PELE, through its wholly owned Colombian subsidiary Petroleus del Norte S.A (“PDN”) sells all its crude to Ecopetrol under a renewable sales contract. The prices received by PDN from Ecopetrol for its crude are linked to WTI for Santa Lucia and Dona Maria fields and to Fuel Oil in the case of Los Angeles Field.

There is no marketing fee charged under the contract as Ecopetrol uses the crude to supply its refinery at Cartagena. PELE can export its crude via the Colombian Port of Covenas. A number of existing companies in Colombia are already doing this.