Frequently Asked Questions

Q. Why is La Cortez Energy focusing its operations in South America?

A. South America is a very promising region as it relates to oil & gas. Many nations including Colombia, Peru and Paraguay are loosening their royalty and fiscal regimes to increase supply to meet growing internal demand in the hopes of achieving energy self-sufficiency.

Q. Why has La Cortez Energy chosen Colombia, as its initial focus?

A. South America is one of the fastest growing geographies in the world. However, as a developing region, certain risks exist that might curtail growth and restrict foreign investment. We plan to assess multiple factors when considering entering any geography, particularly:
Stable Political regimes: Countries that exhibit a desire to uphold stability and progress in their legislation, striving towards open markets and a global approach to best business practices.
Clear fiscal/taxation/royalty terms.
Manageable security in and around production and exploration areas and facilities.
Openness to foreign direct investment.
Good oil and gas E&P prospects: where despite the presence of large multi-national integrated oil companies; there are open acreage opportunities as well as farm-in, joint venture, and direct block negotiation opportunities, as well producing fields and/or company acquisition possibilities, with some access to local capital.
Potential for underexploited hydrocarbon formations with promising upside potential: we are searching for investment opportunities in countries where there are regions with limited seismic coverage within hydrocarbon prospective areas.
We believe Colombia has taken significant strides to achieve these characteristics and presents attractive investment opportunities coupled with considerable upside.

Q. How does management view the involvement of the Board of Directors of La Cortez Energy?

A. Our Board of Directors will be an essential component of our successful operation and growth, serving in various support capacities. Through the establishment of relevant committees (Audit, Compensation, Reserves and Nominating and Corporate Governance), the Board of Directors will provide an independent view into all of our operations, providing feedback and guidance on the quality of the projects we may invest in. Additionally, our Board of Directors will regularly confer with senior management to help us ensure that all relevant and required controls are in place and operating appropriately. Our Board of Directors will serve as means of confirming the integrity of senior management’s estimates with respect to valuations, reserve estimates and other crucial components of our business.

Aside from the functions enumerated above, we believe that our Board of Directors will serve as an integral element of our business development efforts. We have identified and appointed board members who we expect will provide both invaluable insight and access to their business relationships in the region, as well as add technical, financial, accounting and other expertise to our management team. Our intention is to generate a substantial amount of our deal flow in conjunction with our Board of Directors.

Q. What types of transactions is La Cortez Energy, Inc. Evaluating and considering?

A. The following is a list of the types of transactions we are considering:
Exploration and Production (E&P): Direct government concessions in blocks with specific exploration and development plans.
Technical Evaluation agreements.
Farm-ins and Farm-outs: purchasing (or selling at a later date) existing production through working interests in specific wells or blocks.
Corporate Transactions:
Acquisitions of producing fields.
Acquisitions of exploration acreage
Corporate acquisitions; and
Asset based acquisitions (e.g. blocks and concession rights).
Joint Ventures:
Partnering with other established oil and gas companies will allow us to access certain government concession rounds, benefit from technical and market expertise of our partners and provide liquidity to our partners.

Q. What attributes does La Cortez Energy look for in evaluating prospects?

A. South America is one of the fastest growing geographies in the world. However, as a developing region, certain risks exist that might curtail growth and restrict foreign investment. We try to assess multiple factors when considering entering any geography, particularly:
Every project we evaluate goes through an extensive due diligence process. Listed below are some of the qualities we try to find:
Opportunities from medium to long term production life with clear understandings of production mechanisms and output levels;
Geological formations with multiple producing horizons;
Substantial upside potential; and
Relatively low capital investment and production costs.