API Farmout operations...

We have been awarded a subu-license to operate the Petrotrin Oropouche Field. We conducted a detailed geotechnical study which identified opportunties for production enhancement.

API executed major upgrades to access roads, locations, intra field pump lines and production facilities. The company undertook an aggressive well rehabiliation programme and as a result of the completinos, reactivations and well swabbing efforts, productino increased from 57 barrels of oil per day (bopd) to 300 bopd between May 2007 and December 31, 2010. A drilling program commenced in March 2010. Three wells were succesfully drilled in the AO 43 sand unit which contributed 150 bopd.

A nitrogen and salt water EOR is planned for the AO 43 sand unit. In this project nitrogen and salt water will be injected simultaneously into the gas cap and water leg off the AO 43 sand unit. Increased crude oil production is anticipated in the off take wells. This project is expected to yield a production increase of 400 bopd after three years.