INTERIM MANAGEMENT STATEMENT

INCLUDING DATA FOR

THE THIRD QUARTER ENDING 30 SEPTEMBER 2011

Highlights

• Construction and commissioning of the Gas Processing Facility (GPF) at the Koshekhablskoye field in Russia is nearing completion. The project remains on-track for production start-up by year-end, with gas sales expected to commence in the first quarter 2012.

• Liquefied petroleum gas (LPG) production and sales commenced on schedule and on budget in July at Poltava, Ukraine.  LPG prices are yielding higher returns than expected.

• Good progress has been made in the preparations for the multi-stage frac operation at Rudenkovskoye field, Ukraine in spring 2012.

• Recent workover activity in Hungary indicates that production rates should be restored to around 1,300 boepd gross this month following the temporary shut-in of the field due to water influx.

• Interpretation of newly acquired seismic data in Hungary, Bulgaria and Slovakia continues with exploration drilling scheduled for late 2011 and early 2012 in Ukraine, Hungary and Slovakia.