October 17, 2016
We would like to thank our many loyal shareholders and investors for their continued support through one of the most challenging times in the global energy sector. The artificially deflated oil pricing caused by oversupply directed at recapturing market share to the Middle East has caused the delay of nearly all oil and gas projects and the destruction of some of those companies. We were not immune to the delays resulting from a global downturn in the energy markets. On the positive side, pricing has stabilized and a bottom has been set in the market. This has provided the start of the recovery process. Oil production caps and an increasing demand will slowly balance the markets and cause a rise in global energy costs. The lack of new wells and the degradation of existing producers will have a dramatic effect on future oil pricing to the upside although it will take time. We feel we will be in good position to take advantage of what is coming.
The second event which has been taking place in Colombia is the peace treaty between the FARC and the government. After years of unrest both sides have come to the table to bring an end to it. International investment and the country’s overall credit rating are affected by the eventual outcome and although narrowly defeated in the first vote by the people, all involved are determined and at the table to get this done. We have confidence that this will be completed.
Both of the events above have delayed our initial plan to be online as we had forecasted, we do feel that these events will have positive endings and we will reach our end goal in this and many other opportunities in Colombia.
As nearly all oil and gas stock prices have been brought down by the Global energy market we are in discussions to acquire a portion of our stock back in the open market if pricing remains at this level once we move forward and have satisfied existing investors. All regulatory filings will have to be in place prior and the amount of the buy-back will be public knowledge in those filings.
We would like to thank our shareholders and investors for their patience as we move forward. An official press release will be out when we have new updates/progress to this and any other pending projects.
Nelson De La Nuez