21. Supplementary Oil and Gas Information (Unaudited)

This supplementary oil and natural gas information is provided in accordance with the United States Financial Accounting Standards Board (“FASB”) Topic 932 – “Extractive Activities – Oil and Gas”.

Net Proved Oil and Natural Gas Reserves

The Company retains qualified independent reserves evaluators to evaluate the Company's proved oil and natural gas reserves.

For the years ended December 31, 2011, 2010 and 2009 the reports by Chapman Petroleum Engineering Ltd. (“Chapman”) covered 100% of the Company's oil and natural gas reserves.

Proved oil and natural gas reserves, as defined within the SEC Rule 4-10(a)(22) of Regulation S-X, are those quantities of oil and gas, which, by analysis of geoscience and engineering data can be estimated with reasonable certainty to be economically producible from a given date forward from known reservoirs, and under existing economic conditions, operating methods and government regulations prior to the time of which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether determinable or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. Developed oil and natural gas reserves are reserves that can be expected to be recovered from existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and through installed extraction equipment and infrastructure operational at the time of the reserves estimate is the extraction is by means not involving a well.

Estimates of oil and natural gas reserves are subject to uncertainty and will change as additional information regarding producing fields and technology becomes available and as future economic and operating conditions change.

The following table summarizes the Company's proved developed and undeveloped oil and natural gas reserves within India, net of royalties, as at December 31, 2011, 2010 and 2009:

Oil (MBbls)	2011			2010			2009
Proved reserves as at January 1		55			118			--
Extensions and discoveries		--			--			131
Technical revisions		201			(52	)		--
Production		(5	)		(11	)		(13	)
Proved Reserves as at December 31		251			55			118

Proved - developed:
Producing		23			55			100
Non producing		--			--			18
Proved - undeveloped		228			--			--
Reserves, as at December 31		251			55			118

Natural Gas (MMcf)	2011			2010			2009
Proved reserves as at January 1		155			89			--
Extensions and discoveries		--			--			105
Technical revisions		54			88			--
Production		(12	)		(22	)		(16	)
Proved Reserves as at December 31		197			155			89

Proved - developed:
Producing		59			155			89
Non producing		--			--			--
Proved - undeveloped		138			--			--
Reserves, as at December 31		197			155			89

Capitalized Costs Related to Oil and Natural Gas Properties

	$	2011	$	2010
Proved properties		30,348,218		17,702,000
Unproved properties		43,540,400		47,715,032
		73,888,618		65,417,032

Less: Accumulated impairment		30,757,015		23,887,015
Less: Accumulated depletion		1,394,200		1,060,700
Net capitalized costs		41,737,403		40,469,317

Cost Incurred in Oil and Natural Gas Activities

	$	2011	$	2010	$	2009
Development
India		4,528,855		7,618,315		4,313,000
Exploration
India		--		--		7,708,252
Israel		3,912,782		1,459,476		--
Colombia		29,949		135,282		--
Costs incurred		8,471,586		9,213,073		12,021,252

Standardized Measure of Discounted Future Net Cash Flows From Proved Oil and Natural Gas Reserves and Changes Therein

The following standardized measure of discounted future net cash flows from proved oil and natural gas reserves has been computed using the average first-day-of-the-month price during the previous 12-month period, costs as at the balance sheet date and year-end statutory income tax rates. A discount factor of 10% has been applied in determining the standardized measure of discounted future net cash flows. The Company does not believe that the standardized measure of discounted future net cash flows will be representative of actual future net cash flows and should not be considered to represent the fair value of the oil and natural gas properties. Actual net cash flows will differ from the presented estimated future net cash flows due to several factors including:

·	Future production will include production not only from proved properties, but may also include production from probable and possible reserves;

·	Future production of oil and natural gas from proved properties may differ from reserves estimated;

·	Future production rates may vary from those estimated;

·	Future rather than average first-day-of-the-month prices during the previous 12-month period and costs as at the balance sheet date will apply;

·	Economic factors such as changes to interest rates, income tax rates, regulatory and fiscal environments and operating conditions cannot be determined with certainty;

·	Future estimated income taxes do not take into account the effects of future exploration expenditures; and

·	Future development and asset retirement obligations may differ from those estimated.

Future net revenues, development, production and restoration costs have been based upon the estimates referred to above. The following tables summarize the Company's future net cash flows relating to proved oil and natural gas reserves based on the standardized measure as prescribed in FASB Topic 932 – “Extractive Activities – Oil and Gas”:

	$	2011		$	2010		$	2009
Future cash inflows		25,869,000			5,208,000			11,567,000
Future operating costs		(4,561,000	)		(1,513,000	)		(2,637,000	)
Future development and asset retirement obligations		(6,272,000	)		(84,000	)		(84,000	)
Future income taxes		--			--			(110,000	)

Future net cash flows		15,036,000			3,611,000			8,736,000
10% annual discount for timing of future cash flows		(6,741,000	)		(755,000	)		(2,932,000	)
Standardized measure of future net cash flows		8,295,000			2,856,000			5,804,000