According to the CIA World Fact Book 2010, reserves and production for the following countries in Latin America were:
As a result of a number of positive changes in the political and economic environment in Latin America, the Directors believe that opportunities now exist for small entrepreneurial companies to enter these markets and seek to develop oil and gas prospects within these hydrocarbon rich countries.
It is the Company’s intention to identify projects within three to four countries in Latin America that are capable of meeting the board’s technical and economic criteria and which fit with management’s experience in onshore operations in emerging markets.
The management of the Company also recognise that, although the primary aim of the company is to provide the potential for strong economic returns to its shareholders, it must do so in a manner which is environmentally sound and allows for the development of its staff in the countries in which it operates.
The Company initially identified Colombia and Guatemala as countries in which to build core businesses. The directors consider that both countries are attractive for a number of reasons, including stable democratically elected Governments that seek foreign investment, and a geological environment favourable for hydrocarbon development.
The Board continues to firmly believe that Colombia in particular, offers attractive consolidation, corporate and new license acquisition opportunities. On a consensous basis, analysts predict Colombia’s production will double over the next 4 years from 690m bopd in 2009 to 1.3mm bopd by 2015 approaching 2mm bopd by 2020.