |                                                                                                   |   |
| I.       | Glossary                                                                                               |   |
| II.      | Cashflow Analysis                                                                                      |   |

----

|   | Gaffney, Cline & Associates (Consultants) Pte. Ltd.                                   |
|--------|-------------------------------------------------------------------------------------------|
|   | 80 Anson Road                                                                             |
|   | #31-01C Fuji Xerox Towers Singapore 079907 Telephone: +65 6225 6951 www.gaffney-cline.com |

| DSA/YDH/dh/L0065/2012/KK1828.00 |  14th March, 2012 |
|---------------------------------|------------------------|

----

----

----

----

|          | Low     | Best   | High    |
|---------------|---------|--------|---------|
| Field         | Oil     | Gas    | Oil     | Gas | Oil | Gas |
|          | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) |
| Aripo         | 11      | 301    | 27      | 413 | 34 | 521 |
| E Kairi Horst | 8       | 65     | 10      | 73 | 11 | 98 |
| Kairi         | 146     | 392    | 165     | 464 | 190 | 613 |
| Canteen       | 62      | 58     | 70      | 65 | 85 | 85 |
| Total         | 227     | 816    | 271     | 1015 | 319 | 1317 |

|          | Low     | Best   | High    |
|---------------|---------|--------|---------|
| Field         | Oil     | Gas    | Oil     | Gas | Oil | Gas |
|          | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) |
| Aripo         | -       | 243    | -       | 343 | - | 449 |
| E Kairi Horst | -       | 38     | -       | 59 | - | 85 |
| Kairi         | 55.7    | 288    | 57.5    | 380 | 59.6 | 496 |
| Canteen       | 23.6    | 40     | 25.5    | 45 | 27.4 | 76 |
| Total         | 79.3    | 609    | 83.0    | 828 | 86.9 | 1,106 |

----

|          | PDP     | Proved | Probable | Possible |
|---------------|---------|--------|----------|----------|
| Field         | Oil     | Gas    | Oil      | Gas      | Oil | Gas | Oil | Gas |
|          | (MMbbl) | (Bscf) | (MMbbl)  | (Bscf)   | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) |
| Aripo         | 0.00    | 11.8   | 0.00     | 11.9     | 0.00 | 4.3 | 0.00 | 3.8 |
| E Kairi Horst | 0.00    | 0.0    | 0.00     | 2.3      | 0.00 | 1.1 | 0.00 | 0.8 |
| Kairi         | 0.70    | 0.0    | 0.86     | 17.4     | 0.09 | 2.3 | 0.10 | 2.4 |
| Canteen       | 0.24    | 0.0    | 0.33     | 2.5      | 0.09 | 0.1 | 0.09 | 0.7 |
| Total         | 0.94    | 11.8   | 1.18     | 34.1     | 0.18 | 7.7 | 0.19 | 7.7 |

|          | PDP     | Proved | Probable | Possible |
|---------------|---------|--------|----------|----------|
| Field         | Oil     | Gas    | Oil      | Gas      | Oil | Gas | Oil | Gas |
|          | (MMbbl) | (Bscf) | (MMbbl)  | (Bscf)   | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) |
| Aripo         | 0.00    | 190.5  | 0.00     | 190.5    | 0.00 | 69.8 | 0.00 | 64.1 |
| E Kairi Horst | 0.00    | 0.0    | 0.00     | 36.9     | 0.00 | 17.1 | 0.00 | 13.8 |
| Kairi         | 14.07   | 0.0    | 17.37    | 277.0    | 1.89 | 38.5 | 2.21 | 40.9 |
| Canteen       | 4.73    | 0.0    | 6.62     | 39.9     | 1.94 | 1.5 | 1.82 | 12.3 |
| Total         | 18.80   | 190.5  | 23.99    | 544.3    | 3.83 | 126.9 | 4.03 | 131.0 |

----

| Case                              | Pre -Tax NPV10 | Post -Tax NPV10 |
|-----------------------------------|----------------|-----------------|
|                              | U.S.$ MM       | U.S.$ MM        |
| PDP                               | 118.5          | 118.5           |
| Proved (1P)                       | 195.9          | 195.9           |
| Proved + Probable (2P)            | 225.5          | 225.5           |
| Proved + Probable + Possible (3P) | 254.4          | 254.4           |

----

|  ReservesCategory | 31st December, 2009 | 31st December, 2010 | 31st December, 2011 |
|------------------------|---------------------|---------------------|---------------------|
| Oil                    | Gas                 | Oil                 | Gas                 | Oil | Gas |
| (MMbbl)                | (Bscf)              | (MMbbl)             | (Bscf)              | (MMbbl) | (Bscf) |
| PDP                    | 1.97                | 0.0                 | 0.99                | 0.0 | 0.94 | 11.8 |
| Proved                 | 1.97                | 46.0                | 1.15                | 42.9 | 1.18 | 34.1 |

|                               | PDP     | Proved  |
|------------------------------------|---------|--------------|
| Reserves Reconciliation            | Oil     | Gas          | Oil | Gas |
|                               | (MMbbl) | (Bscf)       | (MMbbl) | (Bscf) |
| Reserves as of 31st December, 2009 | 1.97    | 0.0          | 1.97 | 46.0 |
| Annual Production                  | -0.26   | 0.0          | -0.26 | 0.0 |
| Revisions                          | -0.72   | 0.0          | -0.56 | -3.1 |
| Extensions and Discoveries         | -       | -            | - | - |
| Improved Recovery                  | -       | -            | - | - |
| Acquisition and Sales              | -       | -            | - | - |
| Reserves as of 31st December, 2010 | 0.99    | 0.0          | 1.15 | 42.9 |
| Annual Production                  | -0.59   | -6.6         | -0.59 | -6.6 |
| Revisions                          | 0.54    | 18.4         | 0.62 | -2.2 |
| Extensions and Discoveries         | -       | -            | - | - |
| Improved Recovery                  | -       | -            | - | - |
| Acquisition and Sales              | -       | -            | - | - |
| Reserves as of 31st December, 2011 | 0.94    | 11.8         | 1.18 | 34.1 |

----

|              | 31st December, 2009 | 31st December 2010 | 31st December, 2011 |
|-------------------|---------------------|--------------------|---------------------|
| Reserves Category | Oil                 | Gas                | Oil                 | Gas | Oil | Gas |
|              | (MMbbl)             | (Bscf)             | (MMbbl)             | (Bscf) | (MMbbl) | (Bscf) |
| PDP               | 17.99               | 0.0                | 16.88               | 0.0 | 18.80 | 190.5 |
| Proved            | 17.99               | 574.2              | 16.96               | 595.5 | 23.99 | 544.3 |

|                               | PDP     | Proved |
|------------------------------------|---------|--------|
| Reserves Reconciliation            | Oil     | Gas    | Oil | Gas |
|                               | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) |
| Reserves as of 31st December, 2009 | 17.99   | 0.0    | 17.99 | 574.2 |
| Annual Production                  | -3.45   | 0.0    | -3.45 | 0.0 |
| Revisions                          | 2.34    | 0.0    | 2.34 | 21.3 |
| Extensions and Discoveries         | -       | -      | - | - |
| Improved Recovery                  | -       | -      | - | - |
| Acquisition and Sales              | -       | -      | - | - |
| Reserves as of 31st December, 2010 | 16.88   | 0.0    | 16.96 | 595.5 |
| Annual Production                  | -4.70   | -53.0  | -4.70 | -53.0 |
| Revisions                          | 6.62    | 243.5  | 11.73 | 1.8 |
| Extensions and Discoveries         | -       | -      | - | - |
| Improved Recovery                  | -       | -      | - | - |
| Acquisition and Sales              | -       | -      | - | - |
| Reserves as of 31st December, 2011 | 18.80   | 190.5  | 23.99 | 544.3 |

----

| 2.2.1  | Phase I – Angostura Field Development Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Development of the oil reserves (Phase I) in the Kairi and Canteen fields was sanctioned by the operator and the Joint Venture partnership in February, 2003. The initial project consisted of the design and fabrication of facilities including 3 WPPs, a CPP with living quarters and production and gas compression equipment, an onshore receiving and storage terminal, an export pipeline connecting the two, and a tanker buoy for crude oil loading (Figure 2.1). The offshore facilities that currently make up the Greater Angostura Development (Phase I) are listed as follow: |

----

|   | CPP         | - | Equipped with production, gas compression, gas dehydration, MCC/switch gear, power generation, utilities, and Living Quarters building, bridge connected to the K2 WPP. |
|--------|-------------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Kairi-1 WPP | - | Connected to CPP via flowline and umbilical                                                                                                                             |
|   | Kairi-2 WPP | - | Bridge connected to CPP                                                                                                                                                 |
|   | Canteen WPP | - | Connected to CPP via flowline and umbilical                                                                                                                             |
|   | Aripo WPP   | - | Monitoring wells only, no connections to CPP installed                                                                                                                  |
|   | Terminal    | - | Onshore tank farm for receiving, handling and offloading of produced oil                                                                                                |
|   | CALM Buoy   | - | Offshore Tie In Point for tanker offloading operations                                                                                                                  |

----

| Well Type              | Angostura | Aripo | Kairi | Canteen | E Kairi Horst | Total |
|------------------------|-----------|-------|-------|---------|---------------|-------|
| Exploration            | 1         | 1     | 1     | 1       | 0             | 4     |
| Appraisal              | 2         | 0     | 1     | 1       | 0             | 4     |
| Oil Producer           | 0         | 0     | 10    | 5       | 1             | 16    |
| Gas Injector           | 0         | 0     | 4     | 2       | 0             | 6     |
| Converted Gas Injector | 0         | 0     | 1     | 0       | 0             | 1     |
| Gas Producer           | 0         | 3     | 0     | 0       | 1             | 4     |
| Dry Hole               | 0         | 0     | 0     | 1       | 1             | 2     |
| Total                  | 3         | 4     | 17    | 10      | 3             | 37    |

| 2.2.2  | Phase II – Angostura Gas Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | The field production had been shut in for the Gas Project facilities installation from 20th September, 2010 and was resumed on 11th January, 2011.                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | The Angostura Gas Project (Phase II) includes the necessary offshore gas facilities to achieve a total design capacity of 280 MMscfd through the compression system. Downstream of compression at the discharge scrubber, the facilities capacity is 340 MMscfd to accommodate future high pressure gas volume of 60 MMscfd. While gas is being developed from the Aripo Field, oil production and associated gas re-injection at the Kairi and Canteen fields will continue to maximize oil recovery. |

----

|   | A new Gas Export Platform (GEP) has been installed for production and compression of the sales gas. The GEP equipment includes inlet separation, export compression and sales metering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The GEP has been bridge connected to the northwest corner of CPP platform. The flare system for CPP has been relocated and incorporated into the design of the GEP flare system.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Two new export pipelines have been installed from the GEP (36” to Trinidad and 12” to Tobago). These export pipelines are owned and installed by NGC (the National Gas Company of Trinidad & Tobago). Additional facilities have been installed on GEP on behalf of NGC and include all required equipment, piping, instruments, and controls from the outlet flange of the custody transfer meter down to the flange located at the bottom of the riser. The operator, BHP Billiton, designed, procured and installed those components on behalf of NGC with ownership transferred to them at first gas per the Gas Sales Contract (GSC). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The first gas sale started in May, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 2.3    | Well Status and Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|   Year  | PDP CaseCAPEXx(U.S.$MM) | PDP CaseOPEX(U.S.$MM) | 1 PCaseCAPEX(U.S.$MM) | 1 PCaseOPEX(U.S.$MM) | 2 PCaseCAPEX(U.S.$MM) | 2 PCaseOPEX(U.S.$MM) | 3 PCaseCAPEX(U.S.$MM) | 3 PCaseOPEX(U.S.$MM) |
|------------------------|-------------------------|-----------------------|-----------------------|----------------------|-----------------------|----------------------|-----------------------|----------------------|
| 2012                   |                    | 29.6                  | 37                    | 58.3                 | 37                    | 61.6                 | 37                    | 65.0                 |
| 2013                   |                    | 30.7                  | 4                     | 57.4                 | 4                     | 60.9                 | 4                     | 64.5                 |
| 2014                   |                    | 27.2                  | 4                     | 55.0                 | 4                     | 58.7                 | 4                     | 62.4                 |
| 2015                   |                    | 27.4                  | 4                     | 53.1                 | 4                     | 56.8                 | 4                     | 60.8                 |
| 2016                   |                    | 22.6                  | 10                    | 51.2                 | 10                    | 55.0                 | 10                    | 58.8                 |
| 2017                   |                    | 21.9                  |                  | 43.7                 |                  | 51.8                 |                  | 55.0                 |
| 2018                   |                    | 16.9                  |                  | 33.7                 |                  | 43.9                 |                  | 50.4                 |
| 2019                   |                    | 16.4                  |                  | 27.2                 |                  | 34.6                 |                  | 45.8                 |
| 2020                   | 13                      | 11.9                  | 16                    | 22.2                 | 16                    | 28.4                 | 16                    | 38.3                 |
| 2021                   | 13                      | 3.5                   | 16                    | 6.9                  | 16                    | 11.2                 | 16                    | 17.3                 |

----

|          | PDP     | Proved | Probable | Possible |
|---------------|---------|--------|----------|----------|
| Field         | Oil     | Gas    | Oil      | Gas      | Oil | Gas | Oil | Gas |
|          | (MMbbl) | (Bscf) | (MMbbl)  | (Bscf)   | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) |
| Aripo         | 0.00    | 190.5  | 0.00     | 190.5    | 0.00 | 69.8 | 0.00 | 64.1 |
| E Kairi Horst | 0.00    | 0.0    | 0.00     | 36.9     | 0.00 | 17.1 | 0.00 | 13.8 |
| Kairi         | 14.07   | 0.0    | 17.37    | 277.0    | 1.89 | 38.5 | 2.21 | 40.9 |
| Canteen       | 4.73    | 0.0    | 6.62     | 39.9     | 1.94 | 1.5 | 1.82 | 12.3 |
| Total         | 18.80   | 190.5  | 23.99    | 544.3    | 3.83 | 126.9 | 4.03 | 131.0 |

----

|          | PDP     | Proved | Probable | Possible |
|---------------|---------|--------|----------|----------|
| Field         | Oil     | Gas    | Oil      | Gas      | Oil | Gas | Oil | Gas |
|          | (MMbbl) | (Bscf) | (MMbbl)  | (Bscf)   | (MMbbl) | (Bscf) | (MMbbl) | (Bscf) |
| Aripo         | 0.00    | 11.8   | 0.00     | 11.9     | 0.00 | 4.3 | 0.00 | 3.8 |
| E Kairi Horst | 0.00    | 0.0    | 0.00     | 2.3      | 0.00 | 1.1 | 0.00 | 0.8 |
| Kairi         | 0.70    | 0.0    | 0.86     | 17.4     | 0.09 | 2.3 | 0.10 | 2.4 |
| Canteen       | 0.24    | 0.0    | 0.33     | 2.5      | 0.09 | 0.1 | 0.09 | 0.7 |
| Total         | 0.94    | 11.8   | 1.18     | 34.1     | 0.18 | 7.7 | 0.19 | 7.7 |

| Case                              | Pre -Tax NPV10 U.S.$ MM | Post -Tax NPV10 U.S.$ MM |
|-----------------------------------|-------------------------|--------------------------|
| PDP                               | 118.5                   | 118.5                    |
| Proved (1P)                       | 195.9                   | 195.9                    |
| Proved + Probable (2P)            | 225.5                   | 225.5                    |
| Proved + Probable + Possible (3P) | 254.4                   | 254.4                    |

----

----

----

----

| ABEX          | Abandonment Expenditure                                      |
|---------------|--------------------------------------------------------------|
| ACQ           | Annual Contract Quantity                                     |
| o API         | Degrees API (American Petroleum Institute)                   |
| AAPG          | American Association of Petroleum Geologists                 |
| AVO           | Amplitude versus Offset                                      |
| A$            | Australian Dollars                                           |
| B             | Billion (109 )                                               |
| Bbl           | Barrels                                                      |
| /Bbl          | per barrel                                                   |
| BBbl          | Billion Barrels                                              |
| BHA           | Bottom Hole Assembly                                         |
| BHC           | Bottom Hole Compensated                                      |
| Bscf or Bcf   | Billion standard cubic feet                                  |
| Bscfd or Bcfd | Billion standard cubic feet per day                          |
| Bm3           | Billion cubic metres                                         |
| bcpd          | Barrels of condensate per day                                |
| BHP           | Bottom Hole Pressure                                         |
| blpd          | Barrels of liquid per day                                    |
| bpd           | Barrels per day                                              |
| boe           | Barrels of oil equivalent @ xxx mcf/Bbl                      |
| boepd         | Barrels of oil equivalent per day @ xxx mcf/Bbl              |
| BOP           | Blow Out Preventer                                           |
| bopd          | Barrels oil per day                                          |
| bwpd          | Barrels of water per day                                     |
| BS&W      | Bottom sediment and water                                    |
| BTU           | British Thermal Units                                        |
| bwpd          | Barrels water per day                                        |
| CBM           | Coal Bed Methane                                             |
| CO2           | Carbon Dioxide                                               |
| CAPEX         | Capital Expenditure                                          |
| CCGT          | Combined Cycle Gas Turbine                                   |
| cm            | centimetres                                                  |
| CMM           | Coal Mine Methane                                            |
| CNG           | Compressed Natural Gas                                       |
| Cp            | Centipoise (a measure of viscosity)                          |
| CSG           | Coal Seam Gas                                                |
| CT            | Corporation Tax                                              |
| DCQ           | Daily Contract Quantity                                      |
| Deg C         | Degrees Celsius                                              |
| Deg F         | Degrees Fahrenheit                                           |
| DHI           | Direct Hydrocarbon Indicator                                 |
| DST           | Drill Stem Test                                              |
| DWT           | Dead-weight ton                                              |
| E&A       | Exploration & Appraisal                                  |
| E&P       | Exploration and Production                                   |
| EBIT          | Earnings before Interest and Tax                             |
| EBITDA        | Earnings before interest, tax, depreciation and amortisation |
| EI            | Entitlement Interest                                         |
| EIA           | Environmental Impact Assessment                              |
| EMV           | Expected Monetary Value                                      |
| EOR           | Enhanced Oil Recovery                                        |
| EUR           | Estimated Ultimate Recovery                                  |
| FDP           | Field Development Plan                                       |
| FEED          | Front End Engineering and Design                             |
| FPSO          | Floating Production, Storage and Offloading                  |
| FSO           | Floating Storage and Offloading                              |
| ft            | Foot/feet                                                    |
| Fx            | Foreign Exchange Rate                                        |
| g             | gram                                                         |
| g/cc          | grams per cubic centimetre                                   |
| gal           | gallon                                                       |

----

| gal/d         | gallons per day                                                    |
|---------------|--------------------------------------------------------------------|
| G&A       | General and Administrative costs                                   |
| GBP           | Pounds Sterling                                                    |
| GDT           | Gas Down to                                                        |
| GIIP          | Gas initially in place                                             |
| GJ            | Gigajoules (one billion Joules)                                    |
| GOR           | Gas Oil Ratio                                                      |
| GTL           | Gas to Liquids                                                     |
| GWC           | Gas water contact                                                  |
| HDT           | Hydrocarbons Down to                                               |
| HSE           | Health, Safety and Environment                                     |
| HSFO          | High Sulphur Fuel Oil                                              |
| HUT           | Hydrocarbons up to                                                 |
| H2S           | Hydrogen Sulphide                                                  |
| IOR           | Improved Oil Recovery                                              |
| IPP           | Independent Power Producer                                         |
| IRR           | Internal Rate of Return                                            |
| J             | Joule (Metric measurement of energy) I kilojoule = 0.9478 BTU)     |
| k             | Permeability                                                       |
| KB            | Kelly Bushing                                                      |
| KJ            | Kilojoules (one Thousand Joules)                                   |
| kl            | Kilolitres                                                         |
| km            | Kilometres                                                         |
| km2           | Square kilometres                                                  |
| kPa           | Thousands of Pascals (measurement of pressure)                     |
| KW            | Kilowatt                                                           |
| KWh           | Kilowatt hour                                                      |
| LKG           | Lowest Known Gas                                                   |
| LKH           | Lowest Known Hydrocarbons                                          |
| LKO           | Lowest Known Oil                                                   |
| LNG           | Liquefied Natural Gas                                              |
| LoF           | Life of Field                                                      |
| LPG           | Liquefied Petroleum Gas                                            |
| LTI           | Lost Time Injury                                                   |
| LWD           | Logging while drilling                                             |
| m             | Metres                                                             |
| M             | Thousand                                                           |
| m3            | Cubic metres                                                       |
| Mcf or Mscf   | Thousand standard cubic feet                                       |
| MCM           | Management Committee Meeting                                       |
| MMcf or MMscf | Million standard cubic feet                                        |
| m3 d          | Cubic metres per day                                               |
| mD            | Measure of Permeability in millidarcies                            |
| MD            | Measured Depth                                                     |
| MDT           | Modular Dynamic Tester                                             |
| Mean          | Arithmetic average of a set of numbers                             |
| Median        | Middle value in a set of values                                    |
| MFT           | Multi Formation Tester                                             |
| mg/l          | milligrams per litre                                               |
| MJ            | Megajoules (One Million Joules)                                    |
| Mm3           | Thousand Cubic metres                                              |
| Mm3 d         | Thousand Cubic metres per day                                      |
| MM            | Million                                                            |
| MMBbl         | Millions of barrels                                                |
| MMBTU         | Millions of British Thermal Units                                  |
| Mode          | Value that exists most frequently in a set of values = most likely |
| Mscfd         | Thousand standard cubic feet per day                               |
| MMscfd        | Million standard cubic feet per day                                |
| MW            | Megawatt                                                           |
| MWD           | Measuring While Drilling                                           |
| MWh           | Megawatt hour                                                      |
| mya           | Million years ago                                                  |
| NGL           | Natural Gas Liquids                                                |
| N2            | Nitrogen                                                           |
| NPV           | Net Present Value                                                  |

----

| OBM         | Oil Based Mud                                       |
|-------------|-----------------------------------------------------|
| OCM         | Operating Committee Meeting                         |
| ODT         | Oil down to                                         |
| OPEX        | Operating Expenditure                               |
| OWC         | Oil Water Contact                                   |
| p.a.        | Per annum                                           |
| Pa          | Pascals (metric measurement of pressure)            |
| P&A     | Plugged and Abandoned                               |
| PDP         | Proved Developed Producing                          |
| PI          | Productivity Index                                  |
| PJ          | Petajoules (1015 Joules)                            |
| PSDM        | Post Stack Depth Migration                          |
| psi         | Pounds per square inch                              |
| psia        | Pounds per square inch absolute                     |
| psig        | Pounds per square inch gauge                        |
| PUD         | Proved Undeveloped                                  |
| PVT         | Pressure volume temperature                         |
| P10         | 10% Probability                                     |
| P50         | 50% Probability                                     |
| P90         | 90% Probability                                     |
| Rf          | Recovery factor                                     |
| RFT         | Repeat Formation Tester                             |
| RT          | Rotary Table                                        |
| Rw          | Resistivity of water                                |
| SCAL        | Special core analysis                               |
| cf or scf   | Standard Cubic Feet                                 |
| cfd or scfd | Standard Cubic Feet per day                         |
| scf/ton     | Standard cubic foot per ton                         |
| SL          | Straight line (for depreciation)                    |
| so          | Oil Saturation                                      |
| SPE         | Society of Petroleum Engineers                      |
| SPEE        | Society of Petroleum Evaluation Engineers           |
| ss          | Subsea                                              |
| stb         | Stock tank barrel                                   |
| STOIIP      | Stock tank oil initially in place                   |
| sw          | Water Saturation                                    |
| T           | Tonnes                                              |
| TD          | Total Depth                                         |
| Te          | Tonnes equivalent                                   |
| THP         | Tubing Head Pressure                                |
| TJ          | Terajoules (1012 Joules)                            |
| Tscf or Tcf | Trillion standard cubic feet                        |
| TCM         | Technical Committee Meeting                         |
| TOC         | Total Organic Carbon                                |
| TOP         | Take or Pay                                         |
| Tpd         | Tonnes per day                                      |
| TVD         | True Vertical Depth                                 |
| TVDss       | True Vertical Depth Subsea                          |
| USGS        | United States Geological Survey                     |
| US$         | United States Dollar                                |
| VSP         | Vertical Seismic Profiling                          |
| WC          | Water Cut                                           |
| WI          | Working Interest                                    |
| WPC         | World Petroleum Council                             |
| WTI         | West Texas Intermediate                             |
| wt%         | Weight percent                                      |
| 1H05        | First half (6 months) of 2005 (example of date)     |
| 2Q06        | Second quarter (3 months) of 2006 (example of date) |
| 2D          | Two dimensional                                     |
| 3D          | Three dimensional                                   |
| 4D          | Four dimensional                                    |
| 1P          | Proved Reserves                                     |
| 2P          | Proved plus Probable Reserves                       |
| 3P          | Proved plus Probable plus Possible Reserves         |
| %           | Percentage                                          |

----

| DSAIYDH/dh/L0065/2012/KK1828.00CNOOC- T&T |  |
|-----------------------------------------------|--|

----

| DSAIYDH/dh/L0065/2012/KK1828.00CNOOC- T&T |  |
|-----------------------------------------------|--|

| Case:   PDP |                                                     |
|----------------------------|----------------------------------------------------------|
| CNOOC 12.5% WI             | NPV7, US$MM =                                  |   | 125.4 |
|                       | NPV8, US$MM =                                  |   | 123.0 |
|                       | NPV9, US$MM =                                  |   | 120.7 |
|                       | NPV10, US$MM =                                 |   | 118.5 |
|                       | NPV11, US$MM =                                 |   | 116.4 |
|                       | CNOOC Net Oil Reserves, MMstb = |   | 0.939 |
|                       | CNOOC Net Gas Reserves, Bscf =       |   | 11.8 |

|   Year                                   |  WI OilProd'n                                            |  WI GasProd'n                                            |  CrudePrice                                                         |  Gas Price                                    |  Opex        |  Capex       |  CostRecovered   | CNOOCProfitShare  | Pre-TaxCashFlow                                                |  Net CashFlow                                                  |  Net OilReserves                                               |  Net GasReserves                                         |
|----------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------|-------------------|-------------------|-----------------------|-------------------|----------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------|
| Recoverable                                        | Unrecoverable                                                 |
| MMstb                                              | Bscf                                                          | US$/bbl                                                       | US$/Mscf                                                                 | US$M                                               | US$M              | US$M              | US$M                  | US$M              | US$M                                                           | US$M                                                                | MMstb                                                               | Bscf                                                          |
|  20112012201320142015201620172018201920202021 |  0.4790.4250.3600.2990.2350.1840.1440.1120.0880.0250.000 |  8.3365.4613.5772.3431.5351.0060.6590.4320.2830.1850.000 |  105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74 |  3.963.963.963.963.963.963.963.963.963.963.96 |  55443322200 |  00000000000 |  00000000003,325 |  55443322200 |  36,34328,77822,31217,26912,9879,7657,3805,6034,2711,4140 |  36,34328,77822,31217,26912,9879,7657,3805,6034,2711,414-3,325 |  36,34328,77822,31217,26912,9879,7657,3805,6034,2711,414-3,325 |  0.1900.1700.1440.1190.0940.0740.0570.0450.0350.0100.000 |  4.0942.7311.7891.1720.7680.5030.3300.2160.1420.0930.000 |
|  TOTAL                                        |  2.3                                                     |  23.8                                                    |                                                                     |                                               |  31          |  0           |  3,325           |  31          |  146,121                                                  |  142,796                                                       |  142,796                                                       |  0.9389                                                  |  11.8 |

----

| DSAIYDH/dh/L0065/2012/KK1828.00CNOOC- T&T |  |
|-----------------------------------------------|--|

| Case:   1P |                                                     |   |   |
|---------------------------|----------------------------------------------------------|--------|--------|
| CNOOC 12.5% WI  | NPV7, US$MM =                                  |   | 210.0  |
|                      | NPV8, US$MM =                                  |   | 205.1  |
|                      | NPV9, US$MM =                                  |   | 200.4  |
|                      | NPV10, US$MM =                                 |   | 195.9  |
|                      | NPV11, US$MM =                                 |   | 191.7  |
|                      | CNOOC Net Oil Reserves, MMstb = |   | 1.184  |
|                      | CNOOC Net Gas Reserves, Bscf =       |   | 34.1   |

|   Year                                   |  WI OilProd'n                                            |  WI GasProd'n                                                 |  CrudePrice                                                         |  Gas  Price                         |  Opex        |  Capex       |  CostRecovered                 | CNOOCProfitShare                          | Pre-TaxCashFlow                                                   |  Net CashFlow                                                     |  Net OilReserves                                             |  Net GasReserves                                         |
|----------------------------------------------------|---------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------|-------------------|-------------------|-------------------------------------|-------------------------------------------|-------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|---------------------------------------------------------------|
| Recoverable                                        | Unrecoverable                                                 |
| MMstb                                              | Bscf                                                          | US$/bbl                                                            | US$/Mscf                                                                 | US$M                                               | US$M              | US$M              | US$M                                | US$M                                      | US$M                                                              | US$M                                                                   | MMstb                                                                  | Bscf                                                          |
|  20112012201320142015201620172018201920202021 |  0.6310.5870.4690.3740.2870.2200.1700.1310.1010.0280.000 |  10.04410.04410.04410.04410.6158.0354.1262.4801.5801.0250.000 |  105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74 |  3.963.963.963.963.963.963.963.963.963.963.96 |  77776543310 |  00000000000 |  4,6255005005001,250000004,000 |  1,8571,1321,2321,332806455354253310 |  44,11142,83038,44634,41632,03824,77415,16810,3207,4083,2290 |  41,33643,45539,17135,24131,58825,22415,51810,5707,4083,229-4,000 |  41,33643,45539,17135,24131,58825,22415,51810,5707,4083,229-4,000 |  0.2440.2280.1870.1490.1150.0880.0680.0520.0400.0110.000 |  5.1045.0105.0235.0365.2244.0162.1081.2720.7910.5130.000 |
|  TOTAL                                        |  3.0                                                     |  68.0                                                         |                                                                     |                                               |  51          |  0           |  11,375                        |  7,426                               |  252,737                                                     |  248,737                                                          |  248,737                                                          |  1.1835                                                  |  34.1 |

----

| DSAIYDH/dh/L0065/2012/KK1828.00CNOOC- T&T |  |
|-----------------------------------------------|--|

|                     | NPV7, US$MM =                                  |   | 244.2 |
|--------------------------|----------------------------------------------------------|--------|-------|
| Case: 2P            | NPV8, US$MM =                                  |   | 237.6 |
| CNOOC 12.5% WI | NPV9, US$MM =                                  |   | 231.4 |
|                     | NPV10, US$MM =                                 |   | 225.5 |
|                     | NPV11, US$MM =                                 |   | 219.9 |
|                     | CNOOC Net Oil Reserves, MMstb = |   | 1.367 |
|                     | CNOOC Net Gas Reserves, Bscf =       |   | 41.8  |

|   Year                                   |  WI OilProd'n                                            |  WI GasProd'n                                                  |  CrudePrice                                                         |  Gas Price                                    |  Opex        |  Capex       |  CostRecovered                 | CNOOCProfitShare                          | Pre-TaxCashFlow                                                    |  Net CashFlow                                                      |  Net OilReserves                                                   |  Net GasReserves                                    |
|----------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------|-------------------|-------------------|-------------------------------------|-------------------------------------------|--------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|---------------------------------------------------------------|
| Recoverable                                        | Unrecoverable                                                 |
| MMstb                                              | Bscf                                                          | US$/bbl                                                             | US$/Mscf                                                                 | US$M                                               | US$M              | US$M              | US$M                                | US$M                                      | US$M                                                               | US$M                                                                    | MMstb                                                                   | Bscf                                                          |
|  20112012201320142015201620172018201920202021 |  0.6740.6380.5280.4350.3580.2740.2140.1720.1420.0420.000 |  10.04410.04410.04410.04410.61511.1108.8205.6524.2093.3130.000 |  105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74 |  3.963.963.963.963.963.963.963.963.963.963.96 |  88777654410 |  00000000000 |  4,6255005005001,250000004,000 |  1,8581,1331,2321,332807456355254410 |  45,72144,74840,60337,01235,03432,50225,93418,34314,3358,3350 |  42,94645,37341,32837,83734,58432,95226,28418,59314,3358,335-4,000 |  42,94645,37341,32837,83734,58432,95226,28418,59314,3358,335-4,000 |  0.2590.2460.2080.1740.1430.1090.0850.0690.0570.0170.000 |  5.1045.0105.0235.0365.2245.4014.3572.8582.1051.6570.000 |
|  TOTAL                                        |  3.5                                                     |  83.9                                                          |                                                                     |                                               |  58          |  0           |  11,375                        |  7,433                               |  302,569                                                      |  298,569                                                           |  298,569                                                           |  1.3672                                                  |  41.8 |

----

| DSAIYDH/dh/L0065/2012/KK1828.00CNOOC- T&T |  |
|-----------------------------------------------|--|

|                     | NPV7, US$MM =                                  |   | 278.1 |
|--------------------------|----------------------------------------------------------|--------|-------|
| Case: 3P            | NPV8, US$MM =                                  |   | 269.7 |
| CNOOC 12.5% WI | NPV9, US$MM =                                  |   | 261.9 |
|                     | NPV10, US$MM =                                 |   | 254.4 |
|                     | NPV11, US$MM =                                 |   | 247.4 |
|                     | CNOOC Net Oil Reserves, MMstb = |   | 1.558 |
|                     | CNOOC Net Gas Reserves, Bscf =       |   | 49.5  |

|   Year                                   |  WI OilProd'n                                            |  WI GasProd'n                                                    |  CrudePrice                                                         |   Gas Price                              |  Opex          |   Capex |  CostRecovered                 | CNOOC Profit Share                        | Pre-Tax Cash Flow                                                   |  Net CashFlow                                                       |  Net OilReserves                                                    |  Net GasReserves                                         |
|----------------------------------------------------|---------------------------------------------------------------|-----------------------------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------|---------------------|-------------------|-------------------------------------|-------------------------------------------|---------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------|
| Recoverable                                        | Unrecoverable                                                 |
| MMstb                                              | Bscf                                                          | US$/bbl                                                               | US$/Mscf                                                                 | US$M                                               | US$M                | US$M              | US$M                                | US$M                                      | US$M                                                                | US$M                                                                     | MMstb                                                                    | Bscf                                                          |
|  20112012201320142015201620172018201920202021 |  0.7190.6940.5910.5080.4320.3290.2570.2130.1830.0560.000 |  10.04410.04410.04410.04410.61511.11011.18611.1869.2206.7760.000 |  105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74105.74 |  3.963.963.963.963.963.963.963.963.963.963.96 |  1010999876520 |  00000000000 |  4,6255005005001,250000004,000 |  1,8601,1351,2341,334809458357256520 |  47,37646,79242,92339,80538,15034,82831,98130,19025,53915,7790 |  44,60147,41743,64840,63037,70035,27832,33130,44025,53915,779-4,000 |  44,60147,41743,64840,63037,70035,27832,33130,44025,53915,779-4,000 |  0.2740.2660.2300.2000.1730.1310.1030.0850.0730.0220.000 |  5.1045.0105.0235.0365.2255.4015.4235.4094.4923.3880.000 |
|  TOTAL                                        |  4.0                                                     |  100.3                                                           |                                                                     |                                               |  76            |  0           |  11,375                        |  7,451                               |  353,362                                                       |  349,362                                                            |  349,362                                                            |  1.5581                                                  |  49.5 |

----

| YDH/als/L0183/2012/KK1810 | Gaffney,Cline&Associates  Gaffney,Cline&AssociatesConsultantsPte. Ltd.80AnsonRoad#31-01CFuji XeroxTowersSingapore 079907Telephone:+6562256951www.gaffney-cline.com  11 April 2012 |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----