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To The ShareholdersThe year 1996 proved to be very exciting and rewarding for the Company and its shareholders as a result of the El Segundo No. 1 discovery well and the apparent world scale reserve potential. The market value of its shares increased from $.55 per share in January to close at $18.12 per share on December 31, 1996. The increase in share price was attributed almost entirely to the Companyıs oil discovery on the Emerald Mountain Prospect in Colombia.The primary focus for the Company in 1997 and 1998 will be to delineate the size and productive potential of the Emerald Mountain Prospect. The oil field, located at a depth of 6,000 feet, can be developed and placed on production rapidly and at a cost structure which allows for very attractive profit margins per barrel. The Company is committed to rapid appraisal and early development and production. The Colombia discovery has caused a change in policy regarding the number of prospects the Company originally intended to pursue on a yearly basis. While its focus will be on the Emerald Mountain Prospect, the Company will continue to evaluate its current prospects located outside of Colombia and will also consider new prospects on a very selective basis. During 1996 the Company acquired new prospects in Colombia, Australia and Papua New Guinea while surrendering a prospect in southwest Turkey. The Company continues to operate with a minimum staff of seven full time employees, however it plans to add engineering personnel in Houston and a drilling and production office in Bogota, Colombia during the first half of 1997. March 21, 1997
Albert E. Whitehead
Timothy T. Stephens |