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<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 1 — THE COMPANY AND BASIS OF PRESENTATION</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Interim Financial Information</i></b>— The accompanying
unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial information and pursuant to the rules and regulations of the United States
Securities and Exchange Commission (“SEC”). Accordingly, they are condensed and do not include all of the information
and notes required by accounting principles generally accepted in the United States of America for complete financial statements.
In the opinion of management, all adjustments considered necessary for a fair and comparable presentation have been included and
are of a normal recurring nature. The accompanying financial statements should be read in conjunction with the Caspian Services,
Inc. (the “Company” or “CSI”) most recent annual financial statements included in its annual report on
Form 10-K filed with the SEC on January 13, 2012. Operating results for the six-month period ended March 31, 2012 are not necessarily
indicative of the results that may be expected for the year ending September 30, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Principles of Consolidation—</i></b>The accompanying
condensed consolidated financial statements are presented in conformity with accounting principles generally accepted in the United
States of America and include operations and balances of Caspian Services, Inc. and its wholly-owned subsidiaries: Caspian Services
Group Limited (“CSGL”), Caspian Services Group LLP (“Caspian LLP”), TatArka LLP (“TatArka”),
Caspian Real Estate, Ltd (“CRE”), Caspian Geophysics, Ltd (“CGEO”), Caspian Services Inc. Kazakhstan LLP
(“Caspian Inc. Kazakhstan”), Caspian Services Group B.V. (“Caspian BV”) ; and include majority owned subsidiaries:
Balykshi LLP (“Balykshi”) and Kazmorgeophysica CJSC (“KMG”), collectively “Caspian” or the
“Company”. KMG owns a 50% non-controlling interest in Veritas-Caspian LLP (“Veritas-Caspian”) and 15% interest
in a joint venture CaspyMorService LLP (“CaspyMorService”). Balykshi owns a 20% interest in a joint venture, Mangistau
Oblast Boat Yard LLP (“MOBY”). Ownership of 20% to 50% non-controlling interests are accounted for by the equity method.
Ownership of less than a 20% interest is accounted for at cost. Intercompany balances and transactions have been eliminated in
consolidation.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Business Condition</i></b> – In 2008 the
Company entered into Facility agreements with Altima Central Asia (Master) Fund Ltd. (“Altima”) and Great Circle Energy
Services, LLC (“Great Circle”). In June 2011 and July 2011 an otherwise unrelated individual (“Investor”)
acquired all right, title and interest in and to the loans associated with the Facility agreements. On September 30, 2011 the Company
executed an agreement to consolidate and restructure the loans associated with the Facility agreements (the “Loan Restructuring
Agreement”) with the Investor.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Closing of the Loan Restructuring Agreement is subject to
a number of closing conditions, including among other things, the Investor reaching agreement with the European Bank for Reconstruction
and Development (“EBRD”) to restructure certain EBRD financing agreements, discussed in more detail below.  Until
the Closing of the Loan Restructuring Agreement the restructured loans will be treated as current liabilities.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company funded a portion of the construction of its marine
base through a combination of debt and equity financing agreements with EBRD pursuant to which EBRD provided $18,600 of debt financing
and made an equity investment in the marine base in the amount of $10,000 in exchange for a 22% equity interest in Balykshi.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In connection with EBRD’s 22% equity interest in Balykshi,
the Company entered into a Put Option Agreement granting EBRD the right to require the Company to repurchase the 22% equity interest
based on Balykshi’s fair market value.  The put option is exercisable between June 2013 and June 2017.  This
agreement also contains an acceleration feature that, should a triggering event occur, grants EBRD the right to require the Company
to repurchase the $10,000 equity investment at a 20% annual rate of return at any time following the triggering event.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In accordance with accounting principles generally accepted
in the United States of America, the put option is an unconditional obligation and is measured at its fair value based on an estimate
of the amount of cash that would be required to settle the liability.  At the time of investment, the $10,000 of proceeds
from the equity financing was allocated to the put option which was classified as a long-term liability.  </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Under the terms of the EBRD Loan Agreement, as amended, Balykshi
is required to repay the loan principal and accrued interest in eight equal semi-annual installments commencing November 20, 2011
and then occurring each May 20 and November 20 thereafter until fully repaid.  The first semi-annual repayment installment,
due November 20, 2011, was not made.  The failure to pay the principal of, or interest on, the EBRD loan when due constitutes
an event of default under the EBRD Loan Agreement. The EBRD financing agreements have acceleration right features that, in the
event of default, allow EBRD to declare the loans and accrued interest immediately due and payable.  As a result, the
Company has included the EBRD loan and all accrued interest as current liabilities at March 31, 2012 and September 30, 2011. Additionally,
this event of default may trigger the acceleration clause in the Put Option Agreement with EBRD which would allow EBRD to put its
$10,000 investment in Balykshi back to the Company.  If EBRD were to accelerate its put right, the Company could be obligated
to repay the initial investment plus a 20% annual rate of return.  As a result, at September 30, 2011 the Company had
accrued $5,817 of interest expense representing the 20% rate of return on the $10,000 investment and reclassed the liability from
a long-term liability to a current liability. For the six-month ended March 31, 2012 the Company accrued an additional $1,003 of
interest expense to reflect the required return on investment for that period, increasing the value of the put option to $16,820.
EBRD also previously notified the Company that it believes the Company and Balykshi are in violation of certain other covenants
of the EBRD financing agreements.  As of the date of this quarterly report on Form 10-Q, to the Company’s knowledge,
EBRD has not sought to accelerate repayment of the loan or the put option.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Should EBRD determine to exercise its acceleration rights
or should the Loan Restructuring Agreement not close, the Company currently has insufficient funds to repay these obligations individually
or collectively and would be forced to seek other sources of funds to satisfy these obligations.  Given our current and
near-term anticipated operating results, the difficult credit and equity markets and the Company’s current financial condition,
the Company believes it would be very difficult to obtain new funding to satisfy these obligations. If the Company were unable
to obtain funding to meet these obligations, the lenders could seek any legal remedies available to them to obtain repayment, including
forcing the Company into bankruptcy, or in the case of the EBRD loan, which is collateralized by the assets, including the marine
base, and bank accounts of Balykshi and CRE, foreclosure by EBRD on such assets and bank accounts.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The ability of the Company to continue as a going concern
is dependent upon, among other things, the Company’s ability to reach agreement with EBRD to restructure the EBRD financing
agreements and successfully close the Loan Restructuring Agreement or to repay its debt obligations by obtaining additional financing
or selling business segments or assets.  Uncertainty as to the outcome of these factors raises substantial doubt about
the Company’s ability to continue as a going concern.  The accompanying condensed consolidated financial statements
do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Discontinued Operations</i></b> –In April
2011, the Company sold its interest in Bauta to an unrelated third party.  Upon determining to dispose of Bauta, all
prior periods presented have been restated to separately account for the discontinued operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Nature of Operations </i></b>—The Company’s
business consists of three major business segments:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Vessel Operations</i> – Vessel operations consist
of chartering a fleet of shallow draft offshore support vessels to customers performing oil and gas exploration activities in the
Kazakhstan Sector of the North Caspian Sea.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Geophysical Services</i> –Geophysical services
consist of providing seismic data acquisition services to oil and gas companies operating both onshore in Kazakhstan and offshore
in the Kazakhstan sector of the North Caspian Sea and the adjacent transition zone.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><i>Marine Base Services – </i>Marine Base Services
consists of operating a marine base located at the Port of Bautino on the North Caspian Sea.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Basic and Diluted Loss Per Share</i></b> –
Basic loss per common share is calculated by dividing net loss attributable to Caspian Services by the weighted-average number
of common shares outstanding. Diluted loss per common share is calculated by dividing net loss attributable to Caspian Services
by the weighted-average number of common shares outstanding giving effect to potentially dilutive issuable common shares.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">For the three and six months ended March 31, 2012, the Company
had 800,000 options outstanding, 735,785 non-vested restricted shares outstanding and 90,000,000 potential shares related to convertible
debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">For the three and six months ended March 31, 2011, the Company
had 800,000 options outstanding, 528,826 non-vested restricted shares outstanding and 18,044,783 potential shares related to convertible
debt that were not included in the computation of diluted loss per common share because they would be anti-dilutive.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Concentrations of Credit Risk —</i></b>The Company’s
vessel operations are contracted primarily to a North Caspian Operating Company (“NCOC”) service provider. Loss of
this customer could have a material negative effect on the Company. Some vessel charter services are provided under contracts with
varying terms and through various dates in 2012. However, it is possible that a loss of business could occur in the short or long
term. While management expects to renew the contracts periodically, there is no assurance that this customer will renew, or will
renew on terms favorable to the Company.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Financial instruments that potentially subject the Company
to concentrations of credit risk consist principally of trade receivables, trade receivables from related parties and other receivables.
The Company manages its exposure to risk through ongoing credit evaluations of its customers; however, the Company generally does
not require collateral. In some cases when dealing with new customers the Company requires advance payments. The Company maintains
an allowance for doubtful accounts for potential losses.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Fair Value of Financial Instruments – </i></b>The
carrying amounts reported in the accompanying condensed consolidated financial statements for other receivables, accounts receivables
from related parties, accounts payable to related parties and accrued expenses approximate fair values because of the immediate
nature or short-term maturities of these financial instruments. The carrying amount of long-term debts approximates fair value
due to the stated interest rates approximating prevailing market rates. See Note 7 for discussion of the fair value of the long-term
derivative put option liability.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Accelerated Put Option Liability</i></b> - In
connection with EBRD’s $10,000 equity investment to purchase a 22% equity interest in Balykshi, the Company entered into
a Put Option Agreement granting EBRD the right to require the Company to repurchase the 22% equity interest. The put option is
exercisable between June 2013 and June 2017. The put price is determined based on the fair market value of Balykshi as mutually
agreed by the parties. If the put price together with any dividend received by EBRD generates an annual internal rate of return
for EBRD in excess of 30% per annum rate (the “put price excess”), the put price shall be reduced by an amount representing
half of the put price excess.  If the parties are unable to agree upon a fair market valuation, the parties agree to
hire a third party expert to determine the put price on the basis of the fair market value of Balykshi, as set forth in the Put
Option Agreement.  In the event there is a change in control of the Company, EBRD has the right to require the repurchase
of the equity interest at its fair market value.  The Put Option Agreement also contains an acceleration feature.  Should
Balykshi: (i) default on $1,000 or more of debt; (ii) fail to meet the obligations of any of the agreements between Balykshi, the
Company and EBRD; (iii) be found to have made false representations to EBRD; or (iv) be declared insolvent, EBRD has the right
to accelerate the put option.  If the put option is accelerated, EBRD can require the Company to repurchase the $10,000
equity investment plus a 20% per annum rate of return, taking into account any dividend or other distributions received by EBRD,
at any time following one of the events mentioned above. Due to the fact that certain events of default under the EBRD Loan Agreement
have occurred and that such could trigger EBRD’s accelerated put right, we have reflected an accelerated put option liability
of $16,820, although, as of the date of this quarterly report on Form 10-Q, EBRD has not sought to accelerate the put option.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Revenue Recognition</i></b>— Vessel revenues
are usually derived from time charter contracts on a rate-per-day of service basis; therefore, vessel revenues are recognized
on a daily basis throughout the contract period. These time charter contracts are generally on a term basis, ranging from one
month to three years. The base rate of hire for a contract is generally a fixed rate; however, these contracts often include clauses
to recover specific additional costs and mobilization and demobilization costs which are billed on a monthly basis.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Geophysical service revenue is recognized when services are
rendered, accepted by the customer and collectability is reasonably assured. Direct costs are charged to each contract as incurred
along with allocated indirect costs for the specific period of service. Losses on contracts are recognized during the period in
which the loss first becomes probable and reasonably estimated. Due to the nature of some of the geophysical services provided,
certain customers have prepaid their contract services. These prepayments have been deferred and are recognized as revenue as the
services are provided.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Marine base service revenue is recognized when services are
rendered, accepted by the customer and collectability is reasonably assured.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Receivables</i></b>—In the normal course of business,
the Company extends credit to its customers on a short-term basis.  Our principal customers are major oil and natural
gas exploration, development and production companies. Credit risks associated with these customers are considered minimal. Dealings
with smaller, local companies, particularly with the current difficulties in equity and credit markets, pose the greatest risks.
For new geophysical services customers, the Company typically requires an advance payment and it retains the seismic data generated
from these services until payment is made in full.  The Company routinely reviews its accounts receivable balances and
makes provisions for doubtful accounts as necessary. Accounts are reviewed on a case by case basis and losses are recognized in
the period if the Company determines it is likely that receivables will not be fully collected.  The Company may also
provide a general provision for accounts receivables based on existing economic conditions.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Impairment of Long-Lived Assets and Long-Lived Assets
to be Disposed Of</i></b>— Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured
by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets
are considered to be impaired, the impairment to be recognized is measured by the amount that the carrying amount of the assets
exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less
costs to sell. At September 30, 2010 we concluded that there were indicators of impairment as it related to the marine base. We
performed a valuation of the base which included discounted future cash flows from operations and discounted cash flows from the
sale of partial ownership interest in the entity. We utilized both a market and income approach when deriving this value. Information
was obtained from the most current data available related to the entity. As a result of the analysis, the Company recognized an
impairment charge on the marine base.  During the six months ended March 31, 2011, the Company incurred some additional
costs on the marine base and as a result of the impairment analysis, the Company concluded that these additional costs were impaired
as well and recognized an additional $322 of impairment. During the six months ended March 31, 2012, the Company incurred more
costs on the marine base, which were fully impaired. The amount of the additional impairment is $150.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">At September 30, 2011 we concluded that there were indicators
of impairment as it relates to KMG goodwill. We performed a valuation of KMG assets which included discounted future cash flows
from operations. As a result of this valuation we concluded that KMG goodwill was impaired.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Income Taxes</i></b>— Deferred tax assets and
liabilities are recognized for the future tax consequences attributable to differences in assets and liabilities and their respective
tax bases and attributable to operating loss carry forwards. Differences generally result from the calculation of income under
accounting principles generally accepted in the United States of America and the calculation of taxable income calculated under
Kazakhstan income tax regulations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The current regime of penalties and interest related to reported
and discovered violations of Kazakhstan’s laws, decrees and related regulations can be severe.  Penalties include
confiscation of the amounts in question for currency law violations, as well as fines of generally 100% of the unpaid taxes.  Interest
is assessable at rates of generally 0.06% per day. As a result, penalties and interest can result in amounts that are multiples
of any unreported taxes. No interest or penalties have been accrued as a result of any tax positions taken.  In the event
interest or penalties are assessed, we will include these amounts related to unrecognized tax benefits in income tax expense.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">A deferred tax liability is not recognized for the following
types of temporary differences unless it becomes apparent that those temporary differences will reverse in the foreseeable future:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(a) An excess of the amount for financial
reporting over the tax basis of an investment in a foreign subsidiary or a foreign corporate joint venture, that is essentially
permanent in duration; or</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">(b) Undistributed earnings of a domestic
subsidiary or a domestic corporate joint venture that is essentially permanent in duration.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Dry-docking Costs</i></b>— Our vessels must be
periodically dry-docked and pass certain inspections to maintain their operating classification, as mandated by certain maritime
regulations.  Costs incurred to dry-dock the vessels for certification are deferred and amortized over the period until
the next dry-docking, generally 24 months.  Dry-docking costs are comprised of painting the vessels, hulls and sides,
recoating cargo and fuel tanks, and performing other engine and equipment maintenance activities to bring the vessels into compliance
with classification standards.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Recent Accounting Pronouncements —</i></b>In
December 2010 the FASB issued Accounting Standards Update No. 2010-28, When to Perform Step 2 of the Goodwill Impairment Test
for Reporting Units with Zero or Negative Carrying Amounts (ASU 2010-28). ASU 2010-28 amends the criteria for performing Step 2
of the goodwill impairment test for reporting units with zero or negative carrying amounts and requires performing Step 2 if qualitative
factors indicate that it is more likely than not that a goodwill impairment exists. ASU 2010-28 becomes effective in fiscal
2012. The Company does not expect ASU 2010-28 to have a material impact on its financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In January 2010 the FASB issued Accounting Standards Update
No. 2010-06, Improving Disclosures about Fair Value Measurements (ASU 2010-06). ASU 2010-06 adds additional disclosures about
the different classes of assets and liabilities measured at fair value, the valuation techniques and inputs used, and the activity
in Level 3 fair value measurements. Certain provisions of this update become effective in fiscal 2012 and the Company is currently
evaluating the impact of the pending adoption of ASU 2010-06.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In June 2011 the FASB issued an ASU on presentation of comprehensive
income to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items
reported in other comprehensive income. This update changes the requirements for the presentation of other comprehensive income,
eliminating the option to present components of other comprehensive income as part of the statement of stockholders' equity, among
other items. The guidance requires that all non-owner changes in stockholders' equity be presented in either a single continuous
statement of comprehensive income or in two separate but consecutive statements. In December 2011, FASB issued an ASU that deferred
portions of the prior ASU relating to the presentation of reclassification adjustments.  The remainder of the provision
will be effective for the first quarter of fiscal 2013 and as the update only requires a change in presentation, the Company does
not expect it to have a material impact on its financial statements.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 2 – ATASH MARINE BASE</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Construction of the Atash Marine Base located in Bautino
Bay commenced in the first quarter of 2008 with the first phase of the project being completed and commissioned in November 2009.
The second phase of the base was commissioned in July 2010 subject to agreement with local authorities that Balykshi complete additional
dredging works. During the first fiscal quarter 2012 the Company entered into a contract to complete the dredging which is anticipated
to cost around $3,000 and paid $1,000 as an advance. Currently, Balykshi has insufficient funds to complete the dredging project.
If the dredging is not completed in a reasonable period of time, Balykshi could be subject to certain penalties, including the
cancelation of permits and termination of operational activities at the marine base until the dredging is completed. The failure
by Balykshi or the Company to provide financing for, or to complete, the dredging works could also constitute a default under the
EBRD financing agreements.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 3– NOTES PAYABLE</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Notes payable consists of the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><b> </b> <b>March 31,</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><b> </b> <b>September 30,</b></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><b> </b> <b>2012</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><b> </b> <b>2011</b></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left">Non-negotiable promissory note payable to an  investor; interest at 0.26%</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,814</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,800</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Convertible consolidated promissory note payable to an investor; interest at 12%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,937</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,446</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Loan from investor, paid subsequent to September 30, 2011</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">EBRD loan and accrued interest at 7% due May 2015</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">secured by property and bank accounts</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">20,604</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">19,874</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Total Long-term Debt</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">57,355</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">57,120</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Less: Current Portion</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">57,355</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">57,120</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Long-term Debt - Net of Current Portion</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">During the six months ended March 31, 2012 the Company paid
$2,000 to the Investor, which was credited as a reduction of principal due.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">During the six months ended March 31, 2012 the Company engaged
in ongoing discussion with EBRD about restructuring the terms of the EBRD financing agreements. There is no guarantee the Company
will be successful in restructuring the EBRD financing agreements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Until the Company is successful in restructuring the EBRD
financial agreements, the EBRD loan, the non-negotiable promissory note and the convertible consolidated promissory note payable
to the Investor will be treated as current liabilities in the consolidated financial statements.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 4 – STOCK BASED COMPENSATION PLANS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In January 2012, Alexey Kotov, the Company’s Chief
Executive Officer and President was issued a restricted stock grant of 443,817 common shares pursuant to the terms of his employment
agreement.  Except upon the occurrence of certain events, as detailed in his employment agreement, this grant shall vest
equally over a period of three years on the anniversary of his employment agreement(August 2), commencing on August 2, 2012.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The shares representing the restricted stock grant have been
issued and are deemed outstanding.  All unvested shares will be held in escrow by the Company for release in accordance
with the vesting schedule. Vesting of the shares is also contingent upon Mr. Kotov’s continued employment with the Company
on the respective vesting dates.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Compensation expense charged against income for stock-based
awards during the three and six months ended March 31, 2012 was $31 and $44, as compared to was $28 and $59 during the three and
six months ended March 31, 2011 and is included in general and administrative expense in the accompanying financial statements.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">A summary of the non-vested stock under the Company’s
compensation plan at March 31, 2012 follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="width: 47%; line-height: 115%"> </td>
<td style="width: 23%; line-height: 115%; text-align: center">Non-Vested</td>
<td style="width: 30%; line-height: 115%; text-align: center">Weighted Average Grant</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">Shares</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">Date Fair Value Per Share</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%">Non-vested at September 30, 2011</td>
<td style="line-height: 115%; text-align: center">331,968</td>
<td style="line-height: 115%; text-align: center">$0.34</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%">Stock granted</td>
<td style="line-height: 115%; text-align: center">443,817</td>
<td style="line-height: 115%; text-align: center">   0.11</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; line-height: 115%">Stock vested</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">  (40,000)</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center">   0.29</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double; line-height: 115%">Non-vested at March 31, 2012</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: center">735,785</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: center"> $0.21</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The value of the non-vested stock under the Company’s
compensation plan at March 31, 2012 is $22.  As of March 31, 2012 unrecognized stock-based compensation was $63 and will
be recognized over the weighted average remaining term of 1.31 years.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 5 — COMMITMENTS AND CONTINGENCIES</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Economic Environment</i></b>—In recent years,
Kazakhstan has undergone substantial political and economic change.  As an emerging market, Kazakhstan does not possess
a well-developed business infrastructure, which generally exists in a more mature free market economy.  As a result,
operations carried out in Kazakhstan can involve significant risks, which are not typically associated with those in developed
markets.  Instability in the market reform process could subject the Company to unpredictable changes in the basic business
infrastructure in which it currently operates. Uncertainties regarding the political, legal, tax or regulatory environment, including
the potential for adverse changes in any of these factors could affect the Company’s ability to operate commercially.  Management
is unable to estimate what changes may occur or the resulting effect of such changes on the Company’s financial condition
or future results of operations.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Legislation and regulations regarding taxation, foreign currency translation, and licensing of
foreign currency loans in the Republic of Kazakhstan continue to evolve as the central government manages the transformation from
a command to a market-oriented economy.  The various legislation and regulations are not always clearly written and
their interpretation is subject to the opinions of the local tax inspectors. Instances of inconsistent opinions between local,
regional and national tax authorities are not unusual.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 6– RELATED PARTY TRANSACTIONS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>MOBY</i></b>– During
October 2008 the Company entered into a lease agreement with MOBY for the lease of three hectares of space at the marine base to
operate a vessel repair and drydock facility. Balykshi owns a 20% joint venture interest in MOBY. The lease agreement is for 20
years and calls for a fixed rent payment of $290 per year. In November 2009, according to the agreement term, MOBY made a partial
advance payment of $3,347, which is being recognized over the 20 year lease term starting from May 2010. This prepayment has been
recorded as long-term deferred revenue from related parties on the balance sheet.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The lease revenue recognized from MOBY
for the three and six months ended March 31, 2012 was $166 and $284, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The lease revenue recognized from MOBY
for the three and six months ended March 31, 2011 was $257 and $387, respectively.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>KazakhstanCaspiShelf</i></b>– During three
and six months ended March 31, 2011, seismic services valued at $3,011 and $3,970, respectively, were performed for KazakhstanCaspiShelf
(“KCS”), a company related through common ownership.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Accounts receivable from related parties as of March 31,
2012 and September 30, 2011 consisted of the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; line-height: 115%; font-weight: bold">Related Party's Name</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; font-weight: bold">Description</td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"><b> </b> <b>March 31, 2012</b></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"><b> </b> <b>September 30, 2011</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 20%; line-height: 115%"> </td>
<td style="width: 54%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 10%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 10%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%">Bolz LLP</td>
<td style="line-height: 115%">Seismic services</td>
<td style="line-height: 115%">$ </td>
<td style="line-height: 115%; text-align: right">  3,300</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%">$ </td>
<td style="line-height: 115%; text-align: right">  3,308</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%">MOBY</td>
<td style="line-height: 115%">Marine base</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">   852</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">381</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%">Kazakhstancaspishelf</td>
<td style="line-height: 115%">Equipment rental, services and fuel sales</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">   290</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">  2,308</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%">Others</td>
<td style="line-height: 115%">Services/Indirect costs</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">   2</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">     3</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%">Allowance for doubtful accounts</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">   (3,300)</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">   (3,326)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">TOT</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold"></td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">$ </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold; text-align: right">    1,144</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">$ </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold; text-align: right">   2,674</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">In February 2011 Bolz (a company related through common ownership)
transferred its overdue obligations of $3,300 to BMB Munai LLP (a non-related third party), however, BMB Munai LLP failed to pay
the amount due, so during the six-months ended March 31, 2012 the balance was transferred back to Bolz, which is still liable to
pay. Accordingly, the balance of $3,300 and the corresponding allowance for doubtful accounts of ($3,300) was moved from Trade
Accounts Receivable to Accounts Receivable from related parties.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Long-term deferred revenue from related parties as of March
31, 2012 and September 30, 2011 consisted of the following:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> <br />
 </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; line-height: 115%; font-weight: bold">Related Party's Name</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; font-weight: bold">Description</td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"><b> </b> <b>March 31, 2012</b></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"><b> </b> <b>September 30, 2011</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 19%; line-height: 115%"> </td>
<td style="width: 58%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 10%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 1%; line-height: 115%"> </td>
<td style="width: 10%; line-height: 115%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; line-height: 115%">MOBY</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> Advance received for land rental</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%">$ </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">                         2,999</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%">$ </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">                         3,072</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">TOTAL</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">$ </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold; text-align: right">                         2,999</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold">$ </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; font-weight: bold; text-align: right">                         3,072</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 7 – FAIR VALUE MEASUREMENTS</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company uses fair value to measure certain assets and
liabilities on a recurring basis when fair value is the primary measure for accounting. This is done primarily for the put option
liability. Fair value is used on a nonrecurring basis to measure certain assets when applying lower of cost or market accounting
or when adjusting carrying values.  Fair value is also used when evaluating impairment on certain assets, including goodwill,
intangibles, and long-lived assets.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Recurring basis:</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">At March 31, 2012 the Company had one liability measured
at fair value on a recurring basis. The put option liability is a Level 3 measurement based on the underlying value of Balykshi
using third party valuations and discounted cash flow analysis. The fair value of the put option liability was $15,817 at September
30, 2011. As of March 31, 2012 the amount was valued at $16,820, which is the amount the Company would have to pay if EBRD accelerated
its put option. The $1,003 increase during the six months ended March 31, 2012 reflects the 20% rate of return.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>NOTE 8 – SEGMENT INFORMATION</b></p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Accounting principles generally accepted in the United States
of America establish disclosures related to components of a company for which separate financial information is available and evaluated
regularly by a company’s chief operating decision makers in deciding how to allocate resources and in assessing performance.
They also require segment disclosures about products and services as well as geographic area.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">The Company has operations in three segments of its business,
namely: Vessel Operations, Geophysical Services and Marine Base Services. All of these operations are located in the Republic of
Kazakhstan. Corporate administration is located in the United States of America and the Republic of Kazakhstan.</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Further information regarding the operations and assets of
these reportable business segments follows:</p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="7" style="text-align: center"><b> </b> <b> For the Three Months</b></td><td> </td>
<td colspan="7" style="text-align: center"><b> </b> <b> For the Six Months</b></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b> Ended March 31,</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b> Ended March 31,</b></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2012</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2011</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2012</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2011</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Capital Expenditures</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; text-indent: 0.25in">Vessel Operations</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">6</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">164</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">10</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">552</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">90</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">307</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">210</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">14</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">58</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 27pt">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">268</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">317</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">820</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Corporate assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">57</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Less intersegment investments</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0.25in">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">268</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">317</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">877</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> <br />
 </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="7" style="text-align: center"><b> </b> <b> For the Three Months</b></td><td> </td>
<td colspan="7" style="text-align: center"><b> </b> <b> For the Six Months</b></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b> Ended March 31,</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b> Ended March 31,</b></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2012</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2011</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2012</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2011</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Revenues</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; text-indent: 0.25in">Vessel Operations</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,784</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">4,739</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">8,473</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">15,093</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,362</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,871</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,635</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,454</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">343</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">439</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">717</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">717</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 27pt">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,489</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,049</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,825</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">26,264</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Corporate revenue</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Less intersegment revenues</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(101</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(80</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(204</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(123</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0.25in">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,388</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,969</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,621</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">26,141</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Depreciation and Amortization</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Vessel Operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(706</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(907</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,683</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,838</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(665</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(624</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,322</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,341</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(369</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(370</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(747</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(743</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 27pt">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,740</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,901</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,752</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,922</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Corporate depreciation and amortization</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0.25in">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,741</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,901</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,752</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,924</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Interest expense</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Vessel Operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(5</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,471</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,365</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,712</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,762</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 27pt">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,471</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,370</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,712</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,781</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Corporate interest expense</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(236</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(732</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(651</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,430</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0.25in">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,707</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,102</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,363</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,211</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Income/(Loss) Before Income Tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Vessel Operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(847</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(53</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,576</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">3,105</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 0.25in">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(869</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,197</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,796</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,927</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,022</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,956</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,233</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,397</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; text-indent: 27pt">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,738</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">188</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,605</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">635</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; text-indent: 0.25in">Corporate loss</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(259</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,037</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(931</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,067</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0.25in">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,997</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(849</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(8,536</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,432</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="7" style="text-align: center"><b> </b> <b> For the Three Months</b></td><td> </td>
<td colspan="7" style="text-align: center"><b> </b> <b> For the Six Months</b></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b> Ended March 31,</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b> Ended March 31,</b></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2012</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2011</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2012</b></td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b> </b> <b>2011</b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Benefit from (Provision for) Income Tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left">Vessel Operations</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">497</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(6</td><td style="width: 1%; text-align: left">)</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">192</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">(537</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(265</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(487</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">89</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(820</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">232</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(493</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">281</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,357</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Corporate provision for income tax</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">232</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(493</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">281</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,357</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Loss/(Income) attributable to Noncontrolling Interests</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Vessel Operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">82</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">167</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(299</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">104</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">385</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">450</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">816</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">973</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">467</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">617</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">517</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,077</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Corporate noncontrolling interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">467</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">617</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">517</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,077</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Net Loss/(Income) attributable to Caspian Services Inc.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Vessel Operations</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(350</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(59</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,384</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,568</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Geophysical Services</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,052</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,877</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,006</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,211</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Marine Base Services</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,636</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,302</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,416</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,285</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Total segments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(3,038</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(484</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(6,806</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(506</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Corporate loss</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(260</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,037</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(932</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,067</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total consolidated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,298</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,521</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(7,738</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,573</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"><b> </b> <b> March 31,</b></td>
<td style="line-height: 115%"> </td>
<td colspan="2" style="line-height: 115%; text-align: center"><b> </b> <b> September 30,</b></td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold">Segment Assets</td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"><b> </b> <b>2012</b></td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: center"><b> </b> <b>2011</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 74%; line-height: 115%; text-indent: 0.25in">Vessel Operations</td>
<td style="width: 2%; line-height: 115%">$ </td>
<td style="width: 10%; line-height: 115%; text-align: right">         20,707</td>
<td style="width: 2%; line-height: 115%"> </td>
<td style="width: 2%; line-height: 115%">$ </td>
<td style="width: 10%; line-height: 115%; text-align: right">         34,300</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-indent: 0.25in">Geophysical Services</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">           23,063</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">             25,385</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-indent: 0.25in">Marine Base Services</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">           48,874</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">             49,780</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-indent: 27pt">Total segments</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">           92,644</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">          109,465</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-indent: 0.25in">Corporate assets</td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">           85,634</td>
<td style="line-height: 115%"> </td>
<td style="line-height: 115%; text-align: right"> </td>
<td style="line-height: 115%; text-align: right">             86,161</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; text-indent: 0.25in">Less intersegment investments</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">         (85,313)</td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 1.5pt solid; line-height: 115%; text-align: right">           (90,567)</td></tr>
<tr style="vertical-align: bottom">
<td style="line-height: 115%; font-weight: bold; text-indent: 0.25in">Total consolidated</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$ </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">         92,965</td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right"> </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%">$ </td>
<td style="border-bottom: black 2.25pt double; line-height: 115%; text-align: right">      105,059</td></tr>
</table>
<p style="margin: 0pt"></p>
2000000
734000