<PAGE>
One or more completions in the same bore hole are counted as one well. Twelve
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.
The following table sets forth certain information with respect to the
developed and undeveloped acreage of the Company as of September 30, 1995:
<TABLE>
<CAPTION>
DEVELOPED(1) UNDEVELOPED(2) TOTAL
--------------- ----------------- -----------------
GROSS(3) NET(4) GROSS(3) NET(4) GROSS(3) NET(4)
-------- ------ --------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
ACREAGE
Bolivia................... 5,760 1,456 1,261,920 337,628 1,267,680 339,084
</TABLE>
- --------
(1) Developed acreage is acreage spaced or assignable to productive wells.
(2) Undeveloped acreage is acreage on which wells have not been drilled or
completed to a point that would permit the production of commercial
quantities of oil and gas, regardless of whether such acreage contains
proved reserves.
(3) A "gross acre" is an acre in which a working interest is owned. The number
of gross acres represents the sum of acres in which a working interest is
owned.
(4) A "net acre" is deemed to exist when the sum of the fractional working
interests in gross acres equals one. The number of net acres is the sum of
the fractional working interests in gross acres expressed in whole numbers
or fractions thereof.
Drilling Activity. Since September 30, 1993, the Company has participated in
drilling three exploratory wells in its Bolivian operation that achieved total
depth. The first and third wells, the Los Suris #2 and the Palo Marcado #1,
were successful in discovering gas reserves. The second well, the San Antonio
#1, has been temporarily abandoned.
Marketing. The revenues generated by the Company's exploration and production
operations are highly dependent upon the prices of, and demand for, natural
gas, and, to a lesser extent, oil. For the last several years, prices of oil
and gas have reflected the worldwide surplus of supply over demand.
Market conditions for oil and gas are the result of a number of factors
outside the control of the Company, including changing economic conditions,
seasonal weather conditions, loss of markets to alternative fuels, increased
foreign production, government regulation and the failure or success of members
of OPEC to agree to and maintain price and production controls.
EMPLOYEES
At December 18, 1995, the Company and its subsidiaries employed approximately
1,150 persons. Approximately 117 employees of the Company's marine protein
operations are represented by an affiliate of the United Food and Commercial
Workers Union. The Company considers its employee relations to be generally
satisfactory.
GEOGRAPHICAL INFORMATION
Certain geographical information with respect to the Company's business is
set forth in Note 16 of Notes to Consolidated Financial Statements.
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