Jarch Group says SSDF will clear Jonglei from oil compagnies

September 19, 2006 — Yesterday, the South Sudan Defence Forces (SSDF) and its political wing, the South Sudan United Democratic Alliance (SSUDA) have informed Jarch Management Group (JMG) that Jonglei state will be cleared of unauthorized companies doing seismic studies and other activities on land contracted out to JMG.

JMG has been informed that both General Gabriel Tang and General Gateick Diar will shut down, by any means necessary, companies that are operating in the area without the consent of JMG or the SSDF.

In addition, JMG has been informed that SPLA Governor of Jonglei, Mr. Thon Leek has been fired and will be replaced by a Nuer, either General Nyang Chol, General Kong Nyoun or John Luk. The new governor will have the approval of General Gabriel Tang and will operate within the framework of the SSDF as General Tang controls Jonglei State.

Finally, JMG has been told that defections from the SPLA continue in large numbers and that the SPLA is on the verge of collapse in certain areas.

The Company continues to push for its rights in the South and to enforce its contracts. To this end, JMG has met with the Minister of Energy and Mining in Khartoum to inform him of the contracts and has given documents to the Minister to sign. JMG has been told by SSUDA and SSDF senior officials that the JMG will be endorsed by all parties or the South will go independent sooner rather than later with JMG as the commodity company of South Sudan.

Sincerely,

Jarch Management Group, Ltd.