About Guatemala

Location:

Guatemala is a country in Central America bordered by Mexico to the north and west, the Pacific Ocean to the southwest, Belize to the northeast, the Caribbean to the east, and Honduras and El Salvador to the southeast. Guatemala's abundance of biologically significant and unique ecosystems contributes to Mesoamerica's designation as a biodiversity hotspot

Facts:

Land Area: 108,890 km²
Capital City: Guatemala City
Population: Approx 13,276,517
Main Exports: Organic coffee, sugar, textiles, fresh vegetables, and bananas.

In October of 2010, the Company secured a Farm-In Agreement in which the Company holds a 55% working interest and acts as operator in the “A-7-98” contract, which corresponds to the area known as “A-7-96”, made up of the “N-10-96” and “O-10-96” blocks in Guatemala. The remaining working interest is held by Compañía Petrolera del Atlántico, which is owned by Flamingo Energy Investment (BVI) Ltd., and CHx Guatemala Limitada.

In 2010, the Company’s activities in Guatemala included identifying logistics, access and design of future geologic and geophysical field work. The Company also began to evaluate the availability of drilling and seismic acquisition companies in Guatemala, and is working to identify necessary environmental permitting and other support-related areas. All these activities will aid in the Company establishing an exploration program that will be submitted for approval in the second quarter of 2011.

Looking ahead 2011

2011 exploration in Guatemala includes reprocessing of 300 km² of 2D seismic; acquisition and processing of an additional 300 km² of 2D seismic; acquiring 6,800 km² of aero-magnetic and aerogravimetric data; performing 6,600 km² of remote perception surveys and a surface geology campaign (including samples analysis); and the commencement of geological interpretation to define prospects to be drilled in 2012.