Orchard is an upstream oil and gas company focused exclusively on finding and producing oil and gas in California's San Joaquin & Sacramento Basins.

The Company was listed on the ASX in May 2002, and subsequently privatised in March 2007 via a recommended takeover offer by a consortium lead by Crosby Capital Partners.

Orchard has a portfolio of high quality development, appraisal and exploration projects, all of which are operated by Orchard. In addition, the Company has excellent operational relationships with the largest E&P companies in California.

Orchard's current projects comprise:

Production:
	South Belridge – produced at an average of 484boe/day in 4Q07. The project covers approximately 1,500 acres across three lease blocks at the southern extension of the prolific Belridge field.
	Forbes – produced at an average of 0.85MMcf/day in 4Q07. Portfolio of ready to drill prospects across 13,000 acres covered by high quality seismic analysis;
Appraisal:
	Belgian Anticline – an appraisal project in partnership with Aera Energy LLC, a joint venture between Shell and ExxonMobil and the largest producer in California. The first exploration well has been drilled and discovered three potential hydrocarbon bearing zones. These will be flow tested during Q2 2008 and based on the results a development plan designed in conjunction with Aera. The project currently covers approximately 5,000 acres.
	Turk Anticline – a farm-in covering 32,000 acres of Occidental Petroleum leases covered by 3-D seismic. The project contains multiple targets all known to be prolific producing formations throughout the San Joaquin basin. Pre-drill mean estimated reserves are approximately 43 MMboe. The first two explorion wells have been drilled and await flow testing.
	Southeast Lost Hills – two wells have been drilled in this project to test the extension of the Monterey oil play being developed throughout the Lost Hills field. Estimated 30-50 MMboe recoverable hydrocarbons from approximately 5,000 acres. Fracture stimulation and completion procedures are currently being appraised to maximise recoveries from this project;
Exploration:
	North West Lost Hills – An exploration project on the eastern flank of NW Lost Hills field covering 12,500 acres.
	Additional projects are constantly under review and discussion with major players in California to jointly explore leases in close proximity to existing producing fields.

Orchard's strategic objective is the creation of shareholder value through the generation and growth of reserves. Capital investment in projects is driven by risk assessed reserve potential and cashflow analysis with continual portfolio review to maximize shareholder returns through monetisation strategies.

Orchard is focused exclusively on California's prolific San Joaquin & Sacramento Basins. The Company has a balanced portfolio of cash generating assets and high reserves impact exploration projects.

For further information please refer to the 'Operations & Projects' section.