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Exhibit 99.7
 Financial Statements
 Years ended December 31, 2004 and 2003




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Contents
 Report of Independent Auditors
    
    
    1Audited Financial StatementsBalance Sheets
    
    
    2Statements of Income
    
    
    3Statements of Shareholders Equity
    
    
    4Statements of Cash Flows
    
    
    5Notes to Financial Statements
    
    
    6




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1




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December 312004
    
    2003AssetsCurrent assets:Cash and cash equivalents
    
    $
    394,973
    
    
    $
    432,225Restricted cash and cash equivalents
    
    
    16,817,751
    
    
    
    12,949,707Accounts receivable:Trade  PDVSA Petroleo, S.A.
    
    
    28,453,193
    
    
    
    21,432,596Affiliates
    
    
    168,182
    
    
    
    4,909,706Other
    
    
    102,015
    
    
    
    184Prepaid expenses
    
    
    3,720,736
    
    
    
    3,301,193Total current assets
    
    $
    49,656,850
    
    
    $
    43,025,611Restricted cash and cash equivalents
    
    
    11,363,261
    
    
    
    11,962,817Property, plant and equipment, net
    
    
    150,233,124
    
    
    
    162,245,782Deferred costs, net
    
    
    4,389,425
    
    
    
    4,882,835Other assets
    
    
    67,271
    
    
    
    68,359Total assets
    
    $
    215,709,931
    
    
    $
    222,185,404Liabilities and Shareholders EquityCurrent liabilities:Accounts payable:Trade
    
    $
    619,050
    
    
    $
    279,837Affiliates
    
    
    418,241
    
    
    
    668,257Accrued liabilities
    
    
    7,362,154
    
    
    
    9,008,448Value-added tax payable
    
    
    2,991,210
    
    
    
    1,382,862Foreign taxes payable
    
    
    884,000
    
    
    
    1,314,134Interest payable
    
    
    1,251,786
    
    
    
    1,393,427Current portion of notes payable
    
    
    11,868,132
    
    
    
    11,868,132Total current liabilities
    
    $
    25,394,573
    
    
    $
    25,915,097Notes payable
    
    
    94,945,055
    
    
    
    106,813,187Deferred foreign income tax
    
    
    19,626,000
    
    
    
    16,421,000Shareholders equity:Common stock, class A, $1 par value, 25,000 shares
authorized, issued and outstanding
    
    
    25,000
    
    
    
    25,000Common stock, class B, $1 par value, 12,500 shares
authorized, issued and outstanding
    
    
    12,500
    
    
    
    12,500Additional paid-in capital
    
    
    60,516,037
    
    
    
    60,516,037Retained earnings
    
    
    15,190,766
    
    
    
    12,482,583Total shareholders equity
    
    
    75,744,303
    
    
    
    73,036,120Total liabilities and shareholders equity
    
    $
    215,709,931
    
    
    $
    222,185,404
 See accompanying notes.
 2




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Year ended December 312004
    
    2003Revenues
    
    $
    63,231,208
    
    
    $
    51,347,732Operating expenses
    
    
    14,150,862
    
    
    
    11,657,229Depreciation
    
    
    12,212,632
    
    
    
    12,316,591General and administrative expenses
    
    
    2,492,277
    
    
    
    2,333,847Total costs and expenses
    
    
    28,855,771
    
    
    
    26,307,667Operating income
    
    
    34,375,437
    
    
    
    25,040,065Other (income) expense:Interest expense
    
    
    11,118,652
    
    
    
    12,234,247Foreign currency transaction losses, net
    
    
    738,236
    
    
    
    111,470Other income, net
    
    
    (278,634
    )
    
    
    (155,443
    )11,578,254
    
    
    
    12,190,274Income before foreign income tax
    
    
    22,797,183
    
    
    
    12,849,791Provision for foreign income tax
    
    
    4,089,000
    
    
    
    4,451,000Net income
    
    $
    18,708,183
    
    
    $
    8,398,791
 See accompanying notes.
 3




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AdditionalCommon Stock
    
    Paid-In
    
    RetainedClass A
    
    Class B
    
    Capital
    
    Earnings
    
    TotalBalance, December 31, 2002
    
    $
    25,000
    
    
    $
    12,500
    
    
    $
    60,516,037
    
    
    $
    8,083,792
    
    
    $
    68,637,329Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,398,791
    
    
    
    8,398,791Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,000,000
    )
    
    
    (4,000,000
    )Balance, December 31, 2003
    
    
    25,000
    
    
    
    12,500
    
    
    
    60,516,037
    
    
    
    12,482,583
    
    
    
    73,036,120Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,708,183
    
    
    
    18,708,183Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16,000,000
    )
    
    
    (16,000,000
    )Balance, December 31, 2004
    
    $
    25,000
    
    
    $
    12,500
    
    
    $
    60,516,037
    
    
    $
    15,190,766
    
    
    $
    75,744,303
 See accompanying notes.
 4




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Year ended December 312004
    
    2003Operating ActivitiesNet income
    
    $
    18,708,183
    
    
    $
    8,398,791Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation
    
    
    12,212,632
    
    
    
    12,316,591Amortization of deferred costs
    
    
    493,410
    
    
    
    706,474Gain (loss) on sale of property, plant and equipment
    
    
    
    
    
    
    1,161Deferred foreign income taxes
    
    
    3,205,000
    
    
    
    3,131,000Changes in operating assets and liabilities:Accounts receivable  trade and other
    
    
    (7,122,428
    )
    
    
    (10,295,950
    )Value-added tax payable
    
    
    1,608,348
    
    
    
    (19,740
    )Foreign taxes payable
    
    
    (430,134
    )
    
    
    74,134Prepaid expenses
    
    
    (419,543
    )
    
    
    354,687Other assets
    
    
    1,088
    
    
    
    3,502Trade accounts payable
    
    
    339,213
    
    
    
    (416,338
    )Receivables/payables with affiliates
    
    
    4,491,508
    
    
    
    (4,494,447
    )Accrued liabilities
    
    
    (1,646,294
    )
    
    
    6,690,563Interest payable
    
    
    (141,641
    )
    
    
    (140,033
    )Net cash provided by operating activities
    
    
    31,299,342
    
    
    
    16,310,395Investing ActivitiesPurchases of property, plant and equipment
    
    
    (199,974
    )
    
    
    (181,306
    )Net cash used by investing activities
    
    
    (199,974
    )
    
    
    (181,306
    )Financing ActivitiesPayments of notes payable
    
    
    (11,868,132
    )
    
    
    (11,868,132
    )Dividends paid
    
    
    (16,000,000
    )
    
    
    (4,000,000
    )Changes in restricted cash
    
    
    (3,268,488
    )
    
    
    (3,244,334
    )Net cash used by financing activities
    
    
    (31,136,620
    )
    
    
    (19,112,466
    )Net decrease in cash and cash equivalents
    
    
    (37,252
    )
    
    
    (2,983,377
    )Cash and cash equivalents, beginning of year
    
    
    432,225
    
    
    
    3,415,602Cash and cash equivalents, end of year
    
    $
    394,973
    
    
    $
    432,225Supplemental Disclosures of Cash Flow InformationForeign income taxes paid
    
    $
    1,137,527
    
    
    $
    1,035,890Interest paid
    
    $
    10,766,882
    
    
    $
    11,888,218
 See accompanying notes.
 5




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1. Organization and Description of Business
   2. Summary of Significant Accounting Policies
 Use of Estimates
  6




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2. Summary of Significant Accounting Policies (continued)
 Cash and Cash Equivalents
  Restricted Cash and Cash Equivalents
  Accounts Receivable
  7




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2. Summary of Significant Accounting Policies (continued)
 Property, Plant and Equipment
  Accounting for Asset Retirement Obligations
 Accounting for Conditional Asset Retirement
Obligations
 Revenue Recognition Policy
  Impairment of Long-lived Assets
  8




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2. Summary of Significant Accounting Policies (continued)
  Provision for Severance Benefits
  Foreign Currency
  Income Taxes
  3. Risks and Uncertainties
  9




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3. Risks and Uncertainties (continued)
      10




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3. Risks and Uncertainties (continued)
  4. Related Party Transactions
    2004
    
    2003Accounts receivable:WilPro Energy Services (PIGAP II) Limited
    
    $
    168,182
    
    
    $
    4,164,004Williams International Services Company
    
    
    
    
    
    
    745,702$
    168,182
    
    
    $
    4,909,706Accounts payable:Williams International Services Company
    
    $
    298,187
    
    
    $
    Williams International Venezuela Limited
    
    
    120,054
    
    
    
    668,257$
    418,241
    
    
    $
    668,257
 11




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5. Property, Plant and Equipment
  2004
    
    2003Natural gas compression plant facilities
    
    $
    221,364,248
    
    
    $
    221,364,222Spare parts
    
    
    443,300
    
    
    
    415,352Vehicles
    
    
    539,416
    
    
    
    479,035Leasehold improvements
    
    
    510,411
    
    
    
    438,022Computer software and equipment
    
    
    505,586
    
    
    
    472,798Other
    
    
    660,230
    
    
    
    653,788224,023,191
    
    
    
    223,823,217Accumulated depreciation
    
    
    (73,790,067
    )
    
    
    (61,577,435
    )$
    150,233,124
    
    
    $
    162,245,782
 6. Notes Payable
  2004
    
    2003Overseas Private Investment Corporation:9.45% note payable, due in equal
quarterly principal payments of
$2,678,571 plus interest, maturing
November 15, 2013
    
    $
    96,428,572
    
    
    $
    107,142,8579.17% note payable, due in equal
quarterly principal payments of
$288,462 plus interest, maturing
November 15, 2013
    
    
    10,384,615
    
    
    
    11,538,462106,813,187
    
    
    
    118,681,319Current portion
    
    
    11,868,132
    
    
    
    11,868,132$
    94,945,055
    
    
    $
    106,813,187
 12




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6. Notes Payable (continued)
   7. Income Taxes
  13




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7. Income Taxes (continued)
  2004
    
    2003Deferred tax liabilities:Property, plant and equipment
    
    $
    17,965,000
    
    
    $
    14,760,000Debt financing costs
    
    
    1,661,000
    
    
    
    1,661,000Total deferred tax liabilities
    
    
    19,626,000
    
    
    
    16,421,000Deferred tax assets:Investment tax credit carryforward (ITC)
    
    
    
    
    
    
    1,062,000Business asset tax carryforward (BAT)
    
    
    
    
    
    
    2,709,000Net operating loss carryforward (NOL)
    
    
    
    
    
    
    1,673,000
    
    
    
    5,444,000Valuation allowance
    
    
    
    
    
    
    (5,444,000
    )Total deferred tax assets
    
    
    
    
    
    
    Net deferred tax liability
    
    $
    19,626,000
    
    
    $
    16,421,000
    14




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8. Financial Instruments
  Cash and cash equivalents and restricted cash and cash equivalents:
 Notes payable:
 2004
    
    2003Carrying
    
    
    
    
    
    CarryingAsset (liability)
    
    amount
    
    Fair value
    
    amount
    
    Fair valueCash and cash
equivalents
    
    $
    394,973
    
    
    $
    394,973
    
    
    $
    432,225
    
    
    $
    432,225Restricted cash and
cash equivalents
    
    
    28,181,012
    
    
    
    28,181,012
    
    
    
    24,912,524
    
    
    
    24,912,524Notes payable
    
    
    (106,813,187
    )
    
    
    (134,285,092
    )
    
    
    (118,681,319
    )
    
    
    (157,715,783
    )
 15