WE WORK FOR THE RATIONAL USE OF GAS

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1 WE WORK FOR THE RATIONAL USE OF GAS

2 COMPANY PROFILE TURGAS S.A. E.S.P. was established in Bogotá, Colombia, on May 19th, 2005, with the main purpose to process natural gas associated with the production of oil, at the Toqui- gas, after being Toqui oil field located in the province of Tolima, Colombia. This natural treated, is sold for domestic and industrial use. Also, TURGAS can supply on an EPC (engineering, procurement and construction) basis, natural gas treatment plants as well as electric power plants, to be used for the production of clean gas or electric energy, either for sale, or for internal use in industrial plants. The human team of TURGAS is guiding the company towards the leadership in the EPC contracting of different projects in the hydrocarbon sector, fulfilling international standards. We have in our company: electricians; chemists; process, mechanical, civil, systems and electronic engineers, as well as construction and company administrators.

3 BUSINESS OPTIONS Our business strategy with the gas supplier includes the following options: 1. TURGAS purchasess the gas from the oil producer by building the gas treating facility, and selling the treated gas and all the subproducts obtained from this process. 2. TURGAS becomes partner of the gas supplier by sharing the business risk but remaining as the operator of the gas treating process, under business terms agreed between the parties. 3. TURGAS makes all the needed investment under one of the following modes: BOM (Build, Operate and Maintain); BOOMT (Build, Own, Operate, Maintain and Transfer); or any other form of business agreed with the gas supplier. 4. Any other form of business to be agreed between the gas supplier and TURGAS, by which associated gas will be treated, and its subproducts to be marketed, obtaining as a result the minimization of gas emissions that contribute to globall warming. Before considering the execution of a project, a team of our professionals will complete a DUE DILIGENCE in order to evaluate the best options to be submitted to our business partner. Our company has the main purpose of developing processes that minimize global warming by the rational use of gas which is being burned in torches at the oil production wells. Finally, we wish to point out that government environmental protection agencies extend different credit certificates that can be used as a financing resource for the implementation of the different processes which promote the accomplishment of a cleaner use of hydrocarbons, and thus, diminishing global warming. WHO ARE WE? TURGAS is a Colombian company dedicated to the treatment of natural gas; the marketing of the resulting subproducts; and the sale of EPC contracting of gas treatment plants as well as power generation plants with the purpose of promoting industrial progress and improvement of competitiveness. As a result, TURGAS offers: Integral solutions through practical strategies and instruments for the development of private and public projects. Technical assistance and consultation specialized in the development of productive projects. Exchange of knowledge for the promotion of innovation and technological progression for the development of new products and added value.

4 MISSION: TURGAS is a company focused on the rational use of energetic resources with the will to accomplish that work in a safe and normative environment; the search for productivity by satisfying our customers with quality products, and the utilization of appropriate technologies that match requirements; the pursuance of personal and professional development of our human team; and, the creation of value for our shareholders. VISION: To position TURGAS as the leading company in the rational use of products and services in the energy business chain, by being recognized as an intelligent organization; adaptive and competitive in its environment, with a committed human team that attains our clients preferences. POLICY OF QUALITY: Our commitment with our clients is to offer experience in processing energetic resources within an environment of safety and continuous improvement by acknowledging the value of talent within our company. PRINCIPLES AND CORPORATE VALUES: Learning as a team. Adaptability within the environment. Result orientation. Client- market orientation. Respect for the human being and the environment. Social responsibility.

5 WHAT DOES THE COMPANY DO? 1. PRODUCTION AND MARKETING OF PRODUCTS OBTAINED FROM THE TREATMENT OF ASSOCIATED GAS TURGAS has constructed a processing line that separates the gas for the use by electric power plants, from the rest which is used to obtain: Natural gas for domestic and industrial use. Fuel gasoline. Liquefied petroleum gas (LPG). Power generation. The following diagram illustrates the production process. 2. CONSULTATION SERVICES FOR THE CONSTRUCTION OF GAS TREATMENT AND POWER GENERATION PLANTS TURGAS offers the servicess for technical assistance and consultation for the development of projects for gas treatment, for the improvement of competitive conditions in the areas of exploitation and the generation of further sources of income. Based on the experience from our own production areas, where we installed the process for the thermo power generation, and the natural gas treatment plant with the split- up

6 to obtain LPG, enables us to have a competitive advantage for the construction of gas treatment plants and power generation units. We can accomplish turn-key projects to use surplus associated gas for the treatment of it and its marketing, or for the use of it in the generation of electric power. Furthermore, we offer to implement the optimization of production processes in order to improve the capacity and efficiency of the production plants. In order to offer services related with turn-key projects, where the construction of gas treatment plants is included, TURGAS has established strategic alliances with prestigious engineering and construction firms, internationally known, in order to be able to offer a variety of goods and services to satisfy the needs of its customers.

7 2.1 EQUIPMENT SOLUTIONS FOR THE GENERATION OF ELECTRICC POWER The equipment offered and delivered by TURGAS, is chosen to meet the local geographic and market characteristics to assure the best possible performance according to client s requirements. For this, only top international suppliers are being used to assure quality and promptness of delivery. Power Engine Compressors 2.2 DELIVERY OF SPARE PARTS, PRODUCTION OF STORAGE TANKS, SITE SERVICES REPAIRS AND ON TURGAS complements its services with the delivery of storage tanks, parts and spare parts that are imported or locally manufactured by supporting the locall industry, which results in an economic advantage for the client. Furthermore, we support our clients with post sales service that consists in the training of its employees in the handling of the delivered equipment and improvement of the on-site work. Please see below some of the equipment supplied by TURGAS.

8 Storage facilities: Scrubber Storage tanks Equipment: Boilers for heating oil Glycol Boilers Chillers Fractioning towers

9 WHY TURGAS? Our company develops its work within a climate of cooperation and generation of synergies among the different actors with the intention to consolidate the gas industry as a highly productive and competitive sector. Therefore, we have an interdisciplinary team of professionals with broad experience that allows us to offer an optimal service for a competitive production. Furthermore, we have the comparative advantage of operating our own plants of production and treatment of gas which allows us to stay up to date with the requirements of our clients and the timely solutions they require. HOW DO WE DO THAT? Through a diagnosis, sensibilization and education process, we join your company in the identification of the best practices and methodologies in the development of productive projects. We also surround ourselves with highly qualified and experienced professionals in every single area of the project and: 1. Define working groups according to clients needs and expectations; 2. Develop and execute a work schedule; 3. Conduct periodic reports on the status of the project. Due to the different characteristics of each oil or gas well, the cost of the construction of a processing gas plant may differ, as well as the costs of the transport of resulting products. Other variable factors include: the quality of the gas; the distance from production site to the gas line; the availability of water and electric energy supply at site; as well as geographic characteristics. All of this will have to be evaluated by TURGAS, in order to be able to submit a proposal to the client, interested in developing a project. WHO LEADS THE PROCESSS OF DEVELOPING A PROJECT? Based on the needs and expectations of the client, the project can be entirely managed by TURGAS, and delivered as a TURN-KEY contract, or it can be dividedd into several stages according to client s convenience, and in agreement between the parties, where responsibilities would be shared. For more information, please contact: Yolanda Lizarazo Arango Administrative and Finance Manager TELEPHON (57-1) , turgas@turgas.com