OIL, GAS AND COAL EXPLORATION AND DEVELOPMENT

CORPO-PETROL currently has numerous Oil, Gas and Coal business opportunities in the US, Canada, Australia, China, The Caribbean, Colombia, Angola, Venezuela, Guyana, Libya, Russia and Ecuador to obtain oil & gas and Coal exploration rights, the purchasing of existing crude oil, natural gas and coal mining production contracts at discount prices from several important oil, gas and coal companies. In addition, CORPO-PETROL has identified various merger and acquisition opportunities with medium size minority control oil, gas and coal mining companies all with proven recoverable reserves.

The demand for clean energy is ever-expanding and according to government and private industry estimates, will continue unabated for the foreseeable future. In 1998, the average cost of a domestic barrel of crude oil at the wellhead was $10.87. In August 2006, the average wellhead price was $74.17. This equates to a 682% increase in crude oil prices over the eight-year period. The average annual increase was over 80%. The table below illustrates actual historical wellhead prices for crude produced in the lower 48 states.

Current domestic prices are expected to continue to increase as demand for fuel increases in India and China and the rest of the pacific basin, while controls on output by OPEC nations continue to limit production. Some experts predict that average crude oil prices may rise to as high as $90 to $100 per barrel within the next few years based on current and expected market conditions. The forecasts by the U.S. Energy Department's Energy Information Administration in their Annual Energy Outlook Report of 2004 for 2030 have already been exceeded. The volatility and unpredictable nature of the market makes it impossible to accurately predict where prices will hit in 2030, but what is certain is that with increasing demand and ever decreasing supplies, prices must rise over the long term.

Of course, as market prices rise, return on investment rises. Already the marketplace has seen record profits for the petroleum industry in 2005 and 2006. Drilling and pumping costs will remain relatively flat while revenues rise.

America's increasing dependency on foreign oil supplies has placed a renewed interest in developing domestic crude oil reserves. In addition, political instabilities in nations that are members of OPEC make domestic development even more important to assist in sustaining a continuous supply. As world crude prices continue to rise, these market conditions make it economically feasible to develop domestic reserves.

The U.S. Energy Department's Energy Information Administration has predicted that the worldwide production capacity of crude oil will increase from 80 million barrels per day in 2003, to over 118 million barrels per day in 2030. U.S. domestic production is expected to fall, decreasing from just under 6 million barrels per day in 2004 to under 5 million barrels per day in 2030. This forecast clearly shows the increasing dependence on foreign oil imports to cover the expected average increase in domestic consumption of 1.5% per year until 2030.

Corpopetrol Exploration Technology

The CORPO-PETROL technology detect and quantify volatile compounds associated with buried natural resources such as petroleum reservoirs, copper and gold ore deposits, diamond kimberlite pipes, and to map and monitor environmental pollution in air, water and soil gas. This service delivers data, reports and maps that show the spatial distribution of these resources and generates value for the customer in the following ways:

Petroleum & Mineral Exploration

• Improved exploration success
• Lower finding costs
• Faster reserve generation

Environmental

• Develop an accurate conceptual site model
• Improve monitoring and remediation success, and
• Reduce overall program costs

CORPO-PETROL TECHNOLOGY

The CORPO-PETROL Module makes the difference. All three markets rely on similar technology which comprises:

1. A signal collection device known as the CORPO-PETROL Module, which is a passive adsorbent collector that uses proprietary engineered adsorbents.
2. Very sensitive and comprehensive chemical analytical analysis of the modules comprising Thermal Desorption, Gas Chromatography, and Mass Spectroscopy (TD/GC/MS) with an optional sulfur detector.
3. Multivariate statistical and chemometric techniques to analyze the data and, when combined with known geology, refined to delineate, via maps the spatial location of these natural resources or environmental pollution. Volatile compounds as small as ethane (C2) to as large as Pryrene (C20), in quantities as minute as a billionth of a gram, can be detected. The passive adsorbent can collect compounds in all known soil types such as clay, salt, volcanic rock or water saturated soils.

COMPETITION

There is no “in-kind” competition for CORPO-PETROL Surveys in the exploration market. There are, however, several low cost, low technology geochemical services, including direct and indirect options. The direct option uses active soil gas collection to measure an extremely limited range of compounds from C1 to C6. The indirect option also known as microbial, measures the size of a colony of bacteria which consume a very limited number of compounds, typically only C4. Companies are generally disappointed with these lower technology alternatives. The limited number of compounds results in poor predictability, poor sensitivity, inability to work in low permeable soils, and the absence of multivariate statistical techniques for clear interpretation.