1. Guatemala Oil Industry Current potential

3. GENERAL INFORMATION Guatemala is home to the largest number of archaeological sites of the Mayan culture, making it as one of the main cultural destinations of the world. The Guatemalan ancestral culture originates with the legacy pre- hispanic indigenous Demography: 13.3 Million inhabitants, divided into 21 ethnic groups of Mayan origin, Ladinos, Xinca and Garifuna. (2007) The official language is Spanish, in addition to 21 Mayan dialects, Xinca and Garifuna. Political Division: 22 departments

4. GENERAL INFORMATION Coffee is the main export product of the agricultural economy of Guatemala, contributing to a third of the entries in the currency of the country. Other sources of income are the crops of sugar cane, bananas, cardamom and cotton. In the fishing industry, the shrimps are a significant source of income. Guatemala is a country that has the largest manufacturing industry in Central America. Account at the same time with a small copper mining industry, iron, zinc and other metals. In the mid 70’s, were discovered deposits of petroleum. Guatemala still imports all of the hydrocarbon used for consumption.

6. SEDIMENTARY BASINS In Guatemala there are three types of basins, which are the result of geological and tectonic activity of the area: North/South Petén Basin : All of the current oil fields are located in this basin. The gravity of the oil is around 13 to 16 Degrees API in the North Petén basin and 22 to 38 Degrees API in the South Petén basin. Amatique Basin: Some shows of oil have indicated the presence of petroleum underground. Pacific Basin: Some findings of methane hydrates, possibly associated with free gas.

7. OIL RELATED INFRAESTRUCTURE

8. EXPLORATION AND EXPLOITATION CONTRACTS CURRENT EXPLOITATION CONTRACTS No. / CONTRACTORLOCATION/ PRODUCTION 2-85 PERENCO GUATEMALA LIMITED SAN ANDRÉS, PETÉN 9,985.85 Has PRODUCCION 10,118.76 BOPD 15.3° API 2-2009 EMPRESA PETROLERA DEL ITSMO S. A CHISEC, ALTA VERAPAZ Y SAYAXCHÉ, PETÉN 27,307.22 Has. PRODUCCION 607.47 BOPD 22.8° API 1-91 PETRO ENERGY, S.A. CHISEC, ALTA VERAPAZ Y SAYAXCHÉ, SAN LUIS, PETÉN 19,773.07 Has. PRODUCCION 207.05 BOPD 12.7°-33.9° API 1-2005 PETRO LATINA CORPORATION COBÁN, ALTA VERAPAZ E IXCÁN, QUICHÉ 31,451.29 Has. PRODUCCION 13.98 BOPD 34.6° API CURRENT EXPLORATION CONTARCTS No. / CONTRACTOR LOCATION/ PRODUCTION 6-93 PETRO LATINA CORPORATION FRAY BARTOLOMÉ DE LAS CASAS, ALTA VERAPAZ 130,186.29 Has. 7-98 COMPAÑÍA PETROLERA DEL ATLÁNTICO, S.A. LIVINGSTON, IZABAL 53,793.54 Has. 1-2006 CITY PETEN S. DE R.L LA LIBERTAD, PETÉN 39,541.99 Has.

9. PROSPECTIVE INCOME AND PRODUCTION (CURRENT CONDITIONS) INCOMEPRODUCTION

10. PROSPECTIVE INCOME AND PRODUCTION (BIDDING ROUND GUATEMALA 2012) INCOMEPRODUCTION

11. LEGAL FRAMEWORK APPLICABLE LEGISLATION Hydrocarbons Law, Decree 109-83. General Regulations of the Hydrocarbons Law, Government Agreement 1034-83. Regulations for the Call to Hold Oil Exploration and Exploitation Contracts, Government Agreement 754-92. Call to Present bids to Hold Oil Exploration and Exploitation Contracts, Government Agreement 764-92. Contrat Model for Oil Exploration and Exploitation Contracts, Government Agreement 190-2005 and its Accounting Annex, Government Agreement 189-2005.

12. CLASSIFICATION OF OIL AREAS The definition of the type of areas is based on existing information and classified as follows: TYPE 1. DIRECT AND INDIRECT EXPLORATION: It is the one area where there is seismic information, at least one exploratory well, was part of a previous petroleum contract, or is close to an area where currently is carried oil exploitation. TYPE 2. INDIRECT EXPLORATION: It is the one area where there is little geological information, is part of a sedimentary basin and were part of a previous petroleum contract.

13. PROPOSED AREAS / SEISMIC INFORMATION AreaHectare Cotzal 1-2012 80,851.89 San Francisco 2-2012126,994.16 La Libertad 3-2012 105,325.50 Laguna Blanca 4-2012 158,912.08 Cancuen 5-2012 117,331.32 AreaHectare El Cedro 6-2012 35,003.94 Xalbal 7-2012 171,720.26 DIRECT AND INDIRECT EXPLORATION INDIRECT EXPLORATION Hectare, measure equal to 10, 000 square meters

14. BIDDING ROUND GUATEMALA 2012 PROCEDURE AREASREPORT GOVERNMENTALAGREEMENT MINISTERIAL AGREEMENT INTERNATIONALPUBLICATION BIDRECEPTION BIDQUALIFICATION CONTRACTAPPROVALCONTRACTPUBLICATION CONTRACTVALIDITY AGREEMENTS AND PUBLICATIONS BID CONTRACT FORMALITIES

15. TENDERS QUALIFICATION CRITERIA TYPE 1: Exploration Indirect / Direct Royalty & PSh Bid60% Technical Bid40% TYPE 2: Indirect Exploration Technical Bid 60% Royalty & PSh Bid 40% The rating is based on a scale of 100 points. The maximum reasonable bid submitted will be given the maximum value assigned, the following equation will be used: Rating = (Submitted Bid) x ( Maximum Rating) (Maximum Bid)

16. More information: Ministerio de Energía y Minas Dirección General de Hidrocarburos ________________________________________________________________________________________________________ Diagonal 17 29-78 Zona 11, Guatemala PBX +502 24762044 www.mem.gob.gt rondaguatemala@mem.gob.gt