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1.     BASIS OF PRESENTATION The financial statements presented in this Form 10-Q comprise MNP Petroleum Corporation (“MNP” or the “Company”) and its subsidiaries (collectively, the “Group”). The unaudited interim Consolidated Financial Statements included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and present our financial position, results of operations, cash flows and changes in stockholder’s equity. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company is in the business of exploring for oil and gas, primarily in Central and East Asia. If the Company discovers sufficient reserves of oil or gas, it intends to exploit them. The Company has not commenced planned principal operations and therefore has not realized any revenues to date. The Company carries out its operations both directly and through participation in ventures with other oil and gas companies. It is actively involved in exploration projects in Tajikistan and Mongolia. In addition, the Company recently purchased a stake in producing oilfields in Tajikistan. As the Company currently depends upon funding from various sources to continue operations and to implement its growth strategy, the Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company’s licenses. The Company, formerly known as Express Systems Corporation, was incorporated in the State of Nevada on July 9, 1998. On April 10, 2007, the Company completed the Exchange Transaction whereby it acquired its then sole subsidiary DWM Petroleum AG, Baar (“DWM Petroleum”) pursuant to an exchange agreement signed in November 2006 whereby 100% of the shares of DWM Petroleum were exchanged for 80,000,000 common shares of the Company. As part of the closing of this exchange transaction, the Company issued 800,000 shares as finders’ fees at the closing price of USD3.20. The acquisition of DWM Petroleum was accounted for as a merger of a private operating company into a non-operating public shell. Consequently, the Company is the continuing legal registrant for regulatory purposes and DWM Petroleum is treated as the continuing accounting acquirer for accounting and reporting purposes. The assets and liabilities of DWM Petroleum remained at historic cost. Under accounting principles generally accepted in the United States of America, in transactions involving the merger of a private operating company into a non-operating public shell, the transaction is equivalent to the issuance of stock by DWM Petroleum for the net monetary assets of the Company, accompanied by a recapitalization. The accounting is identical to a reverse acquisition, except that no goodwill or other intangibles are recorded. The Company has a focused strategy on exploration and developing oil and gas resources in Central Asia and East Asia (Tajikistan and Mongolia).

1.00 80000000 800000 3.20

2.     GOING CONCERN The condensed consolidated financial statements have been prepared on the assumption that the Group will continue as a going concern. The Group has no operating income and therefore will remain dependent upon continued funding from its shareholders or other sources. The Company’s cash balance as of June 30, 2015 was USD170,232, of which USD100,416 has been restricted leaving a balance of USD69,816. These matters raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Based on the Group’s expected monthly burn rate of USD349,616 on basic operational activities, management estimates that the Company has sufficient working capital to fund operations for one month. In order to continue to fund operations for the next twelve months and implement the work program for the Group’s projects in Central Asia as well as to finance continuing operations, the Group will require further funds. The Company is currently negotiating additional equity and debt facilities though there can be no assurance that these negotiations will complete and result in a financing. The Company’s current efforts include continuing discussions with Stichting VB Vagobel, which is in material breach of its obligations to complete a transaction initially disclosed on September 9, 2014. The Company has given to Stichting VB Vagobel formal notice that it is in material breach of contract and Vagobel has failed to cure the breach. As Stichting VB Vagobel is physically located in the Netherlands, the Company has retained Dutch counsel and is evaluating next steps. The Company is also negotiating a potential transaction with a US-Dubai consortium. This transaction was originally announced in a press release dated April 1, 2015, and discussions are ongoing. On July 15, 2015 MNP Petroleum Corp., through its subsidiary TF Petroleum AG (“TFP”), and C.E.G. International Ltd. (“CEG”), part of a Dubai based renowned Group of Companies, signed a Debt Finance Agreement. Pursuant to the Agreement CEG will procure TFP a credit facility issued by a prime western bank to secure a loan for the Company which is confirmed to be issued by an Austrian based bank. The facility is valid for 12 months with a face value of EUR 10 million (approximately USD 11 million). Also pursuant to the Finance Agreement MNP has agreed to pledge part of its assets as collateral. Both MNP and CEG are in the final stages of completing the process with the banks. However, the proceeds from this bridge provide only temporary relief while the Company pursues a larger facility. If the Company is not able to raise the required funds, it may consider other alternatives, including a possible farm-out of one or more of its projects in order to reduce short term financial commitments. If the Company is unable to obtain the funding that it needs or arrive at an acceptable alternative solution, the Company will not be able to continue its business. In addition, any equity financing may be dilutive to shareholders, and debt financing, if available, will increase expenses and may involve restrictive covenants. The Company will be required to raise additional capital on terms which are uncertain, especially under the current capital market conditions. If the Company is unable to obtain capital or is required to raise it on undesirable terms, it may have a material adverse effect on the Company’s financial condition.

170232 100416 69816 349616 12 10000000 11000000

3.     ACCOUNTING POLICIES The accompanying financial data as of June 30, 2015 and December 31, 2014 and for the three and six month periods ended June 30, 2015 and 2014, has been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The complete accounting policies followed by the Group are set forth in Note 3 to the audited consolidated financial statements contained in the Group‘s Annual Report on Form 10-K for the year ended December 31, 2014. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures, if any, of contingent assets and liabilities at the date of the financial statements. Actual results could differ from these estimates. In the opinion of management, all adjustments (which include normal recurring adjustments, except as disclosed herein) necessary to present a fair statement of financial position as of June 30, 2015 and December 31, 2014, results of operations for the three and six month periods ended June 30, 2015 and 2014, cash flows for the six month periods ended June 30, 2015 and 2014 and statement of shareholders’ equity for the period from January 1, 2015 to June 30, 2015, as applicable, have been made. The result of operations for the three and six month periods ended June 30, 2015 is not necessarily indicative of the operating results for the full fiscal year or any future periods. On January 15, 2015, DWM Petroleum AG, the Company’s wholly-owned Swiss subsidiary, acquired a 65% equity interest in EPA.at Beteiligungsgesellschaft mbH (“EPA”). The details of this acquisition are discussed in note 7 to these financial statements, below. Due to this acquisition, the Group has updated its accounting policies as follows. Investments Investments in the common stock of entities in which the company owns a minority interest and is unable to exercise significant influence are accounted for using the cost method. If the Company is unable to obtain consolidated financial statements on a timely basis, it accounts for its investments using the cost method. The fair value of the Company’s cost method investment is not estimated as there have been no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment and the Company has determined that it is not practicable to estimate the fair value of the investment at this time. Any earnings distributed by the investee are presented as dividend income on the statements of comprehensive loss. Reclassifications In the prior year balance sheet an amount of USD586,697 was reclassified from “Prepaid expenses and other current assets” to “Other non-current assets” to conform to the current period presentation since this amount constitutes prepayments for “Oil and gas properties (unproved)” and therefore is non-current in nature.

Investments Investments in the common stock of entities in which the company owns a minority interest and is unable to exercise significant influence are accounted for using the cost method. If the Company is unable to obtain consolidated financial statements on a timely basis, it accounts for its investments using the cost method. The fair value of the Company’s cost method investment is not estimated as there have been no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment and the Company has determined that it is not practicable to estimate the fair value of the investment at this time. Any earnings distributed by the investee are presented as dividend income on the statements of comprehensive loss.

Reclassifications In the prior year balance sheet an amount of USD586,697 was reclassified from “Prepaid expenses and other current assets” to “Other non-current assets” to conform to the current period presentation since this amount constitutes prepayments for “Oil and gas properties (unproved)” and therefore is non-current in nature.

0.65 586697

4.     RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting pronouncements In August 2014, the FASB released Accounting Standards Update 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . This ASU requires management to determine whether substantial doubt exists regarding the entity’s going concern presumption. If substantial doubt exists but is not alleviated by management’s plans, the footnotes must specifically state that “there is substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued.” In addition, if substantial doubt exists entities must disclose (a) principal conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans, if any); (b) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations; and (c) management’s plans that are intended to mitigate the conditions or events that raise substantial doubt, or that did alleviate substantial doubt, about the entity’s ability to continue as a going concern. This ASU applies prospectively to all entities for annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is permitted. The Company is in the process of evaluating the impact of ASU 2014-15 and has not adopted it for this reporting period. There have been no other new accounting pronouncements to date in 2015 that are expected to have a material effect on the Company’s consolidated financial statements.

5.     CASH AND CASH EQUIVALENTS <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="middle"> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> USD (held in USD) </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> USD (held in EUR) </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> USD (held in CHF) </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> USD (held in other currencies) </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> USD Total Jun 30, 2015 </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> USD Total Dec 31, 2014 </td> </tr> <tr> <td> </td> <td width="12%"> </td> <td width="12%"> </td> <td width="12%"> </td> <td width="12%"> </td> <td width="12%"> </td> <td width="12%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents</td> <td align="right" bgcolor="#e6efff" width="12%"> 27,993 </td> <td align="right" bgcolor="#e6efff" width="12%"> 21,174 </td> <td align="right" bgcolor="#e6efff" width="12%"> 18,978 </td> <td align="right" bgcolor="#e6efff" width="12%"> 1,671 </td> <td align="right" bgcolor="#e6efff" width="12%"> 69,816 </td> <td align="right" bgcolor="#e6efff" width="12%"> 1,369,778 </td> </tr> </table> </div> Cash and cash equivalents are available to the Group without restriction or limitation on withdrawal and/or use of these funds. The Group’s cash equivalents are placed with high credit rated financial institutions. The carrying amount of these assets approximates their fair value.

27993 21174 18978 1671 69816 1369778

6.     TANGIBLE FIXED ASSETS <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle"> 2015 (in USD) </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Office equipment & furniture </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Vehicles </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Leasehold improvements </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Total </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> Cost at Jan 1, 2015 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 53,770 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 115,773 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 7,269 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 176,812 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Additions</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 3,579 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 3,579 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid">Disposals</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Cost at Jun 30, 2015</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 57,349 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 115,773 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 7,269 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 180,391 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> Accumulated depreciation at Jan 1, 2015 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (29,655 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (62,958 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (945 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (93,558 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Depreciation</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (6,672 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (11,577 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (727 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (18,976 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid">Disposals</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Accumulated depreciation at Jun 30, 2015</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (36,327 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (74,535 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (1,672 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (112,534 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> Net book value at Jan 1, 2015 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 24,115 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 52,815 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 6,324 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 83,254 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"> Net book value at Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 21,022 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 41,238 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 5,597 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 67,857 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> Depreciation expense for the six month periods ended June 30, 2015 and 2014 was USD18,976 and USD24,270 respectively. Depreciation expense for the three month periods ended June 30, 2015 and 2014 was USD9,490 and USD12,120, respectively.

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle"> 2015 (in USD) </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Office equipment & furniture </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Vehicles </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Leasehold improvements </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> Total </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> Cost at Jan 1, 2015 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 53,770 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 115,773 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 7,269 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 176,812 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Additions</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 3,579 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 3,579 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid">Disposals</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Cost at Jun 30, 2015</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 57,349 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 115,773 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 7,269 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 180,391 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> Accumulated depreciation at Jan 1, 2015 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (29,655 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (62,958 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (945 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> (93,558 </td> <td align="left" bgcolor="#e6efff" width="2%"> ) </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Depreciation</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (6,672 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (11,577 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (727 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (18,976 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid">Disposals</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Accumulated depreciation at Jun 30, 2015</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (36,327 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (74,535 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (1,672 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> (112,534 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> Net book value at Jan 1, 2015 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 24,115 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 52,815 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 6,324 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 83,254 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"> Net book value at Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 21,022 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 41,238 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 5,597 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 67,857 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table>

53770 115773 7269 176812 3579 0 0 3579 0 0 0 0 57349 115773 7269 180391 -29655 -62958 -945 -93558 -6672 -11577 -727 -18976 0 0 0 0 -36327 -74535 -1672 -112534 24115 52815 6324 83254 21022 41238 5597 67857 18976 24270 9490 12120

7.     INVESTMENT On January 15, 2015, DWM Petroleum AG acquired a 65% interest in EPA.at Beteiligungsgesellschaft mbH (“EPA”) for the purpose of diversifying its portfolio of oil and gas assets. Total consideration paid was USD12,000,000. EPA, a company registered in Vienna, Austria, holds a 57.42% interest in the company Petroleum Sugd LLC (“PSL”), which owns 10 producing oil and gas fields in the north of Tajikistan. Through its investment, EPA participates in the profits from the sale of oil and gas. The acquisition of EPA was accounted for using the cost method as although the Company owns a 65% equity interest, under ASC 810, EPA is considered to be a variable interest entity and the other EPA shareholder has veto rights which limit the power of the Company to make significant decisions. In addition, as Petroleum Sugd LLC operates in the Republic of Tajikistan it is not subject to such stringent reporting deadlines as in the US. The difference between the financial reporting dates of the investee and the Company is over the allowed period in accordance with ASC 323, and as such the investment may not be presented under the equity method. <div align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="60%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> Investments at cost (in USD) </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> Jun 30, 2015 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> Dec 31, 2014 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">EPA</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="22%"> 12,000,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="22%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Total investments at cost </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="22%"> 12,000,000 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="22%"> - </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> </div> During the six month period ended June 30, 2015, the investment balance has not been evaluated for impairment.

12000000 0 12000000 0 0.65 12000000 0.5742 10 0.65

8.     OIL AND GAS PROPERTIES <div align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="60%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> Capitalized exploration costs </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> Jun 30, 2015 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> Dec 31, 2014 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Unproved, not subject to depletion</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="22%"> 1,008,638 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="22%"> 687,645 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Proved subject to depletion</td> <td align="left" width="1%"> </td> <td align="right" width="22%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="22%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Accumulated depletion</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="22%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="22%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Total capitalized exploration costs </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="22%"> 1,008,638 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="22%"> 687,645 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> </div> On May 28, 2014, the Company wrote to the Petroleum Authority of Mongolia requesting the moratorium be extended an additional year. As at June 30, 2015, the Company has not received any response to its request. During the year ended December 31, 2014, the Company’s capitalized balance of USD687,645 consisted of the following: well site preparation costs of Kayrakkum B in the Republic of Tajikistan in the amount of USD514,368 and one well design and the cost of certain drilling equipment in Mongolia in the amount USD173,277. Additionally, as of June 30, 2015, the Company has reclassed USD315,553 from prepaid expenses to oil and gas properties for casings and well heads that have been received, and it capitalized USD5,440 relating to the storage of this well site equipment in the Republic of Tajikistan.

1008638 687645 0 0 0 0 1008638 687645 687645 514368 173277 315553 5440

9.     STOCK COMPENSATION PROGRAM Amended 2011 Stock Option Plan The Amended 2011 Stock Option Plan, which was approved at Annual Shareholders Meeting dated February 20, 2014, authorizes the Company to issue options to purchase such number of the Company’s common shares as is equal to an aggregate, together with options issued under any prior plan, of up to 34,500,000 shares of the Company’s common stock (it is the type of stock option plan referred to as a “fixed” stock option plan). If all or any portion of any stock option granted under the 2011 Stock Option Plan expires or terminates without having been exercised in full, the unexercised balance will be returned to the pool of stock available for grant under the 2011 Stock Option Plan. Recognition of Stock-based Compensation Costs Stock-based compensation costs are recognized in earnings using the fair-value based method for all awards granted. For employees fair value is estimated at the grant date and for non-employees fair value is re-measured at each reporting date. Compensation costs for unvested stock options and unvested share grants are expensed over the requisite service period on a straight-line basis. Grants 9.1. Stock Option Grants The Company calculates the fair value of options granted by applying the Black-Scholes option pricing model. Expected volatility is based on the Company’s own historical share price volatility. The Company’s share price data can be traced back to April 2, 2007, and the Company believes that this set of data is sufficient to determine expected volatility as input for the Black-Scholes option pricing model. During the six month periods ended June 30, 2015 and 2014 the Company did not grant any options. The following table shows the Company‘s outstanding and exercisable stock options as of June 30, 2015: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle"> Outstanding Options 2015 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%">Shares under option</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%"> Weighted-average exercise price </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%"> Weighted-average remaining contractual term (years) </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid"> Outstanding at December 31, 2014 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> USD0.24 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> 5.72 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Granted</td> <td align="left" width="1%"> </td> <td align="right" width="15%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="15%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="15%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Exercised</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Forfeited, canceled or expired</td> <td align="left" width="1%"> </td> <td align="right" width="15%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="15%"> - </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="15%"> - </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Outstanding at Jun 30, 2015</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> USD0.24 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> 5.72 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Exercisable at Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> 11,925,000 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> USD0.24 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> 5.69 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> The following table depicts the Company’s non-vested options as of June 30, 2015 and changes during the period: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle"> Non-vested options </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%">Shares under option</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%"> Weighted-average grant date fair value </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="right" style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid" valign="middle" width="1%"> </td> <td align="right" style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid" valign="middle" width="15%"> </td> <td align="right" style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid" valign="middle" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid"> Non-vested at December 31, 2014 </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> 1,043,750 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="15%"> USD0.06 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="right" style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid" width="1%"> </td> <td align="right" style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid" width="15%"> </td> <td align="right" style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Non-vested granted</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="14%"> </td> <td align="right" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Vested</td> <td align="left" width="1%"> </td> <td align="right" width="14%"> (668,750 </td> <td align="left" width="2%">)</td> <td align="left" width="1%"> </td> <td align="right" width="14%"> USD0.06 </td> <td align="left" width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="14%"> </td> <td align="right" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Non-vested, forfeited or canceled</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="14%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="14%"> </td> <td align="right" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Non-vested at Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> 375,000 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> USD0.06 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> </table> As of June 30, 2015, the expected total of unrecognized compensation costs related to unvested stock-option grants was USD10,293. The Company expects to recognize this amount over a weighted average period of 0.89 years. 9.2. Summary of Stock-based Compensation Expenses A summary of stock-based compensation expense for the respective reporting periods is presented in the following table: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-TOP: #000000 2px solid"> Stock based compensation </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid"> Three months ended </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid"> Six months ended </td> <td align="right" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> expenses </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid">Option grants</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 11,695 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 20,980 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 34,996 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 42,294 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Total </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 11,695 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 20,980 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 34,996 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 42,294 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Recorded under “Personnel”</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 2,226 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 8,282 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 7,269 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="12%"> 16,750 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 2px solid">Recorded under “Consulting fees”</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 9,469 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 12,698 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 27,727 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 25,544 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table>

12300000 0.24 5.72 0 0 0 0 0 0 0 0 0 12300000 0.24 5.72 11925000 0.24 5.69

1043750 0.06 0 0 -668750 0.06 0 0 375000 0.06

11695 20980 34996 42294 11695 20980 34996 42294 2226 8282 7269 16750 9469 12698 27727 25544 34500000 10293 0.89

10.    SHAREHOLDERS’ EQUITY Share repurchase program On May 13, 2014, MNP Petroleum Corp. announced a plan to repurchase up to 8,296,614 of its common shares, or up to five percent of the 172,592,292 common shares that were then outstanding, in a normal course issuer bid to be conducted by Jennings Capital Inc. All purchases of common shares under the bid were effected on the TSX Venture Exchange in accordance with the rules and policies of the TSX Venture Exchange and applicable securities laws. During the course of the bid the Company repurchased an aggregate of 6,479,500 shares of its common stock in the open market, which were booked as treasury shares upon repurchase. The program expired May 18, 2015. During the six month period ended June 30, 2015, the Company did not repurchase any shares of common stock.

8296614 172592292 6479500

11.    RELATED PARTY DISCLOSURE The consolidated financial statements include the financial statements of MNP Petroleum Corporation and the entities listed in the following table: Equity share Equity share <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Company </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> Country </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> Jun 30, 2015 </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> Dec 31, 2014 </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> DWM Petroleum AG, Baar (1) </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Switzerland</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> DWM Energy AG Baar (2) </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Switzerland</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Petromanas Energy Inc., Calgary (3) </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Canada</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 0.07% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 0.6% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> CJSC Somon Oil Company, Dushanbe (4) </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Republic of Tajikistan</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 90% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 90% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Manas Management Services Ltd., Nassau (5) </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Bahamas</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Manas Chile Energia Limitada, Santiago (6) </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Chile</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Gobi Energy Partners LLC, Ulaan Baator (7) </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Mongolia</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Gobi Energy Partners GmbH (8) </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Switzerland</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> TF Petroleum AG (9) </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Switzerland</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> EPA.at Beteiligungsgesellschaft mbH (10) </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Austria</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 65% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> - </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Petroleum Sugd LLC (11) </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Tajikistan</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 37.3% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> - </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">(1)</td> <td> Included Branch in Albania that was sold in February 2010. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(2)</td> <td> Founded in 2007. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(3)</td> <td> Petromanas Energy Inc. participation resulted from partial sale of Manas Adriatic GmbH; fair value method applied. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(4)</td> <td> CJSC Somon Oil Company was founded by DWM Petroleum AG. As CJSC Somon Oil has been in a loss position since its inception its inception and MNP is legally required to fund the losses, no no-controlling interest has been recorded. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(5)</td> <td> Founded in 2008. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(6)</td> <td> Manas Chile Energia Limitada was founded by Manas Management Services Ltd.; founded in 2008. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(7)</td> <td> Gobi Energy Partners LLC was founded in 2009 by DWM Petroleum AG (formerly Manas Gobi LLC). Gobi Energy Partners GmbH holds record title to 100% of Gobi Energy Partners LLC. </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="5%">(8)</td> <td> Gobi Energy Partners GmbH was founded in 2010. DWM Petroleum AG holds 74% of Gobi Energy Partners GmbH. The Company determined that no value needs to be ascribed to the non-controlling interest due to the fact that the non-controlling parties do not carry any costs. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(9)</td> <td> TF Petroleum was founded in 2012 Pursuant to the Supplement Agreement dated March 31, 2014; DWM Petroleum AG acquired 100% for a purchase price of CHF 1.00 (USD1.13) pursuant to a Share Purchase Agreement signed on April 4, 2014. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(10)</td> <td> EPA, founded in 2003, is registered in Vienna, Austria and holds a 57.42% interest in the company Petroleum Sugd LLC; TF Petroleum acquired 65% for a purchase price of USD12,000,000 on January 15, 2015; EPA is accounted for under the cost method. </td> </tr> <tr> <td width="5%"> </td> <td valign="top" width="5%">(11)</td> <td> Founded in 2000, registered in the Republic of Tajikistan. </td> </tr> </table> - Related parties The following table provides the total amount of transactions, which have been entered into with related parties for the specified period: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-TOP: #000000 2px solid"> Related parties’ transactions </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Three months ended </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Six months ended </td> <td align="right" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Affiliates </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Management services performed to Petromanas*</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (278 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Receivable due from EPA</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 44,832 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 44,832 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Board of directors </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Payments to directors for office rent</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,406 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,737 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 12,852 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 13,463 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid">Payments to related companies controlled by directors for rendered consulting services</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 58,123 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 74,273 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 116,704 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 148,432 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> </tr> </table> * Services invoiced or accrued are recorded net against expenses in personnel cost and administrative cost.

1.00 1.00 1.00 1.00 0.0007 0.006 0.90 0.90 1.00 1.00 1.00 1.00 0.74 0.74 0.74 0.74 1.00 1.00 0.65 0 0.373 0

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-TOP: #000000 2px solid"> Related parties’ transactions </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Three months ended </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Six months ended </td> <td align="right" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left"> Affiliates </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="left" valign="bottom" width="12%"> </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Management services performed to Petromanas*</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> - </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%"> (278 </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">)</td> </tr> <tr valign="top"> <td align="left">Receivable due from EPA</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 44,832 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 44,832 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff"> Board of directors </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left">Payments to directors for office rent</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,406 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 6,737 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 12,852 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 13,463 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid">Payments to related companies controlled by directors for rendered consulting services</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 58,123 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 74,273 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 116,704 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 148,432 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> </tr> </table>

0 0 -278 44832 0 44832 0 6406 6737 12852 13463 58123 74273 116704 148432 1.00 0.74 1.00 1.00 1.13 0.5742 0.65 12000000

12.    COMMITMENTS & CONTINGENT LIABILITIES Legal actions and claims (Kyrgyz Republic, Republic of Tajikistan, Mongolia) In the ordinary course of business, members of the Group doing business in Mongolia, Republic of Tajikistan, and the Kyrgyz Republic may be subject to legal actions and complaints. Management believes that the ultimate liability, if any, arising from such actions or complaints will not have a material adverse effect on the financial condition, the results of future operations or cash flows of the associates/subsidiaries in Mongolia, Republic of Tajikistan, and the Kyrgyz Republic. Management believes that the members of the Group are in substantial compliance with the tax laws affecting their respective operations in the Kyrgyz Republic, Republic of Tajikistan and Mongolia. However, the risk remains that relevant authorities could take differing positions with regards to interpretative issues. Work program and social responsibility project On June 10, 2014, the governor of the Farkhor district of Tajikistan decreed that EPA has a two year funding obligation related to a social responsibility project concerning the construction of a secondary school in this district. Additionally, in the fourth quarter of 2014, Petroleum Sugd LLC completed its work program budget. EPA, as a 57.42% owner of Petroleum Sugd has a funding obligation that amounts to USD14.9 million relating to its portion of this work program for Petroleum Sugd in Tajikistan. The Company agreed to cover these commitments on EPA’s behalf under a loan structure.

0.5742 14900000 13.    PERSONNEL COSTS AND EMPLOYEE BENEFIT PLANS Defined benefit plan The Company maintains Swiss defined benefit plans for eight of its employees. These plans are part of independent collective funds providing pensions combined with life and disability insurance. The assets of the funded plans are held independently of the Company’s assets in a legally distinct and independent collective trust fund which serves various unrelated employers. The funds’ benefit obligations are fully reinsured by AXA Winterthur Insurance Company. The plans are valued by independent actuaries using the projected unit credit method. The liabilities correspond to the projected benefit obligations of which the discounted net present value is calculated based on years of employment, expected salary increases, and pension adjustments. <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Three months ended </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Six months ended </td> <td align="right" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"> Pension expense </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#E6EFFF" style="BORDER-RIGHT: #000000 1px solid">Net service cost</td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> 20,519 </td> <td align="left" bgcolor="#E6EFFF" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> 8,212 </td> <td align="left" bgcolor="#E6EFFF" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> 41,038 </td> <td align="left" bgcolor="#E6EFFF" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> 12,318 </td> <td align="left" bgcolor="#E6EFFF" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Interest cost</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 3,033 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 10,809 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 6,065 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 16,213 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#E6EFFF" style="BORDER-RIGHT: #000000 1px solid">Expected return on assets</td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> (2,197 </td> <td align="left" bgcolor="#E6EFFF" width="2%">)</td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> (8,834 </td> <td align="left" bgcolor="#E6EFFF" width="2%">)</td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> (4,395 </td> <td align="left" bgcolor="#E6EFFF" width="2%">)</td> <td align="left" bgcolor="#E6EFFF" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" width="12%"> (13,250 </td> <td align="left" bgcolor="#E6EFFF" width="2%">)</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Amortization of loss</td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 10,559 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 11,625 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 21,118 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="12%"> 17,437 </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#E6EFFF" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Net periodic pension cost </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 31,913 </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 21,812 </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 63,827 </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 32,717 </td> <td align="left" bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> During the six month periods ended June 30, 2015 and 2014, the Company made cash contributions of USD128,121 and USD115,067, respectively, to its defined benefit pension plan. The Company does not expect to make any additional cash contributions to its defined benefit pension plans during the remainder of 2015.

20519 8212 41038 12318 3033 10809 6065 16213 -2197 -8834 -4395 -13250 10559 11625 21118 17437 31913 21812 63827 32717 128121 115067

14.    FAIR VALUE MEASUREMENT 14.1. Fair Value Measurements ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company holds no financial assets or liabilities carried at fair value as of June 30, 2015. Financial assets and liabilities carried at fair value as of December 31, 2014: <div align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> Financial assets 2014 (in USD) </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="15%"> Level 1 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="15%"> Level 2 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="15%"> Level 3 </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid">Investment in associate (Petromanas)</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> 206,382 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> - </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> - </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 2px solid"> Total </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> 206,382 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> - </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> - </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> </div> 14.2. Fair Value of Financial Instruments In addition to the methods and assumptions the Company uses to record the fair value of financial instruments as discussed in the Fair Value Measurements section above, the Company used the following methods and assumptions to estimate the fair value of its financial instruments. <ul style="TEXT-ALIGN: justify"> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> Cash and cash equivalents – carrying amount approximated fair value. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> Restricted cash – carrying amount approximated fair value. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> Accounts receivable – carrying amount approximated fair value. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> Investment in Petromanas – the fair value was calculated based on quoted market prices. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> Accounts Payable – carrying amount approximated fair value. </li> </ul> The fair value of the Company’s financial instruments is presented in the table below (in USD): <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid" valign="middle"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle"> Jun 30, 2015 </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle"> Dec 31, 2014 </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Fair Value Levels </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Reference </td> <td align="center" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid" valign="middle">  </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Carrying Amount </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Fair Value </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Carrying Amount </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Fair Value </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 69,816 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 69,816 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1,369,778 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1,369,778 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%">Note 5</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Restricted cash</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 100,416 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 100,416 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 208,621 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 208,621 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 1 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Transactions prepayment</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 12,000,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 12,000,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Accounts receivable</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 1 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Investment in Petromanas</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid">Accounts Payable</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,165,472 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,165,472 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> </div>

206382 0 0 206382 0 0

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid" valign="middle"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle"> Jun 30, 2015 </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%"> </td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle"> Dec 31, 2014 </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Fair Value Levels </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Reference </td> <td align="center" rowspan="2" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid" valign="middle">  </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Carrying Amount </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Fair Value </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Carrying Amount </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> Fair Value </td> <td align="center" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Cash and cash equivalents</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 69,816 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 69,816 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1,369,778 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1,369,778 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%">Note 5</td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Restricted cash</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 100,416 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 100,416 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 208,621 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 208,621 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 1 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Transactions prepayment</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 12,000,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 12,000,000 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Accounts receivable</td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="right" width="10%"> 1 </td> <td align="left" width="2%"> </td> <td align="left" width="1%"> </td> <td align="left" width="10%"> </td> <td align="left" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Investment in Petromanas</td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> <td align="left" bgcolor="#e6efff" width="1%"> </td> <td align="left" bgcolor="#e6efff" width="10%"> </td> <td align="left" bgcolor="#e6efff" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid">Accounts Payable</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,165,472 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,165,472 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table>

69816 69816 1369778 1369778 1 100416 100416 208621 208621 1 0 0 12000000 12000000 1 45406 45406 14359 14359 1 0 0 206382 206382 1 1775577 1775577 1165472 1165472 1

15.    EARNINGS PER SHARE Basic earnings per share result by dividing the Company’s net income (or net loss) by the weighted average number of shares outstanding for the contemplated period. Diluted earnings per share are calculated applying the treasury stock method. When there is a net income, dilutive effects of all stock-based compensation awards or participating financial instruments are considered. When the Company posts a loss, basic loss per share equals diluted loss per share. The following table depicts how the denominator for the calculation of basic and diluted earnings per share was determined under the treasury stock method: <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Three months ended </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Six months ended </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Company posted</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Basic weighted average shares outstanding</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Dilutive effect of common stock equivalents:</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">        - stock options and non-vested stock under           employee compensation plans </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Diluted weighted average shares outstanding </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> </tr> </table> The following table shows the total number of stock equivalents that was excluded from the computation of diluted earnings per share for the respective period because the effect would have been anti-dilutive: <div align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="80%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Three months ended </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Six months ended </td> <td align="right" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"> Stock equivalent </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">Options</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,100,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,100,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Total </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> 12,300,000 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> 12,100,000 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> 12,300,000 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> 12,100,000 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%"> </td> </tr> </table> </div>

<table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid"> </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Three months ended </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%"> </td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> Six months ended </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2015 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%"> </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> Jun 30, 2014 </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Company posted</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net loss</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Basic weighted average shares outstanding</td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Dilutive effect of common stock equivalents:</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%"> </td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">        - stock options and non-vested stock under           employee compensation plans </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> <td align="left" valign="bottom" width="1%"> </td> <td align="right" valign="bottom" width="12%"> - </td> <td align="left" valign="bottom" width="2%"> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> Diluted weighted average shares outstanding </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 166,112,792 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%"> </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 172,592,292 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%"> </td> </tr> </table>

166112792 172592292 166112792 172592292 0 0 0 0 166112792 172592292 166112792 172592292

12300000 12100000 12300000 12100000 12300000 12100000 12300000 12100000

16.    SUBSEQUENT EVENT(S) On July 15, 2015 MNP Petroleum Corp., through its subsidiary TF Petroleum AG (“TFP”), and C.E.G. International Ltd. (“CEG”), part of a Dubai based renowned Group of Companies, signed a Debt Finance Agreement. Pursuant to the Agreement CEG will procure TFP a credit facility issued by a prime western bank to secure a loan for the Company which is confirmed to be issued by an Austrian based bank. The facility is valid for 12 months with a face value of EUR 10 million (approximately USD 11 million). Also pursuant to the Finance Agreement MNP has agreed to pledge part of its assets as collateral. Both MNP and CEG are in the final stages of completing the process with the banks.

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