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Taghmen EnergyExploration and Production

in Latin America

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Forward Looking StatementCertain statements contained in this document constitute “forward-looking statements”. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the relevant entities, or the results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategy and the environment in which the Company will operate in the future. There can be no assurance that the results and events contemplated by the forward-looking statements in this document, will, in fact, occur. The Company undertakes no obligation publicly to release the result of any revisions to any forward-looking statements in this presentation that may occur due to any change in the Company’s expectations or to reflect events or circumstances after the date of this presentation. All subsequent written or oral forward-looking statements attributable to the Company, or persons acting on behalf of the Company, are expressly qualified in their entirety by the cautionary statements contained throughout this presentation. As a result of these risks, uncertainties and assumptions, a prospective investor should not place undue reliance on these forward-looking statements.

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Taghmen Energy - History

• Formed in July 2004

• Raised US $21.3 million (net of costs) in private equity over the summer 2004

• Acquired Mexpetrol (Guatemala) Limited, the owner of the Las Casas 6-93 licence for cash consideration US $3.3 million in July – September 2004

• The Las Casas licence covers an area of 323,000 acres and contains proven oil and gas

• Appraisal and drilling expected to commence in Guatemala early January 2005

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Aims and Goals

• To build an independent oil and gas company in Latin America

• Provide strong growth returns to shareholders

• To do so in a socially aware fashion ensuring:– Protection of the environment – Development of the local employees

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Management Team

• Executive Chairman - Greg Smith

• President and CEO – Nicholas Gay(formerly Chief Financial Officer – Petrokazakhstan)

• Chief Operating Officer – Jay Scott(Previously Chief Operating Officer, Bitech Petroleum)

• Chief Financial Officer – Geoff Killick(Management and finance role: Bitech Petroleum,

Charterhouse Petroleum and Phillips Petroleum)

• President Mexpetrol – Michael Realini

• Geologist – Kevin Dean

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Management track record

• Key members of the Team have:– Worked together– A history of generating strong returns to

shareholders (PetroKazakhstan, Arawak and Bitech)

• Successful record in:– Running international E&P companies– Public companies listed on the London, New

York and Toronto stock exchanges– Discovering oil fields– Developing oil and gas fields

• The team also has extensive experience in debt and equity fund raising

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Why Latin America?

Country Proven Reserves Production

Argentina 2,927 million bbls 826,600 bopd

Chile 81 million bbls 13,640 bopd

Colombia 1,800 million bbls 614,400 bopd

Ecuador 2,358 million bbls 421,200 bopd

Guatemala 263 million bbls 21,080 bopd

Mexico 15,110 million bbls 3,590,000 bopd

Peru 614 million bbls 95,100 bopd

Venezuela 63,950 million bbls 3,080,000 bopd

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Guatemala - unexploited opportunity

• Under explored country with high potential

• Proximity and similarity in the geology to Mexico

• Trends in which major Mexican discoveries (e.g. Nazareth Field) have been found extend into Guatemala

• Positive and encouraging political and economic environment

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Geological Basins Overlap Between Guatemala and Mexico

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Key Geological Features

Pliocene

Miocene

Oligocene

Eocene

Paleocene

UpperCretaceous

LowerCretaceous

Jurassic

600 Km.NW SE

MEXICO (REFORMA) GUATEMALA (PETEN BASIN)

Peten Basin Stratigraphy through Mexico (Reforma) and Guatemala.Sharing Similar Rocks and Leads.

Age

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Key Geological Features

Map showing fields in southern Mexico and Guatemala. The blue lines indicate the major structural “grain” indicating the fields in the south Peten basin are on the same trends as

those in Mexico.

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Key Geological Features

• Peten Basin is a large (23,000 sq m, 8,880 sq km) underexplored basin (100 exploration wells, 40 of which had indications of hydrocarbons)

• Proven hydrocarbon system

• Most wells to date have targeted the crests of the mapped structures

• The precise structural history and facies distribution is poorly constrained

• Potential for local good quality reservoirs in “reefal” facies

• Potential for stratigraphic traps

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Guatemala Key Facts

• Democracy with President elected every 4 years Oscar Berger elected President in 2003

• Has an established banking system, no exchange controls, and has a stable currency

• Free movement of currency

• The country has a population approximately 14.3 million and GDP growth of 2.1% (2003 est.)

• Inflation 5.5% (2003 est.)

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Las Casas Licence

Licence 6-93Las Casas

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Las Casas 6-93Licence

• Location – Peten Basin

• Area – 323,000 acres

• Term – 25 years from October 1993

• Three wells on the licence encountered hydrocarbons

• On going work programme is to work over two wells and drill two new wells at Las Casas during 2005

• Capital budget for work programme is US $6.35 million

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Production and Reserves

• Three wells drilled at Las Casas, all of which have encountered hydrocarbons

• Las Casas 1x and 2x wells flowed oil in varying quantities

• Potential Reserves at Las Casas are estimated at 26.3 million with a further 3.31 million at a separate structure on the licence, Huapac.

• Las Casas Licence adjacent to Rubelsantos at which approximately 30 million barrels have been discovered.

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Licence Application Round

Licence 6-93Las Casas

Rublesanto Area 6-2003

TortugasArea 7-2003

Area 9-2003

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Licence Application Round

• The licencing round is expected to take place during the first quarter of 2005 and will cover three areas.

• Area 9: extension of Sierra Lacandon trend containing Nazareth and Lacandon fields.

• Tortugas: oil field on flanks of salt diapir. Proven production from Coban C at shallow depths. Wells should be limited to 200 – 250 bopd. Atzam is a small field to south which produced at over 8000 bopd.

• Rubelsanto: current production c. 1,700 bopd from Coban C. Additional un-drilled prospects have been identified.

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2004 and 2005 Work Programme

* Assumes licence is awarded April 2005

*

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Marketing Options

Licence 6-93Las Casas

TortugasArea 7-2003

Area 9-2003

XAN Field

Piedras Negras

Rublesanto Area 6-2003

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Marketing Options

• Entry into pipeline from XAN Field to Gulf of Honduras, pipeline tie in point 35 kms from field

• Trucking to Gulf of Honduras, a distance of 120 kms

• Refining crude at the newly constructed El Rancho refinery. The refinery owners have offered to buy the crude at the field

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Licence Fiscal Regime

• Production sharing agreement

• Royalty based on API of crude, with the better the crude the higher the royalty rate

• Las Casas crude is expected to pay royalty at 27 to 28%

• Profit share depends on rate of production

• Maximum Company share = 60% for production below 15,000 bopd and minimum Company share is 25% for production over 75,000 bopd

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Licence Fiscal RegimeCost Recovery

• Cost recovery statements required to be approved

• Only costs related to the defined zone of commercial production are allowed

• Once allowed, approved cost recovery is fully deductible in period approved

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Corporate Income Tax

• Levied against a company’s profits

• Capital expenditure is 100% allowable in year that it is incurred

• One third of profit share is deductible

• Tax rate is 31%

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Environmental

• Key issues are– Rain Forest– Indigenous People– Archaeological sites

• Taghmen does not currently operate in archaeological or Indian sensitive areas

• Area around operations has suffered extensive de-forestation in the past

• Well sites will be replanted

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Looking across from Las Casas well 2x to 1x

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Area around Tortugas

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Las Casas 3X well location before site preparation

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Financial Data

• Over the summer of 2004 US $21.3 million was raised through private subscription

• The expected work over cost of a Las Casas well is approximately US $150,000 having acquired the work-over rig.

• The expected cost of drilling a 2,500 metres new well is approximately US $2.5 million, using a contracted rig

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Financial Data cont.

• Capital and G&G budget for:– 2004 = US $545,000– 2005 = US $6,332,000

• Cash balance at 1st January 2005 approximately US $15 million

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Summary

• New E& P Company with Latin American focus

• Strong management team with extensive oil & gas and international experience, together with track record of running public companies

• Acquired strong position in Guatemala: under-explored but potentially prolific oil and gas region

• Sufficient funds raised to get through existing work programme

• Operating in a highly prospective area

• Well positioned for future growth