(Oil resources estimate increased 18-fold, natural gas estimate tripled)
(430)

Washington -- Afghanistan's petroleum resource base is much larger than
previously thought, according to the first assessment completed by the
U.S. Geological Survey (USGS) and the Afghanistan Ministry of Mines and
Industry.

The estimates increase the oil resources 18 times and more than triple
the natural gas resources, according to a March 14 USGS press release.

The assessment was conducted over the past two years, with funding
provided by the U.S. Trade and Development Agency.

Undiscovered petroleum resources in the assessed region of northern
Afghanistan range from 100 billion cubic meters to more than 1 trillion
cubic meters of natural gas. Estimates of oil range from 0.391 billion
barrels to 3.559 billion barrels. Estimates for natural gas liquids range
from 126 million barrels to 1,325 million barrels.

"I am delighted that the work of the survey of Afghanistan’s mineral and
underground resources is proceeding well,” said Afghanistan President
Hamid Karzai, “and that some very positive findings about our petroleum
resources are being reported.”

Karzai thanked the United States and the USGS, adding, “Knowing more
about our country’s petroleum resources will enable us to take steps to
develop our energy potential, which is crucial for our country’s growth.”

Afghanistan is a land-locked country bordered by Turkmenistan,
Uzbekistan and Tajikistan on the north, Iran on the west and Pakistan on
the east and south.

The country imports most of its energy, including electricity. The
petroleum resource assessment gives Afghanistan information needed for
conducting future lease sales and is likely to be of interest to oil and
gas exploration companies.

Much of Afghanistan’s petroleum resource potential and all the known
crude oil and natural gas reserves are in northern Afghanistan, located in
parts of two geologic basins -- Amu Darya Basin to the west and
Afghan-Tajik Basin to the east. Most undiscovered crude oil is in the
Afghan-Tajik Basin, and most undiscovered natural gas is in the Amu Darya
Basin.

The assessment followed a widely accepted standard USGS methodology and
protocol. It was based on the geologic elements of a total petroleum
system and data from detailed studies of geochemistry, petroleum geology,
geophysics and tectonics.

Historical exploration and production analyses also were used to help
estimate the number and sizes of undiscovered petroleum accumulations. The
total area assessed was about 86,000 square kilometers.