Tisquirama Occidental is a technical evaluation licence (“TEA”) and covers a small area to the north of and adjacent to the Santa Lucia field. The structural trend of the Santa Lucia field is thought to extend into this block. The work programme, lasting eight months, calls for the reprocessing and interpretation of 40 kms of 2D seismic and geological modelling at a cost of US$ 36,000.

PDN was also awarded two additional TEA's in the Middle Magdalena Valley. Blocks La India (53,000 hectares) and Rio Guayabito (56,000 hectares) are 150 to 200 kms to the south of the Santa Lucia field. The work program over eight months requires the reprocessing and interpretation of 100 kms of 2D seismic in each block for a total expenditure of US$ 63,000 per block.

The work programme related to the TEA’s has now been completed and the Company is evaluating the results. It anticipates that at least one application will be submitted in the first quarter of 2007 to convert the TEA’s into full exploration licences.