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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001038838-09-000218.txt : 20100104
<SEC-HEADER>0001038838-09-000218.hdr.sgml : 20100101
<ACCEPTANCE-DATETIME>20090717180419
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001038838-09-000218
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090717

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BMB MUNAI INC
		CENTRAL INDEX KEY:			0000924805
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				300233726
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		C/O POULTON & YORDAN
		STREET 2:		324 SOUTH 400 WEST SUITE 250
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84101
		BUSINESS PHONE:		801-355-2227

	MAIL ADDRESS:	
		STREET 1:		C/O POULTON & YORDAN
		STREET 2:		324 SOUTH 400 WEST SUITE 250
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84101

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERUNION FINANCIAL CORP
		DATE OF NAME CHANGE:	19960719
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="3">POULTON &amp; YORDAN</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">ATTORNEYS AT LAW</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="1">RICHARD T. LUDLOW</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">July 17, 2009</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">H. Roger Schwall</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Assistant Director</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">United States Securities and Exchange Commission</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Division of Corporate Finance</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Washington, D.C. 20549</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Re:</font></p>
                        </td>

                        <td valign="top" nowrap width="133">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">BMB Munai, Inc.</font></p>
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                        </td>

                        <td valign="top" nowrap width="365">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Form 10-K for the Fiscal Year Ended March 31, 2008</font></p>
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            </div>

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                        </td>

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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Filed on June 16, 2008</font></p>
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                        </td>

                        <td valign="top" nowrap width="365">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Form 10-K for the Fiscal Year Ended March 31, 2009</font></p>
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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Filed June 15, 2009</font></p>
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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Response letter filed May 20, 2009</font></p>
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                        <td valign="top" nowrap width="144">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" nowrap width="133">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">File No.: 1-33034</font></p>
                        </td>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Dear Mr. Schwall:</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><font size="2">At the request of the management of BMB Munai, Inc., (the &ldquo;Company&rdquo; or &ldquo;BMB Munai&rdquo;) we are responding to comments raised by the staff at the Securities and Exchange Commission in your letter dated July 1, 2009. Following are the Company&rsquo;s responses to your comments.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Form 10-K for the Fiscal Year Ended March 31, 2008</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Note 21 - Significant Fourth Quarter Adjustments, page F-39</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">1.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note your response to prior comment number 1 (c) which states that you were incorrect in previously stating that the tax law in the Republic of Kazakhstan changed during fiscal year 2008. Your response further states that the tax law ("Tax Code #2235'') which permits you to deduct qualifying capitalized exploration and development costs against
                            revenues received during the exploration stage was enacted in April 1990. Based on your revised assertions, the estimated effective rate used to determine income tax expense (benefit) in your June 30, 2007, September 30, 2007 and December 31, 2007 financial statements should have included the provisions of Tax Code #2235. Therefore, you are required to account for this accounting change as the correction of an error pursuant to paragraphs 25 </font></p>
                        </td>
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            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

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                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font color="#808080"><font size="1">POULTON &amp; YORDAN</font></font></p>
                            </td>

                            <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">
                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
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                            <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font color="#808080"><font size="1">TELEPHONE: 801-355-1341</font></font></p>
                            </td>
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                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font color="#808080"><font size="1">324 SOUTH 400 WEST, SUITE 250</font></font></p>
                            </td>

                            <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">
                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
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                            <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font color="#808080"><font size="1">FAX: 801-355-2990</font></font></p>
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                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font color="#808080"><font size="1">SALT LAKE CITY, UTAH 84101</font></font></p>
                            </td>

                            <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">
                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                            </td>

                            <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font color="#808080"><font size="1">POST@POULTON-YORDAN.COM</font></font></p>
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                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 2</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">and 26 of SFAS 154, not as a fourth quarter adjustment as if the accounting change were a change in estimate. Please restate your June 30, 2007, September 30, 2007 and December 31, 2007 financial statements to correct for this error. We believe it is necessary for you to amend each of your Forms 10-Q filed during the interim periods of fiscal 2008 and your March 31, 2009 Form 10-K to
            correct for this error and to include all disclosures required by SFAS 154. If you believe that restatement and amending your Form 10-K and Forms 10-Q is not required because the error is not material to your financial statements, please provide your complete analysis pursuant to SAB Topic 1:M which supports your conclusion.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><b><font size="2">As noted in the Current Report of the Company filed on July 8, 2009, and subsequently amended on July 13, 2009, the Company will be amending its annual reports for the fiscal years ended March 31, 2007, 2008 and 2009 and its quarterly reports for the 2008 and 2009 interim periods to correct the errors in accounting for deferred income tax and to provide the required disclosures as
            noted above.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">2.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please explain how you have calculated your revised interim tax rates for the quarters ended June 30, 2007, September 30, 2007 and December 31, 2007 and how your calculation complies with FIN 18. Please explain how you have appropriately considered interim deferred and US taxes when calculating your effective rate.</font></p>
                        </td>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.75in; TEXT-INDENT: -0.25in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><b><font size="2">Note 9 of FIN 18 provides for the computation of interim period tax. Note 9 provides that the estimated annual effective tax rate be applied to the year-to-date ordinary income at the end of each interim period to compute the year-to-date tax applicable to ordinary income. </font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><b><font size="2">The Company&nbsp;calculated the revised interim tax rates for the quarters ended June 30, 2007, September 30, 2007 and December 31, 2007 based on the tax benefit from exploration stage for Kazakhstan operations and the projected operating loss from US operations. Based on these assumptions the estimated annual effective tax rate was zero and no tax expense was
            necessary.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.75in; TEXT-INDENT: -0.25in; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
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                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">3.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please clarify how you have evaluated the fact that you failed to incorporate the provisions of Tax Code #2235 in calculating your income tax provisions when determining that your disclosure controls and procedures are effective as of June 30, 2007, September 30, 2007 and December 31, 2007. In addition, clarify what changes, if any, you have made to
                            remediate this apparent control deficiency.</font></p>
                        </td>
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            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left"><b><font size="2">In light of the need to restate the financial statements for the periods ended June 30, 2007, September 30, 2007 and December 31, 2007 to correct errors in the accounting for its income tax provisions, the Company will revise its disclosure of controls and procedures in its amended reports for the periods in question to indicate that the Company&rsquo;s controls and procedures
            related to accounting for income taxes were ineffective.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 3</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left"><b><font size="2">During the quarter ended&nbsp;March 31, 2008 the Company enhanced its controls over deferred tax by requiring its reporting manager to become more familiar with Kazakhstan taxation issues during exploration stage and requiring its reporting manager to specifically give consideration to taxation issues in connection with the preparation of annual and interim financial
            statements.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Form 10-K for the Fiscal Year Ended March 31, 2009</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Controls and Procedures, page 53</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">4.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please clarify how you have evaluated the fact that you failed to incorporate the provisions of Tax Code #2235 in calculating your income tax provisions when determining that your disclosure controls and procedures and internal controls over financial reporting are effective as of March 31, 2009. In addition, clarify what changes, if any, you have made
                            to remediate this apparent control deficiency.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">The Company did not fail to incorporate the provisions to Tax Code #2235 in calculating its income tax provisions during the fiscal year ended March 31, 2009. As has been previously disclosed, during the fourth quarter of fiscal 2008, the Company adjusted the way it was calculating its income tax provisions to incorporate the provisions of Tax Code #2235 and has been doing so
            since that time. Therefore, with respect to this issue, the Company believes no apparent control deficiency existed at March 31, 2009. </font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">As noted above, the amendment to the annual report for the year ended March 31, 2008 will contain revised disclosure regarding the changes made to its&nbsp;controls and procedures in connection with the preparation of that annual report which should further clarify that the changes were made during the fiscal year ended March 31, 2008 and did not effect the fiscal year ended March
            31, 2009.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Financial Statements</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Consolidated Statements of Operations, page F-4</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">5.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note that you did not record an impairment charge of your oil and gas properties during fiscal 2009 notwithstanding the recent volatility in oil and gas market prices. Please provide to us your analysis in accordance with Rule 4-10(c)(4) of Regulation S-X which supports your conclusion that the application of the ceiling test did not result in an
                            impairment charge as of March 31, 2009. Please be as detailed as possible in your response.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 4</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left"><b><font size="2">Rule 4-10(c)(4) of Regulation S-X requires an impairment charge in the event that capitalized costs, less accumulated amortization and related deferred income taxes, exceeds an amount equal to the sum of</font></b><font size="2">:</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="576" border="0">
                    <tr>
                        <td valign="top" width="48">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td valign="top" align="left" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="left"><b><font size="2">a.</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 6pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" width="512">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">The present value of estimated future net revenues computed by applying current prices of oil and gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet presented, less estimated future
                            expenditures (based on current costs) to be incurred in developing and producing the proved reserves computed using a discount factor of ten percent and assuming continuation of existing economic conditions; plus</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td valign="top" width="48" colspan="1">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td valign="top" align="left" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="left"><b><font size="2">b.</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 6pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" width="512">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">the cost of properties not being amortized pursuant to paragraph (i)(3)(ii) of this section; plus</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td valign="top" width="48" colspan="1">
                        </td>

                        <td valign="top" align="left" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="left"><b><font size="2">c.</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 6pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" width="512">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">the lower of cost or estimated fair value of unproven properties included in the costs being amortized; less</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td valign="top" width="48" colspan="1">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td valign="top" align="left" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="left"><b><font size="2">d.</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 6pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" width="512">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">income tax effects related to differences between the book and tax basis of the properties referred to in paragraphs (i)(4)(i)(B) and (C) of this section.</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.48in; TEXT-ALIGN: left"><b><font size="2">As of March 31, 2009&nbsp;capitalized costs less accumulated amortization and related deferred income taxes was $231,509,194. This amount does not exceed:</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="48">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">a.</font></b></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">The present value of estimated future net revenues (taken from the Reserve Report of the Company's independent petroleum engineering firm as of March 31, 2009) - $254,597,000</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="48">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">b.</font></b></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">The cost of properties not being amortized - $40,580,015</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="48">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">c.</font></b></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">Lower of cost or estimated fair value of unproven properties - 0</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="48">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">d.</font></b></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">Income tax effects - $17,566,621</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.48in; TEXT-ALIGN: left"><b><font size="2">The total equals, $277,610,394, which exceeded capitalized costs less accumulated amortization and related deferred income taxes by $46,101,200. Therefore, the Company did not record an impairment charge of its oil and gas properties during fiscal 2009.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Note 13 &ndash; Income Taxes, page F-27</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">6.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Explain how you have determined that the error caused by failing to incorporate the provisions of Tax Code #2235 when accounting for your income taxes only relates to your interim periods in fiscal year 2008 and does not impact periods prior to fiscal year 2008. For example, please demonstrate how your income tax expense recorded for the year ended
                            March 31, 2007 considers the provisions of this tax code.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.48in; TEXT-ALIGN: left"><b><font size="2">As noted in the Current Report, the Company has determined that an error in its accounting for deferred income taxes that requires restatement occurred in the quarter ended March 31, 2007. The Company will file an amendment to its annual report for the fiscal year ended March 31, 2007 restating its financial statements to correct this error. </font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 5</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">7.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note your response to prior comment number 2 and your disclosure here which states that the Exploration contract allows you to be exempt from Kazakhstan corporate income tax for the period of the exploration phase. Please clarify whether you are exempt from Kazakhstan income taxes or are only permitted to deduct qualifying capitalized exploration and
                            development costs against revenues received during the exploration stage. In addition, clarify whether the Exploration contract or Tax Code #2235 permits you to deduct qualifying costs.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">The Company is&nbsp;not exempt from Kazakhstan income taxes, which the Company will clarify in its <em>"Income Taxes"</em> note in its amended filings. The Company is&nbsp;required to accumulate capital expenditures, as well as operating and G&amp;A expenses, and to deduct revenues from this accumulated amount. Since inception, the Company&rsquo;s capital expenditures have been
            substantially greater than revenues for each fiscal year. Once the Company moves to the production stage, the accumulated amount of capital expenditures will then be deducted against taxable income received during the production stage.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">8.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Tell us whether the law in Kazakhstan will permit you to fully deduct depreciation and depletion expense in future years that relates to capitalized expenses already used to offset income during these exploratory phase years. If not, it appears that you should have recorded a deferred tax liability reflecting a temporary book-tax difference. Please
                            advise.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">The law in Kazakhstan will permit the Company to fully deduct depreciation and depletion expenses in future years that relate to capitalized expenses already used to offset income during exploratory stage and therefore there is no temporary difference related to this matter.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 6</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; LINE-HEIGHT: 115%; TEXT-ALIGN: left"></p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">9.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please tell us and revise your disclosure to clarify how the exploration stage is defined in Tax Code </font><i><font size="2">#</font></i><font size="2">2235 and the Exploration contract and how you have determined that you are still in the exploration stage as of March 31, 2009. In addition, disclose when you anticipate that you will no longer be in
                            the exploration stage and hence, no longer qualify for the tax benefit.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.03in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-INDENT: 0.52in; LINE-HEIGHT: 115%; TEXT-ALIGN: left"><b><font size="2">Exploration stage is not defined in Tax Code #2235. Rather, the term of exploration stage is set in the Company&rsquo;s contract with the Republic of Kazakhstan, which specifies that the Company is&nbsp;in the exploration stage. Addendum #7 to the Company's contract, which is included as an exhibit to the Company&rsquo;s Quarterly Report on Form 10-Q for the
            quarter ended December 31, 2008, states that the Company is in exploration stage until January 2013. Currently, the Company anticipates it will be in exploration stage until that time. </font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left"><b><font size="2">In response to the Commission&rsquo;s comments, the Company proposes to revise the &ldquo;</font></b><i><b><font size="2">Incomes Taxes</font></b></i><b><font size="2">&rdquo; note included in its financial statements for the fiscal year ended March 31, 2009 (and will include a similarly revised &ldquo;</font></b><i><b><font size="2">Income
            Taxes</font></b></i><b><font size="2">&rdquo; note in each of the other reports it is amending.) </font></b><b><font size="2">Rather than provide individual excerpts in response to the Commission&rsquo;s comments, the Company felt it would be more convenient to provide the proposed revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note in its entirety. Also, for ease of reference in responding to specific comments below, the Company
            has numbered the paragraphs below. The paragraphs in the amendment will not be numbered. </font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.33in; TEXT-INDENT: -0.3in; TEXT-ALIGN: justify"><i><b><font size="2">NOTE 13 - INCOME TAXES</font></b></i></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">1.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">The Company&rsquo;s consolidated pre-tax income is comprised primarily from operations in the Republic of Kazakhstan. Pre-tax losses from United States operations of $12,937,563, $1,827,168 and $3,537,135, for the years ended March 31, 2009, 2008 and 2007, respectively, are also included in consolidated pre-tax income. </font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">2.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">According to the Exploration Contract in the Republic of Kazakhstan, for income tax purposes the Company can capitalize the exploration and development costs and deduct all revenues received during the exploration stage to calculate taxable income. As long as the Company&rsquo;s capital expenditures exceed generated revenues, the Company will
                            not be subject to Kazakhstan income tax. </font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">3.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">As discussed in Note 2, Licenses and contracts, the Company was granted an Exploration contract extension. According to the terms of the Exploration contract, the Company will continue to operate in the exploration phase until January 2013.</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 7</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">4.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">Undistributed earnings of the Company&rsquo;s foreign subsidiaries since acquisition amounted to approximately $60,760,405 at March 31, 2009. Those earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings, in the form of
                            dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the Republic of Kazakhstan. Determination of the amount of unrecognized deferred U.S. income tax liability is not practical because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce a portion of the U.S. tax
                            liability.</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">5.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">Earnings and (losses) before income taxes derived from United States and foreign operations are as follows:</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table style="MARGIN-LEFT: 22.5pt" cellspacing="0" cellpadding="0" width="516" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="159">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Year ended <br>
                            March 31, 2009</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Year ended</font></b></p>

                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2008</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="15">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Year ended</font></b></p>

                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2007</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="159">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="15">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="159">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">United States</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;(12,937,563)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;(1,827,168)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="15">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;(3,537,135)</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="159">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Kazakhstan</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 3pt; TEXT-ALIGN: right"><font size="2">29,066,849&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">33,034,150&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="15">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,429,906&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="159">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;</font><b><font size="2">16,129,286</font></b><font size="2">&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;</font><b><font size="2">31,206,982</font></b><font size="2">&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="15">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="104">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 11.25pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;</font><b><font size="2">1,892,771</font></b><font size="2">&nbsp;</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="32">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">6.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">The income tax provision/(benefit) in the Consolidated Statements of Operations is comprised of:</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table style="MARGIN-LEFT: 22.5pt" cellspacing="0" cellpadding="0" width="576" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Year ended <br>
                            March 31, 2009</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="111">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Year ended</font></b></p>

                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2008</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Year ended</font></b></p>

                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2007</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="111">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="200">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Current tax expense</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="111">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124,202</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="200">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Deferred tax (benefit) / expense </font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(1,028,272)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="111">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(103,582)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="17">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">429,079</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="200">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;</font><b><font size="2">(1,028,272)</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="111">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;</font><b><font size="2">(103,582)</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="17">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 22.5pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;&nbsp;</font><b><font size="2">553,281 </font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 8</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify"></p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">7.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">The difference between&nbsp;the income tax expense/(benefit) reported and amounts computed by applying the U.S. Federal rate to pretax income consisted of the following:</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="center">
                <table cellspacing="0" cellpadding="0" width="624" border="0">
                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.1in" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt" align="center"><b><font size="2">Year ended <br>
                            March 31, 2009</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" width="14">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.1in" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt" align="center"><b><font size="2">Year ended March 31, 2008</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="14">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.1in" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt" align="center"><b><font size="2">Year ended </font></b></p>

                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center"><b><font size="2">March 31, 2007</font></b></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Tax at federal statutory rate (34%)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,483,957&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;10,610,374&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;643,542&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Effect of lower foreign tax rates</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(1,601,126)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 3pt; TEXT-ALIGN: right"><font size="2">(876,907)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">406,582&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Tax benefit from exploration stage</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(7,243,413)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(10,301,168)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(653,367)</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Local tax, current</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">124,202&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Non-deductible expenses</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.1in" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">2,332,310&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.1in" valign="bottom" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">464,119&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.1in" valign="bottom" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">32,322&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 0.1in">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="253">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double; HEIGHT: 0.1in" valign="bottom" width="116">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;</font><b><font size="2">(1,028,272)</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double; HEIGHT: 0.1in" valign="bottom" width="97">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">(103,582)</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double; HEIGHT: 0.1in" valign="bottom" width="130">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">553,281</font></b><font size="2">&nbsp;</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">8.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">Effective January 1, 2009, the Republic of Kazakhstan adopted a new tax code, which decreased the corporate income rate for legal entities to 20%. </font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="27">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">9.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">Non-deductible expenses are comprised of the non-deductible portion of interest expense on intercompany loans accrued by subsidiary.</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">10.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">As of March 31, 2009, the Company had net operating loss carry forwards for income tax purposes of $20,197,220, which if unused, will expire in 2024, 2025, 2026, 2027, 2028, and 2029.</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">11.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">No valuation allowance was recorded against the deferred tax assets resulting from NOLs because the Company believes it will have sufficient future taxable domestic income to be offset with, primarily from accrued interest income related to loans to subsidiary.</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 9</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">12.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">Deferred taxes reflect the estimated tax effect of temporary differences between assets and liabilities for financial reporting purposes and those measured by tax laws and regulations. The components of deferred tax assets and deferred tax liabilities are as follows:</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table style="MARGIN-LEFT: 22.5pt" cellspacing="0" cellpadding="0" width="567" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2009</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" width="9">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2008</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Deferred tax assets:</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="123">
                            <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Stock based compensation</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185,418</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;185,418</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Liquidation fund</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 36.75pt; TEXT-ALIGN: right"><font size="2">236,505</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">194,820</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 4.35pt">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Tax losses carried forward </font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 33.75pt; TEXT-ALIGN: right"><font size="2">6,867,054</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">2,726,677</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 4.35pt">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="top" width="312">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accrued interest expense</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 33.75pt; TEXT-ALIGN: right"><font size="2">5,093,405</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 4.35pt" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,383,177</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">12,382,382</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">8,490,092</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Deferred tax liabilities:</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 14.15pt">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.15pt" valign="top" width="312">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Oil and gas properties</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.15pt" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">6,972,564</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.15pt" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 14.15pt" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">8,998,711</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accrued interest income</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">11,926,262</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">7,036,097</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">18,898,826</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">16,034,808</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="312">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Net deferred tax liability</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$ 6,516,444</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="9">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="123">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$ 7,544,716</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="28">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">13.</font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">Deferred income taxes for US and Kazakhstan tax jurisdiction are as follows:</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table style="MARGIN-LEFT: 22.5pt" cellspacing="0" cellpadding="0" width="605" border="0">
                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2009</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">March 31, 2008</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">US </font></b><b><font size="2">tax jurisdiction</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Kazakhstan tax jurisdiction</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">US </font></b><b><font size="2">tax jurisdiction</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Kazakhstan tax jurisdiction</font></b></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 43.7pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 43.7pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Deferred tax assets:</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Stock based<br>
                            &nbsp;&nbsp;compensation</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185,418</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185,418</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Liquidation fund</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; TEXT-ALIGN: right"><font size="2">236,505&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">194,820&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 9.05pt">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Tax losses carried forward </font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 22.5pt; TEXT-ALIGN: right"><font size="2">6,867,054</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">2,726,677</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr style="HEIGHT: 9.05pt">
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="top" width="170">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accrued interest expense</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">- </font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,093,405&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 9.05pt" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,383,177&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">7,052,472</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,329,910&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">2,912,095</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,577,997&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Deferred tax liabilities:</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Oil and gas properties</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">6,579,121</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">393,443&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">6,746,585</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">2,252,126&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 14.2pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Accrued interest income</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">11,926,262</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">7,036,097</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.4pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">-&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">18,505,383</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">393,443&nbsp;</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">13,782,682</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 1.2pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">2,252,126&nbsp;</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="170">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Net deferred tax <br>
                            &nbsp;&nbsp;liability/(asset)</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;</font><b><font size="2">11,452,911</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;</font><b><font size="2">(4,936,467)</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;</font><b><font size="2">10,870,587</font></b></p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="19">
                            <p style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>
                        </td>

                        <td style="PADDING-RIGHT: 1.2pt; PADDING-LEFT: 1.2pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt double" valign="bottom" width="95">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">$</font></b><font size="2">&nbsp;</font><b><font size="2">(3,325,871)</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 10</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="36">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">14. </font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><i><b><font size="2">A deferred tax liability from oil and gas properties for the US tax jurisdiction was recorded during the fiscal year 2005. This liability resulted from a temporary difference related to the oil and gas basis from the non-taxable business combination with Emir Oil LLP.</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="36">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">15. </font></b></i></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><i><b><font size="2">On May 24, 2004, the Company agreed to purchase the remaining 30% interest of its minority interest partner in Emir Oil LLP in exchange for 3,500,000 shares of restricted Company common stock. On August 6, 2004, the Company issued the 3,500,000 shares to its minority partner in Emir Oil LLP. The aggregate purchase price was determined to be
                            $19,075,000 using a price of the Company&rsquo;s common shares on OTCBB on August 6, 2004 of $5.45 per share. The entire purchase price has been allocated to oil and gas properties.</font></b></i></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">10.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">You disclose net operating losses ("NOL's") as of March 31, 2008, at the bottom of page F-28. Please revise to disclose NOL's as of March 31, 2009.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">Please see paragraph 10 of the revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note included in the response to comment 9 above.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.28in; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">11.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note that you have an outside basis difference as you have unremitted earnings from your subsidiary in Kazakhstan. Please demonstrate the evidence that you have relied upon, in addition to the fact that you have not historically distributed foreign earnings, when determining that you have the ability and intent to essentially permanently invest these
                            earnings. Please clarify how you plan to use the undistributed earnings within your Kazakhstan operations and how this plan supports your conclusion. In addition, explain how you have determined that these undistributed earnings will not be required to fund operations outside of Kazakhstan.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: justify"><b><font size="2">The primary operations of the Company are those of its subsidiary in Kazakhstan. All but one of the Company&rsquo;s employees are located in Kazakhstan, along with the primary shareholders of Company stock. The Company&rsquo;s sole employee in the US is the Corporate Secretary. All earnings derived from Kazakh operations are reinvested (and were reinvested) in the field as
            capex, opex and G&amp;A. The Company has raised funds via equity and convertible debt through its office in US, which were then transferred to the subsidiary as intercompany loans. The flow of cash is from US to KZ, which will continue indefinitely, as the Company&rsquo;s plans are to expand Kazakh operations through exploration and other capitalized costs. </font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 11</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">12.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note that you begin your rate reconciliation based on your foreign tax (benefit) based on the foreign statutory rate. Please revise your disclosure to begin your reconciliation with the amount of income tax expense that would result from applying the domestic statutory tax rate to pretax income from operations, not the foreign tax. We refer you to
                            the disclosure requirement of paragraph 47 of SFAS 109. In addition, ensure that the US statutory rate cited parenthetically in your reconciliation multiplied by pretax income from continuing operations equals the sum presented in the footnote. For example, your footnote reads "Domestic benefit at federal statutory rate (34%)." However, multiplying your fiscal year 2009 pretax income from continuing operations by 34% does not equal the amount that is presented in
                            your table.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-INDENT: 0.51in; LINE-HEIGHT: 115%; TEXT-ALIGN: left"><b><font size="2">See paragraph 7 of the revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note, which is included in the response to comment 9 above, for the Company&rsquo;s proposed disclosure regarding this issue.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.03in; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">13.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please further revise your rate reconciliation to separately disclose all significant reconciling items. In this respect, please separately disclose the foreign tax which is at a different tax rate than the US statutory rate and the tax benefit that you receive for qualifying exploration and development costs, instead of presenting these items on a net
                            basis.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-INDENT: 0.51in; LINE-HEIGHT: 115%; TEXT-ALIGN: left"><b><font size="2">See paragraph 7 of the revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note, which is included in the response to comment 9 above, for the Company&rsquo;s proposed disclosure regarding this issue.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">14.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please clarify the nature of the non-deductible expenses that you have included in your rate reconciliation.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.03in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-INDENT: 0.52in; LINE-HEIGHT: 115%; TEXT-ALIGN: left"><b><font size="2">As discussed in&nbsp;response to comment 11, there are intercompany loans between the Company and its subsidiary. Interest expense recognized by the subsidiary on these loans is not fully deductible for Kazakhstan income tax purposes, and therefore creates a permanent difference.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.03in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">The Company has added paragraph 9 to the revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note, which is included in the Company&rsquo;s response to comment 9 above, to clarify the nature of the non-deductible expenses. </font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                <hr align="center" width="100%" noshade size="2">
            </div>

            <div title="EE+ Page Header">
                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 12</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
                    <tr>
                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">15.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note your disclosure which states that you have included the effect of the change of Kazakhstan tax rate to 20% in the &ldquo;Other&rdquo; caption within your rate reconciliation. Please clarify why it was necessary to reflect the impact of this change within the "Other" caption when you have calculated your foreign tax rate based on a 20% statutory
                            tax rate.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.28in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-INDENT: 0.51in; LINE-HEIGHT: 115%; TEXT-ALIGN: left"><b><font size="2">See paragraph 7 of the revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note, which is included in the response to comment 9 above, for the Company&rsquo;s proposed disclosure regarding this issue.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                <table cellspacing="0" cellpadding="0" width="100%" border="0">
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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">16.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please clarify how you have determined that it is appropriate to recognize your deferred tax asset related to your NOL's at a 34% tax rate. In addition, clarify the rate used to calculate your deferred tax liabilities.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.28in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">The NOL&rsquo;s calculated and recorded resulted from US operations only. The rate used to calculate the Company's deferred tax liabilities is as follows:</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                            <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal">&nbsp;</p>
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                        <td valign="top" nowrap width="496">
                            <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><b><font size="2">FY2009 - 34% for US operations and 20% for Kazakhstan operations</font></b></p>
                        </td>
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                </table>
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                <table cellspacing="0" cellpadding="0" width="547" border="0">
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                            <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal">&nbsp;</p>
                        </td>

                        <td valign="top" nowrap width="499">
                            <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal"><b><font size="2">FY2008 &ndash; 34% for US operations and 30% for Kazakhstan operations</font></b></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left"><b><font size="2">Since the NOL&rsquo;s were based upon US operations and will be used against future US taxable income, the US rate of 34% was used in the deferred tax calculation.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
                <table cellspacing="0" cellpadding="0" width="100%" border="0">
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                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">17.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Please explain to us in detail how you have determined that it is more likely than not that your deferred tax assets related to your NOL's will be realized and hence, no valuation allowance is required pursuant to paragraphs 17 through 25 of SFAS 109. As part of your response, please tell us the source(s) of taxable income that you relied upon when
                            determining that you will have sufficient taxable income to support the realization of the deferred tax asset; we refer you to paragraph 21 of SFAS 109.</font></p>
                        </td>
                    </tr>
                </table>
            </div>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">The Company&nbsp;believes it is more likely than not that its deferred tax assets related to NOL&rsquo;s will be realized and no valuation allowance is required because they will be used to offset against interest income from intercompany loans. When the intercompany loans are paid back, the Company will recognize the accrued interest as income from US operations and will have a
            related US income tax liability. The Company&nbsp;believes that this supports the realization of the deferred tax asset.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left"><b><font size="2">See paragraph 11 of the revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note, which is included in the Company&rsquo;s response to comment 9 above, for the Company&rsquo;s proposed disclosure regarding this issue.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mr. H. Roger Schwall</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">July 17, 2009</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Page 13</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">18.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note that you have recorded deferred tax assets and liabilities related to oil and gas properties in your US tax jurisdiction. Please clarify how you have determined that these properties are within your US tax jurisdiction. In this respect, we note your disclosure on page 29 which states that all of your oil and natural gas producing activities are
                            conducted in the Republic of Kazakhstan.</font></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><b><font size="2">On May 24, 2004, the Company agreed to purchase the remaining 30% interest of its minority interest partner in Emir Oil LLP in exchange for 3,500,000 shares of restricted Company common stock. On August 6, 2004, the Company issued the 3,500,000 shares to its minority partner in Emir Oil LLP. The aggregate purchase price was determined to be $19,075,000 using a price of the
            Company&rsquo;s common shares on the OTCBB on August 6, 2004 of $5.45 per share. Per the guidance of FAS 109, the entire purchase price has been allocated to oil and gas properties as &ldquo;Statement 109 Goodwill&rdquo;.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">Also, in accordance with FAS 109, a deferred tax liability from oil and gas properties for the US tax jurisdiction was recorded during the FY 2005. This liability resulted from a temporary difference related to the oil and gas basis from the non-taxable business combination with Emir Oil LLP.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.28in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><b><font size="2">The Company believes that beyond&nbsp;this explanation there is no need to amend its disclosure on page 29 regarding its oil and natural gas producing activities.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">See paragraphs 14 and 15 of the revised &ldquo;</font></b><i><b><font size="2">Income Taxes</font></b></i><b><font size="2">&rdquo; note, which is included in the Company&rsquo;s response to comment 9 above, for the Company&rsquo;s proposed disclosure regarding this issue.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <div align="left">
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                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: normal; TEXT-ALIGN: left">&nbsp;</p>
                        </td>

                        <td valign="top" width="24">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">19.</font></p>
                        </td>

                        <td valign="top">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">We note your response to prior comment 3 in our letter dated May 11, 2009. Please be advised that your requirement to file a Form 8-K on a timely basis when you have concluded that any previously issued financial statements, including interim financial statements, should no longer be relied upon because of an error is a requirement that is independent
                            of your possible need to amend previously filed Forms 10-K or 10-Q.</font></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><b><font size="2">As noted in the Company's response to Comment 1 above, the Company filed the required Current Report on Form 8-K on July 8, 2009, as amended on July 13, 2009.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left"><font size="2">Thank you for your assistance in this matter. If you have any questions or require additional information, please contact me directly.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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                            <p>&nbsp;</p>
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                            <p><font size="2">Very truly yours,</font></p>
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                            <p>&nbsp;</p>
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                            <p>&nbsp;</p>
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                            <p>&nbsp;</p>
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                        <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="295">
                            <p><b><font size="2">POULTON &amp; YORDAN</font></b></p>
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                            <p>&nbsp;</p>
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                            <p>&nbsp;</p>
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                            <p>&nbsp;</p>
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                            <p><font size="2">/s/ Richard T. Ludlow</font></p>
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                            <p>&nbsp;</p>
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                        <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="295">
                            <p><font size="2">Richard T. Ludlow</font></p>
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                            <p>&nbsp;</p>
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                            <p><font size="2">Attorney at Law</font></p>
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