Corporate Strategy

The initial strategy will be to target projects which have oil discoveries and exhibit a potential for considerable development and / or exploration upside. This strategy will allow the Company to rapidly add value to its projects by upgrading reserves levels and in planning for the earliest possible production date.

The Company will also seek to grow through a four-tiered acquisition strategy:

Participation in the development of marginal fields in Nigeria
Identifying and purchasing under-exploited assets in Asia and Africa from other large independent oil and gas companies; and
Partnership arrangements on acreage owned by other large independent oil and gas companies to explore or develop reserves that would otherwise not be produced.
Using the extensive political network of the company’s directors in the economies in transition, to acquire acreage.

The Company's growth strategy is to acquire and, where appropriate, to develop conventional oil assets, concentrating principally on shallow producing oil wells primarily by leveraging the expertise and extensive industry contacts of the company's Directors.

The Board intends to focus initially on oil assets, rather than gas, for cash flow purposes. The criteria that the Board intends to apply to potential investments are broadly described as follows:

The Group will participate principally as a non-operating, minority investor in prospects operated by industry partners known to the Board;
The Group will focus initially on shallow oil prospects, being prospects above 5,000 feet,
Where the Group invests in non-producing wells, the Board intends to invest in areas with proven wells nearby, adjacent to existing productive wells, or with other geologic or seismic indications that the risks of the prospect are relatively low;
The Group's target investment price for producing oil assets is approximately US$12 to US$15 per barrel, and funding costs for non-producing assets are intended to be approximately US$5 to US$7 per barrel;
The Group will invest primarily where the operator of the well, the subject of the investment, has invested in the project; and individual investments in proven undeveloped wells are unlikely to exceed $100,000, thus diluting the Group's risk profile.

By way of this investment strategy the Board intends, over time, to establish a growing portfolio of principally producing oil properties, but in order to create additional up-side profit potential the Company will also invest in proven undeveloped locations. Debt may be used to assist with investments.