Middle East, North Africa and South Asia("MENASA")

• MENASA comprises 22 countries, encompasses over 25% of the world’s population, and has a combined GDP of over US$5 trillion.
• The Gulf Region, comprised of the six countries of the GCC plus Iran and Iraq, holds 56% and 40% of the world’s conventional oil and gas proven reserves.
• Capital requirements for energy investments in the Gulf Region during 2010 to 2014 are forecast at $520 billion.
• The United Arab Emirates holds the world’s sixth largest proven oil reserves of approximately 98 billion barrels and seventh largest gas reserves of 215 trillion cubic feet.
• World energy consumption is projected to increase by 50% from 2005 to 2030, and fossil fuels (oil, gas and coal) will continue to supply much of the energy used worldwide.

Crescent Petroleum participates in the global oil & gas industry with a particular focus on the region comprised of the countries within the Middle East, North Africa and South Asia (together, “MENASA”). The countries of MENASA collectively possess over half of the world’s conventional, proven oil reserves and nearly half of the world’s conventional, proven natural gas reserves. They also contain additional amounts of unproven and undiscovered natural reserves. MENASA accounts for only 20% of global production, reflecting the region’s potential for growth.

Today, most of the proven oil & gas of the Middle East and North Africa is located within the countries of the Gulf Region – comprised of Gulf Cooperation Council (GCC), Iran, and Iraq.

The Gulf Region

The six countries of the Gulf Cooperation Council (GCC) , Iran and Iraq collectively possess some 56% and 40%, respectively , of the world’s conventional oil and gas proved reserves, and large additional amounts of unproved and undiscovered reserves.

In 2009, the Gulf Region produced over 23.6 million barrels of oil per day, and 38.4 billion cubic feet of natural gas per day, accounting for over 37% of the world’s oil production, 14% of gas production, and 28% of Liquefied Natural Gas (LNG) exports.

According to International Energy Outlook projections³, world energy consumption is projected to increase by almost 50% by 2030 from 2005 figures. Fossil fuels (oil, gas and coal) will continue to supply much of the energy used worldwide. World crude oil demand is expected to grow from 86.1 million barrels per day in 2007 to 110.6 million barrels per day in 2035, an increase of 24.5 million barrels per day.

We expect that to meet the world’s growing energy demand, the Gulf Region’s share of world oil production will increase above 37% as Iraq returns to full production in the coming years.

Global demand for natural gas has risen at a rate even greater than that of crude oil, experiencing an average⁴ increase in demand of 2.6% per year over the 1973-2010 period compared to 0.9%⁵ for crude oil over the same period. Natural gas consumption worldwide is forecasted to increase at an average rate of 1.3% annually up to 2035, as compared with a continuing 0.9% per year for oil⁶.

The expansion of the gas industry in the Gulf Region itself will continue to be immense, due to the rapidly growing power requirement of the GCC population and increasing substitution of gas as a primary fuel for power generation around the world due to lower cost of natural gas on an equivalent basis, efficiency considerations, and environmental considerations.

¹ The GCC is comprised of the six countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

² BP 2010 Statistical Review

³ International Energy Outlook 2010

⁴ “average” here means CAGR, compound annual growth rate also CAGR over the period 1973 to 2009

⁵ also CAGR over the period 1973 to 2009

⁶ International Energy Outlook 2010