PetroNova

completed

IFC is proposing an equity investment of up to US$15 million in PetroNova Inc., a TSXV-listed oil and gas exploration company with operations in Colombia. The Company has working interests in five onshore exploration blocks in Colombia. Two blocks are operated by PetroNova namely the PUT 2 Block (The Company has 100% working interest) and the Tinigua Block (The Company has 90% working interest) both located in the Caguan-Putumayo Basin. Three blocks are operated by Tecpetrol namely CPO6, CPO7 and COP8 (The Company has 20 % working interest in all three) located in the Llanos Basin, In the period 2011-2012 2D and 3D seismic was aquired in the blocks operated by PetroNova: PUT 2 Block: 2D and 3D seismic completed Tinigua Block: 3D seismic 90% completed. For these seismic activities the development of access roads was not required due to the seismic techniques applied which reduced the overall footprint of the activities. IFC’s investement will be used to finance the first phase of an exploration campaign (2012) including drilling of exploration wells and additional seismic acquisition if required (it is expected that IFC’s financing will include about 12 exploration wells). The exact location of the exploration wells will be defined on the basis of the interpretation of the seismic information already acquired.