<PAGE>
Production and Sales. The following table sets forth the Company's production
of oil and gas, net of all royalties, overriding royalties and other
outstanding interests, for the three years ended September 30, 1994, 1993 and
1992. Natural gas production refers only to marketable production of gas on an
"as sold" basis.
<TABLE>
<CAPTION>
UNITED STATES BOLIVIA
-------------- --------------
GAS LIQUIDS GAS LIQUIDS
PRODUCTION VOLUMES FOR THE YEAR ENDED: (MMCF) (MBBL) (MMCF) (MBBL)
-------------------------------------- ------ ------- ------ -------
<S> <C> <C> <C> <C>
September 30, 1994........................ 3,456 73.0 1,967 68.9
September 30, 1993........................ 7,067 47.1 1,665 55.3
September 30, 1992........................ 10,197 58.6 1,682 54.3
</TABLE>
The following table shows the average sales prices received by the Company
for its production for the three years ended September 30, 1994, 1993 and 1992:
<TABLE>
<CAPTION>
UNITED STATES BOLIVIA
------------- -------------
GAS LIQUIDS GAS LIQUIDS
AVERAGE SALES PRICES FOR THE YEAR ENDED: (MCF) (BBL) (MCF) (BBL)
---------------------------------------- ----- ------- ----- -------
<S> <C> <C> <C> <C>
September 30, 1994........................ $2.08 $14.67 $1.34 $12.64
September 30, 1993........................ 2.32 16.53 1.15 17.41
September 30, 1992........................ 1.82 18.45 1.70 17.00
</TABLE>
The following table shows the average production (lifting) costs per unit of
production of liquids and gas based on equivalent Mcf for the three years ended
September 30, 1994, 1993 and 1992:
<TABLE>
<CAPTION>
AVERAGE PRODUCTION COSTS FOR THE YEAR ENDED: UNITED STATES BOLIVIA
-------------------------------------------- ------------- -------
<S> <C> <C>
September 30, 1994................................ $1.42 $.22
September 30, 1993................................ .77 .05
September 30, 1992................................ .75 .03
</TABLE>
Production (lifting) costs are costs incurred to operate, maintain and
workover certain wells and related equipment and facilities. They do not
include depreciation, depletion and amortization of capitalized acquisition,
exploration and development costs, exploration expenses, general and
administrative expenses, interest expense or income tax. Production costs for
fiscal 1992 and 1994 include the effects of $3.0 million and $600,000,
respectively, in workover expense incurred as a part of the Wisdom gas field
workover and recompletion programs completed in May 1992 and September 1994.
Differences between sales prices and production (lifting) costs do not
represent profit.
Productive Wells and Acreage. On September 30, 1994, the Company's U.S. oil
and gas properties consisted of working interests in 40 gross oil and gas wells
(17 net wells) capable of production, of which the Company operated 15. The
following table shows the number of producing wells and wells capable of
production as of September 30, 1994:
<TABLE>
<CAPTION>
UNITED
STATES BOLIVIA
--------- --------
PRODUCTIVE OIL AND GAS WELLS: OIL GAS OIL GAS
----------------------------- --- ----- --- ----
<S> <C> <C> <C> <C>
Gross................................................ 3 37 -- 17
Net.................................................. 1 15.75 -- 4.37
</TABLE>
One or more completions in the same bore hole are counted as one well. Eleven
gross (6.61 net) gas wells in the United States and 12 gross (3.00 net) gas
wells in Bolivia are dual completions. A "gross well" is a well in which the
Company owns a working interest. A "net well" is deemed to exist when the sum
of the fractional working interests owned by the Company in gross wells equals
one.
10
