Latent Petroleum Pty Ltd, is an Australian-owned, unlisted company formed to develop the Warro Gas Field in the Perth Basin and provide much-needed gas to Western Australia. Latent owns Exploration Permits, EP321 and EP407 which together cover the Warro Gas Field. The Gas Field has an area of approximately 7,000 hectares and is located 200 kilometres north of Perth.

The Warro Field is estimated to contain between 4 and 7 Tcf of natural gas-in-place and is located only 30 km from both the existing sales pipelines. This provides ready access to markets which, combined with the significant increases in WA gas prices and advances in drilling and reservoir stimulation technology, make the Warro Field a very attractive development opportunity.

Hercules provided the risk capital to secure the assets, prepare the project for farmout and worked with Latent to secure Alcoa as a farminee partner. Alcoa has agreed to fund a multiwell appraisal and development program of the Warro Gas Field into production.

IPS Australasia
www.ipsaa.com

IPS is an Independent Well Engineering Consultancy based in Perth, Western Australia. IPS has been providing Project Management Services to the onshore and offshore oil & gas industry worldwide since 1999. Hercules’ principals have acquired a 50% equity stake in IPS.

With successfully executed projects onshore in Australia, Albania, Bolivia, Cuba, Gabon, India, the Netherlands, New Zealand, Pakistan, Tanzania, Tunisia and Uganda, and offshore Australia, Indonesia, Malaysia, Mediterranean, Myanmar, and the UK, IPS has grown to become a sector innovator, cost-effectively introducing world-class well engineering practices to many parts of the world.

IPS comprises a team of more than 40 drilling and completions professionals that can deliver a range of well engineering and operations management services, including:

• Well engineering, design, planning, contracting and well project management
• Conceptual evaluation of field development and well management options
• Development of well delivery processes and management systems suited to well operations
• Commercial support, including due diligence and valuations
  
  

Matra Petroleum
www.matrapetroleum.com

Matra Petroleum plc (Formerly Ming Resources plc), a company listed on AIM, the London Stock Exchange, acquired the rights to an extensive oil and gas permit located in Hungary. As part of the acquisition, Matra undertook an £8 million ($18m) capital raising in April 2006. An experienced management team comprising ex-Premier Oil executives were brought in to run the company.

Project History

• Hercules identified and funded the acquisition of a large Hungarian oil and gas concession in 2005
• Raised $1.3 million in seed capital
• Vended the assets into a reverse takeover of an AIM listed cashbox;
• Spudded Blue Topaz-9 exploration well in December 2005
• Appointed an experienced Managing Director and Technical Director
• Completed a £8.0 million ($18m) AIM IPO in April 2006
• Completed a £6.1 million ($14m) raising in April 2007
• Acquired oil interests in Russia in April 2007 and made a 1000 barrel a day oil discovery at Arkhangelovskoe-12 in November 2007
  
  

WildHorse Energy
www.wildhorse.com.au

WildHorse Energy is an Australian Securities Exchange (ASX) listed uranium exploration company with major assets in Wyoming USA and southern Hungary. WildHorse completed two separate seed raisings totalling $5m in 2006, and then subsequently raised another $10 million in its November 2006 IPO. Significant top 10 shareholders include Macquarie Bank, Goldman Sachs and James Packer’s investment vehicle CPH.

Project History

• Hercules funded the acquisition of mineral claims in the historic uranium mining province Wyoming, USA (July 2005)
• Macquarie Bank acquired 33% interest in WHE as a seed investor
• Hercules secured further projects in Hungary and Paraguay
• Management team (ex-Rio) installed
• Completed $5 million private placement to seed investors
• Successfully completed a $10m ASX IPO in November 2006
• Raised $19 million via a convertible note issue to Goldman Sachs
• Shareholders of Hercules still hold >20% interest in WHE