STRATEGY

The Company’s strategy in the Gulf of Mexico comprises three key elements:

Firstly, to identify highly prospective oil and gas plays, aided by 3D seismic and leading edge technology such as Reverse Time Migration, a sophisticated wave equation depth migration method that has recently become achievable because of advances in computational power and programming, which is in the early stages of implementation in the shallow waters of the Gulf of Mexico. Because of this, the Company believes RTM processing has the potential to open up new prospectivity in the shallow waters of the Gulf of Mexico;

secondly, to bid, usually on a 100% or majority working interest basis, primarily through the annual Federal Government lease sale process in the Gulf of Mexico; and
thirdly, to drill-test the play, as operator holding 100% working interest or to farm-out up to 50% of Byron’s working interest to another operator with a successful track record of drilling and producing wells in the Gulf of Mexico.

The Company believes it is well positioned to exploit the competitive advantages of the Gulf of Mexico as it will have:

an experienced team of oil and gas exploration personnel with a successful track record in the Gulf of Mexico;
an inventory of relatively low risk, ready to drill prospects, including several prospects with significant oil potential; and
the capacity to grow its asset portfolio in the shallow waters of the Gulf of Mexico.

Strategy