----

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| ARTICLE      1  DEFINITIONS                        | 1      |
|--------------------------------------------------------------|--------|
|                                                         |   |
| ARTICLE      2  ASSIGNMENT OF INTEREST             | 6      |
|                                                         |   |
| ARTICLE      3  CONDITIONS PRECEDENT TO ASSIGNMENT | 8      |
|                                                         |   |
| ARTICLE      4  CONSIDERATION                      | 10     |
|                                                         |   |
| ARTICLE      5  OBLIGATIONS UNDER CONTRACT         | 12     |
|                                                         |   |
| ARTICLE      6  UNDERTAKING OF THE PARTIES         | 12     |
|                                                         |   |
| ARTICLE      7  REPRESENTATIONS AND WARRANTIES     | 15     |
|                                                         |   |
| ARTICLE      8  TAX                                | 20     |
|                                                         |   |
| ARTICLE      9  CONFIDENTIALITY                    | 20     |
|                                                         |   |
| ARTICLE      10  NOTICES                           | 22     |
|                                                         |   |
| ARTICLE      11  LAW AND DISPUTE RESOLUTION        | 23     |
|                                                         |   |
| ARTICLE      12  FORCE MAJEURE                     | 23     |
|                                                         |   |
| ARTICLE      13  DEFAULT                           | 24     |
|                                                         |   |
| ARTICLE      14  GENERAL PROVISIONS                | 26     |

| Exhibit      A | E&P      Contract          |
|----------------|--------------------------------|
|           |                           |
| Exhibit      B | Joint      Operating Agreement |
|           |                           |
| Exhibit      C | Assignment                     |

----

----

| 1.1 | AFE      means Authorization for Expenditure for each well, in accordance to the      provisions of the JOA. |
|-----|--------------------------------------------------------------------------------------------------------------|

| 1.2 | Affiliate      means, in connection with a specified Person (the “Specified      Person”), (i) other Person who, directly or indirectly, is      controlled by or is under common control of such Specified Person or any      of its shareholders; (ii) any Person holding directly or indirectly 50% or      more of the capital of the Specified Person; and (iii) any Person in whose      capital said Specified Person holds directly or indirectly 50% or more of      its paid-in capital. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | Agreement      means this Farmout Agreement together with its Exhibits and any extension,      renewal or amendment hereof agreed to in writing by the      Parties. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Appraisal      Well means any well, the purpose of which at the time of the      commencement of drilling is to evaluate an accumulation of Hydrocarbons,      which accumulation was at that time proven by prior    drilling. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | Approval      Date means the date on which the Government formally approves or      endorses the Assignment of the Participating Interest transferred      hereunder, according to Paragraph, Article3.1 |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | Assignment      means the document to be executed by the Parties, in the exact form      attached to this Agreement as Exhibit C for the Transaction Interest      assignment, by which the Transaction Interests is transferred and conveyed      to the Farmee by the Farmor as provided  hereunder. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | Assignment      Date means the date on which the parties execute the Assignment      documents for the Assignment. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| 1.8 | Completion      means an operation intended to complete a well through the Christmas tree      as a producer of Hydrocarbons in one or more Zones, including, the setting      of production casing, perforating, stimulating the well and production      Testing conducted in such operation.  "Complete" and other      derivatives shall be construedaccordingly. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.9 | Consequential      Loss means any indirect or consequential loss howsoever caused or      arising whether under contract, by virtue of any fiduciary duty, in tort      or delict (including negligence), as a consequence of breach of any duty      (statutory or otherwise) or under any other legal doctrine or principle      whatsoever whether or not recoverable at common law or in equity.      “Consequential Loss” shall be deemed to include, without prejudice to the      generality of the foregoing, the following to the extent to which they      might not otherwise constitute indirect or consequential    loss: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | loss      or damage arising out of any delay, postponement, interruption or loss of      production, any inability to produce, deliver or process hydrocarbons or      any loss of or anticipated loss of use, profit or  revenue; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | loss      or damage incurred or liquidated or pre-estimated damages of any kind      whatsoever borne or payable, under any contract for the sale, exchange,      transportation, processing, storage or other disposal of      hydrocarbons; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | losses      associated with business interruption including the cost of overheads      incurred during businessinterruption; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | loss      of bargain, contract, expectation or  opportunity; |
|--------|-----|--------------------------------------------------------------|

|   | (e) | any      other loss or anticipated loss or damage whatsoever in the nature of or      consequential upon the foregoing. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

| 1.10 | Conditions      Precedent means all of the conditions enumerated in Article      3.1. |
|------|---------------------------------------------------------------------------------------|

| 1.11 | Consideration      has the meaning given in Article 4hereof. |
|------|--------------------------------------------------------------|

| 1.12 | Continuous First      Appraisal:  has the meaning that the first Appraisal Well      is drilled using the same drilling rig, and under the same rig      mobilization on the Maranta Contract Area, as the Exploration Well in the      First Farmin Works. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.13 | Contract      means the Maranta E&P Contract attached as Exhibit A effective      September 12nd,      2006 by and between Farmor and the AGENCIA NACIONAL DE HIDROCARBUROS      (“ANH”) for the exploration and production of hydrocarbons in the Contract      Area. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.14 | Contract      Area means the area or block more particularly described in the      Article 3 of the Contract. |
|------|---------------------------------------------------------------------------------------------------------------|

----

| 1.15 | Development      Well means any well, the purpose of which at the time of the      commencement of drilling is to produce an accumulation of Hydrocarbons,      which accumulation was at that time proven by prior    drilling. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.16 | Documents      means the Contract, the JOA, the Assignment, and others documents related      to this Agreement. |
|------|------------------------------------------------------------------------------------------------------------------|

| 1.17 | Effective      Date is the date of execution of this  Agreement. |
|------|------------------------------------------------------------------|

| 1.18 | Exploration      Well means any well, the purpose of which at the time of the      commencement of drilling is to explore for an accumulation of      Hydrocarbons, which accumulation was at that time unproven by      drilling. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.19 | Farmin      Area is the Maranta E&P Contract Area as defined in Exhibit      A. |
|------|-------------------------------------------------------------------------------------|

| 1.20 | Farmin      Works  has the meaning given in Article    4.1 |
|------|----------------------------------------------------------------------|

| 1.21 | Government      means the AGENCIA NACIONAL DE HIDROCARBUROS (hereinafter      ANH”). |
|------|--------------------------------------------------------------------------------------------|

| 1.22 | Guarantee  means      a financial instrument that guarantees payment of an      obligation. |
|------|-------------------------------------------------------------------------------------------------------|

| 1.23 | Hydrocarbons      mean all substances which are subject to and covered by the Contract,      including crude oil and naturalgas. |
|------|----------------------------------------------------------------------------------------------------------------------------------|

| 1.24 | Interim      Period means the period commencing from the date of the execution      of this Agreement until the date of satisfaction of all obligations of the      Farmee set forth in Article 4.1.A, as accepted by the    Farmor. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.25 | JOA      means the Joint OperatingAgreement. |
|------|----------------------------------------------|

| 1.26 | Laws      means those laws, statutes, rules and regulations governing activities      under the Contract, including but not limited to any and all applicable      oil and gas regulations. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.27 | Operator      means Farmor, which has been designated by the Parties in the Agreement      and the parties in the Contract to conduct operations in the Contract      Area, in accordance with theAgreement. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.28 | Participating      Interest means      the undivided interests of such party expressed as a percentage of the      total interest, rights and obligations derived from the      Contract. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.29 | Person      shall mean any individual, corporation, company, partnership, trust, or      unincorporated organization. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| 1.30 | Phases:      means one of the phases of the Exploration Period referred to in the      Contract. |
|------|--------------------------------------------------------------------------------------------------|

| 1.31 | Senior      Managerial Personnel means, with respect to a Party, any individual      who functions as its designated manager or supervisor who is responsible      for or in charge of onsite drilling, construction or production and      related operations, and any individual who functions for that Party or one      of its Affiliates at a management level equivalent to or superior to such      individual, and any officer or director of that Party or one of its      Affiliates. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.32 | Sidetracking      means the directional control and intentional deviation of a well      from vertical so as to change the bottom hole location unless done to      straighten the hole or to drill around junk in the hole or to overcome      other mechanical difficulties.  "Sidetrack" and other      derivatives shall be construedaccordingly. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.33 | Testing      means an operation intended to evaluate the capacity of a Zone or      intervals of interest inside a reservoir to produce Hydrocarbons in the      Farmin Area. "Test" and other derivatives shall be construed      accordingly. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.34 | Transaction      Interestmeans      a Participating Interest of up to 20% Participating Interest of the Farmor      interest, or less than 20% pursuant to the Article 13.4 of this Agreement      , rights and obligations in the Contract, the JOA and other      Documents. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.35 | USD      means the currency of the United States of America, the United States      Dollar. |
|------|---------------------------------------------------------------------------------------------|

| 1.36 | Willful      Misconduct or Gross Negligence means an      intentional, conscious or reckless disregard by Senior Managerial      Personnel of any of the Parties, of good and prudent oil and gas field      practice or any of the terms of this Agreement in utter disregard of      avoidable and harmful consequences but shall not include any act,      omission, error of judgment or mistake made in the exercise in good faith      of any function, authority or discretion vested in or exercisable by such      Senior Managerial Personnel and which in the exercise of such good faith      is justifiable by special circumstances, including but not limited to      safeguarding of life, property or the environment and other      emergencies. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.37 | Zone      means a stratum of earth containing or thought to contain an accumulation      of Hydrocarbons separately producible from any other accumulation of      Hydrocarbons. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1 | Grant |
|-----|-------|

|   | The      relationship between parties, the assignment and the transfer of the      Transaction Interest shall take place pursuant to the Colombian law and      this farmout agreement. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Joint      Operating Agreement |
|-----|--------------------------------|

----

| 2.3 | Binding      Effect |
|-----|---------------------|

|   | Farmor      and Farmee shall be bound by this Agreement as of the Effective Date and      shall fully perform all of their respective obligations under this      Agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Ownership |
|-----|-----------|

| Emerald      Energy PLC Sucursal Colombia: |   |   | 80     | %      |
|--------------------------------------------|--------|--------|--------|--------|
|                                       |   |   |   |   |
| La      Cortez Energy Colombia Inc.:       |   |   | 20     | %      |
|                                       |   |   |   |   |
| Total        :                   |   |   | 100    | %      |

| 2.5 | Approval |
|-----|----------|

|   | The      Farmee shall provide to Farmor within 15 days after the satisfaction of      the Consideration for the Transaction Interests by the Farmee foreseen in      section 4.1.A, all documentation required for the approval of the      Assignment of the Transaction Interest by the Government.  The      Assignment of such Transaction Interest shall be executed within 30 days      after the satisfaction of the Consideration for such Transaction Interest      by the Farmee, and Farmor shall deliver the Assignment within 15 days to      the Government for approval. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | The      Farmor has no obligation whatsoever to ensure approval from Government or      third parties and bears no responsibility for the Government’s and third      parties’ decisions regarding suchapprovals. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | All      the terms and conditions contained in the approval documents executed by      ANH for the conveyance of the Transaction Interest, are mandatory and      prevail over any condition included in this Agreement. Such documents      shall be regarded as part of the Assignment attached in Exhibit      C. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      the event that the Government does not approve the Assignment and subject      to the fulfillment of the obligation of the Farmee to provide the Farmor      with the required documentation for Government’s approval, the Parties      shall use their best endeavors to seek in good faith a legal way to enter      into an agreement by under equivalent terms of  this Agreement      and the JOA, that shall privately govern the relations between the      Parties, and the Farmor will continue representing the Parties, as      provided in section 2.4, before the Government, their rights, interests      and obligations in the Contract. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1 | Conditions      to Assignment of the TransactionInterest |
|-----|----------------------------------------------------------|

|   | The      validity of the execution of the Assignment related to the Transaction      Interest is subject to the satisfaction or waiver of all of the following      conditions, collectively called “Conditions Precedent”,    that: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | The      Farmee fulfills the terms of the Consideration set forth is Section 4.1.A,      relating to the Transaction Interest ;and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------|

----

|   | B. | The      Parties obtain approval of the Government to the Assignment in writing as      required under the Contract.  If government does not grant the      approval the private agreement executed as stated in sections 2.1 and 2.5      shall fulfill thiscondition;  and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | The      Parties obtain any other required authority consents for the transfer of      the Transaction Interest (if any) proposed to be transferred hereunder in      writing; and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | The      Parties execute the JOA attached herein as Exhibit  B. |
|--------|----|-----------------------------------------------------------------|

| 3.2. | Acts      to be Performed: |
|------|----------------------------|

| 3.3. | Penalty      Clause |
|------|---------------------|

----

| 4.1 | In      Consideration for the assignment of the Transaction Interest hereunder,      the Farmee agrees to the following: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

|  | A. | The      Farmee will acquire a 20% Participating Interest in the Farmin Area by      paying a carry of the followingactivities: |
|--|----|---------------------------------------------------------------------------------------------------------------------------------|

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|  | B. | The      Farmin Works shall comprise the drilling, evaluating, testing and      completing or plugging and abandoning one (1) Exploration Well in the      Maranta Block plus the production testing of this Exploration Well for a      sufficient period, not exceeding 48 hours of flow testing per each      individual prospective zone (DST’S), plus a total of 72 hours for a      comingled flow testing without prejudice of the associated operations      required for each flow testing.  The Exploration Well shall be      drilled on the Villeta and Caballos Formations at a location determined by      the Farmor, and shall be sufficient to test the prospective sandstones of      the Villeta and Caballos Formations at a measured total depth expected to      be approximately 10.800 feetMD. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | After      the Farmin Works are executed and Farmee has paid a 3.25 to 1 carry of the      Phase 2 and has reimbursed 60% of the cost incurred in Phase 1, all the      costs and revenues associated to the block will be shared in the following      portions: Farmor 80% and Farmee 20%, except in the case the Farmee      Participating Interest shall be less than 20%, if Article 13.4 of this      Agreement is applied. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | D. | The      Farmor, in good faith declares that to the Effective Date it has no      knowledge of any environmental debt or old well completion requirement by      the Government or any otherauthorities. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E. | The      Parties agree that all costs relating to the drilling of this Exploration      Well including, but not limited to, well planning and design, well civil      works, rig mobilization and demobilization, drilling, evaluating, testing      and completing, and the plugging and abandonment if not completed, shall      form part of the costs of the Farmin Works and shall be assumed by the      parties in the proportion of their cost participation as per this      Agreement and the JOA. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.2 | The      Parties agree that in the event of Continuous First Appraisal Well      commencing inmediately after the completion of the Exploration well and      prior to the long term test of the Farmin Works, in accordance with the      provisions of the JOA, the Farmee shall have the right and obligation to      participate in such Continuous First Appraisal at a level consistent with      the Transaction Interest, and subject to Article  13.4. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | The      Parties agree that payments made by Farmee under this Article 4. are not      refundable in any circumstances  except as stated in Article      4.1.A.1 and Article 13.6. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Any      costs, expenses, fees, or duties payable to the Government in connection      with the Assignment, excluding taxes described in Article 8, herein shall      be borne and paid by Farmee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Farmee      shall have the right to audit all costs and payments made under terms and      conditions of this Agreement in accordance with the  JOA. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | After      completion of the work described in Article 4.1, Farmee agrees to pay its      Participating Interest share of costs incurred under the Contract and the      JOA. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1 | Acceptance      of Prior Terms |
|-----|--------------------------------|

| 6.1 | Farmor      Obligations |
|-----|-------------------------|

|   | During      the Interim Period, Farmor shall comply with the  following: |
|--------|--------------------------------------------------------------------------|

----

|  | A. | Material      Developments. |
|--|----|-----------------------------|

|   | Farmor      shall promptly notify Farmee and provide details upon the occurrence of:      (a) any written notice of default or termination received or given by      Farmor with respect to the Contract, (b) any written notice of any pending      or threatened claim, demand, action, suit, inquiry or proceeding related      to the Contract, (c) any material damage, destruction or loss to major      assets under the Contract, or (d) any event or condition between the date      of this Agreement and the Assignment Date that (i) would have a material      adverse effect on the business, operations, financial condition or results      of operations under the Contract, taken as a whole, or (ii) would render      impossible Farmee’s right to theAssignment. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Farmor      agrees to consult with Farmee on decisions regarding the Farmin Works      under the Contract during the term of this Agreement. Once fulfilled the      Considerations in 4.1,A and executed the Farmin Works, Farmor and Farmee      agree to follow the rules of the JOA regarding to the voting  on      decisions about new works different than the Farmin Works under the      Contract during the term of this Agreement. If any dispute arises      regarding technical decisions, Operator’s decision will prevail for      minimum work obligation over the contract.   However, on      matters excluded from the minimum obligations foreseen in the Contract,      the Parties shall be subject to an Exclusive Operations procedure as per      the terms of the JOA. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | The      Farmor shall be Operator. The Operator shall perform the Farmin Works      operations in accordance with the provisions of the Contract, the Laws and      the Agreement; and conduct such operations in a diligent, safe and      efficient manner in accordance with such good and prudent petroleum      industry practices and field conservation principles as are generally      followed by the International Petroleum Industry under similar      circumstances. The Operator will charge to the parties 5% as overhead on      all the operation cost based on the AFE.  Farmor shall do the      best efforts to drill the well of the Farmin Works within 6 months      following the Effective Date of thisAgreement. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | D. | The      Operator is liable for the operations in accordance with the fiduciary      responsibility he holds as an Operator and shall be liable due to Willful      Misconduct or Gross Negligence.  Under no circumstances      whatsoever shall any of the Parties shall be liable for indirect damages      or Consequential Loss. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | E. | The      Farmor is not responsible for any circumstances that impede the effective      assignment of the Transaction Interest to the Farmee, even in the case      Government decides to terminate the Contract with the Farmor, except for      its Willful Misconduct or GrossNegligence. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | F. | Farmee      declares that he has made the due diligence and knows all the information      regarding to the contract area. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Farmee’s      Obligations |
|-----|---------------------------------|

|   | a. | The      Farmee agrees to indemnify and hold the Farmor and the Operator harmless      for any claims, causes of action, or liabilities, which arise out of the      drilling, completion, testing, production, crude commercialization or      abandonment of the operations, including the contractual obligations and      liabilities related to those activities, except in the case that Farmor or      the Operator is guilty of Willful Misconduct or Gross      Negligence. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The      Farmee agrees to fulfill the requirements of the Government to hold the      Transaction Interest, prior to the submission of the Assignment to the      Government for the Government’s approval, and to maintain such      requirements fulfilled during the period of the  Contract. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | The      Farmee agrees to indemnify and hold the Farmor and the Operator harmless      for any claims, causes of action, or liabilities, which arise out any      circumstances that impede the effective assignment of the Transaction      Interest to the Farmee, even in the case Government decides to terminate      the Contract with the Farmor, except in the case that Farmor is guilty of      Willful Misconduct or GrossNegligence. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.3 | Mutual      Obligations |
|-----|-------------------------|

|   | A. | Each      Party, as applicable, agrees to satisfy, in an expeditious manner, the      Conditions Precedent to the Assignment set forth in Article 3.      Notwithstanding, some of these conditions are out of the control of the      Parties, each party shall execute all documents and do all such acts and      things within its power required to fulfillit. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | The      Parties shall not take any action nor fail to take any action prior to the      Approval Date that would result in a breach of any of its representations      and warranties under thisAgreement. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1 | Farmor’s      Representations andWarranties |
|-----|---------------------------------------------------|

|  | A. | Farmor's      Rights. |
|--|----|-----------------------|

----

|   | B. | Farmor      has provided Farmee with complete and correct copies of the Contract.      Where Farmor has provided any translation of a Document, Farmor has done      so as a courtesy to the Farmee and Farmor makes no representation or      warranty as to the accuracy of thetranslation. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | There      are no material claims, demands, actions, suits, governmental inquiries,      or proceedings pending or to Farmor's knowledge threatened in connection      with the Contract or other Documents which would have an adverse effect      upon the consummation of the transactions contemplated by this      Agreement. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | Farmor,      with bona fides, declares that it does not have knowledge of any cause of      action or liability which may originated from circumstances not fereseen      in this Article.  From the Effective Date, the Parties shall be      responsible to the extent of their participating cost as per this      Agreement and the JOA, for any liability originated in circumstances      ocurred before the Effective Date or which came to the knowledge of the      Farmor after the Effective Date. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Farmee’s      Representations andWarranties |
|-----|---------------------------------------------------|

|   | A. | Claims      and Litigation. |
|--------|----|-----------------------------|

|   | B. | Financing. |
|--------|----|------------|

----

|   | C. | Technical      Capability. |
|--------|----|----------------------------|

|   | D. | Farmee      has satisfactorily performed a satisfactory due diligence, and that it has      received all the required and necessary information from the Farmor or any      other third party to execute this Agreement.  Such due diligence      includes, but is not limited to: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | Before      entering into this Agreement Farmee had the opportunity to visit and      inspect the area of the Contract and its operational conditions thereof      studying and accepting, among other, technical, operational and      environmental conditions at the site.  Farmee was also allowed      free access and the opportunity to verify all technical, geological      information and the Contract documentation required, and has been availed      the opportunity to meet with and to receive from Farmor all additional      information requested; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | Farmee      was also allowed access to and has reviewed all legal documentation      required to enter into the Contract and documentation associated to      execution hereof.  Farmee is fully satisfied with all      aforementioned issues condition; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | Farmee      was able to review and represents its agreement with the Contract      operations development. Farmee also reviewed all licenses and      environmental permits in connection with the Contract and fully accepts      them; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | E. | Farmee      made an independent decision to accept Transaction Interest, and such      assignment is not based on any statement or recommendation from Farmor or      any of its officers, representatives or employees and Farmor does not make      any express or implicit guarantee as concerns technical conditions or      economic potential of the Assets. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | F. | Farmee      is authorized to conduct business in Colombia and is in good standing in      all material respects and with all competent authorities, including      without limitation, with ANH and the Ministry of Mines and      Energy. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Mutual      Representations andWarranties |
|-----|-------------------------------------------|

----

|   | A. | Corporate      Authority. |
|--------|----|---------------------------|

|   | B. | Payments. |
|--------|----|-----------|

|   | C. | Other      Representations and Warranties. |
|--------|----|--------------------------------------------|

----

|   | D. | All      representations and warranties given under this Article 7 shall, for the      Contract term, be deemed repeated and valid, true and correct as of the      Approval Date, and each Party agrees to inform the other Party of any      material changes to the facts in the representations and warranties prior      to the Approval Date or the execution of the Assignment, whichever is      later. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | E. | Each      of the Parties agrees to indemnify and hold the other Party harmless for      any claims, causes of action, or liabilities, which arise out of the      breach of any of the warranties and representations under this Article by      the indemnifying Party. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | Disclaimer      of Other Representations andWarranties |
|-----|--------------------------------------------------------|

| 7.5 | Exclusion      of Consequential Loss |
|-----|--------------------------------------|

----

| 8.1 | Tax      Obligations |
|-----|----------------------|

| 8.2 | Joint      Levy |
|-----|-----------------|

|   | If      interpretation or enforcement of the Contract by the Government imposes      joint and several liability on the Parties for any levy, charge or tax,      the Parties agree to cross indemnify each other to the extent that such      levy, charge or tax is owed by one Party  individually. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1 | Except      as otherwise provided in the Contract, each Party agrees that all      information disclosed under this Agreement, except information in the      public domain or lawfully in possession of a Party prior to the Effective      Date, shall be considered confidential and shall not be disclosed to any      other person or entity without the prior written consent of the Party      which owns such confidential information. This obligation of      confidentiality shall remain in force during the term of the Contract.      Notwithstanding the foregoing, confidential information may be disclosed      without consent and without violating the obligations contained in this      Article in the followingcircumstances: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | to      an Affiliate provided the Affiliate is bound to the provisions of this      Article 9 and the Party disclosing is responsible for the violation of an      Affiliate; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (2) | to      a governmental agency or other entity when required by the Contract or by      as a court of law; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (3) | to      the extent such information is required to be furnished in compliance with      the applicable Laws, or pursuant to any legal proceedings or because of      any order of any court binding upon aParty; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | to      attorneys engaged, or proposed to be engaged, by any Party where      disclosure of such information is essential to such attorneys' work for      such Party and such attorneys are bound by an obligation of      confidentiality; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | to      contractors and consultants engaged, or proposed to be engaged, by any      Party where disclosure of such information is essential to such      contractor’s or consultant’s work for such  Party; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | to      a bona fide prospective transferee of a Party’s Participating Interest, or      portion thereof, to the extent appropriate in order to allow the      assessment of such Participating Interest (including an entity with whom a      Party and/or its Affiliates are conducting bona fide negotiations directed      toward a merger, consolidation or the sale of a majority of its or an      Affiliate's shares); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | to      a bank or other financial institution to the extent appropriate to a Party      arranging for funding; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (8) | to      the extent such information must be disclosed pursuant to any rules or      requirements of any government or stock exchange having jurisdiction over      such Party, or its Affiliates; provided that  such Party shall      comply with the requirements of Article 14.10  hereunder; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | to      its respective employees, subject to each Party taking sufficient      precautions to ensure such information is kept    confidential; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | to      the extent any information which, through no fault of a Party, becomes a      part of the public domain; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | (11) | to      the other parties to the Contract and the Government solely to the extent      as may be required  to satisfy the Conditions to      Assignment. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Disclosure      as pursuant to Articles 9.1(5), (6), (7) and (11) shall not be made unless      prior to such disclosure the disclosing Party has obtained a written      undertaking from the recipient party to keep the information strictly      confidential for at least as long as the period set out above and to use      the information for the sole purpose described in Articles 9.1(5), (6),      (7), and (11), whichever is applicable, with respect to the disclosing      Party. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Address:   | Carrera      9 A No. 99-02. Oficina 603 D. Edificio Citibank. Bogotá, D.C.,      Colombia |
|------------|------------------------------------------------------------------------------------------------|
| Attention: | General      Manager, Julian Garcia                                                            |
| Facsimile: | 6513500      ext 504                                                                           |
| Email:     | jgarcia@emerald.com.co                                                                         |
| Telephone: | (571)      6513500 ext503.                                                                     |

| Attention: | General      Manager, Andrés Gutierrez |
|------------|---------------------------------------------|
| Address:   | Calle      67 No. 7-35 Of. 409              |
| Facsimile: | (571)      6056937                          |
| Email:     | agutierrez@lacortezenergy.com               |
| Telephone  | (571)      4852020                          |

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| 11.1 | Governing      Law |
|------|--------------------|

| 11.2 | Dispute      Resolution |
|------|-------------------------|

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| 13.1 | If      Farmee fails to comply with any obligations under this Agreement, Farmee      shall be in default and such amounts due shall accrue interest, on a      monthly basis,  at the rate per annum equal to the one month      term, London Interbank Offered Rate (LIBOR) for U.S. dollars deposit, as      published in London by the Financial Times or if not published then by the      Wall Street Journal, plus 10% per year, applicable on the first business      day prior to due date of payment and calculated from the due date until      the date of payment.  With regard to the first payment in      Article 4.1.A.1, Farmee shall then have a term of 10 days to      rectify.  If Farmee does not rectify within such time, this      Agreement will be automatically terminated and Farmee will lose all rights      and all amounts up to US$500.000 paidbefore. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | With      regard to the second payment foreseen in Article 4.1.A.1, Farmee shall      then have a term of 10 days to rectify.  If Farmee does not      rectify during such time, the Farmee will lose a part of its expected      rights as per the formula foreseen in Article  13.4. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | With      regard to the payment foreseen in Article 4.1.A.3, Farmee shall then have      a term of 2 days to rectify. |
|------|-----------------------------------------------------------------------------------------------------------------------|

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|   | If      not rectified within such time, this Agreement will be automatically      terminated with the obligation to pay a penalty of $500.000      USD. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | For      the other cash payment obligations herein, if the Farmee does not rectify      the default within 5 days of the receipt of the Default Notice, the Farmor      may issue notice of a breach of the Agreement and the Farmee will lose a      part of its expected rights of 20% of working interest in a proportion      equivalent to the amount of the breach of the total actual cost of the      Farmin Works and will loose an additional 5% working interest. For the      avoidance of doubt, i.e. If the Farmee had paid 50% of the Farmin Works      cost against its commitments of 65%, the gained interest will be 10.38% of      working interest in the block.  ((50%/64%*20%)-5%). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5 | If      after such breach of contract, Farmee decides to continue investing and      sharing cost of the Farmin Works, Farmee shall pay 65% of the rest of the      Farmin Works cost without prejudice to the reduction of the working      interest mentioned above. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | If      the Farmor, despite its best efforts, does not drill the well of the      Farmin Works within 6 months of the Effective Date, or if the Contract is      terminated by the ANH within the same period, by causes imputable to      Farmor, except in the event of Force Majeur or Fortuitous event Farmor      shall be in default and any amounts received from the Farmee due shall      accrue interest, at the same rate foreseen in Article 13.1 on the sums      received by Farmee, calculated from the date the amounts were received by      Farmor, and until the date of payment.  Farmor shall then have a      term of 30 days to comply with the obligation.  Farmee shall      then have a term of 15 days within which it may send a Default Notice,      explaining the reasons of the alleged default.  If the Farmor      does not rectify the default within 15 days of the receipt of the Default      Notice, the Farmor will reimburse the sums paid by Farmee under the      Agreement and the Agreement will beterminated. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 14.1 | Language |
|------|----------|

|   | All      the communication between the Parties regarding this Agreement or its      execution shall be conducted in Spanish. As well, the Assignment and other      documentation required to execute before the authorities of the Republic      of Colombia shall be performed in Spanish. The only documents to be      conducted in English are this Agreement and the  JOA. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Relationship      of Parties |
|------|------------------------------|

| 14.3 | Further      Assurances |
|------|-------------------------|

| 14.4 | Waiver |
|------|--------|

| 14.5 | Joint      Preparation |
|------|------------------------|

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| 14.6 | Severance      of Invalid Provisions |
|------|--------------------------------------|

| 14.7 | Modifications |
|------|---------------|

|   | There      shall be no modification of this Agreement except by written consent of      all Parties. |
|--------|------------------------------------------------------------------------------------------------------|

| 14.8 | Priority      of Agreement |
|------|----------------------------|

| 14.9 | Interpretation |
|------|----------------|

|   | A. | Headings. The      topical headings used in this Agreement are for convenience only and shall      not be construed as having any substantive significance or as indicating      that all of the provisions of this Agreement relating to any topic are to      be found in any particular Article. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Singular and      Plural. Reference to the singular includes a reference to the      plural and vice versa. |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | C. | Gender.      Reference to any gender includes a reference to all other      genders. |
|--------|----|--------------------------------------------------------------------------------------|

|   | D. | Article. Unless      otherwise provided, reference to any Article or an Exhibit means an      Article or Exhibit of theAgreement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | E. | Include."include"      and "including"      shall mean to be inclusive without limiting the generality of the      description preceding such term and are used in an illustrative sense and      not a limiting sense. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 14.10 | Counterpart      Execution |
|-------|----------------------------|

| 14.11 | Public      Announcements |
|-------|---------------------------|

| 14.12. | Trading      in Securities of each Party |
|--------|------------------------------------------|

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| 14.13. | Solicitation      of Farmor’s Employees |
|--------|-----------------------------------------------|

| 14.14 | Entirety |
|-------|----------|

| 14.15 | Costs |
|-------|-------|

| 14.16 | Voidance |
|-------|----------|

| 14.17 | Assignment |
|-------|------------|

| 14.18 | Third      Party Rights |
|-------|-------------------------|

| 14.19 | Time |
|-------|------|

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|                                      |
|-------------------------------------------|
|                                      |
| Name:                                     |
| Legal      Representative                 |
| Emerald      Energy PLC Sucursal Colombia |
|                                      |
| For      the Farmee,                      |
|                                      |
|                                      |
| Name:                                     |
| Legal      Representative                 |
| La      Cortez Energy ColombiaInc.        |

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