Peak Discovery Capital Ltd V.PEC

50%

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The ALC-1 well is being drilled under a joint venture with Petróleos de Portugal - Petrogal ("Galp") who is carrying Porto on 50% of the total drilling costs of this well.  The Company spud the ALC-1 well, its first Presalt well, at the end of August 2012 and has reached a total measured depth of 2,935 meters. Using interpreted 3-D seismic data, the ALC-1 well is targeting a mapped four-way closure approximately 800 meters high to the ALJ-2 appraisal well at the Company's Aljubarrota gas discovery. The well has encountered a thicker than expected salt section and has now drilled though this salt section and into the closure below the salt.  Galp and Porto have decided to run a liner and then resume drilling operations to a targeted depth of 3,300 meters.  The thicker than expected salt section is encouraging and the Company's remapping indicates that it is still drilling within the targeted closure.  The Company cautions that it is still drilling into the primary zone of interest and final results are forthcoming.  Porto anticipates its drilling operations at the ALC-1 well to reach total depth within the next two weeks.