Offshore staff

Peak Petroleum Industries Nigeria Ltd. and Equator Exploration Ltd. signed a letter of intent with Bergesen Worldwide Offshore Ltd. to negotiate an agreement for an FPSO to serve Bilabri field, offshore Nigeria.

Bilabri is in block OML 122 and Bergesen will use the FPSOBW Endeavor following a general upgrade. Contract terms are for least and operation of the FPSO for five years with an option for another five years.

Production at Bilabri is scheduled to begin in mid-2007 at an estimated 30,000 b/d oil.

6/28/06