THRACE BASIN GAS PRODUCTION PROJECT

Petrako is currently holding and acting as a Joint Operator in 3ea "production leases"in Thrace Basin, namely ARİ/TEM-PTK-VEN/E17b4, ARİ/TEM-PTK-VEN/E17c1 and ARİ/TEM-PTK-VEN/E17c2 accordingly. Those licences were divided and transferred from the long term exploration asset, AR/TMI-VEN-PTK/3839.  The gas production has been continuing since 2010. Petrako remains its %10 shares in all of those licences with US Transatlantic Petroleum company (%55) and Canadian Valeura Energy (%35).

The Thrace Basin area, located in the European part of Turkey, provides the majority of Turkish domestic gas production. Conventional gas production is mainly from the Oligocene/Miocene sandstones of the Osmancık and Danişmen Formations.

ALAŞEHİR OIL DEVELOPMENT PROJECT

Petrako has been awarded an oil license in Alasehir Oil Project in the Manisa, Provence in western Turkey with the Australian oil company Petroz  Limited at October, 2015. Petrako remains its %25 shares in this licence as Operator whereas Petroz Limited has % 75 shares which provide technical assistance. Historical exploration has taken place under this licence i.e. four wells were drilled and 2D seismic work conducted from 1998-2001 by the Turkish National Oil Company, TPAO. All four wells recorded good oil shows, including one oil blowout, which was capped.

From 2004 to 2010 a further 2 wells were drilled and of these 2 new wells, Sarikiz-2, flowed oil to surface and production testing produced over 1,000 barrels of good quality oil in a flow test over 7 days. A second well, Sarikiz-3 produced gassy water with oil and condensate, but the well was plugged and abandoned by the operator.

International expert company RISC has made an Indipendent Geological Assesssment and Economical Evaluation Report for the license. The first well (SPP-1) to be drilled by Petroz and Petrako will be next to the Sarikiz-2 discovery well. Which NauticAWT has commenced the preliminary well design and is planning work for this well. SPP-1 well is planned to be opened due Q4-2017.