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Exploration andproductionExploration operationsDuring 2007 INA’s exploration activities were markedby massive 2D/3D seismic surveys on a large number ofexploration interests. 2D surveys are in progress on theZaris block in Namibia. In Egypt, acquisition of 2D/3Dseismic data was completed on the East Kalabshaexploration block, while surveys continue on the EastYidma block. In the offshore exploration area in Angola,3D seismic survey was completed on 3/05A block on 2,290sq km. In Croatia, the joint operating company EDINA(Edison, Italy and INA) acquired 1,866 km of 2D seismic ina high density grid (pseudo 3D) on the Ivona block. Afterthe signing of the contract with MOL for joint explorationof the area Novi Gradac - Potony, acquisition of 3D seismicdata on 189 sq km started in October 2007 and shouldbe completed in early 2008. Thus, a total of 5,045 sq kmof 3D seismic and 2,366 km of 2D seismic surveys werecompleted on INA’s exploration interests during 2007and early 2008.In addition to intensive seismic survey activitiesundertaken by INA’s Exploration, the year 2007 wasalso marked by commercial discoveries of hydrocarbonsin Syria and in the Pannonian basin, where INA andMOL announced discovery on the contract area Zalata -Podravska Slatina. On the East Yidma concession in Egypt,exploration was crowned with the discovery of oil on theSidi Rahman-1 well, which was tested and put on streamduring October 2007.Exploration abroadSyriaHayan Block Operator: INA 100%The third and final exploration phase on the Hayanblock, the most successful international concession inINA’s history, expired on 12 September 2007. During theyear INA made two additional discoveries of commercialhydrocarbon reserves so that on the Hayan block there aresix discoveries. The two new fields are: gas condensateMustadira field and oil and gas Mazrur field.Mustadira-1Drilling of the deep exploration well Mustadira-1 wascompleted in April 2007, reaching a depth of 2396m.During drilling, significant hydrocarbon shows weredetected in the Markada sand formations. DST operationsconfirmed gas in four sand layers: A, B, C and D. The wellwas tested and equipped so that commercial discoverycould be announced. Production tests were carried out onthe D2 and C Markada formation reservoirs.Formation/interval (m)Yield ( m 3 /day)Gas Condensate waterMarkada / C sloj 639,000 36 -Markada / D2 sloj 8,168 - 2,9The notice on commercial discovery for the Mustadira field was approved by the relevant Syrian Ministry on 15 August2007. Connection of the Mustadira well to the Palmyra - Arak gas pipeline and commencement of its production isscheduled for the beginning of 2008.30 Business activities