Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions

12.           Related Party Transactions

Related party transactions are measured at the exchange amount which is the amount of consideration established and agreed by the related parties.

Roy Group (Mauritius) Inc.

In March 2003, the Company entered into a Participating Interest Agreement with Roy Group (Mauritius) Inc. (a corporate entity controlled by a director and principal stockholder of the Company), whereby the Company assigned and holds in trust for Roy Group (Mauritius) Inc. 50% of the benefits and obligations of the production sharing contract covering the KG Offshore Block leaving the Company with a net 5% participating interest in the KG Offshore Block.  The assignment of interest is subject to approval by the Government of India.

Under the terms of the Participating Interest Agreement and until approval by the Government of India, the Company retains the exclusive right to deal with Roy Group (Mauritius) Inc. with regard to the KG Offshore Block and is entitled to make all decisions regarding the interest assigned to Roy Group (Mauritius) Inc.  The Company has a right of set-off against sums owing to GeoGlobal by Roy Group (Mauritius) Inc.  In the event that the Government of Indian consent is delayed or denied, resulting in either Roy Group (Mauritius) Inc. or the Company being denied an economic benefit it would have realized under the Participating Interest Agreement, the parties have agreed to amend the Participating Interest Agreement or take other reasonable steps to assure that an equitable result is achieved consistent with the parties' intentions contained in the Participating Interest Agreement.

Roy Group (Barbados) Inc. (RGB)

RGB is a corporate entity controlled by a director and principal stockholder of the Company.  Effective August 18, 2010, RGB charges consulting fees based on the time expended to provide technical services to the Company as assigned by the Company and to bring new oil and gas opportunities to the Company.  From the period of August 29, 2003 to August 17, 2010, RGB provided services under a Technical Services Agreement for consideration of $350,000 per year.  Consulting fees paid to RGB are as outlined and recorded below:

	Year ended Dec 31, 2011		Year ended Dec 31, 2010		Year ended Dec 31, 2009		Period from Inception, Aug 21, 2002 to Dec 31, 2011
	$		$		$		$
Consolidated Statements of Operations
Consulting fees		267,650		209,179		262,500		1,182,996
Consolidated Balance Sheets
Property and equipment		192,966		141,532		87,500		1,671,664
		460,616		350,711		350,000		2,854,660

On January 27, 2011, 200,000 options were granted to the principal of RGB at an exercise price of $0.75 for 65,000 options, $1.12 for 65,000 options and $1.50 for 70,000 options which expire January 27, 2021 and 100,000 options vested on September 30, 2011 and 100,000 options vest on March 31, 2012.  No options were granted during the years ended 2010 and 2009 to the principal of RGB.  The compensation cost for stock-based compensation arrangements is outlined and recorded below:

Consolidated Balance Sheets
Property and equipment	34,166	--	--	34,166

At December 31, 2011, the Company owed RGB $47,019 (December 31, 2010 - $16,200) for services provided and expenses incurred on behalf of the Company.  These amounts bear no interest and have no set terms of repayment.

D.I. Investments Ltd. (DI)

DI is a corporate entity controlled by an officer of the Company.  DI charged consulting fees to the Company up to August 17, 2010 for management, financial and accounting services rendered.  Subsequent to August 17, 2010, the officer's compensation is included in general and administrative expenses.  Consultancy fees paid to DI are as outlined and recorded below:

	Year ended Dec 31, 2011		Year ended Dec 31, 2010		Year ended Dec 31, 2009		Period from Inception, Aug 21, 2002 to Dec 31, 2011
	$		$		$		$
Consolidated Statements of Operations
Consulting fees		--		133,827		212,750		1,261,042

At December 31, 2011, the Company owed DI $nil (December 31, 2010 – $nil).