National Natural Gas Infrastructure Project moving ahead

Tanzania made significant progress on the National Natural Gas Infrastructure Project (“NNGIP”) in 2013. Initial shipments of approximately 300 km of 36” pipe arrived in country, along with construction crews and equipment. Pipeline construction has commenced and approximately 120 km of pipeline has now been fabricated and laid by six welding teams working onshore. A seventh welding team and a pipe barge have been mobilized to lay the offshore spur from Songo Songo Island to Somanga Funga.  Skid mounted modular plant and processing equipment is being fabricated in several international locations and initial site preparation has commenced on Songo Songo Island for the two 70 million cubic feet per day (“MMcfd”) gas processing plant trains. From the Company’s perspective, a number of critical interface issues remain to be resolved to allow connection of Songo Songo field production to both the new plants and the existing Songo Songo gas plant. The Government remains confident that first gas will be delivered by January 2015.