Corcel

Corcel has rapidly progressed from exploration to first oil with the drilling of our Corcel-A1 discovery well in the second quarter of 2007. The well was quickly brought on production in the third quarter of 2007. The discovery has been followed up by two successful delineation wells to date. While the ultimate size of the discovery will be defined through long-term testing and additional delineation drilling, Corcel is a significant discovery that has extended the oil-bearing horizons in the Llanos Basin to an area that has not seen exploration activity in recent years. Our drilling success at Corcel has led to the development of a new strategic asset for Petrominerales.

Production is 29 degree API light crude oil, increasing our base of high netback production. Plans call for a progressive expansion of our production facilities through 2008 into early 2009. Our current drilling inventory includes five exploration prospects and four contingent delineation locations which have been defined from our original 3D seismic data that covers only 15 percent of the block. We plan to expand the 3D seismic coverage over the Corcel Block by shooting a 100 square kilometre program in 2008, increasing our seismic coverage to 47 percent of the block. In addition, a 3D seismic program is planned for our 26,349-acre Guatiquia Block, which adjoins the Corcel Block to the southwest. With over 100,000 acres of contiguous exploration lands, and seismic programs increasing our coverage over the blocks, we expect to be actively drilling in the area for years to come.