Penészlek/Nyirseg, Hungary

The Company has a 37.5% working interest in the Nyirseg Permits, encompassing approximately 614,000 gross acres (approximately 230,000 net acres). The Company and its partners have initiated a development project centered on the PEN-104 gas discovery and incorporating the PEN-9 and PEN-12 suspended gas wells. First production from the Penészlek natural gas field is expected in the second quarter of 2008 with the completion and tying-in of the PEN-104 well.  The export pipeline has been successfully tested and the gas processing facilities (currently being manufactured) are scheduled for delivery in Q2. The PEN-104 well was completed in April with production to follow shortly after facility installation.  In addition, the previously drilled PEN-9 and PEN-12 wells are planned to be re-entered once the required wellbore permits have been obtained from the Hungarian government. The Company’s PEN-104 discovery, together with PEN-9 and PEN-12, in aggregate tested over 7.5 MMcf/day of gas from both the basal Miocene volcaniclastic section and the overlying Pannonian section.

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Block XVII, Syrian Arab Republic

Located within the southern Palmyride fold belt of southwestern Syria, DualEx’s Block XVII holds the potential for a world class discovery.  A number of fields to the north of Block XVII have already been discovered and are the focus for sizeable facilities construction projects for the next several years.  Take away capacity totaling roughly 500 MMcf/d is at various stages of development and it is expected the first of these projects will be on-stream in 2009. 

DualEx and its partners fulfilled the first part of the commitments under the terms of the Production Sharing Contract (“PSC”) with the recording of a 2D seismic program throughout the 2007 summer months. In total, 1105 line-kilometres of data were recorded using a combination of dynamite and vibrator energy sources, resulting in the best possible dataset.  The seismic survey was completed ahead of schedule and on budget.  In addition to the recording of new data, DualEx and its partners undertook the cataloguing and processing of a significant amount of legacy seismic from which the configuration of the new survey evolved.  The result of these undertakings has been a better understanding of the structural style of the area and a clearer picture of the potential.

At an April 2008 meeting in Damascus, DualEx and its partners agreed to the location of an exploratory well on the Jebel Nasrani prospect to be drilled testing both Triassic Kurrachine and Permian Amanous and Markada targets.  Seven Kurrachine pools with an aggregate in-place gas reserve of 4.4 TCF reside immediately north of Block XVII and the Markada is gas-productive in four fields in the Palmyra area, 65 kilometres to the northeast, on-trend with Block XVII. 

The operator is now sourcing a drilling rig for the project with the objective of spudding the well prior to year-end 2008.   The Jebel Nasrani prospect may contain *444 BCF of gas within the Kurrachine and a further *508 BCF in the Amanous/Markada (*mean case prospective resource, unrisked, calculated by the Company).

DualEx holds a 31.67% working interest in the 1.248 million acre Block XVII, with partners Stratic Energy and KUFPEC (Kuwait Foreign Petroleum Exploration Company) holding 35% and 33.33% respectively.

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Lusitanian Basin, Portugal

DualEx has a 10% working interest in the Torres Vedras-3 and Aljubarrota-3 Concessions, which encompass 321,000 acres and 311,000 acres respectively. The currently planned exploration program consists of two 3D seismic surveys, the deepening of two existing wells and the drilling of one to two additional exploration wells.

The deepening of the two wells, Lapaducos-2 and Aljubarrota-4, is now expected to commence in the second quarter of 2008. The Lapaducos-2 operation involves deepening the well in order to evaluate the Upper Jurassic fractured Montejunto carbonate and Middle Jurassic Candieiros limestone targets.  At the conclusion of operations at Lapaducos, the rig is scheduled to be mobilized to the Aljubarrota-4 location.  The Aljubarrota-4 well is planned to be deepened by 400 metres into the lower portion of the fractured Brenha Carbonate zone and underlying Brenha carbonate grainstone zone. The third well in the program, Carascal (a Triassic subsalt test), is anticipated to be drilled subsequent to the Aljubarrota 3-D survey.

The Torres Vedras 3-D survey is currently being recorded.  This 117 sq km 3-D survey is being recorded as follow up to a well drilled by DualEx’s predecessor on a Jurassic reef prospect utilizing older 2-D seismic. That wellbore missed the reef although indications from the well data suggest proximity to a reef buildup. Several additional reef prospects (mapped with the older 2-D data) will also be imaged by this survey. A second 3-D survey (130 sq km) is located within the Aljubarrota Concession and front-end field operations are currently underway.

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Bouhajla, Tunisia

On February 20, 2008, the Company announced that it’s bid for the 419 km2 Bouhajla Exploration Block in Eastern onshore Tunisia had been approved by the Tunisian Ministry of Industry and Energy’s Comite Consultatif des Hydrocarbures.  The Company’s bid entails the issuance of a Production Sharing Contract (“PSC”) that would see the Company undertake a minimum of 100 kilometres of new 2D seismic within the first two years of the term, and the drilling of a minimum of one exploration well within the succeeding two years. The Company will hold 100% of the contractor share and would be the operator. The issuance of the PSC is subject to finalization of the detailed terms and Government ratification.

Located close to the once-prolific Sidi el Kilani field, the Bouhajla block is well situated from a geologic standpoint, and from data viewed to-date, DualEx management is confident that a number of prospects will be developed resulting in activity for a number of years to come.  At one time the second most productive field in Tunisia, Sidi el Kilani has produced roughly 47 million barrels of light gravity (400 API) oil and currently produces about 1400 BOPD, having produced at rates up to 19,700 BOPD in 1996.  The primary reservoir at Sidi el Kilani is the upper Cretaceous Abiod chalky limestone with 20-22 percent primary porosity.  Given the chalky nature of the reservoir, permeability is relatively low however Tertiary tectonic events have resulted in extensive fracturing of the reservoir with dramatic results.  The discovery well, SLK-1, drilled in 1989 flowed 3360 BOPD from its 82.5 metre thick pay zone, and SLK-7, drilled in 1996, flowed at up to 9300 BOPD.

Western Canada

DualEx has various working interests in legacy assets in Alberta (and Wyoming), acquired primarily through the acquisition of Winslow Resources Inc.  DualEx is continuing with the evaluation of these assets, including development, by either funding internally or farming out, or selling those interests which do not fit within DualEx’s corporate strategy. Current production from these interests is approximately 20 boe/day (at 6:1).