In 2009 total oil and gas concession area was 15,574 km² that is comprised of 26 exploration licenses.

In order to incorporate all geological and geophysical data in the most expert efficient manner to achieve the best results, GYP uses the most up-to-date technologies in evaluation of exploration surveys, such as:

• SMT Kingdom Suite 8.2 Version for 2D and 3D seismic interpretation, well correlation and log evaluation package,
• Lynx information systems (seismic digitization) LEASSV & LEASMAP.

3 licenses of GYP are in Thrace and 23 licenses are in south-eastern part of Turkey. Based on the data obtained during drilling and testing of the wells, an aggressive seismic work is planned to develop these concessions. At present the company has already completed 400km of 2D seismic data acquisition in Arpatepe licenses. Additionally 240 km of new 2D seismic program is started in South Mardin Licenses during the first quarter of 2010.

Drilling Activities

In the beginning of 2009 until April 1st of 2010, drilling of 1 exploration (Bagpinar-1), and 1 appraisal well (Arpatepe-3) were completed.

Among these, Arpatepe-3 well was drilled in License 3118 to appraise an oil discovery in Ordovician (Lower Paleozoic) age sandstones of southeastern Turkey near the city of Diyarbakir. The well turned out to be the third production well in the field after Arpatepe-1 & 2 wells. The discovery had been made in April 2008 by Arpatepe-1, and the first appraisal well, Arpatepe–2, was completed as an oil producer also in December 2008. As of April 1st, 2010 two wells are producing total of 500 bbl/day by natural flow.

Bagpinar-1 exploration well was also drilled in license 4186 to test the hydrocarbon possibilities of Mardin Group carbonates north of the Bozova paleo-high to the east of the city of Adiyaman in SE Turkey. Although numerous oil shows were encountered during drilling, 5 DST’s that were run in the well did not yield hydrocarbons, and the well was plugged and abandoned as a dry well.

In 2010, exploration efforts will be focused more in Thrace, Cizre, Arpatepe and Karakilise licenses.

Among these, Copkoy-2 exploration well has been spudded on April 1st, 2010 in Thrace Basin License of AR/AME-GYP/3999, approximately 250 m. north of Copkoy-1 well which was drilled in 2008. The well aimed to test the gas zones encountered in Oligo-Miocene aged Danismen Formation in Copkoy-1.

Kutluk-1exploration well was spudded in Karakilise License 2674 west of the productive Arpatepe License again to test the Ordovician aged sandstones. Drilling is expected to be completed in May of 2010.

Seismic Activities

240.7 km of 2D seismic data acquisition program was started in South Mardin Licenses near the town of Ceylanpinar in March 2010. The program is expected to be completed by the end of May 2010, and processing of the data will be commenced immediately thereafter.