<PAGE>
different engineers often vary. In addition, results of drilling, testing and
production subsequent to the date of an estimate may justify revision of such
estimate. Accordingly, reserve estimates are often different from the
quantities of crude oil and natural gas that are ultimately recovered. The
meaningfulness of such estimates is highly dependent upon the accuracy of the
assumptions upon which they were based.
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, 1995, 1994 and
1993. Natural gas production refers only to marketable production of gas on an
"as sold" basis.
<TABLE>
<CAPTION>
UNITED STATES BOLIVIA
-------------- --------------
GAS LIQUIDS GAS LIQUIDS
(MMCF) (MBBL) (MMCF) (MBBL)
------ ------- ------ -------
<S> <C> <C> <C> <C>
PRODUCTION VOLUMES FOR THE YEAR ENDED:
September 30, 1995...................... 2,996 44.7 1,724 53.3
September 30, 1994...................... 3,456 73.0 1,967 68.9
September 30, 1993...................... 7,067 47.1 1,665 55.3
</TABLE>
The following table shows the average sales prices received by the Company
for its production for the three years ended September 30, 1995, 1994 and 1993:
<TABLE>
<CAPTION>
UNITED STATES BOLIVIA
------------- -------------
GAS LIQUIDS GAS LIQUIDS
(MCF) (BBL) (MCF) (BBL)
----- ------- ----- -------
<S> <C> <C> <C> <C>
AVERAGE SALES PRICES FOR THE YEAR ENDED:
September 30, 1995........................ $1.54 $15.21 $1.28 $18.98
September 30, 1994........................ 2.08 14.67 1.34 12.64
September 30, 1993........................ 2.32 16.53 1.15 17.41
</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, 1995, 1994 and 1993:
<TABLE>
<CAPTION>
UNITED
STATES BOLIVIA
------ --------
<S> <C> <C> <C>
AVERAGE PRODUCTION COSTS FOR THE YEAR ENDED:
September 30, 1995.................................... $ .96 $.54
September 30, 1994.................................... 1.42 .22
September 30, 1993.................................... .77 .05
</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 1994 include the effects of $600,000 in workover expense incurred as a
part of the Wisdom gas field workover and recompletion programs completed in
September 1994. Differences between sales prices and production (lifting) costs
do not represent profit.
Productive Wells and Acreage. On September 30, 1995, the Company's Bolivian
oil and gas properties consisted of working interests in 18 gross gas wells
(4.65 net wells) capable of production. The Company does not operate any wells.
The following table shows the number of producing wells and wells capable of
production as of September 30, 1995:
<TABLE>
<CAPTION>
BOLIVIA
--------
OIL GAS
--- ----
<S> <C> <C>
PRODUCTIVE OIL AND GAS WELLS:
Gross.......................................................... -- 18
Net............................................................ -- 4.65
</TABLE>
7
