Exploration and Undeveloped Assets
In 2007, we discovered hydrocarbons at Golden Eagle and then drilled a successful sidetrack to appraise the accumulation. We are currently evaluating development options and expect to sanction development in 2008. In 2007, we also drilled a successful exploration well at Kildare, and plan to follow up the discovery with an appraisal well. We also completed appraisal of the Selkirk prospect with favourable results. We have a number of discoveries on operated blocks near Scott, Buzzard and third-party facilities as follows:

In 2007, we drilled unsuccessful exploration wells at Guinea, Dee and Stag. The three wells encountered non-commercial quantities of hydrocarbons and were abandoned. In 2008, we expect to drill six exploration and two appraisal wells. We have secured drilling rigs for all of our 2008 North Sea exploration and development program.

Coalbed Methane (CBM)
We have also begun assessing emerging CBM opportunities in the UK. In 2006, we acquired an 80% working interest in one opportunity and have drilled two successful exploration wells so far. Both encountered coal seams as expected and are being monitored through ongoing production testing. In another CBM opportunity, we drilled two unsuccessful exploration wells in 2007. We plan to continue assessing CBM potential in the UK with additional exploratory wells in 2008.