Incremental discovers gas in first well of Edirne Drilling - Turkey

4 April 2008

Highlights:

• Ikihoyuk 1 well has encountered 28 metres of net gas, in the target pay zone between 323m and 468m.
• Discovery zone is three times greater than prognosed.
• Present operation is running 5 inch casing on the Ikihoyuk 1 well and the rig will then move to the next well in the five-well program - Ortakci 1.
• Ikihoyuk 1 will be tested, along with any other discoveries, at the end of the 5-well drilling campaign anticipated to last about six weeks.

Incremental Petroleum announces that the first well in the 2008 Edirne onshore drilling campaign in Western Turkey (IPM 55%) has discovered almost three times the prognosed gas pay.

The Ikihoyuk 1 well discovered 28 metres of net gas pay, based on wireline log analysis, between 323m and 468m. Average porosity is excellent at 26 per cent. Total depth of the well is 520m.

The pay is deeper than prognosed, adding significantly to preliminary mapped reserves (based on the greater gas compressibility at depth).

Ikihoyuk was drilled without incident and is total exploration costs are currently approximately 15% below budget.

Ikihoyuk 1 will be flow tested, along with any other discoveries at the end of the 5-well drilling campaign, anticipated to last about six weeks.

The Ikihoyuk structure is one of 17 structures mapped on the 2007 3D seismic and is a downthrown fault trap.

The excellent results from this first well, together with gas previously discovered in the 2007 exploration campaign, continue to build the resources needed for substantial gas development in Edirne.

The partners in the Edirne Gas project are Incremental Petroleum 55%, Otto Energy 35% and Petraco, as joint operator, with 10%.



Incremental Petroleum