Putting our Principles into Practice: Some Examples

We believe that not only do we set high standards in our approach to our business but that we put our words into practice.

Since its inception and commencement of operations, PetroLatina Energy has worked closely with local communities. The Company is concerned with poverty in the areas where it operates. It has carried out programmes which make a contribution to the alleviation of the problem and the improvement of the quality of life in these communities.

Work and Direct Investment in the community

PetroLatina Energy believes that the local community should share in the benefit that its operations provide. Both in Guatemala and Colombia, emphasis has been given to the employment of local staff. Expatriate staff are kept to the lowest possible level. In Colombia all of the field staff are local, whilst in Guatemala the figure is over 90%. So far as possible, services and equipment are sourced from the local communities. This benefits local businesses. In Guatemala, a new restaurant was set up, hotel refurbishments were carried out as a result of our presence, and an extension of carpentry and construction businesses due to our operations in the town of Fray la Batholomé de Las Casas, Guatemala. In the Tortugas/Atzam licence area our operations provided jobs where employment opportunities are few. The injection of funds through salaries and corporate purchases sustains businesses in the local communities in which we operate.

Training of local staff

Local personnel receive training both in the more specialised roles in oil field operations, drilling services and seismic operations, and more standard jobs such as the construction of modular camp units, furniture construction, plumbing, carpentry and proper environmental management. These skills are transferable into other business and companies and so provide a sustainable level of development within the communities we operate.

Schools in Las Casas, Guatemala

PetroLatina Energy carried out a survey of all public schools in the Las Casas area to determine what the schools lacked and what was of importance to the children’s needs. In the Las Casas area, with over 6,000 school children, not a single teacher was trained in basic first aid. Responding to this need, PetroLatina Energy established a beginner’s first aid program. During 2005, over 120 school teachers were given basic first aid and artificial ventilation training.

In addition PetroLatina Energy is examining, in consultation with the Ministry of Education, the possibility of distributing to all the schools books in the indigenous dialect for the children.

Local community in Las Casa, Guatemala

PetroLatina Energy has built a basketball court in the town centre to help strengthen community relationships. The Company donates presents to children at Christmas and food to the mayor for civil functions. The Company’s paramedics aid locals in the vicinity of field operations when required.

Archaeology in Tortugas, Guatemala

In order to ensure that no Mayan relics or archaeological sites are disturbed or damaged by PetroLatina Energy’s operations, the Company sponsored and funded an extensive survey of the licence area in Tortugas. Although some Mayan structures had already been found, the survey discovered a hitherto unknown Mayan City located on a salt water creek. The city is estimated to have had a population of 20,000 and was a major salt mining and trading centre for the Mayans. In the light of this discovery, PetroLatina Energy has revised initial plans and relocated its staff and facilities away from these areas. Once oil has been found, and is generating revenue, the Company plans to convert an eight room building near the discovered Mayan city into a combined archaeological museum and office. Alongside this project, PetroLatina Energy has paid for the construction of a facility at a site called Imux’s tomb. This facility is used for Mayan religious ceremonies.

Infrastructure in region of Las Casas and Tortugas, Guatemala

PetroLatina Energy has improved communications. Work has included extensive road maintenance and the rebuilding of no less than six main bridges on the highway between Rublesantos and Playa Grande. This has improved the accessibility of these areas and transport facilities for all of the local communities.

The Company has established a medical clinic which is to be staffed at all times by one of two Guatemalan doctors (one male and one female). The clinic provides 24 hour emergency service, and is supported by paramedics (when field operations are on going) and is equipped with PetroLatina Energy’s ambulance. The Doctors are also travelling within the local communities to identify existing medical problems of the local inhabitants and to train the local population in proper food, water, sewage and refuse handling procedures. The clinic will improve the standard of health care available to poor people in the communities where medical services are otherwise minimal.

Colombia

The Company is currently reviewing its newly acquired Colombian operations to identify where it can make similar contributions to the areas in which it now operates.

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