UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
DC  20549





FORM
10-K/A


Amendment
No. 1





Mark
One:


þ Annual Report Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934.


For the fiscal year ended December 31, 2007;
or




 ̈
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934


For the transition period from
__________ to __________.





Commission
File No. 1-32158













GEOGLOBAL
RESOURCES INC.


(Name
      of small business issuer in its charter)Delaware
            33-0464753(State
      or other jurisdiction of incorporation or organization)
            (IRS
      Employer Identification  No.)Suite
      310, 605 – 1 Street SW,  Calgary, Alberta,
      Canada                                        T2P
      3S9(Address
      of principal executive
      offices)                                                                                (Zip
      Code)(403)
      777-9250(Issuer’s
      telephone number, including area code)
              Securities
      registered under Section 12(b) of the Exchange Act:Title
      of each class
            Name
      of each exchange on which registeredNoneSecurities
      registered under Section 12(g) of the Exchange Act:Common
      Stock, par value $.001 per share(Title
      of Each Class)




Check
whether the registrant is a well-known seasoned issuer as defined in Rule 405 of
the Securities Act


 ̈ Yesþ  No




Check
whether the registrant is not required to file reports pursuant to Section 13 or
15(d) of the Act


 ̈ Yesþ No




Check
whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. ̈ Yesþ No




Check if
there is disclosure of delinquent filers pursuant to Item 405 of Regulation S-K
(Section 229.405 of this chapter) is not contained herein, and will not be
contained, to the best of registrant’s knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form
10-K.        ̈




Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of
the Exchange Act).


Large
      accelerated filer
             ̈
            Accelerated
      filer
            þNon-accelerated
      filer
             ̈
            Smaller
      reporting company
             ̈




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


 ̈Yesþ No




The
aggregate market value of the voting and non-voting common equity held by
non-affiliates computed by reference to the price at which the common equity was
last sold, or the average bid and asked price of such common equity, as of June
30, 2007, the last business day of the registrant’s most recently completed
second fiscal quarter, was $201,880,033.




The
number of shares outstanding of each of the registrant's classes of common
stock, as of May 30, 2008, was 72,205,756 common stock.





DOCUMENTS
INCORPORATED BY REFERENCE


None







This Form
10-K/A is being filed to amend the GeoGlobal Resources Inc. Annual Report on
Form 10-K for the year ended December 31, 2007 originally filed with the
Securities and Exchange Commission on June 10, 2008.  This Amendment
is filed in response to a letter of comment dated November 25, 2008 received
from the staff of the Commission.




This
Amendment to the Annual Report continues to speak as of the date of the Annual
Report, and except as expressly set forth herein, we have not updated the
disclosures contained in this Amendment to the Annual Report to reflect any
events that occurred at a date subsequent to the original filing of the Annual
Report.  Pursuant to Rule 12b-15 under the Securities Exchange Act of
1934, as amended, this Amendment sets forth the complete text only of the Items
of the Annual Report amended by this Amendment.  The filing of this
Amendment to the Annual Report is not a representation that any statements
contained in items of the Annual Report other than that information being
amended are true or complete as of any date subsequent to the date of the Annual
Report.  The revision does not affect the remaining information set
forth in the Annual Report as originally filed, the remaining portions of which
have not been amended.  With this Amendment, our principal executive
officer and principal financial officer have reissued their certifications
required by Sections 302 and 906 of the Sarbanes-Oxley Act.





The
following items listed on this Table of Contents have been amended as a result
of this Amendment:








Annual
Report on Form 10-K/A


December
31, 2007








Table
of Contents





PagePart
      IItem 1.
            Description
      of Business
            3Item 1A.
            Risk
      Factors
            26Part
      IIItem 7.
            Management's
      Discussion and Analysis of Financial Condition and Results of
      Operation
            38Item 8.
            Financial
      Statements and Supplementary Data
            50Part
      IIIItem 11.
            Executive
      Compensation
            51Item 13.
            Certain
      Relationships and Related Transactions, and Director
      Independence
            57Part
      IVItem 15.
            Exhibits,
      Financial Statement Schedules
            59


Page
2


PART
I





Item
1.               Description of
Business





Our
Oil and Gas Activities





GeoGlobal
Resources Inc. is engaged, through our subsidiaries and ventures in which we are
a participant, in the exploration for and development of oil and natural gas
reserves.  We initiated these activities in 2003.  At
present, these activities are being undertaken in locations where we and our
joint participants have been granted exploration rights pursuant to Production
Sharing Contracts (“PSCs”) we have entered into with the Government of India
(“GOI”).  As of May 12, 2008, we have entered into contracts with
respect to ten exploration blocks as follows:




·
            The
      first of our agreements, entered into in February 2003 under NELP-III,
      grants exploration rights in an area offshore eastern India in the Krishna
      Godavari Basin in the State of Andhra Pradesh.  We refer to this
      KG-OSN-2001/3 exploration block as the "KG Offshore Block" and we have a
      net 5% carried interest ("CI") under this
  agreement.




·
            We
      entered into two agreements which grant exploration rights in areas
      onshore in the Cambay Basin in the State of Gujarat in western
      India.  These agreements were entered into in February 2004
      under NELP-IV and we have a 10% participating interest ("PI") under each
      of these agreements.  We refer to the CB-ONN-2002/2 exploration
      block as the "Mehsana Block" and the CB-ONN-2002/3 exploration block as
      the "Sanand/Miroli Block".




·
            Pursuant
      to an agreement entered into in April 2005, we purchased from Gujarat
      State Petroleum Corporation Limited ("GSPC"), a 20% PI in the agreement
      granting exploration rights granted under NELP-III to an onshore
      exploration block in the Cambay Basin in the State of Gujarat in western
      India.  We refer to this CB-ON/2 exploration block as the
      "Tarapur Block".




·
            In
      September 2005, we entered into agreements with respect to two areas under
      NELP-V.  One area is located onshore in the Cambay Basin located
      in the State of Gujarat south-east of our three existing Cambay blocks, in
      which we hold a 10% PI.  We refer to this CB-ONN-2003/2
      exploration block as the "Ankleshwar Block".  The second area is
      located onshore in the Deccan Syneclise Basin located in the northern
      portion of the State of Maharashtra in west-central India for which we
      hold a 100% PI and are the operator.  We refer to this
      DS-ONN-2003/1 exploration block as the "DS 03
  Block".




·
            In
      March 2007, we signed agreements with respect to four additional locations
      awarded under NELP-VI.




§
            One
      location is onshore in the Krishna Godavari Basin in the State of Andhra
      Pradesh adjacent to our KG Offshore Block in eastern India in which we
      hold a 10% PI.  We currently refer to this KG-ONN-2004/1
      exploration block as the "KG Onshore
Block".




§
            The
      second and third locations include two agreements onshore in north-west
      India in the Rajasthan Basin in the State of Rajasthan and we hold a 25%
      PI in each of these agreements.  We currently refer to the
      RJ-ONN-2004/2 exploration block as the "RJ Block 20" and the RJ-ONN-2004/3
      exploration block as the "RJ Block
21".




§
            The
      fourth location is onshore in the Deccan Syneclise Basin in the State of
      Maharashtra adjacent to our DS 03 Block in west-central India in which we
      hold a 100% PI and are the operator.  We currently refer to this
      DS-ONN-2004/1 exploration block as the "DS 04
  Block".




To
date, we have not earned any revenue from these activities and we are considered
to be in the development stage under Financial Accounting Standards Board
Statement of Accounting Standards No. 7.  The recoverability of the
costs we have incurred to date is uncertain and dependent upon us achieving
commercial production and sale of hydrocarbons, our ability to obtain sufficient
financing to fulfill our obligations under the PSCs in India and upon future
profitable operations and upon finalizing agreements with GSPC.




All of
the exploration activities in which we are a participant should be considered
highly speculative.






Page
3




All
dollar amounts stated in this annual report are stated in United States
dollars.




Unless
the context should otherwise require, references to "we," "us" and "our" in this
annual report refer to GeoGlobal Resources Inc. and our wholly-owned
consolidated subsidiaries.  When we refer to GeoGlobal Barbados, we
are referring to GeoGlobal Resources (Barbados) Inc., our wholly-owned
subsidiary incorporated under the Companies Act of Barbados
that is the contracting party under our four PSCs covering four blocks in the
Cambay Basin, our two PSCs covering two blocks in the Deccan Syneclise Basin,
our two PSCs covering two blocks in the Rajasthan Basin and one PSC covering the
KG Onshore Block in the Krishna Godavari Basin. When we refer to GeoGlobal
India, we are referring to GeoGlobal Resources (India) Inc., our wholly-owned
subsidiary continued under the Companies Act of Barbados
that is the contracting party under our PSC covering one KG Offshore Block in
the Krishna Godavari Basin.




The map
of India below shows the relative locations of the exploration blocks that are
the subject of our ten PSCs with the GOI.






Map of
India


[this map
denotes our locations in general and does not indicate specific size of blocks
or basins]





Our oil
and gas activities are currently conducted in four geographic areas in geologic
basins offshore and onshore India where reserves of oil or natural gas are
believed by our management to exist.  These areas
include:





·
            The
      Krishna Godavari Basin offshore and onshore in the State of Andhra Pradesh
      in eastern India;


·
            The
      Cambay Basin onshore in the State of Gujarat in western
    India;


·
            The
      Deccan Syneclise Basin onshore in the northern portion of the State of
      Maharashtra in west central India;
and


·
            The
      Rajasthan Basin onshore in the State of Rajasthan in north western
      India.




Our PSCs
relating to the exploration blocks in India provide that by the end of each
phase of the exploration phases the contracting parties shall have met certain
exploration commitments and/or drilled a certain number of wells.






Page
4




Our
Krishna Godavari Basin Agreements





KG Offshore Block
PSC


We, along
with our joint venture partners GSPC and Jubilant Offshore Drilling Pvt. Ltd.
("Jubilant") are parties to a PSC dated February 4, 2003 which grants to the
three parties the right to conduct exploratory drilling activities in the
offshore waters of the Krishna Godavari Basin.  The PSC covers an area
of approximately 1,850 square kilometers ("sq kms") (457,145 acres) and was
awarded under NELP-III.  We have a net 5% CI in this exploration
block.  Under the original terms, this PSC extended for a term of up
to 6.5 years commencing on March 12, 2003 with three exploration
phases.  The agreement provides that the first two phases cover a
period of 2.5 years each, and the last phase covers a period of 1.5
years.  During the first exploration phase, the parties are to
acquire, process and interpret 1,250 sq km of 3-D seismic data, reprocess
2,298.4 line kilometers ("LKMs") of 2-D seismic data and conduct a bathymetric
survey, all of which has been completed.  In addition, we are to drill
a total of fourteen exploratory wells between 900 to 4,118
meters.  During the second and third phases, if the parties elect to
proceed with them, in addition to bathymetric surveys in connection with each
phase, the parties are to drill four exploratory wells between 1,100 to 2,850
meters and two exploratory wells to 1,550 and 1,950 meters,
respectively.  GSPC is the operator on the KG Offshore
Block.




The first
phase of the exploration period relating to the PSC for the KG Offshore Block
has expired without the required minimum of at least fourteen exploration wells
being drilled during the first phase.  GSPC, as operator and on behalf
of the contracting parties, sought from the GOI its consent to an extension of
the expiration date of the first phase of the exploration period and also to
proceed to the second phase of the exploration period without relinquishing any
of the contract area at the end of the first phase. In connection with the
process of seeking these consents, on February 24, 2006, the Management
Committee for the KG Offshore Block, which includes members representing the
GOI, recommended an extension of the first phase of twelve months to March 11,
2007.  On February 9, 2007, GSPC proposed to the Directorate General
of Hydrocarbons, a body under the Ministry of Petroleum & Natural Gas
(“DGH”) and to the GOI that the contracting parties proceed to the next
exploration phase (Phase II) upon completion of Phase I which was to expire on
March 11, 2007.  It was also requested, on behalf of the contracting
parties, to not relinquish any of the contract area at the end of Phase
I.  On March 12, 2007, DGH noted the option of GSPC, on behalf of the
contracting parties, to enter Phase II and advised that entry into Phase II,
effective March 12, 2007, would be subject to the following conditions: (1) Any
decision by the GOI on the substitution of the Work Program of Phase I will be
binding on the contracting parties; and (2) Any decision by the GOI on
relinquishment of the 25% of original contract Area (ie. 462 sq. kms.) under the
PSC would be binding on the contracting parties.  The extension of
Phase I to March 11, 2007 would be deducted from Phase II.  As such,
Phase II had a term of one year and was to expire March 11, 2008 and four
additional wells would be required to be drilled between 1,100 and 2,850
meters.




On July
4, 2007, the DGH advised GSPC and GeoGlobal that, because of the worldwide
supply and availability shortage of offshore drilling rigs, on June 27, 2007 the
GOI had issued two new policy guidelines.  Policy I covers the merging
of the duration of the exploration phases I and II of PSCs granted under NELP
III and NELP IV into a new phase to be called New Phase I and to merge the
minimum work program ("MWP") of Phase II and III to be called New Phase
I.  Policy II covers the substitution of additional meterage drilled
in deeper wells against the total meterage commitment as part of the MWP in the
PSCs.




In July,
2007, GSPC, on behalf of the contracting parties and with the approval of the
Operating Committee under the PSC, notified the DGH that it was exercising the
option granted under the Policy I of the new policies to: (1) request a merger
of the duration of the exploration Phases I and II of the KG Offshore Block work
program, now referred to as the New Phase I with the effect of establishing a
new work program phase expiring March 11, 2008; and (2) to merge the MWP of
Phase II and Phase III into a new phase to be called New Phase II.  In
addition, GSPC exercised the option under Policy II to substitute a total
meterage drilled commitment in the new work program phase that would be
irrespective of the number of wells drilled.  Under these new
policies, any contractor who exercises this option would be required to
relinquish 50% of the contract area at the end of the New Phase I.




Page
5


If the
merger is granted, the MWP for the New Phase I would be to drill 33,102
meters.  GSPC informed DGH that as at September 17, 2007 a total of
33,224 meters have been drilled, and as such, subject to the GOI approval of the
merger of Phases I and II, the MWP for the New Phase I has been
completed.  At the end of the New Phase I on March 11, 2008, the
contracting parties were required to relinquish 50% of the Contract Area of the
KG Offshore Block that is not a Discovery or Development Area as defined in the
PSC.  The New Phase II would have a term of 1.5 years expiring
September 11, 2009 and the drilling of a further 12,250 meters would be required
in order to meet the MWP.  Approval of the merger of the Phase I and
II into a New Phase I and the merger of the MWP of existing Phase II and Phase
III as New Phase II from the GOI along with the relinquishment of 50% of the
Contract Area is currently outstanding.




Unless
approval is granted by the GOI to merge Phases I and II of the work program
under the new policy guidelines, we may be liable for the consequences of
non-fulfillment of the minimum work commitment in a given time frame under the
PSC.  The PSC has provisions for termination of the PSC on account of
various reasons specified therein including material breach of the
contract.  Termination rights can be exercised after giving ninety
days written notice.  This failure to timely complete the minimum work
commitment, though we have been advised by GSPC there is no precedence for
taking such action,may be deemed by the
GOI to be a failure to comply with the provisions of the contract in a material
particular.




The
termination of the PSCby the GOI would result
in our loss of our interest in the KG Offshore Block other than areas determined
to encompass "commercial discoveries".  The PSC sets forth procedures
whereby the operator can obtain the review of the Management Committee under the
PSC as to whether a discovery on the exploration block should be declared a
commercial discovery under the PSC.  Those procedures have not been
completed at present with respect to the discovery on the KG Offshore Block and,
accordingly, as of May 30, 2008, no areas on the KG Offshore Block have been
determined formally to encompass "commercial discoveries"as that term is defined
under the PSC.




In the
event the PSC for the KG Offshore Block is terminated by the GOI, or in the
event the work program is not fulfilled by the end of the relevant exploration
phase, the PSC provides that each party to the PSC is to pay to the GOI its
participating interest share of an amount which is equal to the amount that
would be required to complete the MWP for that phase.  We are of the
view that GSPC, under the terms of our Carried Interest Agreement ("CIA"), would
be liable for our participating interest share of the amount required to
complete the MWP for the phase.




While
GSPC has advised the DGH that under the terms of the new policy guidelines
issued by the GOI in June 2007 and on the basis of the total meterage depth of
wells drilled on the KG Offshore Block, the contracting parties have fulfilled
the MWP for the KG Offshore Block; if this advice of GSPC to DGH is not accepted
and the GOI terminates the PSC and if in addition GSPC successfully asserts that
it has no further liability to us under the CIA (see “Carried Interest Agreement
Dispute” below), we believe our portion of the liability to the GOI under the
terms of the PSC would be approximately $30 million, of which, 50% is for the
account of Roy Group (Mauritius) Inc.





Carried Interest
Agreement


On August
27, 2002, we entered into a CIA with GSPC, which grants us a 10% CI in the KG
Offshore Block.  The CIA provides that GSPC is responsible for our
entire share of any and all costs incurred during the Exploration Phase prior to
the date of initial commercial production.




Under
      the terms of the CIA, all of our and Roy Group (Mauritius) Inc.'s ("RGM"),
      a related party (see "Participating Interest Agreement"), proportionate
      share of capital costs for exploration and development activities will be
      recovered by GSPC without interest over the projected production life or
      ten years, whichever is less, from oil and natural gas produced on the
      Exploration Block.  We are not entitled to any share of
      production until GSPC has recovered our share of the costs and expenses
      that were paid by GSPC on behalf of us and
RGM.






Page
6




Our net
5% CI in the KG Offshore Block reflects our agreement to prospectively assign
half of the original 10% interest under the PSC to RGM pursuant to a
Participating Interest Agreement ("PIA") we entered into on March 27, 2003,
which assignment is subject to GOI consent.  Absent such consent, the
assignment will not occur and we are to provide RGM with an economic benefit
equivalent to the interest to be assigned.  At May 30, 2008, we have
not obtained the consent of the GOI to this assignment.




Carried Interest Agreement
Dispute


We have
been advised by GSPC, that GSPC is seeking payment of the amount by which the
exploration costs attributable to us under the PSC relating to the KG Offshore
Block exceeds the amount that GSPC deems it is obligated to pay on our behalf
(including the net 5% PI of RGM) under the terms of the CIA.  GSPC
asserts that we are required to pay 10% of the exploration expenses over and
above gross costs of $59.23 million (10% being $5.92 million).  Based
upon the most recent letter dated February 4, 2008 received from GSPC, GSPC
asserts they have incurred costs of Rs. 246.20 crore (or approximately $57.3
million) on our behalf as of December 31, 2007 of which, 50% is for the account
of RGM.




We have
advised GSPC that, under the terms of the CIA, the PSC, and the Joint Operating
Agreement dated August 7, 2003 (the "JOA"), GSPC has no right to seek the
payment and that we believe the payment GSPC is seeking is in breach of the
CIA.  We further reminded GSPC, that under the terms of the CIA, we
shall be carried by GSPC for 100% of our entire share of any costs during the
exploration phase prior to the start of commercial production.  We
obtained the opinion of external Indian legal counsel which supports our
management's position with respect to the dispute.  We intend to
vigorously protect our contractual rights in accordance with the dispute
resolution process under the CIA, the PSC and the JOA as may be
appropriate.




We have
been engaged in discussions with GSPC seeking a resolution to this dispute,
however, no agreement has been reached as of May 30, 2008.




We have
been advised that the annual budget for the KG Offshore Block has been prepared
for the twelve month period April 1, 2008 to March 31,
2009.  Estimated gross costs for that budget period are approximately
$599 million.  Accordingly, GSPC is expected to incur costs of
approximately $59.9 million (10% PI) on behalf of us (including the 5% of RGM)
under the terms of the CIA.





Participating Interest
Agreement


On March
27, 2003, prior to our acquisition of the outstanding capital stock of GeoGlobal
Resources (India) Inc., GeoGlobal Resources (India) Inc. entered into a
Participating Interest Agreement (PIA) with Roy Group (Mauritius) Inc. (RGM),
whereby it assigned and, as our wholly-owned subsidiary subsequent to its
acquisition by us, currently holds in trust for RGM subject to GOI consent, 50%
of the benefits and obligations of the PSC covering the KG Offshore Block and
the CIA leaving us with a net 5% PI in the KG Offshore Block and a net 5% CI in
the CIA.  Under the terms of the PIA, until the GOI consent is
obtained, we, through our sole ownership of the outstanding stock of GeoGlobal
Resources (India) Inc.,  retain the exclusive right to deal with the
other parties to the KG Offshore Block and the CIA and are entitled to make all
decisions regarding the interest assigned to RGM, RGM has agreed to be bound by
and be responsible for the actions taken by, obligations undertaken and costs
incurred by us in regard to RGM's interest and to be liable to us for its share
of all costs, interests, liabilities and obligations arising out of or relating
to the RGM interest.  RGM has agreed to indemnify us against any and
all costs, expenses, losses, damages or liabilities incurred by reason of RGM's
failure to pay the same.  Subject to obtaining the government consent
to the assignment, RGM is entitled to all income, receipts, credits,
reimbursements, monies receivable, rebates and other benefits in respect of its
5% interest which relate to the KG Offshore Block. We have a right of
set-off against sums owing to us by RGM.  In the event that the Indian
government consent is delayed or denied, resulting in either RGM or us being
denied an economic benefit either would have realized under the PIA, the parties
agreed to amend the PIA or take other reasonable steps to assure that an
equitable result is achieved consistent with the parties' intentions contained
in the PIA.  As a consequence of this transaction we report our
holdings under the KG Offshore Block and CIA as a net 5% PI.  Inasmuch
as the assignment of the 5% interest to RGM occurred prior to our acquisition of
GeoGlobal Resources (India) Inc. and we were not a party to that assignment, we
received no consideration from the assignment.





Page
7


KG Onshore Block
PSC


We, along
with our joint venture partner Oil India Limited ("OIL") are parties to a PSC
dated March 2, 2007.  The PSC covers an area of approximately 548 sq
km (135,414 acres) onshore in the Krishna Godavari Basin, is located directly
adjacent to and south-west of our KG Offshore Block and was awarded under
NELP-VI.  The two exploration phases for this PSC extend for a term of
up to 7.0 years commencing February 18, 2008.  The Phase I work
commitment which covers a period of 4.0 years, consists of reprocessing 564 line
kilometers ("LKM") of 2-D seismic, conducting a gravity and magnetic and
geochemical survey, as well as a seismic acquisition program consisting of 548
sq km of 3-D seismic.  This Phase I commitment further consists of the
drilling of 12 exploration wells to various depths between 2,000 and 5,000
meters.  The Phase II work commitment which covers a period of 3.0
years is to drill one exploration well to a depth of 4,600 meters.




We hold a
10% PI in this exploration block, while OIL, as operator, holds the remaining
90% PI.  On September 14, 2006, prior to submission of our NELP-VI
bid, we entered into an agreement with OIL to increase our PI up to 25% in this
exploration block, subject to the availability of sufficient net worth and GOI
consent.  GOI consent is currently outstanding.





Our
Krishna Godavari Basin Exploration Activities





KG Offshore
Activities


With
respect to the KG Offshore Block, prior to January 1, 2007, GSPC as operator,
completed the acquisition, processing and interpretation of a 1,298 sq. km.
marine 3D seismic program, completed the acquisition, processing and
interpretation of an additional 300 sq. km. marine 3-D seismic program and
drilled five wells, (KG#1, KG#11, KG#8, KG#17 & KG#15).  Two of
these wells (KG#1 & KG#11) did not proceed into a testing program and both
were subsequently abandoned.




As of May
12, 2008, GSPC as operator is in the process of acquiring land and is seeking a
contractor to build an onshore gas facility which will be used in connection
with bringing natural gas to shore from the KG Offshore Block development
activities.  GSPC anticipates that the acquisition of the land and the
securing of a contractor will occur in the year 2008.




As at May
12, 2008, eleven wells have been or are being drilled on this block and activity
during the year ended December 31, 2007 and through May 12, 2008 is as
follows:




·
            Saipem
      Perro Negro 3 Rig


o
            GSPC
      currently has contracted with Saipem SPA, part of ENI, Italy, for the
      Saipem Perro Negro 3 jack-up drilling rig ("PN#3") to drill 10 wells, with
      an option of extending the contract for 2 additional wells.  As
      of March 13, 2008, the PN#3 has drilled six exploratory wells, one of
      which has been classified for purposes of the PSC as an appraisal
      well.




o
            On
      February 6, 2007, the PN#3 Rig commenced drilling the KG#28 well from the
      KG#8 platform.  The KG#28 well is the sixth well drilled by the
      PN#3 and has been classified by the Management Committee as an "appraisal
      well" for the purposes of the PSC.  The well was drilled
      directionally deviating approximately 1,640 meters east of the KG#8
      platform to a total depth of 5,258 meters MD (4,879 meters total vertical
      depth or "TVD") and was then cased to total depth with a 7 inch
      liner.




o
            Testing
      of the KG#28 appraisal well entailed the completion of 3 drill stem tests
      ("DST’s").




o
            DST-1
      involved 49.5 meters of perforations across the interval depth from
      5,037.5 to 5,112 meters measured depth ("MD").  During clean-up
      flow, the following stabilized gas/condensate rates were measured through
      various choke sizes at the following flowing wellhead pressures
      ("FWHP"):




§
            16/64
      inch choke –  6.7 MMSCFD Gas plus 12 BBLS/D Condensate at 4,550
      psi FWHP


§
            20/64
      inch choke –  8.5 MMSCFD Gas plus 16 BBLS/D Condensate at 4,000
      psi FWHP


§
            32/64
      inch choke – 10.6 MMSCFD Gas plus 22 BBLS/D Condensate at 1,950 psi
      FWHP






Page
8




o
            DST-2
      involved 54.0 meters of perforations across the interval depth from
      4,951.0 to 5,005.0 meters MD and flowed through a 20/64 inch choke at a
      stabilized gas rate of 5.5 MMSCFD at 2,750 psi
  FWHP.




o
            DST-3
      involved 74.0 net meters of perforations over the interval depth of 4,556
      to 4,759 meters MD and flowed through a 20/64 inch choke at a stabilized
      gas rate of 6.5 MMSCFD at 3,250 psi
FWHP.




o
            On
      March 13, 2008, the PN#3 rig moved from the KG#8 platform location to the
      shipyard in Vizag (also known as "Vishakhapatnam"), on the east coast of
      the State of Andhra Pradesh for maintenance and
      inspection.  Upon completion of the maintenance, it is intended
      that the PN#3 will be mobilized to a new location to be determined on the
      KG Offshore Block.




·
            Atwood
      Beacon Rig


o
            GSPC
      has entered into a 25 month contract for the Atwood Beacon jack-up
      drilling rig ("Atwood") to drill additional exploration wells on the KG
      Offshore Block.




o
            On
      January 3, 2007, the Atwood rig commenced drilling its first well, the
      KG#16 exploratory well, which was drilled to a total depth ("TD") of 5,372
      meters MD.  The KG#16 well is situated in shallow water of
      approximately 109 meters and is approximately 5 kilometers east of the
      KG#8 platform.




o
            The testing program was completed
      on August 1, 2007.  DST-1 and DST-1A involved 31 meters and 21
      meters of perforations across the interval depth from 4,951 – 5,046 and
      4,800 – 4,833.5 meters MD respectively.  Both zones were tight
      and did not flow hydrocarbons to the surface.  DST-2 was chosen
      from encouraging independent log analyses over the interval depth of 4,642
      to 4,754 meters MD but was abandoned without perforating due to
      operational problems.  DST-3 involved 75 meters of perforations
      over the interval depth of 4,483 to 4,590 meters MD at a stabilized flow
      rate of 2.21 MMSCFD of gas and 15 BBLS/D of condensate at a FWHP of 880
      psi through a 24/64 inch choke.  DST-4 involved 133 meters of
      perforations over the interval depth of 4,302 to 4,435 meters measured
      depth at a stabilized flow rate of 2.52 MMSCFD of gas and 106 BBLS/D of
      condensate at a FWHP of 1,880 psi through a 16/64 choke.




o
            On
      September 24, 2007, GSPC informed the GOI that the discovery of
      hydrocarbons in the KG#16 well is of potential commercial interest and
      merits further appraisal, however, for technical reasons, the KG#16 well
      has been presently abandoned with the possibility of attempting to
      re-enter the well at a later date.




o
            On
      September 20, 2007, the Atwood Rig spud the KG#31 well.  The
      surface location of KG#31 well is situated approximately 3 kilometers
      north of the KG#8 platform in shallow waters of approximately 62.5 meters
      in depth.  The KG#31 well was drilled directionally 600 meters
      north-west of the present surface location to a depth of 3,892 meters TVD
      (4,058 meters MD), to test the Upper Cretaceous.  Based on log
      results, GSPC elected to go up-hole to the 13-3/8" casing shoe at 2,272.5
      meters MD and set a bridge plug and whip stock the
  well.




GSPC
      commenced drilling the KG#31 Side Track-1 ("KG#31 ST-1") well in a more
      horizontal direction below the 13-3/8" casing shoe directionally 900
      meters west of the present surface location, to an approximate TVD of
      4,800 meters to target the Lower Cretaceous.  On November 22,
      2007, while drilling the KG#31 ST-1 well at 3,855 meters MD (3,671 meters
      TVD), the well took a kick, possibly indicating a presence of hydrocarbons
      in the Upper Cretaceous in this area.  Due to drilling
      complications, the well was ultimately plugged back with cement up to
      3,750 meters MD. Thereafter, the KG#31 ST-1 well was logged and cased with
      9-5/8" casing down to 3,750 meters MD.  After detailed review of
      the available data, it was decided by GSPC to continue drilling in an
      attempt to test the Upper Cretaceous zone not previously tested in the
      KG#31 ST-1 well.






Page
9




GSPC
      elected to side-track the well, and commenced drilling the KG#31 Side
      Track-2 (KG#31 ST-2) well on December 29, 2007, with an 8-1/2" drill bit
      below the 9-5/8" casing shoe from approximately 3,750 meters MD to 3,990
      meters MD.




Based
upon independent logs and dual packer MDTs ("Modular Formation Dynamics Tester")
on wire-line, the operator decided to do a barefoot test of the Upper Cretaceous
interval from 3,899 to 3,946 meters MD with an approximate initial reservoir
pressure of 9,000 psi and reservoir temperature of 320 degrees
Fahrenheit.  On February 2, 2008, the KG#31 ST-2 well recorded a flow
of approximately 0.3 MMSCFD of gas though a 12/64" choke at a flowing well head
pressure of 480 psi.  While tests confirmed the presence of
hydrocarbons in the Upper Cretaceous in this part of the block, the results from
this test are inconclusive to determine reservoir rock
properties.  GSPC decided to drill ahead to 5,400 meters MD (4,800
meters TVD).  After several failed attempts to recover the packer, the
well was plugged back below the 9 5/8" casing shoe and GSPC again elected to
side track the well.




On
February 17, 2008, the KG#31 Side Track-3 ("KG#31 ST-3") well commenced drilling
with an 8-1/2" drill bit below the 9-5/8" casing shoe from approximately 3,746
meters MD targeting the Lower Cretaceous conformity.  As at May 12,
2008, the KG#31 ST-3 well has been drilled to approximately 5,875 meters MD
(approximately 5,528 meters TVD).  Logs have been run to total
depth.  Recent delays occurred after completion of the logging program
while running a wiper trip to condition the hole to be cased, the drill string
became stuck.  The drill string was cut and a cement plug has been set
at approximately 5,533 meters MD. GSPC intends to case the well with a 7" liner
and side track from the top of the cement plug by drilling a 5 7/8" hole and cut
cores based on wellsite geological observations during drilling.




·
            Deep
      Driller 1 Rig


o
            GSPC
      contracted the Deep Driller 1 drilling rig ("DD#1") which is owned by
      Sinvest ASA out of Norway and is a jack-up rig capable of operating in
      water depths of approximately 120 meters.  The term of the
      contract is for two years from the date of spud of the first
      well.




o
            On
      May 8, 2007, GSPC commenced drilling the KG#30 exploratory well with the
      DD#1 rig which was drilled vertically to a TVD of 3,951
      meters.  The KG#30 well was situated approximately 15.5
      kilometers northeast of the KG#11 well and was the first exploratory well
      to test the deepest part of the northern graben in the KG Offshore
      Block.  On August 13, 2007, GSPC abandoned the KG#30 well as the
      testing results did not reveal sufficient hydrocarbons at this
      location.




o
            The
      DD#1 Rig was thereafter moved to a location approximately 7.5 kilometers
      northeast of the KG#8 platform in shallow waters of approximately 91
      meters in depth, where, on August 27, 2007, GSPC commenced the drilling of
      the KG#22 well.  The KG#22 well was originally intended to be
      drilled directionally to approximately 5,974 meters
      MD  (approximately 5,078 meters TVD) deviating approximately
      2,900 meters southeast of the KG#22 well surface
  location.




o
            The
      KG#22 well was drilled to approximately 2,800 meters MD when the drill
      string became stuck.  GSPC elected to cut the drilling string
      and side-track the well.




The
      KG#22 ST-1 commenced drilling directionally from 1,275 meters MD. The
      KG#22 ST-1 was drilled and cased with 9-5/8" casing to approximately 4,396
      meters MD.  On November 27, 2007, drilling continued with an
      8-1/2" drill bit. On December 6, 2007, the well saw a gas kick at 4,776 m
      MD (4121.65 m TVD).  This was successfully controlled and
      drilling resumed reaching 5,576 meters MD by January 15,
      2008.  Upon freeing the drill string after encountering a
      mechanical problem, the hole was plugged back with cement to approximately
      4,415 meters MD.  On January 29, 2008, the KG#22 ST-2 commenced
      drilling.







Page
10


As of May
12, 2008 the KG#22 ST-2 well has reached TD of 6,007 meters MD (5,068 meters
TVD).  The well has been cased with a 7" liner to approximately 5,616
meters MD.  Logs have been run to TD.  GSPC intends to case
the well with a 5" liner to TD.  A testing program is currently being
designed based upon independent log analysis, samples, MDT's and hydrocarbon
shows while drilling.





·
            Essar
      Wildcat Rig


o
            The
      Essar Wildcat is a self propelled semi-submersible drilling rig suitable
      for deployment in water depths of 400 meters and has a drilling depth
      capacity of 7,600 meters.  The Essar Wildcat has recently
      undergone upgrading and maintenance work which included being equipped
      with a top drive, automatic pipe handling system and a rough weather
      15,000 psi BOP (Blow-Out Preventer) launch
  system.




GSPC
      spud the KG#19 well on May 2, 2008, which is the first well being drilled
      using the Essar Wildcat rig.  The KG#19 well has been drilled to
      approximately 897 meters MD.  As at May 12, 2008, GSPC is
      running 20" casing to approximately 890 meters MD, after which, drilling
      will continue.




The
      KG#19 well is situated in deeper waters of approximately 150 meters in
      depth and approximately 11 kilometers northeast from the KG#8
      platform.  The well is intended to be a near-vertical
      exploration well drilled to a TD of approximately 5,250 meters in order to
      target reservoirs below the Lower Cretaceous
  unconformity.





KG Onshore
Activities


On March
24, 2007, OIL, as operator for the KG Onshore Block applied for the Production
Exploration License (“PEL”) from the State of Andhra Pradesh.  On
September 14, 2007, OIL notified DGH that it has amended its PEL application
into two parts.  One covers the non-forest area of approximately 337
sq. km. while the second covers the remainder of the exploration block which is
in an environmentally sensitive forested area.  OIL had done this in
an attempt to expedite the granting of the PEL over the non-forest area in order
to commence the planned 2-D seismic program.




On
February 18, 2008, the Government of Andhra Pradesh issued a PEL over 511 sq km
(334.66 over non-forest area and 176.34 over forest area).  OIL has
requested the Government of Pondicherry to grant the PEL over the remaining 37
sq kms lying in the district of Yanam.  With the partial PEL issued,
OIL intends to commence a 50 kilometer experimental 2-D seismic acquisition
program followed by the subsequent drilling of the first of 12 exploration
wells.  The surveys, seismic acquisition and interpretation are
expected to commence in the second quarter of 2008 and will take approximately
five to seven months.  Therefore, the KG Onshore drilling program
could potentially start by December 31, 2008.




Financial
Commitment.  We will be required to fund our proportionate
share of the costs incurred in the KG Onshore activities estimated to be
approximately $8.5 million over the four years of the first phase of the work
commitment with respect to a 10% PI in the block and approximately $21.4 million
with respect to a 25% PI in the block.  The budget estimate for the
period April 1, 2008 to March 31, 2009 has been prepared and our proportionate
share of that budget at 10% is $4.2 million and at 25% is $10.5
million.  This budget entails performing the required surveys and
studies for Phase I, as well as a 50 LKM 2-D seismic acquisition program and the
interpretation and processing thereof and the drilling of 3 exploratory
wells.




Further,
on March 14, 2008, we supplied the GOI a bank guarantee secured by a letter of
credit in the same amount for $1,475,000 with respect to a 10%
PI.  Upon receipt of approval from the GOI with respect to our
increase in our PI to 25%, this bank guarantee and corresponding letter of
credit will be increased to $3,690,000.





Page
11


Our
Cambay Basin Agreements





Mehsana Block
PSC


On
February 6, 2004, we, along with our joint venture partners GSPC and Jubilant,
signed a PSC with respect to this onshore Mehsana Block.  This PSC
covers an area of approximately 125 sq kms (30,888 acres) and was awarded under
NELP-IV.  We hold a 10% PI, GSPC holds a 60% PI, and Jubilant, who is
the operator, holds the remaining 30% PI.  The PSC provides that the
exploration activities are to be conducted in three phases commencing May 21,
2004 with the first phase covering a period of 2.5 years, the second phase
covering a period of 2.0 years and the last phase covering a period of 1.5
years, for a maximum total duration of 6.0 years for all three
phases.




During
the first exploration phase on this exploration block, the parties are to
acquire 75 sq kms of 3-D seismic data, reprocess 650 LKM of 2-D seismic data and
conduct a geochemical survey, all of which has been completed.  In
addition, we are to drill seven exploratory wells between 1,000 to 2,200
meters.  During the second and third phases, the parties are to drill
two exploratory wells to 2,000 meters in each phase.




The first
exploration phase relating to the PSC for the Mehsana Block expired without the
required minimum of seven wells having been drilled.  In October, 2006
the Management Committee under the PSC for the Mehsana Block approved a proposal
to seek from the GOI an extension of the first exploration phase for a six month
period from November 21, 2006 to May 20, 2007.  On April 6, 2007 the
members of the Operating Committee under the Mehsana Block resolved to submit an
application to the GOI for extension for an additional six months to November
20, 2007 to complete the MWP under Phase I, which approval was granted on August
6, 2007.  Further, on October 8, 2007, Jubilant, upon recommendation
by a resolution of the Operating Committee, submitted an application under a
provision of the New Extension Policy issued by the GOI on June 27, 2007
requesting the grant of an additional extension of 6 months from November 21,
2007 to May 20, 2008 to complete the MWP of drilling seven exploration
wells.  Under this new policy, where a MWP has not been completed but
a hydrocarbon discovery is made within the exploration phase, an additional
extension up to 12 months may be given subject to the consortium partners
providing a 50% bank guarantee of the unfinished MWP and the additional work
program reasonably acceptable to DGH.  This Policy also allows that
the parties do not have to relinquish any area at the end of this phase and the
period of extension will be set off against the term of the Second
Phase.     On February 5, 2008, final consent to the
extension to May 20, 2008 was approved by DGH/GOI subject to the parties
providing a further bank guarantee of 50% of the unfinished MWP and additional
work program and were asked to give an undertaking to appraise, decide on
commerciality and development of the discovery within the time frame provided in
the PSC which has been completed.  This period of extension reduces
the term of the Second Phase which requires as a MWP to drill two additional
exploratory wells before November 20, 2008.





Sanand/Miroli Block
PSC


On
February 6, 2004, we, along with our joint venture partners GSPC, Jubilant and
Prize Petroleum Company Limited ("Prize") signed a PSC with respect to this
onshore Sanand/Miroli Block.  This PSC covers an area of approximately
285 sq kms (70,425 acres) and was awarded under NELP-IV.  We hold a
10% PI, GSPC, who is the operator, holds a 55% PI, Jubilant holds a 20% PI with
the remaining 15% held by Prize.  The PSC provides that the
exploration activities are to be conducted in three phases commencing July 29,
2004 with the first phase covering a period of 2.5 years, the second phase
covering a period of 2.0 years and the last phase covering a period of 1.5
years, for a maximum total duration of 6.0 years for all three
phases.




During
the first exploration phase on the Sanand/Miroli Block, the parties were to
acquire 200 sq kms of 3-D seismic data, reprocess 1,000 LKMs of 2-D seismic
data, and conduct a geochemical survey all of which has been
completed.  In addition, we are to drill twelve exploratory wells
between 1,500 to 3,000 meters.  During the second and third phases,
the parties are to drill three and two exploratory wells to 2,000 meters,
respectively.




Page
12


The first
exploration phase relating to the PSC for the Sanand/Miroli Block expired
without the required minimum of twelve wells having been drilled.  On
December 29, 2006 the Management Committee approved a proposal to seek from the
GOI an extension of the first exploration phase for a six month period from
January 28, 2007 to July 28, 2007.  Further on July 23, 2007, GSPC as
operator, on behalf of the consortium partners has requested from the GOI a
further one year extension under a provision of the New Extension Policy issued
by the GOI.  Under this new policy, where a MWP has not been completed
but a hydrocarbon discovery is made within the exploration phase, an additional
extension up to 12 months may be given subject to the consortium partners
providing a 50% bank guarantee of the unfinished MWP and the additional work
program reasonably acceptable to DGH.  This Policy also allows that
the parties do not have to relinquish any area at the end of this
phase.




On
November 8, 2007 the GOI approved the extension of the first phase of
exploration relating to the PSC for the Sanand/Miroli Block for a period of one
year.  The parties are to provide a further bank guarantee in the
amount of $91,860 and the parties were asked to give an undertaking to appraise,
decide on commerciality and development of the discovery within the time frame
provided in the PSC.  As such, GSPC has until July 28, 2008 to
complete the drilling of 12 exploratory wells under the Phase I
MWP.  Inasmuch as the period of extension of Phase I will be set off
against the term of Phase II, the expiration date of Phase II will remain
January 28, 2009.





Tarapur Block
Agreement


Pursuant
to an agreement entered into with GSPC in April, 2005 and consented to by the
GOI on August 24, 2006, we purchased a 20% PI in the onshore Tarapur Block in
the Cambay Basin which was awarded to GSPC in 2000 under a Pre NELP
round.  GSPC as operator owns the remaining 80% PI.  Oil and
Natural Gas Corporation Limited of India has the right to participate into the
development of any commercial discovery on the Tarapur Block by acquiring a 30%
PI as provided under the PSC.  The exercise of this right would result
in the reduction of our PI to 14%.




The
Tarapur PSC originally covered an area of approximately 1,618 sq kms. Phase I
under the PSC expired on May 22, 2002.  GSPC entered into the second
phase after relinquishing, as required under the terms of the PSC, 25%
(approximately 405 sq kms) of the exploration block back to the
GOI.  Phase II under the PSC for this exploration block expired on
November 22, 2005 and GSPC entered into the third and final phase without
relinquishing any area.   Phase III had a term of 2 years ending
November 22, 2007 and the work commitment was to drill one well to a depth of
3,000 meters or to the Deccan trap, which commitment was fulfilled.




GSPC
as operator, on behalf of the consortium partners submitted an application for
an extension beyond Phase III of the PSC for an additional twelve months to
November 22, 2008 under a provision of the GOI New Extension
Policy.  Under this new policy, where the MWP has been completed and
discoveries/commercial discoveries have been made and the contractor wants to
carry out an additional work program beyond Phase III, an additional extension
may be given subject to the consortium partners providing a 35% bank guarantee
and 30% cash payment as agreed non-refundable pre-estimated damages for the
additional work program.  The contractor may only retain a minimum
area in the Block which is to be determined by GOI/DGH.  The
consortium has requested to drill five wells under the additional work program
and to retain the area in the block covered by the 3-D seismic, which
encompasses approximately 545 sq. kms as covered by the exploration
activities.  The consortium has agreed that it would provide a 35%
bank guarantee of US$3.1 million and a 30% cash payment of US$2.7 million for
this additional work program (GGR share is US$773,000 and US$662,000
respectively).  The Company has accrued an amount of US$662,000 as an
estimate for its share of such agreed pre-estimated damages which cash payment
is non-refundable and estimated to be 30% of the total cost required to complete
the additional work program.  GOI consent to this application has not
yet been approved or received.





Page
13


Ankleshwar Block
PSC


On
September 23, 2005, we, along with our joint venture participants GSPC, Jubilant
and GAIL (India) Ltd. ("GAIL") signed a PSC with respect to this onshore
Ankleshwar Block.  This PSC covers an area of approximately 448 sq km
(110,703 acres) and was awarded under NELP-V.  We hold a 10% PI, GSPC
is the operator and holds a 50% PI, Jubilant holds 20% PI and the remaining 20%
PI is held by GAIL.  The PSC provides that the exploration activities
are to be conducted in three phases commencing April 1, 2006 with the first
phase covering a period of 3.0 years, the second phase covering a period of 3.0
years and the last phase covering a period of 1.0 years, for a maximum total
duration of 7.0 years for all three phases.




The work
commitment under the first phase is to acquire, process and interpret 448 sq kms
of 3-D seismic and reprocess 650 LKMs of 2-D seismic.  In addition, we
are to drill 14 exploratory wells between 1,500 to 2,500 meters.  If
the parties elect to proceed, in the second phase we are to drill 4 exploratory
wells, and in the third phase we are to drill 6 exploratory wells, all between
2,500 to 3,000 meters.





Cambay
Basin Financial Commitments





At
December 31, 2007, in connection with these four Cambay Basin PSCs, we have
provided to the GOI four irrevocable letters of credit totaling $2,965,000
(Mehsana $155,000, Sanand/Miroli $920,000, Ankleshwar $950,000 and Tarapur
$940,000) secured by our term deposits in the same amount.  These
letters of credit serve as guarantees for the performance of the minimum work
commitments for the budget period April 1, 2007 to March 31, 2008 of these four
Cambay Basin Agreements.




As at May
12, 2008, budgets for certain of these four Cambay basin PSCs have been prepared
and it is anticipated that we will increase the two irrevocable letters of
credit which will be secured by our term deposits in the same amount for
Sanand/Miroli which will increase to $1,300,000 and Ankleshwar which will
increase to $1,490,000.  These letters of credit will serve as
guarantees for the performance of the minimum work commitment for the budget
period April 1, 2008 to March 31, 2009 of these two Cambay basin
PSCs,





Our
Cambay Basin Exploration Activities





GSPC has
contracted four onland drilling rigs for two years commencing January 2008 to be
utilized to drill wells on the GSPC operated Tarapur, Sanand/Miroli and
Ankleshwar Blocks over the next two years.  Two rigs from John Energy
Ltd. of Ahmedabad, India are 1,000 and 1,500 horsepower and two rigs from
Dewanchand Ramsaran Industries (P) Ltd. of Mumbai, India are 1,000 and 2,000
horsepower.





Mehsana
Block


With
respect to the Mehsana Block, prior to January 1, 2007, Jubilant as operator,
completed a 235 sq km onshore 3-D seismic acquisition program, has had the data
processed and interpreted.  Further, one well (CB-2) was drilled and
subsequently abandoned.




As at May
12, 2008, seven wells have been drilled on this block with the IRI 750 Rig 4 and
the WAFA STAR RIG 1.  Of the seven wells, one is a discovery well as
reported by Jubilant to DGH (CB-3A); two were drilled and abandoned (CB-2 and
CB-3); and four are currently awaiting a workover rig for testing or further
testing (CB-1, CB-4, CB-5A and Cb-6). Activity during the year ended December
31, 2007 and through May 12, 2008 is as follows:




·
            The
      CB-3 well commenced drilling on January 11, 2007 and was drilled to a
      total depth of 2,350 meters TVD.  This well did not proceed into
      a testing program and was subsequently
  abandoned.




·
            The
      CB-3A well commenced drilling on July 31, 2007 and was drilled to a TVD of
      2,451 meters (2,620 meters MD).  Jubilant as operator, notified
      the GOI that based upon the drilling data, mud logs and wireline data,
      three hydrocarbon bearing intervals were interpreted to be present, and a
      discovery of hydrocarbons in the CB-3A well has been declared under the
      terms of the PSC.   Jubilant as operator, is in the process
      of preparing an appraisal plan on the CB-3A
  well.






Page
14




·
            The
      CB-1 well commenced drilling on October 17, 2007 and was drilled to a
      depth of 3,400 meters MD.  After multiple packages containing
      sand and siltstone were encountered from a depth of 2,700 to 3,360 meters,
      Jubilant as operator, recommended, based on this information, to further
      drill the well.  The well was further deepened to 3,544 meters
      and is awaiting a workover rig for further detailed
    testing.




·
            On
      January 19, 2008, the CB-4 well commenced drilling and was drilled to a
      depth of 2,853 meters MD.  The well is awaiting a workover rig
      for testing.




·
            On
      February 27, 2008, the CB-5A well commenced drilling and was drilled to a
      depth of 2,574  meters MD.  The well is currently
      awaiting a workover rig for
testing.




·
            On
      March 30, 2008, the CB-6 well commenced drilling and was drilled to a
      depth of 2,493 meters MD.  The well is awaiting a workover rig
      for testing.




Financial
Commitments.At December 31, 2007, we have incurred costs of
approximately $3.1 million with respect to exploration activities on the Mehsana
Block.  Estimated total capital expenditures we will be required to
contribute to the exploration activities on this block during the period April
1, 2008 to March 31, 2009 based on our 10% PI will be approximately $1.0 million
and will entail the drilling of two exploratory wells in the Phase II work
commitment.





Sanand/Miroli
Block


With
respect to the Sanand/Miroli Block, prior to January 1, 2007, GSPC as operator,
completed the required 463 sq km onshore 3-D seismic acquisition program,
reprocessed the 1,000 LKM's of 2-D seismic data and conducted the geochemical
survey and analysis of 200 samples.  Further, one well (M-1) was
drilled.




As at May
12, 2008, thirteen wells, one of which has been classified as an appraisal well
under the terms of the PSC, have been or are being drilled on this block with
the DALMA MR4 rig, the DRIPL-1 rig, the JOHN 1000 rig and the JOHN 1500
rig.  Of the thirteen wells, four are discovery wells as reported by
GSPC to DGH (M-1, SE-4, SE-2 and M-6); two were drilled and abandoned (M-2 and
M-4); two are currently awaiting a workover rig for testing or further testing
(SE-3 and M-3); two wells are currently being tested (M-7 and SE-8); the one
appraisal well (M1-A1) has tested hydrocarbons and is planned for further
testing after hydrofrac; and two wells are currently still in the drilling
process (M-5 and SE-9).  Activity during the year ended December 31,
2007 and through May 12, 2008 is as follows:




·
            The
      M-1 well was drilled in November 2006 to a TVD of 2,300 meters and was
      temporarily suspended.  However, the well was subsequently
      re-entered and drilled to a TVD of 2,479 meters.  The well was
      logged, cased and tested has been completed.  Three of the four
      zones tested in the M-1 well were oil bearing intervals.  The
      uppermost interval was hydraulically fractured and flowed oil at 106
      barrels of oil per day (BBL/D).  The remaining oil bearing
      intervals in M-1 well are planned to be stimulated using hydraulic
      fracture stimulation with a workover rig.  On June 28, 2007, the
      GOI and the Management Committee were made aware of a hydrocarbon
      discovery in the M-1 well in accordance with the terms of the PSC, the
      commerciality of which is yet to be
established.




·
            The
      M-4 well commenced drilling on February 24, 2007 and was drilled to a TVD
      of 2,226 meters.  The well was tested and subsequently
      abandoned.




·
            The
      M-2 well commenced drilling on March 26, 2007 and was drilled to a TVD of
      3,308 meters.  The well was tested and subsequently
      abandoned.




Page
15


·
            The
      SE-4 well commenced drilling on July 12, 2007 and was drilled to a TVD of
      2,340 meters. This well has been tested and the first object was found to
      be water bearing.  The second object tested over the interval of
      1,810 to 1870.5 encountered oil flow.  The third object over the
      interval of 1,620 to 1,700 meters also flowed oil.  Based upon
      these results, the well is awaiting a workover rig to stimulate these
      internals using hydraulic fracture stimulation.  On December 27,
      2007, GSPC reported to DGH that the SE-4 well encountered a 29 meter zone
      in the Cambay Shale and was perforated and the mid-point perforation is at
      1,840.25 meters.  GSPC as operator, informed the GOI and the
      Management Committee of the discovery in accordance with the provisions of
      the PSC, the commerciality of which is yet to be
    established.




·
            The
      SE-2 well commenced drilling on July 29, 2007 and was drilled to a TVD of
      2,381 meters (2,470 meters MD).  On December 27, 2007, GSPC
      reported to DGH that the SE-2 well encountered a 33 meter zone in the
      Cambay Shale and was perforated and the mid-point perforation is at
      1,662.5 meters.  GSPC as operator, informed the Management
      Committee and the GOI of the discovery in accordance with the provisions
      of the PSC, the commerciality of which is yet to be
      established.




·
            The
      SE-3 well commenced drilling on August 15, 2007 and was drilled to TVD of
      2,046 meters; however, because of mechanical problems, while pulling the
      drill string out of the hole, a decision was made to set a bridge plug at
      a depth of 975 meters and whip stock the well from that
      depth.  The bridge plug was set and the SE-3 ST exploration well
      was drilled directionally to a TVD of 1,794 meters (2,078 meters
      MD).  This well is awaiting a workover rig to run cased hole
      wireline logs and test.




·
            The
      M-3 well commenced drilling December 14, 2007 and has been drilled
      vertically to a depth of 3,360 meters.  The well is awaiting a
      workover rig for testing.




·
            The
      M-7 well commenced drilling on January 28, 2008 and has been drilled
      vertically to a depth of 3,270 meters.  This well is being
      tested.




·
            The
      M1-A1 well commenced drilling on February 2, 2008 as an appraisal well to
      delineate the extent of the M-1 discovery.  This well was
      drilled vertically to 2,490 meters and test results yielded a hydrocarbon
      zone at approximately 2,100 meters.  This well is planned for a
      hydro-frac stimulation and further
testing.




·
            The
      M-6 well commenced drilling on February 5, 2008 and was drilled vertically
      to 2,960 meters.  On April 28, 2008, GSPC reported to DGH that
      the SE-4 well encountered a 15 meter zone in the Cambay Shale and was
      perforated and the mid-point perforation is at 1560.5
      meters.  GSPC as operator, informed the GOI and the Management
      Committee of the discovery in accordance with the provisions of the PSC,
      the commerciality of which is yet to be
  established.




·
            The
      SE-8 well commenced drilling March 5, 2008 and has been drilled vertically
      to a depth of 2,016 meters.  The well is being
      tested.




·
            The
      M-5 well commenced drilling March 31, 2008 and the SE-9 well commenced
      drilling April 2, 2008.  These two wells continue to
      drill.




Financial
Commitments.  As at December 31, 2007 we have incurred costs of
approximately $2.2 million with respect to exploration activities on the
Sanand/Miroli Block.  Budgets for the estimated total capital
expenditures for the exploration activities on this block during the period
April 1, 2008 to March 31, 2009 have been prepared and submitted for
approval.  They entail the drilling of six exploratory wells between
2,000 and 2,500 meters each which includes the remaining three well commitment
from Phase I and the three well commitment from Phase II.  Further,
the budget includes the drilling of four wells, classified as appraisal wells
under the PSC, to approximately 2,000 meters each.  We anticipate the
estimated total capital expenditures we will be required to contribute to the
exploration activities on this block during the period April 1, 2008 to March
31, 2009 based on our 10% PI will be approximately $3.7 million.







Page
16


Tarapur
Block


With
respect to the Tarapur Block, prior to January 1, 2007, GSPC acquired a total of
660 sq kms of 3-D seismic.  Further, prior to that date, eight wells
were drilled (Tarapur 1, Tarapur P, Tarapur G, Tarapur E, Tarapur D, Tarapur F,
Tarapur 5 and Tarapur 7).




As at May
12, 2008, twenty-one wells, four of which has been classified as appraisal wells
under the terms of the PSC, have been or are being drilled on this block with
the DALMA MR4 rig, the DALMA MR1 rig, the DRIPL-1 rig, the JOHN MR8000 rig, the
JOHN 1000 rig, the JOHN 1500 rig and the DR#1 rig.  Of the twenty-one
wells, four are discovery wells as reported by GSPC to DGH (Tarapur 1, Tarapur
G, Tarapur 6 and Tarapur 4); two wells (Tarapur 5 and Tarapur P) have been
drilled and tested and are awaiting tie-in to production facilities along with
the four reported discovery wells; a further two wells (TS-4 and TS-5) have been
drilled and tested and are currently suspended awaiting to be further tested;
four wells were drilled and abandoned (Tarapur E, Tarapur D, Tarapur F and
Tarapur 7); seven are currently awaiting a workover rig for testing or further
testing (TO-1, TDEV-1, TDEV-2, TDEV-3, PNE-1, PNE-2 and P-1) and two wells are
currently being tested (TS-1 and TS-7).




A field
development plan has been filed by GSPC with GOI/DGH for the Tarapur field under
the provisions of the PSC.  Further, on January 31, 2008, the
Management Committee for the Tarapur block recommended that GSPC, as operator,
acquire a mineral lease for four independent areas: 1) Tarapur-1 (6.5 sq kms);
2) Kheda-1 (8.84 sq kms); 3) Vaso-2 (8.91 sq kms); and 4) Changara-1 (7.26 sq
kms) so that production can commence upon approval of the
GOI.  Approval from the GOI for the field development plan and the
mineral lease has not yet been received.




The wells
included in this Tarapur-1 mineral lease application are Tarapur 1, 4, 5, 6, G,
& P.  Tarapur 1 was the first well drilled by GSPC in the Tarapur
Block and with test results of approximately 265 barrels of oil per day (BOPD")
from an EP-IV pay zone.  This well is the first oil discovery within
the Tarapur Block.




GSPC
performed workover and stimulation work on three wells previously drilled by
ONGC on this Block, being the Kheda #1 well, the Vaso #2 well and the Changara
#1 well.  Based on testing, workover operations and hydro-fracturing
carried out on these three wells, approximately 170 BOPD is expected to flow
from these three wells.  Facilities are in place so that upon approval
of the GOI, oil from these wells is expected to be able to be transported for
marketing.




On
February 6, 2008, the Operating Committee recommended that the Tarapur G well be
declared a commercial gas discovery without drilling any further appraisal
wells.  GSPC believes that based on test data that the well will
initially flow at a rate of approximately 1.7 Mmscf/d.




On
February 6, 2008, the Operating Committee further recommended that the Tarapur 6
well and the Tarapur 4 well be declared commercial oil
discoveries.  Both the Tarapur 6 (1,795 meters) well and the Tarapur 4
(1,901 meters) well were drilled to originally appraise the Tarapur G gas
discovery in adjoining fault blocks.  However, both wells turned out
to be oil bearing establishing a fault separating Tarapur G from Tarapur 6 and
Tarapur 4 to be sealing in nature.  As such, the gas discovery at
Tarapur G was confined to the Tarapur G fault block only.  The
Operating Committee has advised that the Tarapur 6 well test flowed at 410
Bbls/d along with gas of 350 Mscf/d from an 11 meter net pay zone interval from
the EP IV pay section.  The Tarapur 4 well encountered a 21 meter net
oil pay section also within the EP IV pay section along with additional pay
within the Intra Cambay Shale.  A hydro-frac is planned for this new
section in the Tarapur 4 to enhance the production of this
well.  Estimated initial flow from these two wells is approximately
375 Bbls/d of oil.




Additional
activity during the year ended December 31, 2007 and through May 12, 2008 is as
follows:




·
            Two
      wells drilled in the first half of 2007, the TS-4 and TS-5 were drilled to
      TVD's of 2,844 and 3,009 meters, respectively.  As at May 12,
      2008, the TS-4 well has been tested and is currently suspended awaiting to
      be further tested and the TS-5 well has been suspended awaiting a higher
      capacity drilling rig to deepen the well by approximately 300
      meters.  GSPC then intends to utilize a workover rig to test
      zones currently identified, along with any potential zones encountered in
      the deepening of the well.






Page
17




·
            The
      TS-1 well commenced drilling on July 23, 2007 and was drilled vertically
      to a TVD of 3,000 meters.  This well has been tested and the
      first object was found to be water bearing. This well is undergoing
      further testing.




·
            The
      TS-7 well commenced drilling on August 13, 2007 to a TVD of 3,420
      meters.  The well is being
tested.




·
            The
      TO-1 well commenced drilling October 3, 2007 and has been drilled
      directionally to a TD of 2,645 meters MD (2,502 meters
      TVD).  The well is suspended awaiting a workover rig for
      detailed testing




·
            The
      TDEV-2 well commenced drilling October 25, 2007 and has been drilled
      directionally to a TD of 1,943 meters MD (1,803 meters
      TVD).  The well is suspended awaiting a workover rig for
      detailed testing.




·
            The
      TDEV-3 well commenced drilling November 2, 2007 and has been drilled
      directionally to a TD of 1,897 meters MD (1,799 meters
      TVD).  The well is suspended awaiting a workover rig for
      detailed testing.




·
            The
      PNE-1 well commenced drilling on November 29, 2007 and has been drilled to
      a TD of 2,400 meters MD.  This well is suspended awaiting a
      workover rig for detailed testing.




·
            The
      TDEV-1 well commenced drilling on December 1, 2007 and has been drilled
      directionally to a TD of 1,803 meters MD (1,704 meters
      TVD).  This well is suspended awaiting a workover rig for
      detailed testing.




·
            The
      PNE-2 well commenced drilling on December 6, 2007 and has been drilled to
      a TD of 2,400 meters MD.  This well is suspended awaiting a
      workover rig for detailed testing.




·
            The
      P-1 well commenced drilling on January 6, 2008 and has been drilled to a
      TD of 2,287 meters MD.  This well is suspended awaiting a
      workover rig for detailed testing.




Financial
Commitments.Through December 31, 2007, we have incurred costs
of approximately $7.8 million under the terms of our agreement with GSPC for our
20% PI share of exploration costs.  If the request for the additional
12 months is not granted, the third and final phase of exploratory activities on
the Tarapur Block would be deemed to have expired on November 22,
2007.  All areas not encompassing a commercial discovery would be
relinquished back to the GOI.  Oil and Natural Gas Corporation Limited
of India has the right to participate in the development of any commercial
discovery on the Tarapur Block by acquiring a 30% PI as provided under the
PSC.  The exercise of this right would result in the reduction of our
PI to 14%.




If the
request for the additional 12 months is granted, estimated total capital
expenditures we will be required to contribute to drill five additional wells on
this block over the period ending November 22, 2008 based on our 20% PI will be
approximately $2.2 million plus damages of $662,000, which amount is
non-refundable and estimated to be 30% of the total cost required to complete
the additional work program.





Ankleshwar
Block


With
respect to the Ankleshwar Block, prior to January 1, 2007, GSPC as operator,
completed a 494 sq km 3-D seismic acquisition program, reprocessed 650 LKMs of
2-D seismic and completed a geochemical survey and analysis of 500
samples.




As at
December 31, 2007, no wells have been drilled on this block but drilling
activities are anticipated to commence with the drilling of the first of
fourteen wells in the second calendar quarter of 2008.




Financial
Commitments.As at December 31, 2007, we have incurred costs
of approximately $830,000 on the Ankleshwar Block for our 10%
participating.  Budgets for the estimated total capital expenditures
for the exploration activities on this block during the period April 1, 2008 to
March 31, 2009 have been prepared and submitted to the Management Committee for
approval.  We anticipate the amount we will required to contribute
during this period, based on our 10% PI will be approximately $4.2 million and
will entail the drilling of 14 exploratory wells.






Page
18




Our
Deccan Syneclise Basin Agreements





DS 03 Block
PSC


On
September 23, 2005, we signed a PSC with respect to this onshore DS 03
Block.  The PSC covers an area of approximately 3,155 sq kms (779,618
acres) and was awarded under NELP-V.  We hold a 100% PI in this block
and are the operator.  The PSC provides that the exploration
activities are to be conducted in three phases commencing September 4, 2006 with
the first phase covering a period of 3.0 years, the second phase covering a
period of 2.0 years and the third phase covering a period of 2.0 years, for a
maximum total duration of 7.0 years for all three phases.




The work
commitment under the first phase is to complete a gravity magnetic and
geochemical survey and acquire an aero magnetic survey of 12,000
LKMs.  If we elect to proceed to the second phase, we are to acquire
500 LKMs of 2-D seismic and drill 1 exploration well.  During the
third phase, we are to acquire 250 sq kms of 3-D seismic and drill 2 exploratory
wells.




DS 04 Block
PSC


On March
2, 2007, we signed a PSC with respect to this onshore DS 04
Block.  The PSC covers an area of approximately 2,649 sq km (654,582
acres) and was awarded under NELP-VI.  We hold a 100% PI in this block
and are the operator.  The PSC provides that the exploration
activities are to be conducted in two phases commencing June 7, 2007 with the
first phase covering a period of 5.0 years and the second phase covering a
period of 3.0 years, for a maximum total duration of 8.0 years for both
phases.




The Phase
I work commitment, consists of conducting a gravity and magnetic and geochemical
survey, as well as a seismic acquisition program consisting of 325 LKM of 2-D
seismic.  We are further committed to drill 10 core holes to a depth
of approximately 500 meters.  The Phase II work commitments, consists
of a seismic acquisition program consisting of 500 LKM of 2-D seismic and 200 sq
kms of 3-D seismic and drill 1 exploratory well to a depth of 2,000
meters.





Our
Deccan Syneclise Basin Exploration Activities





DS 03 Block and DS 04
Block


As at May
12, 2008, we have completed the preliminary field work and mapping and are in
the process of finalizing a report on a geological survey taken over both
blocks.  We have budgeted and plan to complete before March 31, 2009 a
geochemical survey of 500 stations and a gravity and magnetic survey of 2,500
stations on each block.  We further anticipate commencing an
experimental 2-D line before the end of this period.




Financial
Commitments.As at December 31, 2007, we have incurred costs
of approximately $280,000 on the DS 03 block and DS 04 blocks.  We
estimate our expenditures for exploration activities during the period April 1,
2008 to March 31, 2009 for both blocks will be approximately US$1.8 million
based upon our 100% PI.





Our
Rajasthan Basin Agreements





RJ Block 20
PSC


On March
2, 2007, we, along with our joint venture partner, OIL, signed a PSC with
respect to this onshore RJ Block 20.  The PSC covers an area of
approximately 2,196 sq km (542,643 acres) and was awarded under
NELP-VI.  We hold a 25% PI in this block with OIL as operator holding
the remaining 75% PI.  The PSC provides that the exploration
activities are to be conducted in two phases commencing January 21, 2008 with
the first phase covering a period of 4.0 years and the second phase covering a
period of 3.0 years, for a maximum total duration of 7.0 years for both
phases.




The Phase
I work commitment is to reprocess 463 LKM of 2-D seismic; conduct a gravity and
magnetic and geochemical survey; acquire, process and interpret 250 LKM of 2-D
seismic, acquire 700 sq kms of 3-D seismic and drill a total of 12 exploratory
wells between 2,000 and 2,500 meters.  The Phase II work commitment is
to drill one well to 2,500 meters.






Page
19




RJ Block 21
PSC


On March
2, 2007, we, along with our joint venture partner, OIL and Hindustan Petroleum
Corporation Limited ("HPCL") signed a PSC with respect to this onshore RJ Block
21.  The PSC covers an area of approximately 1,330 sq km (328,650
acres) and was awarded under NELP-VI.  We hold a 25% PI in this block,
OIL as operator holds a 60% PI and HPCL holds the remaining
15%PI.  The PSC provides that the exploration activities are to be
conducted in two phases commencing January 21, 2008 with the first phase
covering a period of 4.0 years and the second phase covering a period of 3.0
years, for a maximum total duration of 7.0 years for both phases.




The Phase
I work commitment is to reprocess 463 LKM of 2-D seismic; conduct a gravity and
magnetic and geochemical survey; acquire, process and interpret 310 LKM of 2-D
seismic and 611 sq kms of 3-D seismic; and drill a total of 8 exploratory wells
between 2,000 and 2,500 meters.  The Phase II work commitment is to
drill one well to 2,000 meters.





Our
Rajasthan Basin Exploration Activities





On
January 21, 2008, OIL, as operator received notification that the PEL's for both
Rajasthan Blocks had been issued thereby enabling the Phase I work program
commitments on both these Rajasthan Blocks to begin.




Financial
Commitments.We will be required to fund our 25% proportionate
share of the costs incurred on both these blocks which is estimated to be
approximately US$18.3 million over the four years of the first phase of the work
commitments for both blocks.  The budget estimate for the period April
1, 2008 to March 31, 2009 has been set and our 25% proportionate share of that
budget on both blocks is approximately $7.2 million.  This budget
entails performing the required surveys, the 2D and the 3D seismic acquisition
program and the interpretation and processing thereof and the drilling of 3
wells.





Egyptian
Activities





We
entered into a Joint Bidding Agreement with GSPC, as operator (50%) and Alkor
Petroo Limited of Hyderabad, India (20%) to bid on certain exploration blocks in
the Arab Republic of Egypt.  The agreement provided that we were to
have a 30% PI in any PSCs entered into.  These blocks include offshore
exploration Block 6 (also referred to as N. Hap’y) and onshore exploration Block
8 (also referred to as South Diyur) in the Arab Republic of
Egypt.  These blocks were awarded to the consortium subject to certain
terms and conditions




On
January 8, 2008, effective December 31, 2007, we entered into two agreements
with GSPC.  An Assignment Agreement sets out the terms whereby we
assigned to GSPC all our rights to receive a 30% participating interest in the
two exploration blocks awarded by the Arab Republic of Egypt in exchange for an
option (the Option Agreement) exercisable on or before April 30, 2008 to
reacquire all or a portion of those rights.  GSPC provided us a 45 day
extension of the time for exercising the option to June 15, 2008.




In the
event we exercise the option, we will be required to pay to GSPC our pro rata
share of all costs and expenses from the effective date of the option agreement
(December 31, 2007).  We will also have to provide to GSPC bank
guarantees equal to the remaining 98%, based upon our share of the rights we
elects to reacquire, of the total financial commitment for conducting the first
exploration phase on the two exploration blocks.  If we elect to
reacquire and participate to the full 30% of the option, these additional bank
guarantees would amount to approximately US$56.4 million.  In addition
to the non-refundable US$1.17 million of bank guarantees, our oil and gas assets
included at December 31, 2007 approximately US$2.4 million relating to our
interests in the two exploration blocks which will be carried forward as an
investment in the option pending our determination whether we will exercise any
portion of the option.




Financial
Commitments


Under the
terms of the Joint Bidding Agreement, the bidders were required to submit a bank
guarantee equal to 2% of the financial commitment under the MWP of the First
Exploration Phase which has a term of 4 years.  During the third
quarter of 2007, we provided to GSPC two bank guarantees totaling US$1,170,000
secured by our term deposits in the same amount, based on our 30%
PI.


Page
20


Anticipated
2008 Activities





We expect
our exploration and development activities pursuant to the PSCs we are a party
to, and the related drilling activities in the 10 exploration blocks that we
hold an interest in, will continue through 2008 in accordance with the terms of
those agreements.  During the period April 1, 2008 to March 31, 2009,
based on the current budgets, we anticipate drilling thirty-six wells which
entails approximately four wells in the KG Offshore Block, three wells on the KG
Onshore Block, twenty-six wells in three of our Cambay Blocks (Mehsana,
Sanand/Miroli and Ankleshwar) and three wells on our RJ
Blocks.  Further, we may drill approximately five wells on the Tarapur
Block pending the outcome of the extension of Phase III requested of the
GOI.




In
addition, we may seek to participate in joint ventures bidding for the award of
further PSCs for exploration blocks expected to be awarded by the GOI in the
future.  As of May 30, 2008, we have no specific plans to join with
others in bidding for any specific PSCs in India and elsewhere.  We
expect that our interest in any such ventures would involve a minority PI in the
venture.  In addition, as opportunities arise, we may seek to acquire
minority PI's in exploration blocks where PSCs have been heretofore
awarded.  The acquisition of any such interests would be subject to
the execution of a definitive agreement and obtaining the requisite government
consents and other approvals.




We may
during the year 2008 seek to participate in joint venture bidding for the
acquisition of oil and gas interests in other international countries, however,
as of May 30, 2008, we have made no specific plans regarding such activities and
have not entered into any binding agreements with respect to such
activities.




Depending
upon the scope of our activities during the years 2008 and 2009, we may require
additional capital for the funding of our activities under the PSCs we are
currently a party to as well as support for our bidding for other PSCs that may
be awarded in India or elsewhere.  In addition, we may require
additional funds for the possible acquisition of further minority participating
interests in PSCs in drilling blocks heretofore awarded and that we may
hereafter propose to enter into in India and possibly elsewhere.  We
believe it can be expected that our interest in further or additional PSCs would
be a participating interest.  As the holder of a participating
interest in any such activities, it can be expected that we will be required to
contribute capital to any such ventures in proportion to our percentage
interest.




As of May
30, 2008, the scope of any possible such additional activities has not been
definitively established and, accordingly, we are unable to state the amount of
any funds that may be required for these purposes.  As a result, no
specific plans or arrangements have been made to raise additional capital and we
have not entered into any agreements in that regard.  We expect that
if we seek to raise additional capital it will be through the sale of equity
securities.  As of May 30, 2008, we are unable to estimate the terms
on which any such capital may be raised, the price per share or possible number
of shares involved.




We
believe that our available cash resources will be sufficient to meet all our
expenses and cash requirements during the year ended December 31, 2008 for our
present level of operations.  We do not expect to have any significant
change in 2008 in our number of employees.





Additional
Terms of Our Production Sharing Contracts





General


Except
for the size and location of the exploration blocks and the work programs to be
conducted, the PSCs contain substantially similar terms.  Under the
PSCs, the GOI has granted to the parties the right to engage in oil and natural
gas exploration activities on the exploration blocks for specified terms of
years with each contract setting forth the exploration activities to be
conducted over periods of years in two or three phases.




The
contracts contain restrictions on the assignment of a PI, including a change in
control of a party, without the consent of the GOI, subject to certain
exceptions which include, among others, a party encumbering its interest subject
to certain limitations.




Page
21


Each of
the ventures is managed by a Management Committee representing the parties to
the agreement, including the GOI.  The contracts contain various other
provisions, including, among others, obligations of the parties to maintain
insurance, the maintenance of books and records, confidentiality, the protection
of the environment, arbitration of disputes, matters relating to income taxes on
the parties, royalty payments, and the valuation of hydrocarbons
produced.  The Indian domestic market has the first call on natural
gas produced.  The contracts are interpreted under the laws of
India.





Relinquishment on our
Existing Blocks Prior to NELP VI Blocks


Under
each of these contracts, if the parties elect to continue into the second
exploratory phase, the contracts provide that the parties retain up to 75% of
the original contract area, including any developed areas and areas of
discoveries of hydrocarbons, and relinquish the remainder.  Similarly,
if the parties elect to continue into the third exploration phase, the contracts
provide that the parties retain up to 50% of the original contract area,
including any developed areas and areas of discovery of hydrocarbons, and
relinquish the remainder.  At the end of the final exploration phase,
only developed areas and areas of discoveries are to be retained.




Relinquishment on the Newly
Awarded NELP-VI Blocks


Under
each of these contracts, if the parties elect to continue into the second
exploratory phase, the contracts provide that the parties shall have the option
to relinquish a part of area in simple geometrical shape, such area to be
relinquished shall not be less than 25% of the original contract.  At
the end of the second exploration phase, the parties shall retain the balance
which includes any developed areas and areas of discoveries.





Procedure for Allocation of
Costs After a Discovery


These
PSCs contain provisions relating to procedures to be followed once a discovery
of hydrocarbons is determined to have been made within the exploration block and
for the further development of that discovery.  Following the
completion of a development plan for a discovery, the parties are to apply to
the relevant government entity for a lease with respect to the area to be
developed with an initial term of 20 years for the lease.  The GOI and
the other parties to the PSC are allocated, after deduction of the costs of
exploration, development, and production to be recovered, percentages of any
remaining production with the GOI allocated between 20% to 40% of the production
from the KG Offshore Block and Ankleshwar Block, 30% to 55% of the production
from the Mehsana Block and Sanand/Miroli Blocks and 10% to 30% of the production
from the DS 03 Block.  The newly awarded blocks under NELP-VI are
allocated between 91% to 9% of the production from the KG Onshore Block, the RJ
Block 20 and RJ Block 21 and between 85% to 15% for the DS 04
Block.  This percentage split is based upon pre-determined production
levels with the balance of the production to be allocated to the other joint
venture participants in proportion to their participating
interests.





Bank
Guarantees


The
contracts contain provisions whereby the joint venture participants must provide
the GOI a bank guarantee in the amount of 35% of the participant's share of the
MWP for a particular Phase, to be undertaken during the year.  This
work program to be undertaken is presented annually to the Management Committee
for approval for the period April 1 through March 31.  The work
programs for the year April 1, 2008 through March 31, 2009 and their related
budgets have been approved for six of our existing PSCs, but have not yet been
approved on four to which we are a party.  Accordingly, our estimates
as to capital expenditures pursuant to these for the twelve months ended March
31, 2009 and beyond are subject to revision when the budget is approved and
thereafter during the twelve-month period.





Our
Oil and Gas Interests





We are
engaged in the exploration for and development of oil and natural gas
reserves.  At December 31, 2007, we have not produced any oil or
natural gas and we do not claim any proved reserves of oil or natural
gas.  We have not reported any proved reserves of oil or natural gas
to any United States Federal authority.




We do not
own any oil or natural gas wells as of May 30, 2008 and at that date we have not
been granted any leases to properties under the terms of our PSCs.






Page
22




As at
December 31, 2007, we have participated through joint ventures in which we are a
party in the commencement of drilling forty-one wells.  Of these
forty-one wells, ten exploratory wells, one of which has been classified as an
appraisal well under the PSC, have been drilled in the Krishna Godavari Basin on
the KG Offshore Block, four exploratory wells have been drilled in the Cambay
Basin in the Mehsana Block, seven exploratory wells have been drilled in the
Cambay Basin in the Sanand/Miroli Block and twenty exploratory wells, three of
which have been classified as appraisal wells under the PSC, have been drilled
in the Cambay Basin in the Tarapur Block.




Of the
forty-one wells, eleven wells have been abandoned, three in the KG Offshore
Block, two in the Mehsana Block, two in the Sanand/Miroli and four in the
Tarapur Block.  These wells were abandoned because of the absence of
economic quantities of hydrocarbons or because the well characteristics would
make the production of hydrocarbons problematic and
non-commercial.




None of
the forty-one wells are producing wells as of May 30, 2008.  A field
development plan has been filed by GSPC with GOI/DGH for the Tarapur field under
the provisions of the PSC.  GOI approval is pending.  While
we have discoveries in the KG Offshore Block, the Mehsana Block and the
Sanand/Miroli Block, field development plans have not been submitted on those
blocks.





Development,
Exploration and Acquisition Expenditures





The
following table sets forth information regarding costs we incurred in our
development, exploration and acquisition activities by area as at December 31,
2007 and December 31, 2006.




December
      31, 2007
                
                
                December
      31, 2006US$
                
                
                US$RestatedDevelopment
      Costs
                
                
                --
                
                
                
                --Exploration
      CostsKrishna
      Godavari Basin Blocks
                
                
                9,835,602
                
                
                
                5,510,272Cambay
      Basin Blocks
                
                
                14,288,693
                
                
                
                6,558,315Deccan
      Syneclise Basin Blocks
                
                
                280,188
                
                
                
                52,747Rajasthan
      Basin Blocks
                
                
                135,448
                
                
                
                --Egypt
                
                
                2,447,061
                
                
                
                --Middle
      East
                
                
                112,554
                
                
                
                --Acquisition
      Costs
                
                
                --
                
                
                
                --Capitalized
      Interest
                
                
                --
                
                
                
                --Total
                
                
                27,099,547
                
                
                
                12,121,334




As at
December 31, 2007, GSPC has incurred costs of Rs 246.20 crore, or approximately
$57.3 million (December 31, 2006 - Rs 114.96 crore, or approximately $26.1
million) for exploration activities on the KG Offshore Block attributable to us
under our CIA with GSPC of which, 50% is for the account of RGM.  We
will not realize cash flow from the KG Offshore Block until such time as the
expenditures attributed to us, including those expenditures made for the account
of RGM under the CIA have been recovered by GSPC from future production
revenue.  Under the terms of the CIA, all of our proportionate share
of capital costs for exploration and development activities must be repaid to
GSPC without interest over the projected production life or ten years, whichever
is less.




We have
been advised by GSPC, that GSPC is seeking payment of the amount by which the
exploration costs attributable to us under the PSC relating to the KG Offshore
Block exceeds the amount that GSPC deems it is obligated to pay on our behalf
(including the net 5% PI of RGM) under the terms of the CIA.  GSPC
asserts that we are required to pay 10% of the exploration expenses over and
above gross costs of $59.23 million (10% being $5.92 million).  We are
disputing this matter with GSPC.  Based upon the most recent letter
dated February 4, 2008 received from GSPC, GSPC asserts they have incurred costs
of Rs. 246.2 crore (or approximately US$57.3 million) on our behalf as of
December 31, 2007.  Should GSPC be fully or partly successful in this
matter, these expenditures would increase our oil and gas
expenditures.






Page
23




Acreage





Developed
Acreage


At May
30, 2008, we hold no interests in acreage that may be deemed developed or
acreage assignable to productive wells.  Productive wells are defined
as producing wells and wells capable of production.





Contract Interests in
Undeveloped Acreage


Under the
terms of the ten PSCs to which we are a party, we have an interest in
approximately 3,409,313 gross acres (1,769,471 net acres) as of December 31,
2007.  Substantial work commitments must be performed pursuant to each
of these PSCs before we will have any leasehold, concession or other interest in
such acreage and there can be no assurance that our exploration activities will
result in leases being granted.  Failure to fulfill work commitments
or the relinquishment of acreage upon the election to proceed to second and/or
third phases of exploration phases, as applicable under the terms of our PSCs,
would result in the loss of material amounts of this acreage pursuant to the
relinquishment provisions of the PSC (see "Additional Terms of Our Production
Sharing Contracts – Relinquishment on our Existing Blocks").  No
leases as to any of such acreage have been granted and there can be no assurance
that we will be granted a leasehold or other interest in the acreage in the
future.  Under the terms of the PSCs, following the completion of a
development plan for a discovery, the parties are to apply for a lease from the
relevant government authority to the area to be developed.  Leases are
to have an initial term of twenty years.




All such
acreage is located in India as follows:




Contract
      Interest in Undeveloped AcreageGross
      acres
              Net
      acresKrishna
      Godavari Basin BlocksKG
      Offshore
              457,145
              (1)22,857KG
      Onshore
              135,414
              (2)   13,541592,559
              36,398Cambay
      Basin BlocksMehsana
              30,888
              3,088Sanand/Miroli
              70,425
              7,043Ankleshwar
              110,703
              11,070Tarapur
              299,245
              (4)  59,849511,261
              81,050Deccan
      Syneclise Basin BlocksDS
      03
              779,618
              779,618DS
      04
              654,582
              654,5821,434,200
              1,434,200Rajasthan
      Basin BlocksRJ
      Block 20
              542,643
              135,661RJ
      Block 21
              328,650
              82,162871,293
              217,823Total
              3,409,313
              1,769,471




(1)
            excludes
      acreage that is subject to the PIA with
RGM


(2)
            based
      on a 10% PI


(3)
            one
      square kilometer converts to 247.1054
acres


(4)
            the
      remaining acreage after relinquishment moving into Phase
    III





Page
24


Drilling
Activity





The
following table sets forth information as to the wells we completed drilling
during the periods indicated, all of which are exploratory wells, which include
wells drilled for appraisal purposes under the terms of the
PSCs.  Inasmuch as permanent equipment has not been installed for the
production of oil or gas at any of the wells, such wells should not be deemed to
be completed wells.  In the table, "gross" refers to the total wells
in which we have an interest and "net" refers to gross wells multiplied by our
interest therein.




Year
      Ended December 31,India
              Prior
      Years
              2005
              2006
              2007Gross
              Net
              Gross
              Net
              Gross
              Net
              Gross
              NetDevelopmentProductive
                Non-
      productive
              0
                0
              0
                0
              0
                0
              0
                0
              0
                0
              0
                0
              0
                0
              0
                0ExploratoryProductive
                Non-productive
              0
                1.0
              0
                0.05
              3.0
                1.0
              0.45
                0.05
              4.0
                4.0
              0.50
                0.80
              17.0
                5.0
              2.60
                0.45





Hedging
Activities





At
December 31, 2007, we had not entered into any market risk sensitive
instruments; as such term is defined in Item 305 of Regulation S-K, relating to
our operations.





Marketing





Under the
terms of our PSCs, until India’s total production of crude oil and condensate
meets the Indian national demand, we are required to sell in the Indian domestic
market our entitlement to crude oil and condensate.  When and so long
as India attains self-sufficiency in the production of crude oil and condensate,
our domestic sale obligation is suspended and we will have the right to export
our entitlement.




The PSCs
provide that the Indian domestic market will have the first call on natural gas
produced from the areas that are the subject of the contracts.




The PSCs
provide that the parties are to agree monthly on a price for crude oil which is
intended to be on an import parity basis.  Prices of natural gas are
intended to be based on Indian domestic market prices.




Our
ability to market any production of crude oil and natural gas will be dependent
upon the existence and availability of pipeline or other gathering system,
storage facilities and an ability to transport the hydrocarbons to
market.  Such facilities are yet to be constructed.




We are
not a party to any agreements providing for the delivery of fixed quantities of
hydrocarbons.





Competition





We
experience competition from others in seeking to participate in joint ventures
and other arrangements to participate in exploratory drilling ventures in
India.  In addition, the ventures in which we participate experience
competition from other ventures and persons in seeking from the GOI and,
possibly others, its agreement to grant and enter into
PSCs.  Management of our company believes that competition in entering
into such agreements with the GOI is based on the extent and magnitude of
exploratory activities that the applicants will propose to undertake on the
exploration blocks under consideration as well as the applicants available
capital and technical ability of the applicants to complete such
activities.





Page
25


Employees





The
services of our President and Chief Executive Officer, Jean Paul Roy, are
provided pursuant to the terms of a Technical Services Agreement ("TSA") we
entered into with Roy Group (Barbados) Inc. ("RGB"), a corporation wholly owned
by Mr. Roy.  The services of Allan J. Kent, our Executive Vice
President and Chief Financial Officer were provided through the year December
31, 2007 through D.I. Investments Ltd., a corporation wholly owned by Mr.
Kent.  As such, the services of Messrs. Roy and Kent are provided to
us in their capacity as employees of RGB and DI, respectively, and each devote
substantially all of their time to our affairs.




In
addition to Messrs. Roy and Kent, we employ approximately ten additional persons
at various times and in various capacities as part time consultants to
us.




As of
December 31, 2007, we employed four persons and three full time consultants in
Calgary, Alberta, Canada and also employed six persons in Gandhinagar, Gujarat
State, India.





Incorporation
and Organization





On August
29, 2003, we acquired all of the issued and outstanding shares of GeoGlobal
Resources (India) Inc. ("GeoGlobal India") a corporation then wholly owned by
Mr. Jean Paul Roy.  The completion of the acquisition resulted in the
issuance and delivery by us of 34,000,000 common shares and delivery of our $2.0
million promissory note to Mr. Roy.  Of such shares, we issued and
delivered 14.5 million shares at the closing of the acquisition and 14.5 million
shares were released from escrow on August 27, 2004 upon the actual commencement
of a drilling program.  The remaining 5.0 million shares continued to
be held in escrow at December 31, 2007.  These 5.0 million shares held
in escrow will be released only if a commercial discovery is declared on the KG
Offshore Block.  If a commercial discovery is not declared, the shares
will not be released from escrow, but will be surrendered back to
us.  Common shares held during the term of the escrow retain their
voting rights.  As a result of this transaction, Mr. Roy held as of
the closing of the transaction approximately 69.3% of our issued and outstanding
shares.  Mr. Roy was also elected our President and a Director on
August 29, 2003.  This transaction is considered an acquisition of
GeoGlobal Resources Inc. (the accounting subsidiary and legal parent) by
GeoGlobal India (the accounting parent and legal subsidiary) and has been
accounted for as a purchase of the net assets of GeoGlobal Resources Inc. by
GeoGlobal India.  Accordingly, this transaction represents a
recapitalization of GeoGlobal India, the legal subsidiary, effective August 29,
2003.




As a
consequence of this transaction, a change in control of our company may be
deemed to have occurred.




Through
late 2001, we were engaged in the creation, operation and maintenance of a World
Wide Web-based community, known as Suite101.com, Inc.  At the end of
2001, management at that time determined to redirect activities and by mid-2002,
the company was no longer engaged in the former Web-based
activities.




We are a
corporation organized under the laws of the State of Delaware in December
1993.  From December 1998 to January 2004, our corporate name was
Suite101.com, Inc.  At a meeting held January 8, 2004, our
stockholders approved an amendment to our Certificate of Incorporation to change
our corporate name to GeoGlobal Resources Inc.





Item
1A.                   Risk
Factors





An
investment in shares of our common stock involves a high degree of
risk.  You should consider the following factors, in addition to the
other information contained in this Annual Report, in evaluating our business
and current and proposed activities before you purchase any shares of our common
stock.  You should also see the "Cautionary Statement for Purposes of
the Safe Harbor Provisions of the Private Securities Litigation Reform Act of
1995" regarding risks and uncertainties relating to us and to forward-looking
statements in this Annual Report.




Page
26


There can
be no assurance that the exploratory drilling to be conducted on the exploration
blocks in which we hold an interest will result in any discovery of reserves of
hydrocarbons or that any hydrocarbons that are discovered will be in
commercially recoverable quantities.  In addition, the realization of
any revenues from commercially recoverable hydrocarbons is dependent upon the
ability to deliver, store and market any hydrocarbons that are
discovered.





Risks
Relating to Our Oil and Gas Activities





Because We Are In the Early
Stage Of Developing Our Activities, There Are Considerable Risks That We Will Be
Unsuccessful


We are in
the early stage of developing our operations.  Our only activities in
the oil and natural gas exploration and production industry have primarily
involved entering into ten PSCs with the GOI.  We have realized no
revenues from our oil and natural gas exploration and development activities and
do not claim any proved reserves of oil or natural gas.




Our
current plans are to conduct the exploration and development activities on the
areas offshore and onshore India in accordance with the terms of the PSCs we are
a party to.  There can be no assurance that the exploratory drilling
to be conducted on the exploration blocks in which we hold an interest will
result in any discovery of hydrocarbons or that any hydrocarbons that are
discovered will be in commercially recoverable quantities.  In
addition, the realization of any revenues from commercially recoverable
hydrocarbons is dependent upon the ability to deliver, store and market any
hydrocarbons that are discovered.  As of May 30, 2008, there are no or
limited facilities for the delivery and storage of hydrocarbons on the areas
covered by our PSCs.  Our exploration opportunities are highly
speculative and should any of these opportunities not result in the discovery of
commercial quantities of oil and gas reserves, our investment in the venture
could be lost.




Our
business plans also include seeking to enter into additional joint ventures or
other arrangements to acquire interests in additional government created and
granted hydrocarbon exploration opportunities, primarily located onshore or in
the offshore waters of India and possibly elsewhere.  Opportunities to
acquire interests in exploration opportunities will be dependent upon our
ability to identify, negotiate and enter into joint venture or other similar
arrangements with respect to specific exploration opportunities and upon our
ability to raise sufficient capital to fund our participation in those joint
ventures or other exploration activities.  Our success will be
dependent upon the success of the exploration activities of the ventures in
which we acquire an interest and our ability to have adequate capital resources
available at the times required.





GSPC Is Seeking A Payment
From Us In The Amount Of Approximately $57.3 Million As Of December 31, 2007 On
Account Of GSPC’s Exploration Costs On The KG Offshore Block


Gujarat
State Petroleum Corporation Ltd. ("GSPC"), the operator of the KG Offshore Block
in which we have a net 5% carried interest, has advised us that it is seeking
from us our pro rata portion of the amount by which the sums expended by GSPC
under Phase I of the work program set forth in the PSC for the KG Offshore Block
in carrying out exploration activities on the block exceeds the amount that GSPC
deems to be our pro rata portion of a financial commitment under Phase I
included in the parties’ joint bid for the award by the Government of India of
the KG Offshore Block.




GSPC
contends that this excess amount is not within the terms of the
CIA.  GSPC asserts that we are required to pay 10% of the exploration
expenses over and above gross costs of $59.23 million (10% being $5.92 million)
(including the net 5% interest of Roy Group (Mauritius) Inc.).




Based on
the most recent amount provided by GSPC in a letter dated February 4, 2008, GSPC
asserts that the amount payable is $57.3 million as of December 31,
2007.  GeoGlobal disputes this assertion of GSPC.




We have
advised GSPC that, under the terms of the CIA, the terms of which are also
incorporated into the PSC and the Joint Operating Agreement dated August 7, 2003
between the parties, it has no right to seek the payment and that we believe the
payment GSPC is seeking is in breach of the CIA.  We further reminded
GSPC that we have fulfilled over the past five years our obligations under the
CIA to provide extensive technical assistance without any further remuneration
other than the carried interest, all in accordance with the terms of the
CIA.  In furtherance of our position, we have obtained the opinion of
prominent Indian legal counsel who has advised us that, among other things,
under the terms of the agreements between the parties, and in particular the
CIA, we are not liable to pay any amount to GSPC for either costs and expenses
incurred or otherwise before reaching the stage of commercial
production.




We
continue to be of the view that, under the terms of the CIA, we have a carried
interest in the exploration activities conducted by the parties on the KG
Offshore Block for 100% of our share (including the share of Roy Group
(Mauritius) Inc.) of costs during the exploration phase prior to the start date
of initial commercial production on the KG Offshore Block.  To date,
commercial production has not been achieved on the block.




We intend
to vigorously protect our contractual rights in accordance with the dispute
resolution process under the CIA, the PSC and the JOA as may be
appropriate.  However, there can be no assurance that GSPC will not
institute arbitration or other proceedings seeking to recover the sum or
otherwise contend we are in breach of the PSC or that the effect of GSPC seeking
payment of this sum may not hinder our capital raising and other
activities.  In September 2007, we commenced discussions with GSPC in
an effort to reach an amicable resolution, however, no agreement has been
reached as of May 30, 2008.







Page
27




Failure Of Contracting
Parties To Fulfill The Minimum Work Programs For Certain Of Our Production
Sharing Contracts; Possible Right Of Termination By Government of
India


Our PSCs
relating to our exploration blocks in India provide that by the end of the first
phase of the exploration phases the contracting parties shall have drilled a
certain number of wells or performed certain exploration
activities.  The first phase of the exploration period relating to the
PSC for the KG Offshore Block expired without the required minimum of at least
fourteen exploration wells being drilled during the first phase.  The
first phase of the exploration period of the PSC relating to the Mehsana Block
also expired without the required minimum of seven wells having been drilled and
the first phase of the exploration period of the PSC relating to the
Sanand/Miroli Block expired without the required minimum of twelve wells having
been drilled.  GSPC is the operator on the KG Offshore Block and the
Sanand/Miroli Block and Jubilant Oil & Gas ("Jubilant") is the operator on
the Mehsana Block.  The PSCs also have provisions for termination of
the PSC on account of various reasons specified therein including material
breach of the contract.  This failure to timely complete the minimum
work commitment may be deemed to constitute such a
breach.  Termination rights can be exercised after giving ninety days
written notice.




The
termination of a PSCby the GOI would result
in the loss of our interest in the PSC other than contract areas of the PSC
determined to encompass "commercial discoveries".  The PSC sets forth
procedures whereby the operator can obtain the review of the Management
Committee under the PSC as to whether a discovery on the exploration block
should be declared a commercial discovery under the PSC.  Those
procedures have not been completed at present with respect to the discovery on
the KG Offshore Block.  Although GSPC submitted, subsequent to end of
Phase I, an application to have an area declared as a commercial discovery, as
of May 30, 2008, no areas on the KG Offshore Block have been determined formally
to encompass "commercial discoveries" as that term is defined under the
PSC.  No areas of the Mehsana Block or the Sanand/Miroli Block have
been determined to encompass commercial discoveries, however, the operators of
each block have notified DGH of discoveries.




GSPC, as
operator of the Tarapur Block, has submitted an application for an extension
beyond Phase III of the PSC for an additional twelve months to complete an
additional work program of drilling five wells under the GOI new extension
policy.  The parties to the PSC have agreed to provide a 35% bank
guarantee of US$3.1 million and a 30% cash payment of US$2.7 million for this
additional work programme.  GOI consent to this application has not
yet been approved or received.  GSPC has previously notified the GOI
under the terms of the PSC of two discoveries of hydrocarbons in this block, the
Tarapur 1 and Tarapur G.  These requests remain pending at May 30,
2008.




In the
event a PSC is terminated by the GOI, or in the event the work program is not
fulfilled by the end of the relevant exploration phase, the PSC provides that
each party to the PSC is to pay to the GOI its participating interest share of
an amount which is equal to the amount that would be required to complete the
minimum work program for that phase.






Page
28




With
respect to the KG Offshore Block, we are of the view that GSPC, under the terms
of our CIA, would be liable for our participating interest share of the amount
required to complete the minimum work program for the phase.




GSPC, as
operator of the Tarapur Block, has submitted an application for an extension
beyond Phase III of the PSC for an additional twelve months to complete an
additional work program of drilling five wells under the GOI new extension
policy which has not yet been approved..  Through December 31, 2007,
we have incurred costs of approximately $7.8 million under the terms of our
agreement with GSPC for our 20% PI share of exploration costs.  If the
above request for an additional 12 months is not granted, the third and final
phase of exploratory activities on the Tarapur Block will have expired on
November 22, 2007.  The work commitment to drill one well to a depth
of 3,000 meters or to the Deccan trap has been completed and, under the terms of
the PSC, all areas not encompassing a commercial discovery after November 22,
2007 would be relinquished back to the GOI and our investment in exploration
costs on areas that will be required to be relinquished back to the GOI will
have been lost.




Charge To Statement Of Operations Resulting
From Our Failure To Exercise Our Options To Require Our 30% Interest In The
Egyptian Exploration Blocks


We
entered into a Joint Bidding Agreement with GSPC, as operator (50%) and Alkor
Petroo Limited of Hyderabad, India (20%) to bid on certain exploration blocks in
the Arab Republic of Egypt.  The agreement provides that we are to
have a 30% PI of any concession agreements entered into.  These blocks
include offshore exploration Block 6 (also referred to as N. Hap’y) and onshore
exploration Block 8 (also referred to as South Diyur) in the Arab Republic of
Egypt.  On March 22, 2008 GSPC entered into two concession agreements
covering these blocks with the Arab Republic of Egypt.




On
January 8, 2008, effective December 31, 2007, we entered into two agreements
with GSPC. An Assignment Agreement sets out the terms whereby we assigned to
GSPC all of our rights to receive a 30% PI in the two exploration blocks awarded
by the Arab Republic of Egypt in exchange for an option (the Option Agreement)
exercisable on or before April 30, 2008 to reacquire all or a portion of those
rights.  GSPC provided us a 45 day extension of time for exercising
the option to June 15, 2008.




In the
event we exercise the option, we will be required to pay to GSPC our pro rata
share of all costs and expenses from the effective date of the option agreement
(December 31, 2007).  We will also have to provide to GSPC bank
guarantees equal to the remaining 98%, based upon our share of the rights we
elects to reacquire, of the total financial commitment for conducting the first
exploration phase on the two exploration blocks.  If we elect to
reacquire and participate to the full 30% of the option, these additional bank
guarantees would amount to approximately US$56.4 million.  In addition
to the non-refundable US$1.17 million of bank guarantees, our oil and gas assets
included at December 31, 2007 approximately US$2.4 million relating to our
interests in the two exploration blocks which will be carried forward as an
investment in the option pending our determination whether we will exercise any
portion of the option.




In the
event we fail to exercise the option, the carrying value of the capitalized
costs relating to the Egyptian exploration blocks would exceed the fair value
and would be deemed to be impaired.  Once the impairment decision has
been determined, we will be required to recognize a charge to the Statement of
Operations by the amount that is not recoverable and exceeds the fair
value.  The carrying value of the Egyptian exploration blocks is
approximately US$4.1 million at December 31, 2007.





Page
29




Our Internal Control Over
Financial Reportting Was Not Effective As Of December 31, 2007 and Continuing
Weaknesses In Our Internal Controls And Procedures Could Have A Material Adverse
Effect On Us


During
our management’s assessment of the effectiveness of our internal control over
financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act in
connection with the preparation of our Annual Report on Form 10-K for the year
ended December 31, 2007 we identified two material weaknesses in those
controls.   As a result of these material weaknesses, our chief
executive officer and our chief financial officer concluded that our internal
control over financial reporting and our disclosure controls and procedures were
ineffective as of December 31, 2007, due to the conditions that led to the
identification of the material weaknesses.  Prior to the filing of this
report, we took certain steps to remediate these material
weaknesses.  Although these actions are continuing, we anticipate that
these actions when completed will remediate the material weaknesses we
identified and strengthen our internal control over financial
reporting.  However we cannot assure you that the finalized measures
that we implement will effectively address such material weaknesses or that
additional material weaknesses may not develop in the future.




Remedying
the currently existing material weaknesses, as well as any additional
significant deficiencies or material weaknesses that we or our independent
auditors may identify in the future, may require us to incur significant costs
and expend significant time and management resources.   If we fail to
timely remedy any current or additional material weaknesses or significant
deficiencies that we or our auditors may identify or if we cannot produce
reliable financial reports, we may be unable to comply with our periodic
reporting requirements, accurately report our financial results, detect fraud or
comply with the requirements of Section 404 of the Sarbanes-Oxley Act all of
which could result in a loss of investor confidence in the accuracy, timeliness
and completeness of our financial reports. As a consequence, the market price of
our common stock could decline significantly, we may be unable to obtain
additional financing to operate and expand our business, and our business and
financial condition could be materially harmed. In addition, we can give no
assurance that our independent auditors will agree with our management’s
assessment of the effectiveness of our internal control over financial reporting
at that time.




Our Failure To Timely File Certain Periodic Reports
With The SEC Poses Significant Risks To Our Business, Each Of Which Could
Materially And Adversely Affect Our Financial Condition And Results Of
Operations  We did
not timely file with the SEC our Annual Report on Form 10-K for the fiscal year
ended December 31, 2007 and our Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2008.  Consequently, we were not compliant with
the periodic reporting requirements under the Securities Exchange Act of 1934,
as amended.  As a result of our failure to have timely filed our
periodic reports with the SEC, we were in violation of our Listing Agreement
with the American Stock Exchange which, had the delinquent reports not have been
thereafter filed in accordance with a plan of compliance we filed with and was
accepted by the AMEX, would have led to the suspension and ultimate removal of
our securities from trading on the AMEX.  In addition, our failure to
timely file these and possibly future periodic reports with the SEC could
subject us to enforcement action by the SEC and shareholder lawsuits. Any of
these events could materially and adversely affect our financial condition and
results of operations and our ability to register with the SEC public offerings
of our securities for our benefit or the benefit of our security
holders.




We Experienced Additional
Risks And Costs As A Result Of the Restatement Of Certain Of Our Financial
Statements And The Delayed Filing Of This Annual Report On Form 10-K


The
restatement of our financial statements for the four fiscal years ended December
31, 2006, 2005, 2004 and 2003 and the three fiscal quarters ended September 30,
June 30, and March 31, 2007 and the delayed filing of our annual report on Form
10-K for the year ended December 31, 2007 resulted in us becoming subject to
substantial unanticipated costs for accounting and legal fees in connection with
or related to the restatements.  In addition, the restatements exposed
us to the adverse publicity associated with financial statement restatements,
shareholder criticism and potentially legal proceedings in the future in
relation to these restatements.  While not presently anticipated, such
potential proceedings, related expenses not covered by available insurance or
any adverse resolution in these proceedings could have a material adverse effect
on our business activities and financial condition. Any such proceedings could
be time consuming and distract our management from the conduct of our
business.






Page
30




Because Our Activities Have
Only Recently Commenced And We Have No Operating History And Reserves Of Oil And
Gas, We Anticipate Future Losses; There Is No Assurance Of Our
Profitability




Our oil
and natural gas operations have been only recently established and we have very
limited operating history, no oil and gas reserves and limited assets upon which
an evaluation of our business, our current business plans and our prospects can
be based.  Our prospects must be considered in light of the risks,
expenses and problems frequently encountered by all companies in their early
stages of development and, in particular, those engaged in exploratory oil and
gas activities.  Such risks include, without limitation:




·
            We
      will experience failures to discover oil and gas in commercial
      quantities;




·
            There
      are uncertainties as to the costs to be incurred in our exploratory
      drilling activities, cost overruns are possible and we may encounter
      mechanical difficulties and failures in completing
  wells;




·
            There
      are uncertain costs inherent in drilling into unknown formations, such as
      over-pressured zones, high temperatures and tools lost in the hole;
      and




·
            We
      may make changes in our drilling plans and locations as a result of prior
      exploratory drilling.




During
the exploration phase prior to the start date of initial commercial production,
we have a carried interest in the exploration activities on the KG Offshore
Block.  Our interests in our other exploration blocks are
participating interests which require us to pay our proportionate share of
exploration, drilling and development expenses on these blocks as those expenses
are incurred.  Unexpected or additional costs can affect the
commercial viability of producing oil and gas from a well and will affect the
time when and amounts that we can expect to receive from any production from a
well.  Because our carried costs of exploration and drilling on the KG
Offshore Block are to be repaid in full to the operator, GSPC, before we are
entitled to any share of production, additional exploration and development
expenses will reduce and delay any share of production and revenues we will
receive.






Page
31




There can
be no assurance that the ventures in which we are a participant will be
successful in addressing these risks, and any failure to do so could have a
material adverse effect on our prospects for the future.  Our
operations were recently established, and as such, we have no substantial
operating history to serve as the basis to predict our ability to further the
development of our business plan.  Likewise, the outcome of our
exploratory drilling activities, as well as our quarterly and annual operating
results cannot be predicted. Consequently, we believe that period to period
comparisons of our exploration, development, drilling and operating results will
not necessarily be meaningful and should not be relied upon as an indication of
our stage of development or future prospects.  In the future,
operating or drilling results may fall below our expectations or the
expectations of securities analysts and investors and that some of our drilling
results will be unsuccessful and the wells abandoned.  In such event,
the trading price of our common stock may be materially and adversely
affected.





We Expect To Have
Substantial Requirements For Additional Capital That May Be Unavailable To Us
Which Could Limit Our Ability To Participate In Our Existing And Additional
Ventures Or Pursue Other Opportunities.  Our Available Capital Is
Limited




In order
to participate under the terms of our PSCs as well as in further joint venture
arrangements leading to the possible grant of exploratory drilling
opportunities, we will be required to contribute or have available to us
material amounts of capital.  Under the terms of our CIA relating to
the KG Offshore Block, after the start date of initial commercial production on
the KG Offshore Block, and under the terms of the nine other PSCs we are parties
to, we are required to bear our proportionate share of costs during the
exploration phases of those agreements.  There can be no assurance
that our currently available capital will be sufficient for these purposes or
that any additional capital that is required will be available to us in the
amounts and at the times required.  Such capital also may be required
to secure bonds in connection with the grant of exploration rights, to conduct
or participate in exploration activities or be engaged in drilling and
completion activities.  We intend to seek the additional capital to
meet our requirements from equity and debt offerings of our
securities.  Our ability to access additional capital will depend in
part on the success of the ventures in which we are a participant in locating
reserves of oil and gas and developing producing wells on the exploration
blocks, the results of our management in locating, negotiating and entering into
joint venture or other arrangements on terms considered acceptable, as well as
the status of the capital markets at the time such capital is
sought.




There can
be no assurance that capital will be available to us from any source or that, if
available, it will be at prices or on terms acceptable to us.  Should
we be unable to access the capital markets or should sufficient capital not be
available, our activities could be delayed or reduced and, accordingly, any
future exploration opportunities, revenues and operating activities may be
adversely affected and could also result in our breach of the terms of a PSC
which could result in the loss of our rights under the contract.




As of
December 31, 2007, we had cash and cash equivalents of approximately $48.1
million.  We currently expect that our available cash will be
sufficient to fund us through the balance of 2008 and through the budget period
ending March 31, 2009 at our present level of operations on the ten exploration
blocks in which we are currently a participant in.  Although
exploration activity budgets are subject to ongoing review and revision, our
present estimate of our commitments of capital pursuant to the terms of our PSCs
relating to our ten exploration blocks, excluding the KG Onshore Block and the
Tarapur Block, totals approximately $17.1 million during the period April 1,
2008 to March 31, 2009.  We anticipate expenditures on the Tarapur
Block, if the 12 month extension is granted to be $2.2 million for the same
period.  Further, we anticipate our expenditures on the KG Onshore
Block to be $4.2 million based upon a 10% PI.  Upon receipt of
approval from the GOI for the increase to a 25% PI, these expenditures will
increase to $10.5 million.  Any further PSCs we may seek to enter into
or any expanded scope of our operations or other transactions that we may enter
into may require us to fund our participation or capital expenditures with
amounts of capital not currently available to us.  We may be
unsuccessful in raising the capital necessary to meet these capital
requirements.  There can be no assurance that we will be able to raise
the capital.




Risks Associated With Our
Holding A Carried Interest


Under
the terms of our Carried Interest Agreement, we are carried by GSPC for all our
share of any costs and expenses during the exploration phase on the KG Offshore
Block, prior to the start date of initial commercial
production.  Under the terms of our Carried Interest Agreement, after
deducting all royalties payable, GSPC is entitled to recover all such costs and
expenses out of production, if any, from wells drilled by GSPC on the block
before we are entitled to receive any share of the
production.  Accordingly, we will not be entitled to receive any
production of hydrocarbons or revenues from the production from wells drilled on
the block until such time as GSPC has recovered the costs and expenses GSPC paid
during the exploration phase on our behalf.




As
operator of the KG Offshore Block, GSPC is required to conduct the exploration
and drilling operations on the block in accordance with generally accepted oil
and gas industry standards, subject to the terms of a Joint Operating Agreement,
and is entitled to make all decisions and take all actions necessary in
fulfilling the minimum work program commitments made in the Production Sharing
Contract relating to the KG Offshore Block.  Through December 31,
2007, GSPC had expended approximately $57.3 million on our behalf under the
terms of the Carried Interest Agreement of which 50% is for the account of Roy
Group (Mauritius) Inc. (“RGM”) and it is expected that those expenses will
increase materially thereafter.  There can be no assurance as to when,
if ever, GSPC will recover out of production our share of exploration costs and
expenses.  Until such time, we will realize no revenues from our
interest in the KG Offshore Block.  Accordingly, our ability to
receive revenues from hydrocarbon production from the KG Offshore Block,
notwithstanding our carried interest, is dependent upon the future production,
if any, recovered from the block and the price realized from the production, if
any, being sufficient to enable GSPC to recover the costs and expenses it incurs
on our behalf.





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32


India’s Regulatory Regime
May Increase Our Risks And Expenses In Doing Business


All
phases of the oil and gas exploration, development and production activities in
which we are participating are regulated in varying degrees by the Indian
government, either directly or through one or more governmental
entities.  The areas of government regulation include matters relating
to restrictions on production, price controls, export controls, income taxes,
expropriation of property, environmental protection and rig
safety.  In addition, the award of a PSC is subject to GOI consent and
matters relating to the implementation and conduct of operations under the PSC
are subject, under certain circumstances, to GOI consent.  As a
consequence, all future drilling and production programs and operations we
undertake or are undertaken by the ventures in which we participate in India
must be approved by the Indian government.  Shifts in political
conditions in India could adversely affect our business in India and the ability
to obtain requisite government approvals in a timely fashion or at
all.  We, and our joint venture participants, must maintain
satisfactory working relationships with the Indian government.  This
regulatory environment and possible delays inherent in that environment may
increase the risks associated with our exploration and production activities and
increase our costs of doing business.





Our Control By Directors And
Executive Officers May Result In Those Persons Having Interests Divergent From
Our Other Stockholders


As of May
30, 2008, our Directors and executive officers and their respective affiliates,
in the aggregate, beneficially hold 32,543,667 shares or approximately 45.1% of
our outstanding Common Stock.  As a result, these stockholders possess
significant influence over us, giving them the ability, among other things, to
elect a majority of our Board of Directors and approve significant corporate
transactions.  These persons will retain significant control over our
present and future activities and our other stockholders and investors may be
unable to meaningfully influence the course of our actions.  These
persons may have interests regarding the future activities and transactions in
which we engage which may diverge from the interests of our other
stockholders.  Such share ownership and control may also have the
effect of delaying or preventing a change in control of us, impeding a merger,
consolidation, takeover or other business combination involving us, or
discourage a potential acquiror from making a tender offer or otherwise
attempting to obtain control of us which could have a material adverse effect on
the market price of our Common Stock.  Although management has no
intention of engaging in such activities, there is also a risk that the existing
management will be viewed as pursuing an agenda which is beneficial to
themselves at the expense of other stockholders.





Our
Reliance On A Limited Number Of Key Management Personnel Imposes Risks On Us
That We Will Have Insufficient Management Personnel Available If The Services Of
Any Of Them Are Unavailable


We are
dependent upon the services of our President and Chief Executive Officer, Jean
Paul Roy, and Executive Vice President and Chief Financial Officer, Allan J.
Kent.  The loss of either of their services could have a material
adverse effect upon us.  We currently do not have employment
agreements with either of such persons or key man life insurance.  The
services of Mr. Roy are provided pursuant to the terms of an agreement with a
corporation wholly-owned by Mr. Roy.  We have no direct contractual
agreement with Mr. Roy and, therefore, he is not directly obligated to provide
services to us or refrain from engaging in other activities.  At
present, Mr. Kent’s services are provided through an oral agreement with a
corporation wholly-owned by Mr. Kent.  There is no written agreement
between us and Mr. Kent which obligates him to refrain from engaging in other
activities.




At
present, our future is substantially dependent upon the geological and
geophysical capabilities of Mr. Roy to locate oil and gas exploration
opportunities for us and the ventures in which we are a
participant.  His inability to do the foregoing could materially
adversely affect our future activities.  We entered into a TSA with
RGB dated August 29, 2003, a company owed 100% by Mr. Roy, to perform such
geological and geophysical duties and exercise such powers related thereto as we
may from time to time assign to it.  The initial term of this contract
was for three years with a provision to continue for successive periods of one
year and currently the TSA is subject to termination on December 31, 2008 in the
event either party gives written notice that it intends to
terminate.






Page
33




Our
Success Is Largely Dependent On The Success Of The Operators Of The Ventures In
Which We Participate And Their Failure Or Inability To Properly Or Successfully
Operate The Oil And Gas Exploration, Development And Production Activities On An
Exploration Block, Could Materially Adversely Affect Us




At
present, our only oil and gas interests are our contractual rights under the
terms of the ten PSCs with the GOI that we have entered into.  We are
not and will not be the operator of any of the exploration, drilling and
production activities conducted on our exploration blocks, with the exception of
the DS 03 Block and the DS 04 Block in which we hold a 100% interest and are the
operators.  Accordingly, the realization of success in these
exploration blocks is substantially dependent upon the success of the operators
in exploring for and developing reserves of oil and gas and their ability to
market those reserves at prices that will yield a return to us.




The
minimum work programs required to be conducted by the contracting parties under
certain of the PSCs to which we are a party have not been completed by the
operators within the time frames required by the PSCs.  These
circumstances could lead to the termination of the PSC, the assessment of
damages against the contracting parties and the loss of our investments under
the PSCs.  We are dependent upon the operators to timely complete
these minimum work programs.




Under the
terms of our CIA for the KG Offshore Block, we have a CI in the exploration
activities conducted by the parties on the KG Offshore Block prior to the start
date of initial commercial production.  However, under the terms of
that agreement, all of our proportionate share of capital costs for exploration
and development activities must be repaid without interest over the projected
production life or ten years, whichever is less.  Our proportionate
share of these costs and expenses expected to be incurred over the 6.5 year term
of the PSC for which our interest is carried was originally estimated to be
approximately $22.0 million.  Additional drilling costs including the
drilling to depths in excess of 5,000 meters, where higher downhole temperatures
and pressures are encountered, versus shallower depths as originally
anticipated, as well as the testing and completion costs of these wells, has
resulted in additional costs exceeding originally estimated
expenditures.  We have been advised by GSPC that they have incurred
costs of approximately $57.3 million on our behalf as of December 31, 2007 of
which 50% is for the account of RGM.  We have been further advised
that GSPC is expected to incur additional costs of approximately $59.9 million
on our behalf (including the 5% PI of RGM) under the terms of the CIA over the
period April 1, 2008 to March 31, 2009.  We are unable to estimate the
amount of additional expenditures GSPC will make as operator attributable to us
prior to the start date of initial commercial production under the CIA or when,
if ever, any commercial production will commence.  Of these
expenditures, 50% are for the account of RGM under the terms of the PIA between
us and RGM.  We are not entitled to any share of production from the
KG Offshore Block until such time as the expenditures attributed to us,
including those expenditures made for the account of Roy Group (Mauritius) Inc.,
under the CIA, have been recovered by GSPC from future production
revenue.  Therefore, we are unable to estimate when we may commence to
receive distributions from any production of hydrocarbon reserves found on the
KG Offshore Block.  As provided in the CIA, in addition to repaying
our proportionate share of capital costs incurred for which we were carried, we
will be required to bear our proportionate share of the expenditures
attributable to us after the start date of initial commercial production on the
KG Offshore Block.





Certain
Terms Of The Production Sharing Contracts May Create Additional Expenses And
Risks That Could Adversely Affect Our Revenues And
Profitability




The PSCs
contain certain terms that may affect the revenues of the joint venture
participants to the agreements and create additional risks for
us.  These terms include, possibly among others, the
following:




·
            The
      venture participants are required to complete certain minimum work
      programs during the two or three phases of the terms of the
      PSCs.  In the event the venture participants fail to fulfill any
      of these minimum work programs, the parties to the venture must pay to the
      GOI their proportionate share of the amount that would be required to
      complete the minimum work program.  Accordingly, we could be
      called upon to pay our proportionate share of the estimated costs of any
      incomplete work programs.




Page
34


·
            Until
      such time as the GOI attains self sufficiency in the production of crude
      oil and condensate and is able to meet its national demand, the parties to
      the venture are required to sell in the Indian domestic market their
      entitlement under the PSCs to crude oil and condensate produced from the
      exploration blocks.  In addition, the Indian domestic market has
      the first call on natural gas produced from the exploration blocks and the
      discovery and production of natural gas must be made in the context of the
      government’s policy of utilization of natural gas and take into account
      the objectives of the government to develop its resources in the most
      efficient manner and promote conservation
      measures.  Accordingly, this provision could interfere with our
      ability to realize the maximum price for our share of production of
      hydrocarbons;




·
            The
      parties to each agreement that are not Indian companies, which includes
      us, are required to negotiate technical assistance agreements with the GOI
      or its nominee whereby such foreign company can render technical
      assistance and make available commercially available technical information
      of a proprietary nature for use in India by the government or its nominee,
      subject, among other things, to confidentiality
      restrictions.  Although not intended, this could increase each
      venture’s and our cost of operations;
and




·
            The
      parties to each venture are required to give preference, including the use
      of tender procedures, to the purchase and use of goods manufactured,
      produced or supplied in India provided that such goods are available on
      equal or better terms than imported goods, and to employ Indian
      subcontractors having the required skills insofar as their services are
      available on comparable standards and at competitive prices and
      terms.  Although not intended, this could increase the ventures
      and our cost of operations.




These
provisions of the PSCs, possibly among others, may increase our costs of
participating in the ventures and thereby affect our
profitability.  Failure to fully comply with the terms of the PSCs
creates additional risks for us.





Oil And Gas Prices Fluctuate
Widely And Low Oil And Gas Prices Could Adversely Affect Our Financial
Results


There is
no assurance that there will be any market for oil or gas produced from the
exploration blocks in which we hold an interest and our ability to deliver the
production from any wells may be constrained by the absence of or limitations on
collector systems and pipelines.  Future price fluctuations could have
a major impact on the future revenues from any oil and gas produced on these
exploration blocks and thereby our revenue, and materially affect the return
from and the financial viability of any reserves that are
claimed.  Historically, oil and gas prices and markets have been
volatile, and they are likely to continue to be volatile in the
future.  A significant decrease in oil and gas prices could have a
material adverse effect on our cash flow and profitability and would adversely
affect our financial condition and the results of our operations.  In
addition, because world oil prices are quoted in and trade on the basis of U.S.
dollars, fluctuations in currency exchange rates that affect world oil prices
could also affect our revenues.  Prices for oil and gas fluctuate in
response to relatively minor changes in the supply of and demand for oil and
gas, market uncertainty and a variety of additional factors that are beyond our
control, including:




·
            political
      conditions and civil unrest in oil producing regions, including the Middle
      East and elsewhere;




·
            the
      domestic and foreign supply of oil and
gas;




·
            quotas
      imposed by the Organization of Petroleum Exporting Countries upon its
      members;




·
            the
      level of consumer demand;




·
            weather
      conditions;




·
            domestic
      and foreign government regulations;




·
            the
      price and availability of alternative
fuels;




·
            overall
      economic conditions; and




·
            international
      political conditions.




Page
35


In
addition, various factors may adversely affect the ability to market oil and gas
production from our exploration blocks, including:




·
            the
      capacity and availability of oil and gas gathering systems and
      pipelines;




·
            the
      ability to produce oil and gas in commercial quantities and to enhance and
      maintain production from existing wells and wells proposed to be
      drilled;




·
            the
      proximity of future hydrocarbon discoveries to oil and gas transmission
      facilities and processing equipment (as well as the capacity of such
      facilities);




·
            the
      effect of governmental regulation of production and transportation
      (including regulations relating to prices, taxes, royalties, land tenure,
      allowable production, importing and exporting of oil and condensate and
      matters associated with the protection of the
  environment);




·
            the
      imposition of trade sanctions or embargoes by other
    countries;




·
            the
      availability and frequency of delivery
vessels;




·
            changes
      in supply due to drilling by
others;




·
            the
      availability of drilling rigs and qualified personnel;
  and




·
            changes
      in demand.







Our
Ability To Locate And Participate In Additional Exploration Opportunities And To
Manage Growth May Be Limited By Reason Of Our Limited History Of Operations And
The Limited Size Of Our Staff


While our
President and Executive Vice President have had extensive experience in the oil
and gas exploration business, we have been engaged in limited activities in the
oil and gas business over approximately the past four years and have a limited
history of activities upon which you may base your evaluation of our
performance.  As a result of our brief operating history and limited
activities in oil and gas exploration activities, our success to date in
entering into ventures to acquire interests in exploration blocks may not be
indicative that we will be successful in entering into any further
ventures.  There can be no assurance that we will be successful in
growing our oil and gas exploration and development activities.




Any
future significant growth in our oil and gas exploration and development
activities will place demands on our executive officers, and any increased scope
of our operations will present challenges to us due to our current limited
management resources.  Our future performance will depend upon our
management and its ability to locate and negotiate opportunities to participate
in joint venture and other arrangements whereby we can participate in
exploration opportunities.  There can be no assurance that we will be
successful in these efforts.  Our inability to locate additional
opportunities, to hire additional management and other personnel or to enhance
our management systems could have a material adverse effect on our results of
operations.





Our Future Performance
Depends Upon Our Ability And The Ability Of The Ventures In Which We Participate
To Find Or Acquire Oil And Gas Reserves That Are Economically
Recoverable


Our
success in developing our oil and gas exploration and development activities
will be dependent upon establishing, through our participation with others in
joint ventures and other similar activities, reserves of oil and gas and
maintaining and possibly expanding the levels of those reserves.  We
and the joint ventures in which we may participate may not be able to locate and
thereafter replace reserves from exploration and development activities at
acceptable costs.  Lower prices of oil and gas may further limit the
kinds of reserves that can be developed at an acceptable cost.  The
business of exploring for, developing or acquiring reserves is capital
intensive.  We may not be able to make the necessary capital
investment to enter into joint ventures or similar arrangements to maintain or
expand our oil and gas reserves if capital is unavailable to us and the ventures
in which we participate.  In addition, exploration and development
activities involve numerous risks that may result in dry holes, the failure to
produce oil and gas in commercial quantities, the inability to fully produce
discovered reserves and the inability to enhance production from existing
wells.




Page
36


We expect
that we will continually seek to identify and evaluate joint venture and other
exploration opportunities for our participation as a joint venture participant
or through some other arrangement.  Our ability to enter into
additional exploration activities will be dependent to a large extent on our
ability to negotiate arrangements with others and with various governments and
governmental entities whereby we can be granted a participation in such
ventures.  There can be no assurance that we will be able to locate
and negotiate such arrangements, have sufficient capital to meet the costs
involved in entering into such arrangements or that, once entered into, that
such exploration activities will be successful.  Successful
acquisition of exploration opportunities can be expected to require, among other
things, accurate assessments of potential recoverable reserves, future oil and
gas prices, projected operating costs, potential environmental and other
liabilities and other factors.  Such assessments are necessarily
inexact, and as estimates, their accuracy is inherently uncertain. We cannot
assure you that we will successfully consummate any further exploration
opportunities or joint venture or other arrangements leading to such
opportunities.





Estimating Reserves And
Future Net Revenues Involves Uncertainties And Oil And Gas Price Declines May
Lead To Impairment Of Oil And Gas Assets


Currently,
we do not claim any proved reserves of oil or natural gas.  Any
reserve information that we may provide in the future will represent estimates
based on reports prepared by independent petroleum engineers, as well as
internally generated reports.  Petroleum engineering is not an exact
science.  Information relating to proved oil and gas reserves is based
upon engineering estimates derived after analysis of information we furnish or
furnished by the operator of the property.  Estimates of economically
recoverable oil and gas reserves and of future net cash flows necessarily depend
upon a number of variable factors and assumptions, such as historical production
from the area compared with production from other producing areas, the assumed
effects of regulations by governmental agencies and assumptions concerning
future oil and gas prices, future operating costs, severance and excise taxes,
capital expenditures and workover and remedial costs, all of which may in fact
vary considerably from actual results.  Oil and gas prices, which
fluctuate over time, may also affect proved reserve estimates.  For
these reasons, estimates of the economically recoverable quantities of oil and
gas attributable to any particular group of properties, classifications of such
reserves based on risk of recovery and estimates of the future net cash flows
expected therefrom prepared by different engineers or by the same engineers at
different times may vary substantially.  Actual production, revenues
and expenditures with respect to reserves we may claim will likely vary from
estimates, and such variances may be material.  Either inaccuracies in
estimates of proved undeveloped reserves or the inability to fund development
could result in substantially reduced reserves.  In addition, the
timing of receipt of estimated future net revenues from proved undeveloped
reserves will be dependent upon the timing and implementation of drilling and
development activities estimated by us for purposes of the reserve
report.




Quantities
of proved reserves are estimated based on economic conditions in existence in
the period of assessment. Lower oil and gas prices may have the impact of
shortening the economic lives on certain fields because it becomes uneconomic to
produce all recoverable reserves on such fields, thus reducing proved property
reserve estimates. If such revisions in the estimated quantities of proved
reserves occur, it will have the effect of increasing the rates of depreciation,
depletion and amortization on the affected properties, which would decrease
earnings or result in losses through higher depreciation, depletion and
amortization expense. The revisions may also be sufficient to trigger impairment
losses on certain properties that would result in a further non-cash charge to
earnings.





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37


Risks
Relating To The Market For Our Common Stock





Volatility Of Our Stock
Price


The
public market for our common stock has been characterized by significant price
and volume fluctuations.  There can be no assurance that the market
price of our common stock will not decline below its current or historic price
ranges.  The market price may bear no relationship to the prospects,
stage of development, existence of oil and gas reserves, revenues, earnings,
assets or potential of our company and may not be indicative of our future
business performance.  The trading price of our common stock could be
subject to wide fluctuations.  Fluctuations in the price of oil and
gas and related international political events can be expected to affect the
price of our common stock.  In addition, the stock market in general
has experienced extreme price and volume fluctuations that have affected the
market price for many companies which fluctuations have been unrelated to the
operating performance of these companies.  These market fluctuations,
as well as general economic, political and market conditions, may have a
material adverse effect on the market price of our company's common
stock.  In the past, following periods of volatility in the market
price of a company's securities, securities class action litigation has often
been instituted against such companies.  Such litigation, if
instituted, and irrespective of the outcome of such litigation, could result in
substantial costs and a diversion of management's attention and resources and
have a material adverse effect on our company's business, results of operations
and financial condition.








PART
II





Item
7.                     Management’s Discussion and
Analysis of Financial Condition and Results of Operations





General





The
following discussion and analysis of our financial condition and results of
operation should be read in conjunction with, and is qualified in its entirety
by, the more detailed information including our Financial Statements and the
related Notes appearing elsewhere in this Annual Report.  This Annual
Report contains forward-looking statements that involve risks and
uncertainties.  Our actual results may differ materially from the
results and business plans discussed in the forward-looking
statements.  Factors that may cause or contribute to such differences
include those discussed below in "Risk Factors" as well as those discussed
elsewhere in this Annual Report.





Restatement





The years
ended December 31, 2006, 2005 and the period from inception August 21, 2002 to
December 31, 2006 have been restated due to an error in the classification and
calculation for stock-based compensation for non-employee
consultants.





Our
Business Activities





We are
engaged, through subsidiaries and joint ventures in which we are a participant,
in the exploration for and development of oil and gas reserves.  We
initiated these activities in 2003.  Through December 31, 2007, our
activities have been undertaken in locations where we and our joint venture
participants have been granted exploration rights pursuant to Production Sharing
Contracts ("PSCs") entered into with the Government of India
("GOI").  We have entered into ten PSCs.  Each PSC relates
to a separate drilling block onshore or offshore India and each provides for
multi-year and multi-phase exploration and drilling
activities.  Exploration and development activities pursuant to the
terms of these agreements are expected to continue throughout 2008.




At
December 31, 2007, we have not reported any proved reserves of oil or natural
gas.





Page
38


Statements
of Operations





Oil and Gas
Operations


Our oil
and gas exploration activities commenced at August 21, 2002.  We have
not since our inception earned any revenues from these operations.




Years
ended December 31, 2007 and 2006


During
the year ended December 31, 2007, we had expenses of $3,730,540 compared with
expenses of $3,295,616 during the year ended December 31, 2006.  This
increase is primarily the result of the increased scale of our participation in
oil and gas exploration activities and additions to the office
infrastructure.




Our
general and administrative expenses increased to $2,280,232 from
$1,890,926.  These general and administrative expenses include costs
related to the corporate head office including administrative salaries and
services, rent and office costs, insurance, American Stock Exchange listing and
filing fees and transfer agent fees and services.  Also included in
our general and administrative expenses are our compensation costs for
stock-based compensation arrangements with employees and directors which are
being expensed over their respective vesting periods.  These
stock-based compensation costs decreased to $929,826 from $1,048,477 for the
same period in 2006.  The majority of the increase in the general and
administrative expenses is a result of compensation costs of $240,000 related to
the September 6, 2007 extension of the expiry date of the 2005 Compensation
Options and the related 2005 Compensation Option Warrants issued in a private
sale of our securities in 2005 from September 9, 2007 to June 20, 2009 which
were not incurred in the same period in 2006.  The balance of the
increase is due to the addition of an extra staff member in the Calgary office
offset by the decrease in stock-based compensation costs.




Our
consulting fees decreased to $356,912 during the year ended December 31, 2007
from $1,104,106 in the prior year.  This change is mostly attributable
to the decrease in compensation costs for stock-based compensation with
non-employee consultants for the year ended December 31, 2007 being a recovery
of $258,832 versus an expense of $539,812 for the year ended December 31,
2006.  These consulting fees include $70,000 (2006 - $70,000) paid
under our Technical Services Agreement with a corporation wholly owned by Mr.
Roy, who is employed as a consultant to us, and other fees and expenses we
incurred in employing various technical and corporate consultants who advised us
on a variety of matters.




Professional
fees increased to $1,037,971 during the year ended December 31, 2007 from
$251,261 during the year ended December 31, 2006.  Professional fees
include those paid to our auditors for pre-approved audit, accounting and tax
services and fees paid to our legal advisors primarily for services provided
with regard to filing various periodic reports and other documents and reviewing
our various oil and gas and other agreements. Legal fees increased from
approximately $138,903 in 2006 to about $319,519 in 2007.  In
addition, costs associated with initiating the modeling, testing and documenting
internal controls as required by Section 404 of the Sarbanes Oxley Act were
incurred during the year along with the work required to restate our financial
statements for the years ending December 31, 2006, 2005, 2004 and
2003.  This resulted in an increase from $114,733 for the year ending
December 31, 2006, to $718,452 in the fees paid to our auditors and accountants
for additional work incurred during the year ending December 2007 as compared to
2006.




Our other
expenses and income during the year ended December 31, 2007 resulted in income
of $2,187,430 versus $1,746,813 for the same period in 2006.  Included
in other expenses and income is a foreign exchange gain $21,510 compared to a
loss in 2006 of $4,737.  Interest income increased, being $2,165,920
for the year ended December 31, 2007 as compared to $1,751,550 for the same
period in, 2006.  This improvement is directly related to a small
increase in US prime interest rate in 2007 as compared to 2006 as well an
increase in our invested cash balances resulting from our private sale of
securities in June, 2007.




During
the year ended December 31, 2007, depreciation increased slightly to $55,425
from $49,323 during the year ended December 31, 2006.




Reflecting
the increase in our general and administrative expenses and professional fees
due to the increase in our overall oil and gas exploration activities, as offset
by the increase in interest income and a decrease in our consulting fees, our
net loss amounted to $1,543,110 for the year ended December 31, 2007 as compared
to a net loss of $1,548,803 for the same period in 2006.






Page
39




On
September 6, 2007, our Board of Directors adopted a resolution extending the
expiration date of our outstanding 2005 Stock Purchase Warrants from September
9, 2007 to June 20, 2009.  Accordingly, we recorded a charge to the deficit
of $1,320,000 during the year ended December 31, 2007 for the incremental
difference in the fair value of the 2005 Stock Purchase Warrants immediately
prior to and after the modification as compared to nil for the year ended
December 31, 2006 when there was no such extension or charge recorded. 
This resulted in a net loss and comprehensive loss applicable to common
stockholders of $2,863,110 as compared to $1,548,803 during the year ended
December 31, 2006.




We
capitalized overhead costs directly related to our exploration activities in
India.  During the year ended December 31, 2007, these capitalized
overhead costs were $2,218,054 as compared to $2,791,520 during the year ended
December 31, 2006.  The difference of $573,466 is mostly attributable
to a decrease in the capitalized portion of the stock-based compensation for our
non-employee consultants directly related in our oil and gas exploration
activities for the year ended December 31, 2007 to $852,004 versus $1,424,225
for the same period in 2006.




Years
ended December 31, 2006 and 2005


During
the year ended December 31, 2006, we had expenses of $3,295,616 compared with
expenses of $3,693,281 during the year ended December 31, 2005.  This
decrease is primarily the result of the increased scale of our participation in
oil and gas exploration activities, with commensurate additions to the office
infrastructure and the initial year of accounting for stock-based compensation
expense, offset by a substantial decrease in consulting fees due to a decrease
in our stock-based compensation for non-employee consultants.




Our
general and administrative expenses increased to $1,890,926 from
$495,326.  Of this increase, $1,048,477 reflects the adoption of FAS
123(R) pursuant to which we are required to recognize compensation costs for
stock-based arrangements with employees effective January 1,
2006.  These general and administrative expenses include costs related
to the corporate head office including administrative salaries and services,
rent and office costs, insurance, American Stock Exchange listing and filing
fees and transfer agent fees and services.  Our consulting fees
decreased to $1,104,106 during the year ended December 31, 2006 from $2,947,126
in the prior year.  This decrease is mainly attributable to the
decrease in stock-based compensation for non-employee consultants for the year
ending December 31, 2005 of $2,681,680 to $539,812 for the year ending December
31, 2006.  Further, these consulting fees include $70,000 (2005 -
$62,000) paid under our Technical Services Agreement with a corporation wholly
owned by Mr. Roy and other fees and expenses we incurred in employing various
technical and corporate consultants who advised us on a variety of
matters.  Professional fees increased to $251,261 during the year
ended December 31, 2006 from $201,298 during the year ended December 31,
2005.  Professional fees include those paid to our auditors for
pre-approved audit, accounting and tax services and fees paid to our legal
advisors primarily for services provided with regard to filing various periodic
reports and other documents and reviewing our various oil and gas and other
agreements.  In addition, costs associated with initiating the
modeling, testing and documenting internal controls as required by Section 404
of the Sarbanes Oxley Act were incurred during the latter part of the
year.  This resulted in an increase of $49,963 in the fees paid to our
auditors, accountants and legal counsel for additional work incurred during the
year ending December 2006 as compared to 2005.




During
the year ended December 31, 2006, depreciation decreased slightly to $49,323
from $49,531 during the year ended December 31, 2005.




Our other
expenses and income during the year ended December 31, 2006 resulted in income
of $1,746,813 versus $530,621 for the same period in 2005.  Included
in other expenses and income is a foreign exchange loss of $4,737 compared to a
gain in 2005 of $319.  During the previous year ended December 31,
2005, we recovered fees and costs of $25,900 resulting from services provided
and billed out to GSPC and a gain on the sale of computer equipment of
$42,228.  No such expense recoveries or asset dispositions occurred
during the year ended December 31, 2006.  Our increase in interest
income to $1,751,550 from $462,174 for the year ended December 31, 2005 is a
result of the significant increase in the size of our cash balances we held
during a full year in 2006 as compared to a partial year in 2005 as well as an
increase in the US prime rate.




Page
40


Net loss
for the year ended December 31, 2006 was $1,548,803 versus a net loss of
$3,162,660 in 2005.  This decrease was mainly attributable to the
reduction in our consulting fees as a result of a reduction in our compensation
costs for the stock-based compensation arrangements with non-employee
consultants coupled with the increase in interest earned during the most recent
year, net of our increased costs as a result of our increased scale of
participation in oil and gas exploration activities.




We
capitalized overhead costs directly related to our exploration activities in
India.  During the year ended December 31, 2006, these capitalized
overhead costs were $2,791,520 as compared to $2,141,844 during the year ended
December 31, 2005.  This increase is mostly attributable to the
capitalized stock-based compensation for employees of $658,404 which is
recognized for the first time in 2006, as a consequence of our adoption of FAS
123(R) effective January 1, 2006, with the balance of the increase being
consistent with the increased scale of our participation in oil and gas
exploration activities.





Liquidity


At
December 31, 2007, our cash and cash equivalents were $48,134,858 (December 31,
2006 - $32,362,978).  The majority of these funds are being held as US
funds, of which $47,807,605 is held in term deposits earning interest based on
the US prime rate.  In addition to our cash balances, we will earn
interest on our term deposits which we believe will significantly cover our
administrative costs and overhead throughout 2008.




We are
unaware at this time of any material uncertainties that may affect our liquidity
through March 31, 2009.  We further believe at this time that the
outcome of the KG CIA dispute will not have a material effect on our
liquidity.




We
currently have no specific plans or arrangements to raise additional
capital.  We believe that our available cash resources will be
sufficient to maintain our current level of activities through the period ending
March 31, 2009.




Years
ended December 31, 2007 and 2006


During
the year ended December 31, 2007, our overall position in cash and cash
equivalents increased by $15,771,880, as compared to a net decrease in the
comparable period of 2006 of $3,674,410.  These cash movements can be
attributed to the following activities:




Our net
cash provided by operating activities during the year ended December 31, 2007
was $151,793 as compared to used in operating activities of $245,071 for the
year ended December 31, 2006.  This increase is mostly attributable to
the result of an increase in our accounts payable and accrued liabilities for
the year ended December 31, 2007 as compared to 2006.




Cash used
in investing activities during the year ended December 31, 2007 was $11,193,071
as compared to $8,267,169 during the year ended December 31,
2006.  Funds of $13,807,287 were used for exploration activities and
$29,396 for the acquisition of property and equipment in 2007 as compared to
$6,739,386 and $142,924 in 2006.  This increase is consistent with our
increased drilling costs in the Cambay area as well as exploration costs
incurred in bidding and evaluating new exploration blocks in the Arab Republic
of Egypt.  In addition, we made a substantial investment in fixed
assets, mainly for an office condominium in Gandhinagar, India plus improvements
which were completed during the third quarter at a total cost of approximately
$940,000.




Offsetting
the increased investing activity in the year ended December 31, 2007 was a
reduction in the requirement to supply bank guarantees, such that in the year
ended December 31, 2007 outlays were reduced to $964,711 versus outlays for such
instruments of $3,198,284 for the year ended December 31, 2006.  These
bank guarantees have been provided and serve as guarantees for the performance
of our minimum work program ("MWP"), and are in the form of irrevocable letters
of credit which are secured by our term deposits in the same
amount.  These investing outlays were also offset by a combined
increase in accounts payable, accrued liabilities and prepaids and deposits of
$3,608,323 in the year ended December 31, 2007 as compared to a combined net
increase in accounts payable, accrued liabilities, and prepaids and deposits of
$1,763,478              in
the same period of 2006.






Page
41




Cash
provided by financing activities for the year ended December 31, 2007 was
$26,813,158 as compared to cash provided by financing activities of $4,837,830
during the year ended December 31, 2006.  During the year ended
December 31, 2007, we completed the sale of 5,680,000 Units of our securities at
$5.00 per Unit for aggregate cash gross proceeds of $28,400,000 less share
issuance costs of $1,907,517 relating to financing
activities.  Further, during the year ended December 31, 2007, cash of
$320,675 was provided from the issuance of 317,500 shares of common stock on the
exercise of options, as compared to cash of $4,922,640 from the issuance of
3,254,000 shares of common stock on the exercise of options and 2003 Purchase
Warrants less share issuance costs of $74,010.




Years
ended December 31, 2006 and 2005


Our net
cash used in operating activities during the year ended December 31, 2006 was
$245,071 as compared to $165,558 for the year ended December 31,
2005.  This increase is mostly the result of an increase in our
exploration activities net of our interest earned on our cash balances for the
year ended December 31, 2006 as compared to 2005.




Cash used
by investing activities during the year ended December 31, 2006 was $8,267,169
as compared to $1,679,352 during the year ended December 31,
2005.  This increase is a result of the increased scale of our
participation in oil and gas exploration activities.  Funds of
$6,739,386 were used for exploration activities and $142,924 for the acquisition
of property and equipment in 2006 as compared to $1,578,124 and $36,826 in
2005.  These acquisitions included computer and office equipment
totaling $114,835 plus a deposit on our office condominium in India of
$28,090.  As well we incurred $6,739,386 as our share of exploration
costs related to our PSCs for our oil and gas interests in India.  The
increase in restricted cash of $3,198,284 represents additional term deposits we
made in 2006 as compared to $185,689 in 2005 which are used as collateral for
letters of credit given to the GOI as minimum work commitment guarantees on a
total of six exploration blocks at December 31, 2006.




Cash
provided by financing activities for the year ended December 31, 2006 was
$4,837,830 as compared to cash provided in financing activities of $33,462,700
during the year ended December 31, 2005.  This consisted of $4,922,640
from the issuance of 3,254,000 shares of common stock on the exercise of options
and purchase warrants issued from our 2003 financing less share issuance costs
of $74,010.




At
December 31, 2006, our cash and cash equivalents were $32,362,978 (December 31,
2005 - $36,037,388).  The majority of these funds were held as US
funds in our bank accounts and in term deposits earning interest based on the US
prime rate.





Capital
Resources





We expect
our exploration and development activities pursuant to the PSCs we are a party
to, and the related drilling activities in the 10 exploration blocks that we
hold an interest in, will continue through 2008 in accordance with the terms of
those agreements.  During the period April 1, 2008 to March 31, 2009,
based on the current budgets, we anticipate drilling thirty-six well which
entails approximately four wells in the KG Offshore Block, three wells in the KG
Onshore Block, twenty-six wells in three of our Cambay Blocks (Mehsana,
Sanand/Miroli and Ankleshwar) and three wells in our Rajasthan
Blocks.  Further, we may drill approximately five wells on the Tarapur
Block pending the outcome of the extension of Phase III requested of the
GOI.




In
addition, we may seek to participate in joint ventures bidding for the award of
further PSCs for exploration blocks expected to be awarded by the GOI in the
future.  As of May 30, 2008, we have no specific plans to join with
others in bidding for any specific PSCs in India and elsewhere.  We
expect that our interest in any such ventures would involve a minority PI in the
venture.  In addition, as opportunities arise, we may seek to acquire
minority PI's in exploration blocks where PSCs have been heretofore
awarded.  The acquisition of any such interests would be subject to
the execution of a definitive agreement and obtaining the requisite government
consents and other approvals.






Page
42




We may
during the year 2008 seek to participate in joint venture bidding for the
acquisition of oil and gas interests in other international countries, however,
as of May 30, 2008, we have made no specific plans regarding such activities and
have not entered into any binding agreements with respect to such
activities.




Depending
upon the scope of our activities during the years 2008 and 2009, we may require
additional capital for the funding of our activities under the PSCs we are
currently a party to as well as support for our bidding for other PSCs that may
be awarded in India or elsewhere.  In addition, we may require
additional funds for the possible acquisition of further minority participating
interests in PSCs in drilling blocks heretofore awarded and that we may
hereafter propose to enter into in India and possibly elsewhere.  We
believe it can be expected that our interest in further or additional PSCs would
be a participating interest.  As the holder of a participating
interest in any such activities, it can be expected that we will be required to
contribute capital to any such ventures in proportion to our percentage
interest.




As of May
30, 2008, the scope of any possible such activities has not been definitively
established and, accordingly, we are unable to state the amount of any funds
that may be required for these purposes.  As a result, no specific
plans or arrangements have been made to raise additional capital and we have not
entered into any agreements in that regard.  We expect that if we seek
to raise additional capital it will be through the sale of equity
securities.  As of May 30, 2008, we are unable to estimate the terms
on which any such capital may be raised, the price per share or possible number
of shares involved.




We
believe that our available cash resources will be sufficient to meet all our
expenses and cash requirements estimated to be approximately $28M for the period
ended March 31, 2009 for our present level of operations.  We do not
expect to have any significant change in 2008 in our number of
employees.





The
KG Offshore Block and Our Carried Interest Agreement





At
December 31, 2007, GSPC, the Operator of the KG Offshore Block, has expended on
exploration activities approximately $57.3 million attributable to us under the
CIA as compared to $26.1 million at December 31, 2006.  Of this
amount, 50% is for the account of RGM.  Under the terms of the CIA,
GeoGlobal and RGM are carried by GSPC for 100% of all our share of any costs
during the exploration phase on the KG Offshore Block prior to the start date of
initial commercial production.




Under the
terms of the PSC, GSPC is committed to expend further funds for the exploration
of and drilling on the KG Offshore Block.  Preliminary estimates made
in August 2002 were that these expenditures attributable to us will total
approximately $22.0 million over the 6.5 year term of the
PSC.  Additional drilling costs incurred in drilling to depths in
excess of 5,000 meters versus shallower depths as originally anticipated, as
well as the testing and completion costs of these wells, has resulted in our
actual costs significantly exceeding our original budgeted
expenditures.  The estimated annual budget for costs to be incurred by
GSPC for the twelve month period April 1, 2008 to March 31, 2009 attributable to
us under the CIA is approximately $59.9 million.  Of this amount, 50%
is for the account of RGM.  We are unable to estimate the amount of
additional expenditures GSPC will make attributable to us prior to the start
date of initial commercial production under the CIA or when, if ever, any
commercial production will commence.  As provided in the CIA, we will
be required to bear the expenditures attributable to us after the start date of
initial commercial production on the KG Offshore Block.




We will
not realize cash flow from the KG Offshore Block until such time as the
expenditures attributed to us, including those expenditures made for the account
of RGM under the CIA have been recovered by GSPC from future production
revenue.  Under the terms of the CIA, all of our proportionate share
of capital costs for exploration and development activities must be repaid to
GSPC without interest over the projected production life or ten years, whichever
is less.





Page
43


Tabular Disclosure of
Contractual Obligations





The
following table sets forth our contractual obligations by type of agreement and
due during the twelve month periods ended March 31, 2009 and succeeding twelve
month periods.  Where the amounts of payments are $-0- indicates we
have no material obligations under such types of agreements.




Payments
      due by period ($ in millions)Contractual
      Obligation
              Total
              Less
      than one year
              1-3
      years
              3-5
      years
              More
      than 5 yearsLong-term
      debt
              -0-
              -0-
              -0-
              -0-
              -0-Capital
      lease
              -0-
              -0-
              -0-
              -0-
              -0-Operating
      lease
              0.1
              0.1
              -0-
              -0-
              -0-Purchase
              -0-
              -0-
              -0-
              -0-
              -0-Other
      long-term liabilities
              0.3
              -0-
              -0-
              -0-
              0.3Financial
      commitments under PSCs
              48.3
              27.5
              20.8
              -0-
              -0-Total
              48.7
              27.6
              20.8
              -0-
              0.3




Financial
commitments under PSCs arise under the terms of our PSCs.  Under these
agreements, we are obligated to pay for our proportionate share of the
multi-year exploration expenses in fulfilling the work programs on the
exploration blocks.  Because annual budgets are adopted under the
terms of the PSCs for twelve month periods commencing April 1 through March 31
of the following year, obligations under the PSCs have been presented for those
twelve month periods.  Payments “Less Than One Year” include the
estimated budgeted expenses for the period of twelve months ending March 31,
2009.  Payments “1-3 years” include our management’s estimated
expenses under the PSCs for the remaining 36 months of the “1-3 year” period for
the work programs required under the terms of the PSCs ending March 31,
2012.  The “3-5 years” and “More than 5 years” are our management’s
estimates of exploration expenses under the PSCs for twelve month periods
thereafter.  Inasmuch as exploration and drilling activities can
involve unanticipated expenses and cost overruns, there can be no assurance that
these management estimates will prove to be accurate.




Financial
commitments under the PSCs are outlined below and include only the commitments
for the current exploration Phase that we are conducting.  Further, as
we have not yet received GOI consent to increasing our PI in the KG Onshore
Block from 10% to 25%, our financial commitment shown in the table above
includes only our 10% PI.





Krishna
Godavari Basin Agreements





KG Onshore
Block


Under the
PSC for the KG Onshore Block, the Phase I work commitment consists of conducting
a gravity and magnetic and geochemical survey; reprocess 564 LKM of 2-D seismic;
acquire, process and interpret 548 sq kms of 3-D seismic; and drill 12
exploratory wells between 2,000 and 5,000 meters.  Our share of these
costs was originally estimated to total approximately $8.5 million for a 10% PI
(25% PI - $21.4 million) over the four years of Phase I commencing February 18,
2008.  On September 14, 2006, prior to the submission of our NELP-VI
bid, we entered into an agreement with OIL to increase our PI to 25%, subject to
the availability of sufficient net worth and GOI consent.  GOI consent
is currently outstanding.




The
budget estimate for the period April 1, 2008 to March 31, 2009 has been prepared
and our proportionate share of the budget at 10% is $4.2 million and at 25% is
$10.5 million.  This budget entails performing the required surveys
and studies, including the acquisition or a 548 sq. km. 3-D seismic acquisition
program, reprocessing the 564 LKM of 2-D seismic, a 50 LKM 2-D seismic
acquisition program and processing of interpretation thereof for Phase I and the
drilling of 3 exploratory wells.





Page
44


KG Offshore
Block




Certain
exploration costs related to the KG Offshore Block are incurred by us and on our
behalf in providing its services under the CIA and are therefore not
reimbursable under the CIA.  These costs are estimated to be
approximately $1.5 million per year over the next four years.







Cambay
Basin Agreements





Mehsana
Block


The Phase
I work commitment is to acquire, process and interpret 75 sq kms of 3D seismic,
reprocess 650 LKM's of 2-D seismic and complete a geochemical survey all of
which is completed.  Further, we are to drill 7 exploratory wells
between 1,000 and 2,200 meters before May 20, 2008, of which, 6 wells have
completed drilling and as at May 12, 2008, 1 well is drilling.  The
budget for the period April 1, 2008 to March 31, 2009 has not been
prepared.  We estimate costs to be incurred to complete the Phase I
work commitment as well as the Phase II work commitment of drilling 2 additional
exploratory wells before November 20, 2008, to be approximately $1.0
million.





Sanand/Miroli
Block


The
minimum work commitment for Phase I is to be completed by July 28, 2008 and
Phase II will expire January 28, 2009.  The work completed as at May
12, 2008, which fulfills the Phase I minimum work commitments includes the
acquisition of 463 sq kms of 3-D seismic, reprocessing of 1,000 kms of 2-D
seismic and conducting a geochemical survey and analysis of 200
samples.  Further GSPC is to drill 12 exploratory wells in Phase I and
3 exploratory wells in Phase II, of which 9 exploratory wells have been drilled
along with 1 appraisal well




The
budget for the remaining 3 exploratory wells to be drilled from Phase I and the
3 exploratory wells to be drilled from Phase II together with the drilling of 4
appraisal wells has been prepared for the period of April 1, 2008 to March 31,
2009, at a cost to us of approximately $3.7 million.




The
minimum work commitment for Phase I has been completed.  The minimum
work commitment for Phase II which expires November 20, 2008 requires the
drilling of 2 additional exploration wells.  It is likely that we will
move into Phase II at an estimated cost to us of approximately $1.0
million.





Ankleshwar
Block


The Phase
I minimum work commitment which is to be completed over the three year period
April 1, 2006 to March 31, 2009 is to acquire, process and interpret 448 sq kms
of 3D seismic, reprocess 650 LKM's of 2-D seismic and complete a geochemical
survey and analysis of 500 samples, all of which has been
completed.  Further, 14 exploratory wells are to be drilled between
1,500 and 2,500 meters.  These wells have been budgeted to be drilled
during the period April 1, 2008 to March 31, 2009 at a cost to us of
approximately $4.2 million.





Tarapur
Block


Phase
III under the PSC for this exploration block expired on November 22,
2007.  GSPC as operator, on behalf of the consortium partners has
submitted an application for an extension beyond Phase III of the PSC for an
additional twelve months to November 22, 2008 to complete an additional work
program of drilling five wells under the GOI new extension policy at a cost to
us of approximately $2.2 million.  The consortium also agreed that it
would provide a 35% bank guarantee and a 30% cash payment as agreed
pre-estimated damages for the additional work program which cash payment is
non-refundable and estimated to be 30% of the total cost required to complete
the additional work program.  Our share is $773,000 and $662,000
respectively.  GOI consent to this application has not yet been
approved or received.





Page
45


Deccan
Syneclise Basin Agreements





DS-03
Block


The
budget estimate for the period April 1, 2008 to March 31, 2009 has been
calculated and our 100% PI share of that budget is approximately $1.3
million.  This budget entails the completion of the gravity and
magnetic and geochemical surveys for Phase I along with a 50 LKM 2-D seismic
line acquisition.  The Phase I minimum work commitment which is to be
completed by September 4, 2009 also includes the acquisition of a 12,000 LKM
Aero Magnetic survey which is expected to commence in the 2009 fiscal
year.





DS 04
Block


The Phase
I work commitment consists of gravity and magnetic and geochemical surveys;
acquire, process and interpret 325 LKM of 2-D seismic; and drill 10 core holes
to a depth of approximately 500 meters.  Our share of these costs is
estimated to total approximately $1.45 million over the four years of Phase I
commencing June 7, 2007.  The budget estimate for the period April 1,
2008 to March 31, 2009 has been calculated and our 100% PI of that budget is
approximately $500,000.  This budget entails the completion of the
gravity and magnetic and geochemical surveys for Phase I as well as a 50 LKM 2-D
seismic line acquisition.





Rajasthan
Basin Agreements





RJ Block
20


The Phase
I work commitment consists of conducting a gravity and magnetic and geochemical
survey; reprocess 463 LKM of 2-D seismic; acquire, process and interpret 250 LKM
of 2-D seismic and 700 sq kms of 3-D seismic; and drill a total of 12
exploratory wells between 2,000 and 2,500 meters.  Our share of these
costs is estimated to total approximately $10.2 million over the four years of
Phase I commencing January 21, 2008.  The budget estimate for the
period April 1, 2008 to March 31, 2009 has been prepared and our proportionate
share of that budget at 25% PI is $4.2 million.  This budget entails
the completion of the gravity and magnetic and geochemical survey, reprocessing
of 463 LKM's of 2-D seismic, acquisition, process and interpret 700 sq kms of
3-D seismic for Phase I and the drilling of 2 exploratory wells.





RJ Block
21




The Phase
I work commitment consists of conducting a gravity and magnetic and geochemical
survey; reprocess 463 LKM of 2-D seismic; acquire, process and interpret 310 LKM
of 2-D seismic and 611 sq kms of 3-D seismic; and drill a total of 8 exploratory
wells between 2,000 and 2,500 meters. Our share of these costs is estimated to
total approximately $8.1 million over the four years of Phase I commencing
January 21, 2008.  The budget estimate for the period April 1, 2008 to
March 31, 2009 has been prepared and our proportionate share of that budget at
25% PI is $3.0 million.  This budget entails the completion of the
gravity and magnetic and geochemical survey, reprocessing of 463 LKM's of 2-D
seismic, acquisition, process and interpret 611 sq kms of 3-D seismic for Phase
I and the drilling of 1 exploratory well.







Critical
Accounting Policies and Estimates





Our
Significant Accounting Policies are outlined in Note 2 to our Consolidated
Financial Statements in Item 7 of this Annual Report.  In the ordinary
course of business, we have made a number of estimates and assumptions relating
to the reporting of our consolidated financial position and the consolidated
results of our operations and our cash flows in conformity with U.S. generally
accepted accounting principles.  Actual results could differ
significantly from those estimates under different assumptions and
conditions.  We believe that the following discussion addresses our
most critical accounting policies.





Page
46


Property
and equipment





We follow
the full cost method of accounting for its petroleum and natural gas
operations.  Upon the commencement of economic production quantities
of petroleum and natural gas, depletion of our exploration costs in India
included in Property and Equipment, will be provided on a country-by-country
basis using the unit-of-production method based upon estimated proven petroleum
and natural gas reserves.  The costs of acquiring and evaluating our
unproven properties in India will not be depleted until it is determined whether
or not proven reserves are attributable to the properties, the major development
projects are completed, or impairment occurs.  To date we are
currently in the development stage and have not yet found any commercial
reserves in India.  We are continuing with our exploratory drilling
programs in India and have no basis for impairment of the costs incurred to
date.





Impairment
of Oil and Gas Properties





We review
the carrying values of our oil and gas interests whenever events or changes in
circumstances indicate that such carrying values may not be recoverable. If,
upon review, the sum of the discounted after-tax cash flows from proved reserves
plus the market value of unproved properties is less than the carrying value of
the asset group, the carrying value is written down to estimated fair value.
Individual assets are grouped for impairment purposes, generally on a
block-by-block basis. The fair value of impaired assets is determined based on
quoted market prices in active markets, if available, or upon the present values
of expected future cash flows using discount rates commensurate with the risks
involved in the asset group.  This requires us to use significant
assumptions, including estimates relating to the future development costs,
pricing, production costs and associated production.  Changes in any of
these assumptions can result in significant revisions to the carrying value of
the oil and gas interests.





Asset
Retirement Obligation





Legal
obligations associated with the retirement of long-lived assets result from the
acquisition, construction, development and normal use of the
asset.  The Company’s asset retirement obligations relate primarily to
the retirement of oil and gas properties and related production facilities,
lines and other equipment used in the field operations.  The fair
value of a liability for an asset retirement obligation is recognized in the
period in which it is incurred, if a reasonable estimate of fair value can be
made. The estimated fair value of the liability is added to the carrying amount
of the associated asset.  This additional carrying amount is then
depreciated over the life of the asset.  The liability increases due
to the passage of time based on the time value of money until the obligation is
settled.  This requires us to use significant assumptions, including
current estimates of plugging and abandonment costs, annual inflation of these
costs, the productive lives of wells and our risk-adjusted interest
rate.  Changes in any of these assumptions can result in significant
revisions to the estimated asset retirement obligations.





Stock
Based Compensation





We
adopted FAS 123(R), using the modified-prospective-transition method on January
1, 2006.  Under this method, we are required to recognize compensation
cost for stock-based compensation arrangements with employees and directors
based on their grant date fair value using the Black-Scholes option-pricing
model, such cost to be expensed over the compensations’ respective vesting
periods.  For awards with graded vesting, in which portions of the
award vest in different periods, we recognize compensation costs over the
vesting periods for each separate vested tranche




Prior to
January 1, 2006, we used the intrinsic value method of accounting for
share-based compensation awards in accordance with Accounting Principles Board
Opinion No. 25, Accounting for Stock Issued to
Employees(“APB 25”), which generally resulted in no compensation expense
for employee stock options with an exercise price greater than or equal to fair
value on the date of grant.






Page
47




We record
the estimated fair value of the equity instrument expense of options granted to
non-employee consultants on the measurement date.  The Company
re-measures the fair value of the unvested portion of stock-based awards to
non-employee consultants, resulting in charges or credits to operations in
periods when such re-measurement results in differences between the fair value
of the underlying common stock and the exercise price of the options that is
greater than or less than the differences, if any, between the fair value of the
underlying common stock and the exercise price of the options at their
respective previous measurement dates.  Stock-based compensation for
non-employee consultants is expensed or capitalized based on the nature of the
consultant’s activities.




Inherent
in determining the fair value of options are several judgments and estimates
that must be made. These include determining the underlying valuation
methodology for share compensation awards and the related inputs utilized in
each valuation, such as our expected stock price volatility, expected term of
the options granted to employees and consultants, expected dividend yield, the
expected risk-free interest rate, the underlying stock price and the exercise
price of the option. Changes to these assumptions could result in different
valuations for individual share awards. The company uses the Black-Scholes
option pricing model to determine the fair value of options granted to
employees, non-employee directors and non-employee consultants.





Recent
Accounting Standards





Fair Value
Measurements


In
September 2006, the FASB issued FAS No. 157, “Fair Value Measurements” (“FAS
157”), which defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. FAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years, and is
applicable beginning in the first quarter of 2008. The FASB has also issued
Staff Position FAS 157-2 (“FSP No. 157-2”), which delays the effective date
of SFAS No. 157 for nonfinancial assets and liabilities, except for items
that are recognized or disclosed at fair value in the financial statements on a
recurring basis (at least annually), until fiscal years beginning after
November 15, 2008. We are currently evaluating the impact that FAS 157 and
FSP No. 157-2 will have on our consolidated financial statements and FAS 157
will be applied prospectively.





The Fair Value Option for
Financial Assets and Financial Liabilities


In
February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial
Assets and Financial Liabilities – Including an amendment of FASB Statement No.
115”, (“FAS 159”) which permits entities to choose to measure many financial
instruments and certain other items at fair value at specified election dates. A
business entity is required to report unrealized gains and losses on items for
which the fair value option has been elected in earnings at each subsequent
reporting date. This statement is expected to expand the use of fair value
measurement. FAS 159 is effective for financial statements issued for fiscal
years beginning after November 15, 2007, and interim periods within those fiscal
years, and is applicable beginning in the first quarter of 2008. We are
currently evaluating the impact that FAS 159 will have on our consolidated
financial statements and FAS 159 will be applied prospectively.





Accounting for Derivative
Instruments and Hedging Activities


Statement
161, issued March 2008, amends FASB Statement No. 133, Accounting for Derivative
Instruments and Hedging Activities, and requires companies with derivative
instruments to disclose information about how and why a company uses derivative
instruments, how derivative instruments and related hedged items are accounted
for under Statement 133, and how derivative instruments and related hedged items
affect a company’s financial position, financial performance, and cash flows.
The required disclosures include the fair value of derivative instruments and
their gains or losses in tabular format, information about credit-risk related
contingent features in derivative agreements, counterparty credit risk, and the
company’s strategies and objectives for using derivative instruments. The
Statement expands the current disclosure framework in Statement 133. Statement
161 is effective prospectively for periods beginning on or after November 15,
2008. We plan to provide these additional disclosures in the first quarter of
2009.






Page
48




Business
Combinations


In
December 2007, the FASB issued FAS No. 141(R), Business Combinations.
FAS 141(R) replaces FAS No. 141, Business Combinations. FAS 141(R) retains
the purchase method of accounting for acquisitions, but requires a number of
changes, including changes in the way assets and liabilities are recognized in
purchase accounting. It also changes the recognition of assets acquired and
liabilities assumed arising from contingencies and requires the expensing of
acquisition-related costs as incurred. Generally, FAS 141(R) is effective on a
prospective basis for all business combinations completed on or after
January 1, 2009. We do not expect the adoption of FAS 141(R) to have a
material impact on our financial position or results of operations, provided
that we do not undertake a significant acquisition or business
combination.





Non-controlling Interests in
Consolidated Financial Statements


In
December 2007, the FASB Issued FAS No. 160, “Noncontrolling Interests in
Consolidated Financial Statements, an amendment of Accounting Research Bulletin
No. 51” (“FAS No. 160”), which improves the relevance, comparability
and transparency of the financial information that a reporting entity provides
in its consolidated financial statements by establishing accounting and
reporting standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. This statement is effective for fiscal years
beginning after December 15, 2008. We doenot expect the adoption of FAS
No. 160 to have a material impact on our consolidated financial position,
results of operations or cash flows.





Cautionary
Statement For Purposes Of The "Safe Harbor" Provisions Of The Private Securities
Litigation Reform Act Of 1995


With the
exception of historical matters, the matters discussed in this Report are
"forward-looking statements" as defined under the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, that involve risks
and uncertainties.  Forward-looking statements made herein include,
but are not limited to:


·
            the
      statements in this Report regarding our plans and objectives relating to
      our future operations,


·
            plans
      and objectives regarding the exploration, development and production
      activities conducted on the exploration blocks in India in which we have
      interests,


·
            plans
      regarding drilling activities intended to be conducted through the
      ventures in which we are a participant, the success of those drilling
      activities and our ability and the ability of the ventures to complete any
      wells on the exploration blocks, to develop reserves of hydrocarbons in
      commercially marketable quantities, to establish facilities for the
      collection, distribution and marketing of hydrocarbons, to produce oil and
      natural gas in commercial quantities and to realize revenues from the
      sales of those hydrocarbons,


·
            our
      ability to maintain compliance with the terms and conditions of our PSCs,
      including the related work commitments, to obtain consents, waivers and
      extensions from the DGH or GOI as and when required, and our ability to
      fund those work commitments,


·
            our
      plans and objectives to join with others or to directly seek to enter into
      or acquire interests in additional PSCs with the GOI and
      others,


·
            our
      assumptions, plans and expectations regarding our future capital
      requirements,


·
            our
      plans and intentions regarding our plans to raise additional
      capital,


·
            the
      costs and expenses to be incurred in conducting exploration, well
      drilling, development and production activities, our estimates as to the
      anticipated annual costs of those activities and the adequacy of our
      capital to meet our requirements for our present and anticipated levels of
      activities are all forward-looking
statements.






Page
49


These
statements appear, among other places, under the captions “Item 1. Description
of Business –Our Oil and Gas Activities,”  "Item 1A - Risk Factors"
and “Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations.”  If our plans fail to materialize, your
investment will be in jeopardy.


·
            We
      cannot assure you that our assumptions or our business plans and
      objectives discussed herein will prove to be accurate or be able to be
      attained.


·
            We
      cannot assure you that any commercially recoverable quantities of
      hydrocarbon reserves will be discovered on the exploration blocks in which
      we have an interest.


·
            Our
      ability to realize revenues cannot be assured.  Our ability to
      successfully drill, test and complete producing wells cannot be
      assured.


·
            We
      cannot assure you that we will have available to us the capital required
      to meet our plans and objectives at the times and in the amounts required
      or we will have available to us the amounts we are required to fund under
      the terms of the PSCs we are a party
to.


·
            We
      cannot assure you that we will be successful in joining any further
      ventures seeking to be granted PSCs by the GOI or that we will be
      successful in acquiring interests in existing
  ventures.


·
            We
      cannot assure you that we will obtain all required consents, waivers and
      extensions from the DGH or GOI as and when required to maintain compliance
      with our PSCs , that we may not be adversely affected by any delays we may
      experience in receiving those consents, waivers and extensions, that we
      may not incur liabilities under the PSCs for our failure to maintain
      compliance with and timely complete the related work programs, or that
      GSPC may not be successful in its efforts to obtain payment from us on
      account of exploration costs it has expended on the KG Offshore Block for
      which it asserts we are liable or otherwise seek to hold us in breach of
      that PSC or commence arbitration proceedings against
  us.


·
            We
      cannot assure you that the outcome of testing of one or more wells on the
      exploration blocks under our PSCs will be satisfactory and result in
      commercially-productive wells or that any further wells drilled will have
      commercially-successful results.




Our
inability to meet our goals and objectives or the consequences to us from
adverse developments in general economic or capital market conditions, events
having international consequences, or military or terrorist activities could
have a material adverse effect on us.  We caution you that various
risk factors accompany those forward-looking statements and are described, among
other places, under the caption "Risk Factors" herein.  They are also
described in our Quarterly Reports on Form 10-QSB and 10-Q, and our Current
Reports on Form 8-K.  These risk factors could cause our operating
results, financial condition and ability to fulfill our plans to differ
materially from those expressed in any forward-looking statements made in this
Report and could adversely affect our financial condition and our ability to
pursue our business strategy and plans.





Item
8.                Financial Statements and
Supplementary Data





Our
Financial Statements are included in a separate section of this
report.  See page FS 61.








Page
50


PART III





Item
11.                    Executive
Compensation





The
following table sets forth the compensation of our principal executive officer
and all of our other executive officers for the two fiscal years ended December
31, 2007 who received total compensation exceeding $100,000 for the year ended
December 31, 2007 and who served in such capacities at December 31,
2007.





SUMMARY
COMPENSATION TABLE


Annual
Compensation





Name
      and Principal Position
                
                
                
                
                (a)
              Year
                
                
                
                
                
                (b)
              Salary
                ($)
                
                
                
                
                (c)
              Bonus
                ($)
                
                
                
                
                (d)
              Stock
      Awards
                ($)
                
                
                
                
                (e)
              Option
      Awards
                ($)
      (1)
                
                
                
                
                (f)
              Non-Equity
      Incentive Plan Compen-
                sation
                ($)
                
                
                (g)
              Nonqualified
      Deferred Compen-
                sation
                Earnings
                ($)
                
                
                (h)
              All
      Other Compen-sation
                ($)
                
                
                
                (i)
              Total
                ($)
                
                
                
                
                (j)Jean
      Paul Roy, (3)
      President & CEO
              2007
                2006
              350,000
                350,000
              -0-
                -0-
              -0-
                -0-
              166,396
                404,104
              Nil
                Nil
              Nil
                Nil
              48,000
      (5)
                44,280
      (6)
              547,236
                798,384Allan
      J. Kent, (4)
                Exec
      VP & CFO
              2007
                2006
              185,000
                185,000
              -0-
                -0-
              -0-
                -0-
              166,396
                404,104
              Nil
                Nil
              Nil
                Nil
              30,330
      (7)
                -0-
              391,726
                589,104Miles
      Leggett (8)
                Geoscience
      Specialist
              2007
                2006
              158,400
                117,425
              10,000
                -0-
              -0-
                -0-
              183,781
                137,644
              Nil
                Nil
              Nil
                Nil
              -0-
                -0-
              352,181
                255,069B.
      Mohapatra (8)
                Country
      Manager, India
              2007
                2006
              137,391
                63,459
              -0-
                52,126
              -0-
                -0-
              293,228
                86,076
              Nil
                Nil
              Nil
                Nil
              -0-
                -0-
              430,619
                201,661


(1)
            Represents
      the dollar amount recognized for financial statement reporting purposes
      with respect to the fiscal year in accordance with FAS
      123R.  See Note 8b to Notes to Financial Statements for the year
      ended December 31, 2007.


(2)
            Messrs.
      Roy and Kent are also Directors of our company; however they receive no
      additional compensation for serving in those
  capacities.


(3)
            The
      salary and bonus amounts are paid to RGB, a Barbados company wholly owned
      by Mr. Roy, pursuant to the terms of a TSA described
  below.


(4)
            The
      salary and bonus amounts are paid to D.I. Investments Ltd., a company
      controlled by Mr. Kent, pursuant to an oral arrangement described
      below.


(5)
            Costs
      paid for by us included in this amount are $21,720 for airfare for the
      family of Mr. Roy to travel to India from their home once during the
      calendar year and $26,280 for medical coverage for Mr. Roy and his
      family.


(6)
            Costs
      paid for by us included in this amount are $18,780 for airfare for the
      family of Mr. Roy to travel to India from their home two times during the
      calendar year and $25,500 for medical coverage for Mr. Roy and his
      family.


(7)
            Costs
      paid for by us included in this amount are $30,330 for medical coverage
      for Mr. Kent and his family.


(8)
            The
      salary and bonus amounts are paid to these persons as an employee and not
      as an executive officer.





Narrative
Disclosure to Summary Compensation Table


On August
29, 2003, we entered into a TSA with RGB, a company organized under the laws of
Barbados and wholly owned by Mr. Roy.  Under the agreement, RGB agreed
to perform such geologic and geophysical duties as are assigned to it by
us.  The term of the agreement, as amended, extends through December
31, 2008 and continues for successive periods of one year thereafter unless
otherwise agreed by the parties or either party has given notice that the
agreement will terminate at the end of the term.  On January 31, 2006,
the terms of the agreement were amended to amend the fee payable from $250,000
to $350,000 effective January 1, 2006.  RGB also is reimbursed for
authorized travel and other out-of-pocket expenses.  The agreement
prohibits RGB from disclosing any of our confidential information and from
competing directly or indirectly with us for a period ending December 31, 2008
with respect to any acquisition, exploration, or development of any crude oil,
natural gas or related hydrocarbon interests within the area of the country of
India.  The agreement may be terminated by either party on 30 days’
prior written notice, provided, however, the confidentiality and non-competition
provisions will survive the termination.




Page
51


D.I.
Investments Ltd. ("DI"), a company controlled by Mr. Kent, was paid up to
December 31, 2007 by us for consulting services.  The services of Mr.
Kent are provided to us pursuant to the oral arrangement with DI.  The
oral agreement was amended to provide for an annual fee payable of $185,000
effective January 1, 2006 and the oral agreement was further amended to provide
for an annual fee payable of $212,750 effective January 1,
2008.




We do not
have any employment agreements with any of our named executive
officers





Outstanding
Equity Awards at December 31, 2007





The
following table provides information with respect to our named executive
officers above regarding outstanding equity awards held at December 31,
2007.




Option
      Awards
              Stock
      AwardsName
                
                
                
                
                
                
                
                
                
                
                
                (a)
              Number
      of securities underlying unexercised Options
                (#)
                Exercisable/
                Unexercisable
                
                
                
                
                
                
                
                (b-c)
              Equity
      Incentive Plan Awards:
                Number
      of Securities Underlying Unexercised Unearned Options
                (#)
                
                
                
                
                
                (d)
              Option
      Exercise Price
                ($)
                
                
                
                
                
                
                
                
                
                (e)
              Option
      Expiration Date
                mm/dd/yy
                
                
                
                
                
                
                
                
                
                (f)
              Number
      of shares or units of Stock held that have not vested
                (#)
                
                
                
                
                
                
                
                (g)
              Market
      value of shares or units of Stock held that have not vested (1)
                ($)
                
                
                
                
                
                
                
                (h)
              Equity
      Incentive Plan Awards:  Number of Unearned Shares, Units or
      Other Rights That Have Not Vested
                (#)
                
                
                
                
                
                
                
                
                (i)
              Equity
      Incentive Plan Awards: Market or payout value of Unearned Shares, Units or
      Other Rights That Have Not Vested
                ($)
                
                
                
                
                
                
                (j)Jean
      Paul Roy
              300,000(1)
              -0-
              1.10
              08/31/08
              -0-
              -0-
              -0-
              -0-500,000(2)
              -0-
              3.95
              07/25/16
              -0-
              -0-
              -0-
              -0-Allan
      J. Kent
              300,000(1)
              -0-
              1.10
              08/31/08
              -0-
              -0-
              -0-
              -0-500,000(2)
              -0-
              3.95
              07/25/16
              -0-
              -0-
              -0-
              -0-Miles
      Leggett (8)
              150,000(3)
              -0-
              3.95
              12/31/09
              -0-
              -0-
              -0-
              -0-150,000(4)
              -0-
              5.03
              12/31/10
              -0-
              -0-
              -0-
              -0-B.
      Mohapatra (8)
              90,000(5)
              -0-
              6.50
              08/24/08
              -0-
              -0-
              -0-
              -0-210,000(6)
              -0-
              3.95
              12/31/09
              -0-
              -0-
              -0-
              -0-150,000(7)
              -0-
              5.03
              12/31/10
              -0-
              -0-
              -0-
              -0-




(1)
            Of
      these options, options to purchase 100,000 shares vested on each of
      January 18, 2005, August 31, 2005 and December 31,
    2005.


(2)   Of these options, options to purchase 250,000 shares
vested on each of December 31, 2006 and July 25, 2007.


(3)
            Of
      these options, options to purchase 50,000 shares vested on each of July
      25, 2006, December 31, 2006 and December 31,
  2007.


(4)   Options to purchase 150,000 shares vest on July 3,
2008.


(5)
            Of
      these options, options to purchase 10,000 vested on August 24, 2005 and
      40,000 shares vested on each of December 31, 2005 and August 31,
      2006.


(6)
            Of
      these options, options to purchase 70,000 shares vested on July 26, 2007
      and 70,000 vest on each of July 25, 2008 and July 25,
      2009.


(7)   Options to purchase 150,000 shares vest on July 3,
2008.


(8)
            The
      equity awards are granted to these persons as an employee and not as an
      executive officer.





Page
52


Director
Compensation





The
following table provides information with respect to compensation of our
Directors during the year ended December 31, 2007.  The compensation
paid to our named executive officers who are also Directors is reflected in the
Summary Compensation Table above.




Name
                
                
                
                
                
                (a)
              Fees
      earned or paid in cash
                ($)
                
                
                
                (b)
              Stock
      Awards
                ($)
      (1)
                
                
                
                
                (c)
              Option
      Awards
                ($)
      (1)
                
                
                
                
                (d)
              Non-Equity
      Incentive Plan Compensation
                ($)
                
                
                
                (e)
              Non-Qualified
      Deferred Compensation Earnings
                
                
                
                (f)
              All
      Other Compensation
                ($)
                
                
                
                (g)
              Total
                ($)
                
                
                
                
                (h)Peter
      Smith
              5,000
              -0-
              103,800
              -0-
              -0-
              -0-
              108,800Brent
      Peters
              5,000
              -0-
              103,800
              -0-
              -0-
              -0-
              108,800Michael
      Hudson
              31,000
              -0-
              103,800
              -0-
              -0-
              -0-
              134,800Dr.
      Avinash Chandra
              29,500
              -0-
              103,800
              -0-
              -0-
              -0-
              133,300




(1)
            Represents
      the dollar amount recognized for financial statement reporting purposes
      with respect to the fiscal year in accordance with FAS
      123R.  See Note 8b to Notes to Financial Statements for the year
      ended December 31, 2007.





Our
non-employee Board members receive cash compensation for attendance in person or
by phone for each board meeting and each of the committee meetings that they are
a member of.  A fee of $1,000 is paid for personally attending each
meeting and $500 is paid for attendance by phone.  Our non-employee
Board members may also be paid a fee for their services for a special project
they may conduct or participate in.  Two of our non-employee Board
members received $25,000 each for their services for special projects conducted
during 2007.  Our Directors are also reimbursed for their
out-of-pocket expenses in attending meetings.  Pursuant to the terms
of our 1998 Stock Incentive Plan, each non-employee Director automatically
receives an option grant for 50,000 shares on the date such person joins the
Board.  In addition, on the date of each annual stockholder meeting,
provided such person has served as a non-employee Director for at least six
months, each non-employee Board member who is to continue to serve as a
non-employee Board member will automatically be granted an option to purchase
50,000 shares.  Each such option has a term of ten years, subject to
earlier termination following such person's cessation of Board service, and is
subject to certain vesting provisions.  For the purposes of the
automatic grant provisions of the Plan, all of our Directors, other than Messrs.
Roy and Kent are considered non-employee Board members.





Compensation
Committee Interlocks and Insider Participation





None of
the members of our Compensation Committee were officers or employees of our
company during the year ended December 31, 2007 or were former officers of our
company or had any other relationship with our company requiring
disclosure.





Compensation
Discussion and Analysis





Policies and
Objectives


Our
Compensation Committee believes that our compensation policies and objectives
should align with and reflect the stage of development of our operations, our
operating objectives and the extent of realization of our
objectives.  Our Compensation Committee believes that our policies and
objectives must take into consideration our specific business objectives and
manner of achieving those objectives and our ability to implement those
objectives under the terms of the production sharing contracts to which we are a
party.  Accordingly, our compensation policies and objectives should
be based on both our successes in entering into and pursuing joint venture
arrangements, as well as the progress and success of the exploration and
drilling activities of those ventures, whether undertaken directly by us or
through the operators of the exploration blocks.




Page
53


Our
Compensation Committee also believes that the compensation of our executive
officers should be based on the principles that the levels of compensation must
enable our company to motivate and retain the talent we need to lead and make
our company grow.  Our Compensation Committee further believes that
the compensation levels must be competitive with similar other companies, be
fair and reasonable and, where appropriate, reward successful
performance.  Our Compensation Committee relies upon its judgment in
making compensation decisions.




Because
it believes such a structure is most appropriate to our company’s stage of
development, the Compensation Committee has followed the practices established
in 2005 of providing a compensation package to our executive officers consisting
of monetary compensation and stock options.  Our Compensation
Committee believes that the impact of applicable Canadian, United States and
other foreign tax laws should be considered with respect to the compensation
paid and the form of the compensation.  Our Compensation Committee
does not establish any specific performance or target goals.




Our
Compensation Committee has retained Lane Caputo Compensation, Inc., Calgary,
Alberta, a compensation consultant, to review and recommend fair and justifiable
compensation for our executive positions and directors as well as to make
recommendations for future compensation practices.  Lane Caputo
Compensation, Inc. reviewed our compensation arrangements relative to a selected
peer group of Canadian public companies trading on Canadian and/or International
securities exchanges that are focused on international oil and gas exploration
and production, with a focus on exploration.  The fifteen companies in
this peer group and the exchange on which their securities are traded are as
follows:




·Africa
      Oil Corp. (TSX-V)
            ·Pacific
      Stratus Energy Ltd. (TSX)·Candax
      Petroleum Inc. (TSX)
            ·Pan
      Orient Energy Ltd. (TSX-V)·Canoro
      Resources Ltd. (TSX-V)
            ·Serica
      Energy PLC. (TSX-V)·CGX
      Energy Inc. (TSX-V)
            ·Sterling
      Resources Ltd. (TSX-V)·Cirrus
      Energy Corp. (TSX-V)
            ·Stratic
      Energy Corp. (TSX-V/AIM·Falcon
      Oil & Gas Ltd. (TSX-V)
            ·Verenex
      Energy Inc. (TSX)·Ithaca
      Energy Inc. (TSX-V/AIM)
            ·Winstar
      Resources Ltd. (TSX)·Mart
      Resources, Inc. (TSX-V)




Exchanges:             
TSX-V -- Toronto Stock Exchange (Venture);


TSX
--  Toronto Stock Exchange; and


AIM -- London AIM Market
Exchange




Our
Compensation Committee believes that, at this stage of our company’s
development, it is appropriate for our monetary compensation to stay within the
median values of our peer group.




Although
Compensation Committee meetings are held in executive session, without
management’s presence, the Compensation Committee (and from time to time
individual members of the Committee) may meet with senior officers of our
company to discuss objectives, explain the rationale for certain objectives and
to assure that it has management’s input in assessing the consequences of
decisions made in the Compensation Committee meetings, including, for instance,
the impact that its decisions may have on our financial statements. The
Compensation Committee’s interactions with management seek to achieve a balance
between receiving management’s opinion but still ensuring that management is
not, in effect, establishing the terms and parameters for its own
compensation.





Direct Monetary
Compensation


Our
Compensation Committee held one meeting during the year ended December 31,
2007.  At the meeting, the Compensation Committee considered, among
other things, in arriving at compensation for the fiscal year 2007, the
executive officers’ level of compensation during the prior fiscal years, the
compensation levels paid by the peer group of companies, the recommendations and
findings of Lane Caputo Compensation, Inc., the growth and complexity of the
executives’ tasks during the year, and our company’s overall business plans for
further growth in the following fiscal years.






Page
54




The
direct monetary compensation of our executive officers is based on the scope of
their duties and responsibilities and the executives’ individual performance in
fulfilling those duties and responsibilities, in addition to the other factors
described above.  Because of the inherent nature of our activities,
the uncertain nature of the outcome of our activities, and the extended period
of time over which the success of our activities will be determined, the
Compensation Committee believes that, because the company’s ability to achieve
its objectives is greatly dependent upon the activities of the operators of the
drilling blocks in which we have an interest, the company’s success in its
exploration and drilling activities during a particular year should not be the
sole measure by which the direct monetary compensation of our executive officers
is determined.  The Compensation Committee also recognizes that our
company’s opportunity to enter into additional production-sharing contracts or
acquire interests in ventures that are parties to such contracts is limited by
availability of contracts and our company’s capital.  However, the
Committee recognizes that future successes may lead it to award cash or other
bonuses determined at that time and in the light of future events.




Based on
the Compensation Committee’s policies and objectives, the Committee believes
that the direct monetary compensation of our executive officers for fiscal 2007
was at or below the median level of the peer group selected by Lane Caputo
Compensation, Inc.





Equity
Compensation


Our
Compensation Committee believes that a material element of executive
compensation should be the award of equity grants.  This element of
compensation has taken the form of grants of options under our Stock Incentive
Plan but other forms of equity grants may be considered.  The
Compensation Committee believes the award of equity grants has the effect of
aligning executive officers compensation to the future growth and success of our
company.




Equity
grants are the only form of long-term compensation utilized to compensate our
executive officers at this time.  The Compensation Committee does not
consider any relationship between Direct Monetary Compensation and Equity
Compensation in making equity grants.  These grants are not based on
any strict formula but rather are determined in the light of practices at the
peer group selected, our company’s past practices, and our overall corporate
performance during the period relative to our progress made in achieving our
overall business plan objectives and achieving stockholder value.




The
Compensation Committee did not award any equity grants to our executive officers
in 2007.  The Compensation Committee reached this conclusion based on
the market performance of the company’s common stock during the
year.





Other
Benefits  -  Change of Control


We have
no arrangements with our executive officers or Directors regarding any monetary
payments to them in the event of a change in control of our
company.




In the
event that our company is acquired by merger or sale of substantially all of its
assets or securities possessing more than 50% of the total combined voting power
of our outstanding securities, outstanding options granted under our 1998 Stock
Incentive Plan containing vesting provisions, including those held by executive
officers and Directors, are subject to immediate vesting.  Each
outstanding option which is not to be assumed by the successor corporation or
otherwise continued in effect will automatically accelerate in full and become
immediately fully vested, subject to certain exceptions. The Plan contains
discretionary provisions regarding the grant of options with vesting provisions.
Options may also immediately vest in connection with a change in the majority of
the Board of Directors of our company by reason of one or more contested
elections for Board membership.





Perquisites


Our
executive officers also receive perquisites in the form of medical insurance
coverage for the executives and their families.  In addition, in 2007
the company paid air fare expenses for Mr. Roy’s family in connection with
travel to India from their home.






Page
55




Mr. Roy,
through Roy Group Barbados, Inc. (“RGB”), a corporation wholly owned by Mr. Roy,
is reimbursed for out-of-pocket expenses on a cost recovery basis for expenses
such as travel, hotel, meals and entertainment expenses, computer costs and
amounts billed to third parties.




Mr. Kent
is reimbursed for out-of-pocket expenses on a cost recovery basis for expenses
such as office costs, which include rent, parking, office supplies and telephone
as well as travel, hotel, meals and entertainment expenses incurred by him in
the performance of services to our company.





Structure of Compensation
Arrangements


We have
entered into the following arrangements regarding our executive
officers.




We have
an agreement with RGB whereby, under the agreement, RGB agreed to perform such
geologic and geophysical duties as are assigned to it by our
company.  Mr. Roy performs services for us in his capacity as an
employee to RGB and we pay compensation to RGB.  In addition, we pay
for medical insurance for Mr. Roy and his family.  Expenses incurred
by Mr. Roy in connection with the Company are reimbursed to RGB for his travel
expenses, hotel, meals and entertainment expenses, computer costs and amounts
billed to third parties




Since
January 1, 2008, Mr. Kent has been employed directly by our company pursuant to
an oral agreement.  Prior to then, Mr. Kent’s services were provided
through D.I. Investments Ltd., a company controlled by Mr. Kent.  In
addition, we pay for medical insurance for Mr. Kent and his
family.  Expenses incurred by Mr. Kent in connection with the Company
are reimbursed to him for office costs, his travel expenses, hotel, meals and
entertainment expenses.





Director
Compensation


Our
non-employee Board members receive cash compensation for attendance in person or
by phone for each board meeting and each of the committee meetings that they are
a member of.  A fee of $1,000 is paid for personally attending each
meeting and $500 is paid for attendance by phone.  Our non-employee
Board members may also be paid a fee for their services for a special project
they may conduct or participate in.  Our Directors are also reimbursed
for their out-of-pocket expenses in attending meetings.  Pursuant to
the terms of our 1998 Stock Incentive Plan, each non-employee Director
automatically receives an option grant for 50,000 shares on the date such person
joins the Board.  In addition, on the date of each annual stockholder
meeting, provided such person has served as a non-employee Director for at least
six months, each non-employee Board member who is to continue to serve as a
non-employee Board member will automatically be granted an option to purchase
50,000 shares.  Each such option has a term of ten years, subject to
earlier termination following such person's cessation of Board service, and is
subject to certain vesting provisions.  For the purposes of the
automatic grant provisions of the Plan, all of our Directors, other than Messrs.
Roy and Kent, are considered non-employee Board members.





Compensation
Committee Report





The
Compensation Committee of our Board of Directors has reviewed and discussed with
management the Compensation Discussion and Analysis required by Item 402(b) of
Regulation S-K.  Based on such review and discussions, the
Compensation Committee recommended to the Board of Directors that the
Compensation Discussion and Analysis be included in the Annual Report on Form
10-K and the Proxy Statement for the 2008 Annual Meeting of Stockholders for
filing with the Securities and Exchange Commission.




Submitted by the Compensation
Committee:


Michael
J. Hudson (Chairman)


Brent
J. Peters





The
above Compensation Committee Report is not deemed to be “soliciting
material” or “filed” with the Securities and Exchange Commission under the
Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as
amended, or incorporated by reference in any documents so filed.





Page
56


Item
13.                    Certain Relationships and
Related Transactions, and Director Independence





On March
27, 2003, we entered into a PIA with RGM, a corporation wholly owned by Jean
Paul Roy, our President, Chief Executive Officer, a Director and principal
stockholder, whereby we assigned and hold in trust for RGM subject to the GOI
consent, 50% of the benefits and obligations of the Production Sharing Contract
("PSC") covering the KG Offshore Block ("PSC-KG") and the CIA leaving us with a
net 5% PI in the PSC-KG and a net 5% CI in the CIA.  Under the terms
of the PIA, until the GOI consent is obtained, we retain the exclusive right to
deal with the other parties to the PSC-KG and the CIA and are entitled to make
all decisions regarding the interest assigned to RGM.  RGM has agreed
to be bound by and be responsible for the actions taken by, obligations
undertaken and costs incurred by us in regard to RGM's interest, and to be
liable to us for its share of all costs, interests, liabilities and obligations
arising out of or relating to the RGM interest.  RGM has agreed to
indemnify us against any and all costs, expenses, losses, damages or liabilities
incurred by reason of RGM's failure to pay the same.




Subject
to obtaining the government consent to the assignment, RGM is entitled to all
income, receipts, credits, reimbursements, monies receivable, rebates and other
benefits in respect of its 5% interest which relate to the PSC-KG.




We have a
right of set-off against sums owing to us by RGM.  In the event that
the Indian government consent is delayed or denied, resulting in either RGM or
our company being denied an economic benefit either would have realized under
the PIA, the parties agreed to amend the PIA or take other reasonable steps to
assure that an equitable result is achieved consistent with the parties'
intentions contained in the PIA.  In the event the consent is denied,
neither party is entitled to assert any claim against the other except as is
specifically set forth in the agreement.  We have not yet obtained the
consent of the GOI.  As a consequence of this transaction, we report
our holdings under the PSC-KG and CIA as a net 5% PI.




RGM
further agreed in the PIA that it would not dispose of any interest in the
agreement, its 5% interest, or the shares of RGM without first giving notice to
us of the transaction, its terms, including price, and the identity of the
intended assignee and any other material information, and we will have the first
right to purchase the interest proposed to be sold on the terms contained in the
notice to us.




On August
29, 2003, we entered into a TSA with Roy Group Barbados ("RGB"), a corporation
wholly owned by Mr. Roy, whereby under the agreement, RGB agreed to perform such
geologic and geophysical duties as are assigned to it by our
company.  The term of the agreement, as amended, extends through
December 31, 2008 and continues for successive periods of one year thereafter
unless otherwise agreed by the parties or either party has given notice that the
agreement will terminate at the end of the term.  On January 31, 2006,
the terms of the agreement were amended to amend the fee payable from $250,000
to $350,000 effective January 1, 2006.  RGB also is reimbursed for
authorized travel and other out-of-pocket expenses.  The agreement
prohibits RGB from disclosing any of our confidential information and from
competing directly or indirectly with us for a period ending December 31, 2008
with respect to any acquisition, exploration, or development of any crude oil,
natural gas or related hydrocarbon interests within the area of the country of
India.  The agreement may be terminated by either party on 30 days’
prior written notice, provided, however, the confidentiality and non-competition
provisions will survive the termination.  RGB received $350,000 from
us during 2007 ($350,000 in 2006; $250,000 plus a bonus of $60,000 in 2005;
$250,000 in 2004; and $83,333 in 2003), under the terms of this agreement,
including its amendments.




RGB was
reimbursed for medical insurance and expenses, travel, hotel, meals and
entertainment expenses, computer costs, and amounts billed to third parties
incurred by Mr. Roy during 2007 totaling $75,000.  At December 31,
2007, we owed RGB $33,192 for services provided pursuant to the TSA and expenses
incurred on behalf of our Company which amount bears no interest and has no set
terms of repayment.




Page
57


During
the year ended December 31, 2007, Mr. Allan J. Kent, our Executive Vice
President, Chief Financial Officer and a Director, was paid $185,000 ($185,000
in 2006; $120,000 plus a bonus of $30,000 in 2005; $120,000 in 2004; and $61,715
in 2003) by us for consulting services of Mr. Kent which are provided to us
pursuant to an oral arrangement with DI Investments Ltd. ("DI"), a corporation
wholly-owned by him, amended effective January 1, 2006.  The oral
agreement has been amended to provide for an annual fee payable of $212,750
effective January 1, 2008.




DI was
reimbursed $82,918 for medical insurance, office costs, including rent, parking,
office supplies and telephone as well as travel, hotel, meals and entertainment
expenses incurred throughout 2007.  At December 31, 2007, we owed DI
$26,007 as a result of services provided and expensed incurred on behalf of our
company.




Messrs.
Roy and Kent devote substantially all their time to our
affairs.  Neither of such persons is our direct employee and we do not
have any employment agreements directly with either of such
persons.




During
the year ended December 31, 2007, Amicus Services Inc. a company controlled by
Mr. Vincent Roy, a brother of Mr. Jean Roy, received from us $55,347 as
consulting fees for IT and computer related services rendered.  Amicus
Services Inc. was also reimbursed $5,278 for office costs, including parking,
office supplies and telephone as well as travel and hotel expenses incurred
throughout 2007.  At December 31, 2007, we owed Amicus Services Inc.
$6,953 as a result of services provided and expensed incurred on behalf of our
Company.






Page 58





Part
IV





Item
15.                    Exhibits, Financial
Statement Schedules





Exhibit
            Description3.1
            Certificate
      of Incorporation of the Registrant, as amended(1)3.2
            Bylaws
      of the Registrant, as amended (4)3.3
            Certificate
      of Amendment filed with the State of Delaware on November 25, 1998 (2)3.4
            Certificate
      of Amendment filed with the State of Delaware on December 4, 1998 (2)3.5
            Certificate
      of Amendment filed with the State of Delaware on March 18, 2003 (5)3.6
            Certificate
      of Amendment filed with the State of Delaware on January 8, 2004 (5)4.1
            Specimen
      stock certificate of the Registrant (5)10.1
            Restated
      1993 Stock Incentive Plan (1)10.2
            1994
      Directors Stock Option Plan (1)10.3
            1994
      Stock Option Plan (1)10.4
            1993
      Stock Incentive Plan (1)10.5
            1998
      Stock Incentive Plan (2)10.6
            Stock
      Purchase Agreement dated April 4, 2003 by and among Suite101.com, Inc.,
      Jean Paul Roy and GeoGlobal Resources (India) Inc. (3)10.7
            Amendment
      dated August 29, 2003 to Stock Purchase Agreement dated April 4, 2003
      (4)10.8
            Technical
      Services Agreement dated August 29, 2003 between Suite101.com, Inc. and
      Roy Group (Barbados) Inc. (4)10.8.1
            Amendment
      to Technical Services Agreement dated January 31, 2006 between GeoGlobal
      Resources Inc. and Roy Group (Barbados) Inc. (8)10.9
            Participating
      Interest Agreement dated March 27, 2003 between GeoGlobal Resources
      (India) Inc. and Roy Group (Mauritius) Inc. (4)10.10
            Escrow
      Agreement dated August 29, 2003 among Registrant, Jean Paul Roy and
      Computershare Trust Company of Canada (4)10.11
            Promissory
      Note dated August 29, 2003 payable to Jean Paul Roy (4)10.12
            Production
      Sharing Contract dated February 4, 2003 among The Government of India,
      Gujarat State Petroleum Corporation Limited, Jubilant Enpro Limited and
      GeoGlobal Resources (India) Inc. (6)10.13
            Production
      Sharing Contract dated February 6, 2004 among The Government of India,
      Gujarat State Petroleum Corporation Limited, Jubilant Enpro Private
      Limited and GeoGlobal Resources (Barbados) Inc. (6)10.14
            Production
      Sharing Contract dated February 6, 2004 among The Government of India,
      Gujarat State Petroleum Corporation Limited, Jubilant Enpro Private
      Limited, Prize Petroleum Company Limited and GeoGlobal Resources
      (Barbados) Inc. (6)10.15
            Carried
      Interest Agreement dated August 27, 2002 between Gujarat State Petroleum
      Corporation Limited and GeoGlobal Resources (India) Inc. (5)10.19
            Production
      Sharing Contract dated September 23, 2005 between the Government of
      India and GeoGlobal Resources (Barbados) Inc.(7)10.20
            Production
      Sharing Contract dated September 23, 2005 between the Government of
      India, Gujarat State Petroleum Corporation Limited, GAIL (India) Ltd.,
      Jubilant Capital Pvt. Ltd. and GeoGlobal Resources (Barbados) Inc.(7)10.21
            Production
      Sharing Contract dated March 2, 2007 between the Government of India, Oil
      India Limited and GeoGlobal Resources (Barbados) Inc.(9)10.22
            Production
      Sharing Contract dated March 2, 2007 between the Government of India, Oil
      India Limited and GeoGlobal Resources (Barbados) Inc.(9)10.23
            Production
      Sharing Contract dated March 2, 2007 between the Government of India, Oil
      India Limited, Hindustan Petroleum Corpn. Ltd. and GeoGlobal Resources
      (Barbados) Inc.(9)10.24
            Production
      Sharing Contract dated March 2, 2007 between the Government of India and
      GeoGlobal Resources (Barbados) Inc.(9)10.25
            Form
      of Warrant Certificate issued to subscribers relating to the offer and
      sale of Units from June 2007 financing (10)10.26
            Compensation
      Option dated June 20, 2007 between the Company and Primary Capital Inc.
      for the issuance of 170,400 compensation options (10)10.27
            Compensation
      Option dated June 20, 2007 between the Company and Jones, Gable &
      Company Limited for the issuance of 170,400 compensation options (10)10.28
            JOA
      dated August 7, 2003 between Gujarat State Petroleum Corporation Limited,
      Jubilant Enpro Limited and GeoGlobal Resources (India) Inc.(11)10.29
            Assignment
      Agreement for Exploration Blocks in Arab Republic of Egypt dated January
      8, 2008 (12)10.30
            Option
      Agreement for Participation in Exploration Blocks in Arab Republic of
      Egypt dated January 8, 2008 (12)10.31
            Production
      Sharing Contract dated April 12, 2000 between the Government of India, Oil
      & Natural Gas Corporation Limited, Gujarat State Petroleum Corporation
      Limited and Hindustan Oil Exploration Company Limited (13)10.32
            Amendment
      No. 2 to Production Sharing Contract dated April 12, 2000 between the
      Government of India, Oil & Natural Gas Corporation Limited, Gujarat
      State Petroleum Corporation Limited and Hindustan Oil Exploration Company
      Limited effective August 24, 2006 (13)14
            Code
      of Ethics. (5)





Page
59


21
            Subsidiaries
      of the Registrant:Name
            State
      or Jurisdiction of IncorporationGeoGlobal
      Resources (India) Inc.
            BarbadosGeoGlobal
      Resources (Canada) Inc.
            AlbertaGeoGlobal
      Resources (Barbados) Inc.
            BarbadosGGR
      Oil & Gas (India) Private Limited
            India23
            Consent
      of experts and counsel:23.1
            Consent of KPMG LLP (14)23.2
            Consent of Ernst & Young  LLP (14)31.1
            Certification of President and Chief Executive Officer
      Pursuant to Rule 13a-14(a) (14)31.2
            Certification of Chief Financial Officer Pursuant to
      Rule 13a-14(a) (14)32.1
            Certification of President and Chief Executive Officer
      Pursuant to Section 1350 (furnished, not filed) (14)32.2
            Certification of Chief Financial Officer Pursuant to
      Section 1350 (furnished, not filed) (14)




(1)
            Filed
      as an Exhibit to Neuro Navigational Corporation Form 10-KSB No. 0-25136
      dated September 30, 1994.


(2)
            Filed
      as an Exhibit to our Current Report on Form 8-K dated December 10,
      1998.


(3)
            Filed
      as exhibit 10.1 to our Quarterly Report on Form 10-QSB for the quarter
      ended March 31, 2003.


(4)
            Filed
      as an exhibit to our Current Report on Form 8-K for August 29,
      2003.


(5)
            Filed
      as an Exhibit to our Form 10-KSB dated April 1,
  2004.


(6)
            Filed
      as an Exhibit to our Form 10-KSB/A dated April 28,
  2004.


(7)
            Filed
      as an Exhibit to our Quarterly Report on Form 10-QSB for the quarter ended
      September 30, 2005.


(8)
            Filed
      as an Exhibit to our Current Report on Form 8-K dated January 31,
      2006.


(9)
            Filed
      as an Exhibit to our Quarterly Report on Form 10-Q for the quarter ending
      March 31, 2007.


(10)
      Filed as an Exhibit to our Current Report on Form 8-K dated June 27,
      2007.


(11)
      Filed as an Exhibit to our Current Report on Form 8-K dated August 14,
      2007.


(12)
      Filed as an Exhibit to our Current Report on Form 8-K dated January 8,
      2008.


(13)  Filed
      as an exhibit to our Annual Report on Form 10-K for the year ended
      December 31, 2007.


(14)  Filed herewith.


Page 60








GEOGLOBAL
RESOURCES INC.


(a
development stage enterprise)























CONSOLIDATED
FINANCIAL STATEMENTS


DECEMBER
31, 2007 AND DECEMBER 31, 2006


(in
United States dollars)























INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS





Report
      of Independent Registered Public Accounting Firm-
              -
      KPMG Audit Report
            
            FS
      62Report
      of Independent Registered Public Accounting Firm
              - KPMG Audit of Internal
      Control over Financial Reporting
            
            FS
      63Report
      of Independent Registered Public Accounting Firm
              -
      Ernst & Young Audit Report
            
            FS
      65Financial
      StatementsConsolidated
      Balance Sheets
            
            FS
      66Consolidated
      Statements of Operations
            
            FS
      67Consolidated
      Statements of Changes in Stockholders’ Equity
            
            FS
      68Consolidated
      Statements of Cash Flows
            
            FS
      69Notes
      to the Consolidated Financial Statements
            
            FS
      70-104


FS
61










REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM







The Board
of Directors and Shareholders


GeoGlobal
Resources Inc.:





We
have audited the accompanying consolidated balance sheet of GeoGlobal Resources
Inc. and subsidiaries as of December 31, 2007, and the related consolidated
statement of operations, stockholders’ equity and cash flows for the year ended
December 31, 2007 and for the period from August 21, 2002 (inception) to
December 31, 2007. These consolidated financial statements are the
responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our
audit.





We
conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation.  We
believe that our audit provides a reasonable basis for our opinion.





In our
opinion, the consolidated financial statements referred to above present fairly,
in all material respects, the financial position of the Company and subsidiaries
as of December 31, 2007, and the results of their operations and their cash
flows for the year ended December 31, 2007 and for the period from August 21,
2002 (inception) to December 31, 2007, in conformity with U.S. generally
accepted accounting principles.





We also
have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the Company’s internal control over financial
reporting as of December 31, 2007, based on criteria established inInternal Control - Integrated
Frameworkissued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO), and our report dated June 5, 2008 expressed an
adverse opinion on the effectiveness of the Company’s internal control over
financial reporting.








"KPMG
LLP" (signed)





Calgary,
Canada


June 5,
2008





FS
62




REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM







The Board
of Directors and Shareholders


GeoGlobal
Resources Inc.:





We have
audited GeoGlobal Resources Inc.’s internal control over financial reporting as
of December 31, 2007, based on criteria established in Internal Control - Integrated
Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). The Company's management is responsible for
maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting,
included in the accompanying Management’s Report on Internal Control Over
Financial Reporting in Item 9A. Our responsibility is to express an opinion on
the Company's internal control over financial reporting based on our
audit.





We
conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal
control based on the assessed risk. Our audit also included performing such
other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion.





A
company's internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company's internal control over
financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company's
assets that could have a material effect on the financial
statements.





Because
of its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.





FS
63








A
material weakness is a deficiency, or a combination of deficiencies, in internal
control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the company’s annual or interim financial
statements will not be prevented or detected on a timely basis. The following
material weaknesses have been identified and included in management's
assessment:





·
            Inadequate
      complement of personnel with appropriate expertise or experience in
      generally accepted accounting
principles





·
            Limited
      accounting personnel with sufficient expertise in generally accepted
      accounting principles to enable effective segregation of duties with
      respect to recording journal entries and to allow for appropriate
      monitoring of financial reporting matters and internal control over
      financial reporting





We also
have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the financial statements of the Company. These
material weaknesses were considered in determining the nature, timing, and
extent of audit tests applied in our audit of the 2007 consolidated financial
statements, and this report does not affect our report dated June 5, 2008, which
expressed an unqualified opinion on those consolidated financial
statements.





In our
opinion, because of the effect of the aforementioned material weakness on the
achievement of the objectives of the control criteria, the Company has not
maintained effective internal control over financial reporting as of December
31, 2007, based on criteria established in Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission.








"KPMG
LLP" (signed)











Calgary,
Canada


June 5,
2008


FS
64








REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








The
Board of Directors and Stockholders Of


GeoGlobal
Resources Inc.





We have
audited the accompanying restated consolidated balance sheets of GeoGlobal
Resources Inc., a development stage enterprise, as of December 31, 2006 and the
related consolidated statements of operations, stockholders' equity and cash
flows for the years ended December 31, 2006 and 2005, and for the cumulative
period from inception on August 21, 2002 to December 31, 2006. These financial
statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements based on
our audits.





We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an
audit of the Company's internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.





In our
opinion, the financial statements referred to above present fairly, in all
material respects, the restated consolidated financial position of GeoGlobal
Resources Inc. as at December 31, 2006 and 2005 and the consolidated results of
its operations and its cash flows for the years ended December 31, 2006 and
2005, and for the cumulative period from inception on August 21, 2002 to
December 31, 2006 in conformity with United States generally accepted accounting
principles.





As
explained in note 8(c), the consolidated balance sheets as at December 31, 2006
and 2005 and the related consolidated statements of operations, stockholders'
equity and cash flows for the years ended December 31, 2006 and 2005 and for the
cumulative period from inception on August 21, 2002 to December 31, 2006 have
been restated.











"Ernst & Young LLP"
(signed)





CALGARY,
ALBERTA                                                                           CHARTERED
ACCOUNTANTS


March 23,
2007 except for Note 8(c),


which is
as of June 5, 2008

















FS
65





GEOGLOBAL
      RESOURCES INC.
                  (a
      development stage enterprise)
                  CONSOLIDATED
      BALANCE SHEETSDecember
      31, 2007
                  US
      $
                
                
                December
      31, 2006
                  US
      $Assets
                
                
                
                
                Restated
                  note
      8(c)CurrentCash
      and cash equivalents
                
                
                48,134,858
                
                
                
                32,362,978Accounts
      receivable
                
                
                171,977
                
                
                
                202,821Prepaids
      and deposits
                
                
                100,052
                
                
                
                31,23248,406,887
                
                
                
                32,597,031Restricted
      deposits (note13)
                
                
                4,555,480
                
                
                
                3,590,769Property
      and equipment (note 4)
                
                
                157,398
                
                
                
                183,427Oil
      and gas interests, not subject to depletion (note 5)
                
                
                27,099,547
                
                
                
                12,121,33480,219,312
                
                
                
                48,492,561LiabilitiesCurrentAccounts
      payable
                
                
                3,908,506
                
                
                
                1,888,103Accrued
      liabilities
                
                
                2,355,322
                
                
                
                33,487Due
      to related companies (notes 10c, 10d and 10e)
                
                
                66,152
                
                
                
                33,6056,329,980
                
                
                
                1,955,195Asset
      retirement obligation (note 6)
                
                
                318,922
                
                
                
                --6,648,902
                
                
                
                1,955,195Stockholders'
      EquityCapital
      stock (note 7)Authorized100,000,000
      common shares with a par value of US$0.001 each1,000,000
      preferred shares with a par value of US$0.01 eachIssued72,205,755
      common shares (December 31, 2006 – 66,208,255)
                
                
                57,614
                
                
                
                51,617Additional
      paid-in capital
                
                
                82,791,057
                
                
                
                52,900,900Deficit
      accumulated during the development stage
                
                
                (9,278,261
                )
                
                
                (6,415,151
                )73,570,410
                
                
                
                46,537,36680,219,312
                
                
                
                48,492,561See
      Commitments, Contingencies and Guarantees (note 13)
                  The
      accompanying notes are an integral part of these Consolidated Financial
      Statements


FS
66





GEOGLOBAL
      RESOURCES INC.
                  (a
      development stage enterprise)
                  CONSOLIDATED
      STATEMENTS OF OPERATIONSYear
      ended
                  Dec
      31, 2007
                  US
      $
                
                
                Year
      ended
                  Dec
      31, 2006
                  US
      $
                
                
                Year
      ended
                  Dec
      31, 2005
                  US
      $
                
                
                Period
      from
                  Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2007
                  US
      $Restated
                  note
      8(c)
                
                
                Restated
                  note
      8(c)
                
                
                Restated
      notes 8(c) & 14(a)Expenses(notes 10c,
      10d, and 10e)General
      and administrative
                
                
                2,280,232
                
                
                
                1,890,926
                
                
                
                495,326
                
                
                
                5,275,874Consulting
      fees
                
                
                356,912
                
                
                
                1,104,106
                
                
                
                2,947,126
                
                
                
                5,160,714Professional
      fees
                
                
                1,037,971
                
                
                
                251,261
                
                
                
                201,298
                
                
                
                1,790,647Depreciation
                
                
                55,425
                
                
                
                49,323
                
                
                
                49,531
                
                
                
                266,7353,730,540
                
                
                
                3,295,616
                
                
                
                3,693,281
                
                
                
                12,493,970Other
      expenses (income)Consulting
      fees recovered
                
                
                --
                
                
                
                --
                
                
                
                (12,950
                )
                
                
                (66,025
                )Equipment
      costs recovered
                
                
                --
                
                
                
                --
                
                
                
                (12,950
                )
                
                
                (19,395
                )Gain
      on sale of equipment
                
                
                --
                
                
                
                --
                
                
                
                (42,228
                )
                
                
                (42,228
                )Foreign
      exchange (gain) loss
                
                
                (21,510
                )
                
                
                4,737
                
                
                
                (319
                )
                
                
                5,037Interest
      income (note 3)
                
                
                (2,165,920
                )
                
                
                (1,751,550
                )
                
                
                (462,174
                )
                
                
                (4,413,098
                )(2,187,430
                )
                
                
                (1,746,813
                )
                
                
                (530,621
                )
                
                
                (4,535,709
                )Net
      loss and comprehensive loss
                
                
                (1,543,110
                )
                
                
                (1,548,803
                )
                
                
                (3,162,660
                )
                
                
                (7,958,261
                )2005
      Stock Purchase Warrant modification (note 7f)
                
                
                (1,320,000
                )
                
                
                --
                
                
                
                --
                
                
                
                (1,320,000
                )Net
      loss and comprehensive loss applicable
                  to
      common stockholders
                
                
                (2,863,110
                )
                
                
                (1,548,803
                )
                
                
                (3,162,660
                )
                
                
                (9,278,261
                )Net
      loss per share
                  – basic and diluted
      (note 7e)
                
                
                (0.04
                )
                
                
                (0.03
                )
                
                
                (0.06
                )





The accompanying notes are an integral
part of these Consolidated Financial Statements







FS
67


GEOGLOBAL
      RESOURCES INC.
                  (a
      development stage enterprise)
                  CONSOLIDATED
      STATEMENTS OF STOCKHOLDERS' EQUITYNumber
      of
                  shares
                
                
                Capital Stock
                  US
      $
                
                
                Additional
                  paid-in
      capital
                  US
      $
                
                
                Accumulated
                  Deficit
                  US
      $
                
                
                Stockholders'
                  Equity
                  US
      $Restated
                  note
      8(c)
                
                
                Restated
      note 8(c)
                
                
                Restated
      note 8(c)Common
      shares issued on incorporation - Aug 21, 2002
                
                
                1,000
                
                
                
                64
                
                
                
                --
                
                
                
                --
                
                
                
                64Net
      loss and comprehensive loss for the period
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                (13,813
                )
                
                
                (13,813
                )Balance
      at December 31, 2002
                
                
                1,000
                
                
                
                64
                
                
                
                --
                
                
                
                (13,813
                )
                
                
                (13,749
                )Capital
      stock of GeoGlobal at August 29, 2003
                
                
                14,656,687
                
                
                
                14,657
                
                
                
                --
                
                
                
                10,914,545
                
                
                
                10,929,202Elimination
      of GeoGlobal capital stock in recognition
                  of
      reverse takeover (note 9)
                
                
                (1,000
                )
                
                
                (14,657
                )
                
                
                --
                
                
                
                (10,914,545
                )
                
                
                (10,929,202
                )Common
      shares issued during the year:On
      acquisition (note 9)
                
                
                34,000,000
                
                
                
                34,000
                
                
                
                1,072,960
                
                
                
                --
                
                
                
                1,106,960Options
      exercised for cash
                
                
                396,668
                
                
                
                397
                
                
                
                101,253
                
                
                
                --
                
                
                
                101,650December
      2003 private placement financing
                
                
                6,000,000
                
                
                
                6,000
                
                
                
                5,994,000
                
                
                
                --
                
                
                
                6,000,000Share
      issuance costs on private placement
                
                
                --
                
                
                
                --
                
                
                
                (483,325
                )
                
                
                --
                
                
                
                (483,325
                )Share
      issuance costs on acquisition
                
                
                --
                
                
                
                --
                
                
                
                (66,850
                )
                
                
                --
                
                
                
                (66,850
                )Stock-based
      compensation
                
                
                --
                
                
                
                --
                
                
                
                62,913
                
                
                
                --
                
                
                
                62,913Net
      loss and comprehensive loss for the year
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                (518,377
                )
                
                
                (518,377
                )Balance
      at December 31, 2003
                
                
                55,053,355
                
                
                
                40,461
                
                
                
                6,680,951
                
                
                
                (532,190
                )
                
                
                6,189,222Common
      shares issued during the year:Options
      exercised for cash
                
                
                115,000
                
                
                
                115
                
                
                
                154,785
                
                
                
                --
                
                
                
                154,900Broker
      Warrants exercised for cash
                
                
                39,100
                
                
                
                39
                
                
                
                58,611
                
                
                
                --
                
                
                
                58,650Stock-based
      compensation
                
                
                --
                
                
                
                --
                
                
                
                350,255
                
                
                
                --
                
                
                
                350,255Net
      loss and comprehensive loss for the year
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                (1,171,498
                )
                
                
                (1,171,498
                )Balance
      at December 31, 2004
                
                
                55,207,455
                
                
                
                40,615
                
                
                
                7,244,602
                
                
                
                (1,703,688
                )
                
                
                5,581,529Common
      shares issued during the year:Options
      exercised for cash
                
                
                739,000
                
                
                
                739
                
                
                
                1,004,647
                
                
                
                --
                
                
                
                1,005,3862003
      Purchase Warrants exercised for cash
                
                
                2,214,500
                
                
                
                2,214
                
                
                
                5,534,036
                
                
                
                --
                
                
                
                5,536,250Broker
      Warrants exercised for cash
                
                
                540,900
                
                
                
                541
                
                
                
                810,809
                
                
                
                --
                
                
                
                811,350September
      2005 private placement financing
                
                
                4,252,400
                
                
                
                4,252
                
                
                
                27,636,348
                
                
                
                --
                
                
                
                27,640,600Share
      issuance costs on private placement
                
                
                --
                
                
                
                --
                
                
                
                (1,541,686
                )
                
                
                --
                
                
                
                (1,541,686
                )Stock-based
      compensation
                
                
                --
                
                
                
                --
                
                
                
                4,354,256
                
                
                
                --
                
                
                
                4,354,256Net
      loss and comprehensive loss for the year
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                (3,162,660
                )
                
                
                (3,162,660
                )Balance
      at December 31, 2005
                
                
                62,954,255
                
                
                
                48,361
                
                
                
                45,043,012
                
                
                
                (4,866,348
                )
                
                
                40,225,025Common
      shares issued during the year:Options
      exercised for cash
                
                
                2,284,000
                
                
                
                2,285
                
                
                
                2,706,895
                
                
                
                --
                
                
                
                2,709,180Options
      exercised for notes receivable
                
                
                184,500
                
                
                
                185
                
                
                
                249,525
                
                
                
                --
                
                
                
                249,7102003
      Purchase Warrants exercised for cash
                
                
                785,500
                
                
                
                786
                
                
                
                1,962,964
                
                
                
                --
                
                
                
                1,963,750Share
      issuance costs
                
                
                --
                
                
                
                --
                
                
                
                (74,010
                )
                
                
                --
                
                
                
                (74,010
                )Stock-based
      compensation
                
                
                --
                
                
                
                --
                
                
                
                3,012,514
                
                
                
                --
                
                
                
                3,012,514Net
      loss and comprehensive loss for the year
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                (1,548,803
                )
                
                
                (1,548,803
                )Balance
      at December 31, 2006
                
                
                66,208,255
                
                
                
                51,617
                
                
                
                52,900,900
                
                
                
                (6,415,151
                )
                
                
                46,537,366Common
      shares issued during the year:Options exercised for
      cash (note 8e)
                
                
                317,500
                
                
                
                317
                
                
                
                320,358
                
                
                
                --
                
                
                
                320,675June 2007 private placement
      financing(note 7a)
                
                
                5,680,000
                
                
                
                5,680
                
                
                
                28,394,320
                
                
                
                --
                
                
                
                28,400,000Share issuance costs on private
      placement (note 7a)
                
                
                --
                
                
                
                --
                
                
                
                (2,612,973
                )
                
                
                --
                
                
                
                (2,612,973
                )2007 Compensation
      Options (note 7a)
                
                
                --
                
                
                
                --
                
                
                
                705,456
                
                
                
                --
                
                
                
                705,4562005 Stock Purchase Warrant
      modification (note 7f)
                
                
                --
                
                
                
                --
                
                
                
                1,320,000
                
                
                
                (1,320,000
                )
                
                
                --2005
      Compensation Option & Warrant
                  modification(note 7f)
                
                
                --
                
                
                
                --
                
                
                
                240,000
                
                
                
                --
                
                
                
                240,000Stock-based compensation
      (note 8b)
                
                
                --
                
                
                
                --
                
                
                
                1,522,996
                
                
                
                --
                
                
                
                1,522,996Net
      loss and comprehensive loss for the year
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                (1,543,110
                )
                
                
                (1,543,110
                )5,997,500
                
                
                
                5,997
                
                
                
                29,890,157
                
                
                
                (2,863,110
                )
                
                
                27,033,044Balance
      as at December 31, 2007
                
                
                72,205,755
                
                
                
                57,614
                
                
                
                82,791,057
                
                
                
                (9,278,261
                )
                
                
                73,570,410See
      note 7 for further information
                  The
      accompanying notes are an integral part of these Consolidated Financial
      Statements


FS
68





GEOGLOBAL
      RESOURCES INC.
                  (a
      development stage enterprise)
                  CONSOLIDATED
      STATEMENTS OF CASH FLOWSYear
      ended
                  Dec
      31, 2007
                  US
      $
                
                
                Year
      ended
                  Dec
      31, 2006
                  US
      $
                
                
                Year
      ended
                  Dec
      31, 2005
                  US
      $
                
                
                Period
      from
                  Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2007
                  US
      $Restated
                  note
      8(c)
                
                
                Restated
                  note
      8(c)
                
                
                Restated
      notes
                  8(c)
      and 14(a)Cash
      flows provided by (used in) operating activities:Net
      loss
                
                
                (1,543,110
                )
                
                
                (1,548,803
                )
                
                
                (3,162,660
                )
                
                
                (7,958,261
                )Adjustments
      to reconcile net loss to net cash used
                  in
      operating activities:Depreciation
                
                
                55,425
                
                
                
                49,323
                
                
                
                49,531
                
                
                
                266,735Gain
      on sale of equipment
                
                
                --
                
                
                
                --
                
                
                
                (42,228
                )
                
                
                (42,228
                )Stock-based
      compensation (note 8b)
                
                
                670,992
                
                
                
                1,588,289
                
                
                
                2,681,680
                
                
                
                5,285,6452005
      Compensation Option and Warrant
                  Modification  (note
      7f)
                
                
                240,000
                
                
                
                --
                
                
                
                --
                
                
                
                240,000Changes
      in operating assets and liabilities:Accounts
      receivable
                
                
                30,844
                
                
                
                (63,786
                )
                
                
                42,202
                
                
                
                (96,977
                )Prepaids
      and deposits
                
                
                (34,425
                )
                
                
                (25,514
                )
                
                
                (5,718
                )
                
                
                (65,657
                )Accounts
      payable
                
                
                293,007
                
                
                
                (23,720
                )
                
                
                24,307
                
                
                
                327,658Accrued
      liabilities
                
                
                406,513
                
                
                
                (10,013
                )
                
                
                22,500
                
                
                
                440,000Due
      to related companies
                
                
                32,547
                
                
                
                (210,847
                )
                
                
                224,828
                
                
                
                24,396151,793
                
                
                
                (245,071
                )
                
                
                (165,558
                )
                
                
                (1,578,689
                )Cash
      flows provided by (used in) investing activities:Oil
      and gas interests
                
                
                (13,807,287
                )
                
                
                (6,739,386
                )
                
                
                (1,578,124
                )
                
                
                (22,763,336
                )Property
      and equipment
                
                
                (29,396
                )
                
                
                (142,924
                )
                
                
                (36,876
                )
                
                
                (464,705
                )Proceeds
      on sale of equipment
                
                
                --
                
                
                
                --
                
                
                
                82,800
                
                
                
                82,800Cash
      acquired on acquisition (note 9)
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                3,034,666Restricted
      deposits (note 13a)
                
                
                (964,711
                )
                
                
                (3,198,284
                )
                
                
                (185,689
                )
                
                
                (4,555,480
                )Changes
      in investing assets and liabilities:Cash
      call receivable
                
                
                --
                
                
                
                49,947
                
                
                
                (22,436
                )
                
                
                --Prepaids
      and deposits
                
                
                (34,395
                )
                
                
                --
                
                
                
                --
                
                
                
                (34,395
                )Accounts
      payable
                
                
                1,727,396
                
                
                
                1,763,478
                
                
                
                94,415
                
                
                
                3,531,840Accrued
      liabilities
                
                
                1,915,322
                
                
                
                --
                
                
                
                (33,442
                )
                
                
                1,915,322(11,193,071
                )
                
                
                (8,267,169
                )
                
                
                (1,679,352
                )
                
                
                (19,253,288
                )Cash
      flows provided by (used in) financing activities:Proceeds
      from issuance of common shares
                
                
                28,720,675
                
                
                
                4,922,640
                
                
                
                34,993,586
                
                
                
                74,952,165Share
      issuance costs
                
                
                (1,907,517
                )
                
                
                (74,010
                )
                
                
                (1,541,686
                )
                
                
                (4,073,388
                )Changes
      in financing liabilities:Note
      payable (note 10a)
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                (2,000,000
                )Accounts
      payable
                
                
                --
                
                
                
                (10,800
                )
                
                
                10,800
                
                
                
                61,078Due
      to related companies
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                26,98026,813,158
                
                
                
                4,837,830
                
                
                
                33,462,700
                
                
                
                68,966,835Net
      increase (decrease) in cash and cash equivalents
                
                
                15,771,880
                
                
                
                (3,674,410
                )
                
                
                31,617,790
                
                
                
                48,134,858Cash
      and cash equivalents, beginning of the year
                
                
                32,362,978
                
                
                
                36,037,388
                
                
                
                4,419,598
                
                
                
                --Cash
      and cash equivalents, end of the year
                
                
                48,134,858
                
                
                
                32,362,978
                
                
                
                36,037,388
                
                
                
                48,134,858Cash
      and cash equivalentsCurrent
      bank accounts
                
                
                327,253
                
                
                
                316,329
                
                
                
                127,803
                
                
                
                327,253Term
      deposits
                
                
                47,807,605
                
                
                
                32,046,649
                
                
                
                35,909,585
                
                
                
                47,807,60548,134,858
                
                
                
                32,362,978
                
                
                
                36,037,388
                
                
                
                48,134,858Cash
      taxes paid during the year
                
                
                26,050
                
                
                
                17,775
                
                
                
                15,500
                
                
                
                65,513




The
accompanying notes are an integral part of these Consolidated Financial
Statements


FS
69
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


1.         Nature
of Operations




The
Company is engaged primarily in the pursuit of petroleum and natural gas through
exploration and development in India.  Since inception, the efforts of
GeoGlobal have been devoted to the pursuit of Production Sharing Contracts
(“PSCs”) with the Gujarat State Petroleum Corporation ("GSPC"), Oil India
Limited ("OIL") among others, and the Government of India ("GOI") and the
development thereof.  To date, the Company has not earned revenue from
these operations and, in accordance with Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 7 –Accounting and Reporting by
Development-Stage Enterprises, is considered to be a development stage
enterprise.  However, the recoverability of the costs incurred to date
is uncertain and dependent upon achieving commercial production or sale, the
ability of the Company to obtain sufficient financing to fulfill its obligations
under the PSCs in India and upon future profitable operations and upon
finalizing agreements.  At December 31, 2007, Management of the
Company believes the Company has sufficient capital resources which will meet
all obligations and exploration commitments to December 31,
2008.




On August
29, 2003, all of the issued and outstanding shares of GeoGlobal Resources
(India) Inc. ("GeoGlobal India") were acquired by GeoGlobal Resources Inc.,
formerly Suite101.com, Inc.  As a result of the transaction, the
former shareholder of GeoGlobal India held approximately 69.3% of the issued and
outstanding shares of GeoGlobal Resources Inc.  This transaction is
considered an acquisition of GeoGlobal Resources Inc. (the accounting subsidiary
and legal parent) by GeoGlobal India (the accounting parent and legal
subsidiary) and has been accounted for as a purchase of the net assets of
GeoGlobal Resources Inc. by GeoGlobal India.  Accordingly, this
transaction represents a recapitalization of GeoGlobal India, the legal
subsidiary, effective August 29, 2003.  These consolidated financial
statements are issued under the name of GeoGlobal Resources Inc. but are a
continuation of the financial statements of the accounting acquirer, GeoGlobal
India.  The assets and liabilities of GeoGlobal India are included in
the consolidated financial statements at their historical carrying
amounts.  As a result, the stockholders' equity of GeoGlobal Resources
Inc. is eliminated and these consolidated financial statements reflect the
results of operations of GeoGlobal Resources Inc. only from the date of the
acquisition.




GeoGlobal
Resources Inc. changed its name from Suite101.com, Inc. after receiving
shareholder approval at the Annual Shareholders Meeting held on January 8,
2004.  Collectively, GeoGlobal Resources Inc., GeoGlobal India and its
other wholly-owned direct and indirect subsidiaries, are referred to as the
"Company" or “GeoGlobal”.





2.         Significant
Accounting Policies




a)         Basis
of presentation


These
consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States within the
framework of the accounting policies summarized below.




These
consolidated financial statements include the accounts of (i) GeoGlobal
Resources Inc., from the date of acquisition, being August 29, 2003, (ii)
GeoGlobal Resources (India) Inc., incorporated under the Business Corporations Act(Alberta), Canada on August 21, 2002 and continued under the Companies Act of Barbados,
West Indies on June 27, 2003, which is a wholly-owned subsidiary of GeoGlobal
Resources Inc., (iii) GeoGlobal Resources (Canada) Inc., incorporated under the
Business Corporations Act(Alberta), Canada on September 4, 2003, which is a wholly-owned
subsidiary of GeoGlobal Resources Inc., (iv) GeoGlobal Resources (Barbados) Inc.
incorporated under the Companies Act of Barbados,
West Indies on September 24, 2003, which is the wholly-owned subsidiary of
GeoGlobal Resources (Canada) Inc., and (v) GGR Oil & Gas (India) Private
Limited, incorporated under the Companies Act, 1956,Maharashtra, India on May 5, 2006.




FS
70
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


2.         Significant
Accounting Policies (continued)




b)         Property
and Equipment


Computer
and office equipment are recorded at cost, with depreciation provided for on a
declining-balance basis at 30% per annum.




c)
            Joint
      operations


The
majority of the Company's petroleum and natural gas activities are conducted
jointly with others.  The Company’s undivided interests in joint
operations are consolidated on a proportionate basis.




d)         Net
loss per share


Net
      loss per share is calculated based upon the weighted-average number of
      shares outstanding during the period.  The treasury stock method
      is used to determine the dilutive effect of the stock
      options.  The treasury stock method assumes any proceeds
      obtained upon exercise of options would be used to purchase common shares
      at the average market price during the period.  There are no
      differences between net loss and the weighted-average number of shares
      used in the calculation of the basic net loss per share and those used in
      the calculation of diluted net loss per share as the effect of the options
      and warrants on the diluted net loss per share calculations is
      anti-dilutive for all periods
presented.




e)        Comprehensive
loss


Comprehensive
      loss includes all changes in equity except those resulting from
      investments made by owners and distributions to
      owners.  Comprehensive loss consists only of net loss for all
      periods presented.




f)
            Use
      of estimates


The
      preparation of the consolidated financial statements in accordance with
      accounting principles generally accepted in the United States requires
      management to make estimates and assumptions that affect the reported
      amounts of assets and liabilities at the date of the consolidated
      financial statements and the reported amounts of revenues and expenses
      during the reporting period.  Significant estimates and
      assumptions are used for, the useful lives of property and equipment,
      income tax valuation allowances, valuation of stock-based compensation,
      asset retirement obligations, realizable value of oil and gas interests
      and contingencies.  Actual results may differ from these
      estimated amounts.




g)
            Financial
      instruments


The
      Company has estimated the fair value of its financial instruments which
      include cash and cash equivalents, restricted cash, accounts receivable,
      accounts payable and due to related companies.  The Company used
      market information available as at period end to determine that the
      carrying amounts of such financial instruments approximate fair value in
      all cases.  It is management’s opinion that the Company is not
      exposed to significant interest, currency or credit risks arising from its
      financial instruments.




h)         Cash
and cash equivalents


Cash
      and cash equivalents include cash on hand, balances with banks and
      short-term deposits with original maturities of three months or
      less.




i)         Foreign
currency translation


The
      Company translates integrated foreign operations into the functional
      currency of the parent.  Monetary assets and liabilities
      denominated in foreign currencies are translated into U.S. dollars at
      rates of exchange in effect at the date of the balance
      sheet.  Non-monetary items are translated at the rate of
      exchange in effect when the assets are acquired or obligations
      incurred.  Revenues and expenses are translated at average rates
      in effect during the period, with the exception of depreciation which is
      translated at historic rates.  Exchange gains and losses are
      charged to operations.




FS
71
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


2.         Significant
Accounting Policies (continued)




j)         Income
taxes


The
      Company follows the liability method of tax allocation.  Under
      this method, assets and liabilities are determined based on differences
      between the tax basis of an asset or liability and its carrying value
      using enacted tax rates anticipated to apply in the periods when the
      temporary differences are expected to
reverse.




The
effect on deferred income tax assets and liabilities of changes in tax rates is
recognized in income or loss in the period in which the change is
enacted.




In July
2006, the Financial Accounting Standards Board (“FASB”) issued FASB
Interpretation No. 48, “Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement No. 109" (“FIN 48”), which prescribes a
recognition threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a
tax return. In addition, FIN 48 provides guidance on derecognition,
classification, accounting in interim periods and disclosure requirements for
uncertain tax positions. The accounting provisions of FIN 48 are effective for
the Company in its fiscal year 2007.




In
accordance with FIN 48, the Company will recognize interest and penalties
related to uncertain tax positions in income tax expense.  During the
year ended December 31, 2007, the Company did not incur interest and/or
penalties related to uncertain tax positions.




The
Company assesses the likelihood that the future income tax assets will be
recovered from future taxable income and, to the extent that a recovery cannot
be considered "more likely than not," a valuation allowance is
established.




k)         Stock-based
compensation plan


The
Company maintains a stock-based compensation plan, which stock options are
granted to employees, directors and non-employee consultants.  Prior
to January 1, 2006, the Company used the intrinsic value method of accounting
for employee and director stock-based compensation.  As all options
have been granted at exercise prices based on the market value of the Company's
common shares at the date of grant, no compensation cost was recognized under
the intrinsic value based method of accounting.




In
December, 2004, the Financial Accounting Standards Board issued a revision to
Standard 123, Accounting for
Stock-Based Compensation.The Statement of Financial
Accounting Standards 123(R), Share-Based Payment("FAS
123(R)"), requires the recognition of compensation cost for stock-based
compensation arrangements with employees and directors based on their grant date
fair value using the Black-Scholes option-pricing model.  Compensation
expense is recorded over the awards' respective requisite service, with
corresponding entries to additional paid-in capital.




The
Company adopted FAS 123(R) using the modified-prospective-transition method on
January 1, 2006.




The
Company records the expense of options granted to non-employee consultants for
such services based on the estimated fair value of the equity instrument using
the Black-Scholes option-pricing model on the measurement date.  The
Company re-measures the fair value of the unvested portion of stock-based awards
to non-employees at each financial reporting date until the options are fully
vested.




l)         Warrants


In
accordance with EITF 00-19, "Accounting for Derivative Financial Instruments
Indexed to, and Potentially Settled in, a Company's Own Stock", the warrants
were reported as equity instruments and recorded at fair market value on the
date of issuance.




FS
72
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


2.         Significant
Accounting Policies (continued)




m)         Oil
and gas interests


i)         Revenue
recognition


Revenue
associated with the production and sales of crude oil, natural gas and natural
gas liquids owned by the Company will be recognized when production is sold to a
purchaser at a fixed or determinable price when delivery has occurred and title
passes from the Company to its customer, and if the collectibility of the
revenue is probable.




ii)
            Capitalized
      costs


The
Company follows the full cost method of accounting for its oil and natural gas
interests.  Under this method all costs related to the exploration for
and development of oil and natural gas interests are
capitalized.  Costs include land acquisition costs, geological and
geophysical expenditures, costs of drilling both productive and non-productive
wells and related overhead costs.  Proceeds from the sale of
properties will be applied against capitalized costs, without any gain or loss
being realized, unless such sale would significantly alter the relationship
between capital costs and proven reserves of petroleum and natural gas
attributable to the cost center.




iii)         Depletion


Upon the
commencement of production of economic quantities of oil and gas, depletion of
exploration and development costs and depreciation of production equipment will
be provided on a country-by-country basis using the unit-of-production method
based upon estimated proven oil and natural gas reserves.  The costs
of acquiring and evaluating unproven properties and major development projects
will be excluded from costs subject to depletion until it is determined whether
or not proven reserves are attributable to the properties, the major development
projects are completed, or impairment occurs.  For depletion and
depreciation purposes, relative volumes of petroleum and natural gas production
and reserves will be converted into equivalent units based upon estimated
relative energy content.




iv)         Ceiling
test


In
applying the full cost method, the Company will be calculating a ceiling test
whereby the carrying value of oil and natural gas interests and production
equipment, net of recorded deferred income taxes is limited to the present value
of after-tax future net revenues from proven reserves, discounted at 10% (based
on prices and costs at the balance sheet date calculated quarterly), plus the
lower of cost and fair value of unproven properties.  Should this
comparison indicate an excess carrying value, the excess will be charged against
earnings as additional depletion and depreciation.  Unproven
properties are assessed quarterly for possible impairments or reductions in
value.




v)       Asset
retirement obligations


The fair
values of estimated asset retirement obligations are recorded as liabilities
when incurred and the associated cost is capitalized as part of the cost of the
related asset.  The obligation to perform the asset retirement
activity is unconditional even though uncertainty exists about the timing and/or
method of settlement.  The liabilities are accreted as operating
expense for the change in their present value.  The initial
capitalized costs are included in depletion expense in a manner consistent with
the related assets.  Changes in the estimated obligation resulting
from revisions to the estimated timing or amount of undiscounted cash flows are
recognized as a change in the asset retirement obligation and related
asset.  Actual expenditures incurred are charged against the
accumulated obligation.  If the asset retirement obligation is settled
for other than the carrying amount of the liability, the Company will recognize
a gain or loss on settlement.


FS
73
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


2.         Significant
Accounting Policies (continued)




vi)         Concentration
of risk


The
majority of the Company's capitalized costs for oil and gas interests are
incurred with one major operator in India.  The Company relies on the
operator in fulfilling its obligations and meeting the terms of its contracts
with the Government of India.  In addition, the Company relies on the
operator for discovering economically recoverable reserves and their ability to
market those reserves at prices that will yield a return on our investment to
us.





3.         Interest
in cash and cash equivalents




Interest
earned during the year ended December 31, 2007 was US$2,165,920 (December 2006 -
US$1,744,697 and December 31, 2005 - $462,174) on our cash and cash equivalents
held in term deposits.  Interest earned was based upon an annual
average rate of 4.92% (December 31, 2006 - 4.81%).





4.         Property
and Equipment




December
      31, 2007
                  US$
                
                
                December
      31, 2006
                  US$Computer
      and office equipment
                
                
                381,905
                
                
                
                324,419Accumulated
      depreciation
                
                
                (224,507
                )
                
                
                (169,082
                )157,398
                
                
                
                155,337Office
      condominium deposit
                
                
                --
                
                
                
                28,090157,398
                
                
                
                183,427





5.         Oil
and Gas Interests




US$Exploration
      costs incurred in:2002
                
                
                21,9252003
                
                
                178,8292004
                
                
                506,2692005
                
                
                3,250,7002006
                
                
                8,163,611Period
      from Inception, Aug 21, 2002 to Dec 31, 2006 (restated note
      8(c))
                
                
                12,121,3342007
                
                
                14,978,213Balance
      – December 31, 2007
                
                
                27,099,547







FS
74
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


5.
            Oil
      and Gas Interests (continued)




a)         Exploration
costs


The
exploration costs incurred to date are not subject to
depletion.  These exploration costs cover ten exploration blocks,
known as the KG Offshore and Onshore Blocks, the Mehsana Block, the
Sanand/Miroli Block, the Ankleshwar Block, the DS 03 and DS 04 Blocks, the
Tarapur Block and RJ Block 20 and RJ Block 21.  In addition,
exploration costs include costs incurred in evaluating and bidding on other
blocks in Egypt and the Middle East.




b)         Capitalized overhead costs(Restated note 8(c))


Included
in the US$14,950,123 of exploration cost additions during the year ended
December 31, 2007 (year ended December 31, 2006 - US$8,163,611) are certain
overhead costs capitalized by the Company in the amount of US$2,218,054 (year
ended December 31, 2006 - US$2,791,520) directly related to the exploration
activities in India.  The capitalized overhead amount includes
capitalized stock-based compensation of US$852,004 (year ended December 31, 2006
- US$1,424,225) (see note 8b) of which US$133,117 (year ended December 31, 2006
– US$323,283) was for the account of a related party (see note
10c).  Further, the capitalized overhead amount includes US$1,011,050
(year ended December 31, 2006 - US$1,000,705) which was paid to third
parties.  The balance of US$355,000 was paid to and on behalf of a
related party (year ended December 31, 2006 - US$366,590) (see note
10c).  These costs are incurred solely by and on behalf of the Company
in providing its services under the Carried Interest Agreement (“CIA”) and are
therefore not reimbursable under the CIA (see note 5c).




c)
            Carried
      Interest Agreement


On
      August 27, 2002, GeoGlobal entered into a CIA with GSPC, which grants the
      Company a 10% Carried Interest (“CI”) (net 5% - see note 5d) in the KG
      Offshore Block.  The CIA provides that GSPC is responsible for
      GeoGlobal's entire share of any and all costs incurred during the
      Exploration Phase prior to the date of initial commercial
      production.




Under the
terms of the CIA, all of GeoGlobal's and Roy Group (Mauritius) Inc.'s (“RGM”), a
related party (note 10b), proportionate share of capital costs for exploration
and development activities will be recovered by GSPC without interest over the
projected production life or ten years, whichever is less, from oil and natural
gas produced on the Exploration Block.  GeoGlobal is not entitled to
any share of production until GSPC has recovered the Company's share of the
costs and expenses that were paid by GSPC on behalf of the Company and
RGM.




As at
December 31, 2007, GSPC has incurred costs of Rs 246.20 crore (approximately
US$57.3 million) (December 31, 2006 - Rs 114.96 crore (approximately US$26.1
million)) attributable to GeoGlobal under the CIA of which 50% is for the
account of RGM.




GeoGlobal
has been advised by GSPC, that GSPC is seeking payment of the amount by which
the exploration costs attributable to GeoGlobal under the PSC relating to the KG
Offshore Block exceeds the amount that GSPC deems it is obligated to pay on
behalf of GeoGlobal (including the net 5% participating interest of RGM) under
the terms of the CIA.  GSPC asserts that the Company is required to
pay 10% of the exploration expenses over and above gross costs of US$59.23
million (10% being US$5.92 million).  GeoGlobal disputes this
assertion of GSPC.  See note 13d.




FS
75
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


5.
            Oil
      and Gas Interests (continued)




d)
            Participating
      Interest Agreement


On March
27, 2003, GeoGlobal entered into a Participating Interest Agreement (“PIA”) with
RGM, whereby GeoGlobal assigned and holds in trust for RGM subject to GOI
consent, 50% of the benefits and obligations of the PSC covering the KG Offshore
Block and the CIA leaving GeoGlobal with a net 5% participating interest ("PI")
in the KG Offshore Block and a net 5% CI in the CIA.  Under the terms
of the PIA, until the GOI consent is obtained, GeoGlobal retains the exclusive
right to deal with the other parties to the KG Offshore Block and the CIA and is
entitled to make all decisions regarding the interest assigned to RGM, RGM has
agreed to be bound by and be responsible for the actions taken by, obligations
undertaken and costs incurred by GeoGlobal in regard to RGM's interest and to be
liable to GeoGlobal for its share of all costs, interests, liabilities and
obligations arising out of, or relating to, the RGM interest.  RGM has
agreed to indemnify GeoGlobal against any and all costs, expenses, losses,
damages or liabilities incurred by reason of RGM's failure to pay the
same.  Subject to obtaining the government consent to the assignment,
RGM is entitled to all income, receipts, credits, reimbursements, monies
receivable, rebates and other benefits in respect of its 5% interest which
relate to the KG Offshore Block. GeoGlobal has a right of
set-off against sums owing to GeoGlobal by RGM.  In the event that the
Indian government consent is delayed or denied, resulting in either RGM or
GeoGlobal being denied an economic benefit it would have realized under the PIA,
the parties agreed to amend the PIA or take other reasonable steps to assure
that an equitable result is achieved consistent with the parties' intentions
contained in the PIA.  As a consequence of this transaction the
Company reports its holdings under the KG Offshore Block and CIA as a net 5%
PI.




e)         Deed
of Assignment and Assumption


On April
7, 2005, the Company entered into a Deed of Assignment and Assumption with GSPC
whereby, subject to the terms of the agreement, the Company agreed to acquire
and assume and GSPC agreed to assign a 20% PI in the onshore Tarapur Block,
subject to obtaining the consent of the GOI to the assignment.  Such
consent was received effective August 24, 2006.  The Tarapur Block
covers an area of approximately 1,211 square kilometers in the Cambay Basin,
located in the State of Gujarat.  Oil and Natural Gas Corporation
Limited of India has the right to participate into the development of any
commercial discovery on the Tarapur Block by acquiring a 30% PI as provided
under the PSC.  The exercise of this right would result in the
reduction of our PI to 14%.




Phase
III under the PSC for this exploration block expired on November 22,
2007.  GSPC as operator, on behalf of the consortium partners has
submitted an application for an extension beyond Phase III of the PSC for an
additional twelve months to November 22, 2008 to complete an additional work
program of drilling five wells and to retain the area in the block covered by
3-D seismic.  GOI consent to this application has not yet been
approved or received.  The consortium also agreed that it would
provide a 35% bank guarantee of US$3.1 million and a 30% cash payment as agreed
pre-estimated damages for the additional work program (the Company's share is
US$773,000 and US$662,000 respectively).  The Company has accrued an
amount of $662,000 as an estimate for its share of such agreed pre-estimated
damages which is non-refundable and estimated to be 30% of the total cost
required to complete the additional work program.




FS
76
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


5.         Oil
and Gas Interests (continued)




f)         Production
Sharing Contracts


i)
            Exploration
      Block KG-OSN-2001/3 (also referred to as “KG Offshore
    Block”)


On
      February 4, 2003, GeoGlobal, as to a 10% PI (net 5% - see note 5d)
      together with its joint venture participants, Jubilant Oil & Gas Pvt.
      Ltd. ("Jubilant") and GSPC, as to their 10% and 80% PI respectively,
      entered into a PSC with respect to the KG Offshore Block with the
      GOI.  The KG Offshore Block covers an area of approximately
      1,850 sq kms and is located offshore on the east coast of India in the
      Krishna Godavari Basin.  See also Carried Interest Agreement
      note 5c.  The PSC on this KG Offshore Block allows the joint
      venture participants to explore for petroleum and natural gas over a 6.5
      year period commencing March 12, 2003 subject to the work commitment as
      outlined in note 13c.




ii)
            Exploration Block CB-ONN-2002/2(also referred to as “Mehsana
Block”)


On
      February 6, 2004, GeoGlobal as to its 10% PI, along with its joint venture
      participants, Jubilant and GSPC as to their 30% and 60% PI respectively,
      entered into a PSC with respect to the Mehsana Block with the
      GOI.  The Mehsana Block covers an area of approximately 125 sq
      kms in the Cambay Basin, located in the State of Gujarat.  The
      PSC on this Mehsana Block allows the joint venture participants to explore
      for petroleum and natural gas over a 6 year period commencing May 31, 2004
      subject to the work commitment as outlined in note
  13b.




iii)
            Exploration
      Block CB-ONN-2002/3 (also
      referred to as “Sanand/Miroli
Block”)


On
      February 6, 2004, GeoGlobal as to its 10% PI, along with its joint venture
      participants, Jubilant, GSPC, and Prize Petroleum Company Limited as to
      their 20%, 55% and 15% PI respectively, entered into a PSC with respect to
      the Sanand/Miroli Block with the GOI.  The Sanand/Miroli Block
      covers an area of approximately 285 sq kms in the Cambay Basin, located in
      the province of Gujarat.  The PSC on this Sanand/Miroli Block
      allows the joint venture participants to explore for petroleum and natural
      gas over a 6 year period commencing July 29, 2004 subject to the work
      commitment as outlined in note 13b.




iv)
            Exploration
      Block CB-ONN-2003/2 (also
      referred to as “Ankleshwar
Block”)


On
      September 23, 2005, GeoGlobal as to its 10% PI, along with its joint
      venture participants, Gail (India) Ltd., Jubilant Capital Pvt. Ltd. and
      GSPC as to their 20%, 20% and 50% PI respectively, entered into a PSC with
      respect to the Ankleshwar Block with the GOI.  The Ankleshwar
      Block covers an area of approximately 448 sq kms in the Cambay Basin,
      located in the province of Gujarat.  The PSC on this Ankleshwar
      Block allows the joint venture participants to explore for petroleum and
      natural gas over a 7 year period commencing April 1, 2006 subject to the
      work commitment as outlined in note
13b.




v)
            Exploration
      Block DS-ONN-2003/1 (also
      referred to as “DS 03
Block”)


On
      September 23, 2005, GeoGlobal as to its 100% PI entered into a PSC with
      respect to the DS 03 Block with the GOI.  The DS 03 Block covers
      an area of approximately 3,155 sq kms in the Deccan Syneclise Basin,
      located in the northern portion of the State of Maharashtra in West
      Central India.  The PSC on this DS 03 Block allows GeoGlobal to
      explore for petroleum and natural gas over a 7 year period commencing
      September 4, 2006 subject to the work commitment as outlined in note
      13b.




FS
77
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


5.         Oil
and Gas Interests (continued)




vi)
            Exploration Block KG-ONN-2004/1(also referred to as “KG Onshore
Block”)


On
      March 2, 2007, GeoGlobal as to its 10% PI, along with its joint venture
      participants, OIL as to their 90% PI, entered into a PSC with respect to
      the KG Onshore Block with the GOI.  The KG Onshore Block covers
      an area of approximately 548 sq kms in the Krishna Godavari Basin, located
      onshore on the east coast of India in the State of Andhra Pradesh in the
      Krishna Godavari Basin.  The PSC on this KG Onshore Block allows
      the joint venture participants to explore for petroleum and natural gas
      over a 7 year period commencing February 18, 2008, subject to the work
      commitment as outlined in note 13b.




vii)
            Exploration Block DS-ONN-2004/1(also referred to as “DS 04
Block”)


On
      March 2, 2007, GeoGlobal as to its 100% PI entered into a PSC with respect
      to the DS 04 Block with the GOI.  The DS 04 Block covers an area
      of approximately 2,649 sq kms in the Deccan Syneclise Basin, located in
      the northern portion of the State of Maharashtra. The PSC on this DS 04
      Block allows GeoGlobal to explore for petroleum and natural gas over an 8
      year period commencing June 7, 2007 subject to the work commitment as
      outlined in note 13b.




viii)
            Exploration Block RJ-ONN-2004/2(also referred to as “RJ Block
20”)


On
      March 2, 2007, GeoGlobal as to its 25% PI, along with its joint venture
      participant, OIL as to their 75% PI, entered into a PSC with respect to
      the RJ Block 20 with the GOI.  The RJ Block 20 covers an area of
      approximately 2,196 sq kms in the Rajasthan Basin, located onshore in the
      northern portion of the State of Rajasthan in North Western
      India.  The PSC on this RJ Block 20 allows the joint venture
      participants to explore for petroleum and natural gas over a 7 year period
      commencing January 21, 2008, subject to the work commitment as outlined in
      note 13b.




ix)
            Exploration Block RJ-ONN-2004/3(also referred to as “RJ Block
21”)


On
      March 2, 2007, GeoGlobal as to its 25% PI, along with its joint venture
      participant, OIL as to their 75% PI, entered into a PSC with respect to
      the RJ Block 21 with the GOI.  The RJ Block 21 covers an area of
      approximately 1,330 sq kms in the Rajasthan Basin, located onshore in the
      northern portion of the State of Rajasthan in North Western
      India.  The PSC on this RJ Block 21 allows the joint venture
      participants to explore for petroleum and natural gas over a 7 year period
      commencing January 21, 2008, subject to the work commitment as outlined in
      note 13b.




6.         Asset
Retirement Obligation




Asset
retirement obligations are recorded for an obligation where the Company will be
required to retire, dismantlement, abandon and restore tangible long-lived
assets.




The
following table summarizes the changes in the asset retirement
obligation:




December
      31, 2007
                  US$
                
                
                December
      31, 2006
                  US$Asset
      retirement obligation at beginning of year
                
                
                --
                
                
                
                --Obligations
      incurred
                
                
                318,922
                
                
                
                --Asset
      retirement obligation at end of year
                
                
                318,922
                
                
                
                --




In
determining the fair value of the asset retirement obligations, the estimated
cash flows of new obligations incurred during the year have been discounted at
8.0% (2006 – Nil). The total undiscounted amount of the estimated cash flows
required to settle the obligations is US$689,000 (2006 – US$nil). The
obligations will be settled on an ongoing basis over the useful lives of the
operating assets, which extend up to 10 years in the future.







FS
78
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


7.         Capital
Stock




a)         June
2007 Financing


During
June 2007, GeoGlobal completed the sale of 5,680,000 Units of its securities at
US$5.00 per Unit for aggregate gross cash proceeds of
US$28,400,000.




Each Unit
is comprised of one common share and one half of one warrant.  One
full warrant ("2007 Stock Purchase Warrant") entitles the holder to purchase one
additional common share for US$7.50, for a term of two years expiring June 20,
2009.  In addition, compensation options ("2007 Compensation Options")
were issued to the placement agents entitling them to purchase an aggregate of
340,800 common shares at an exercise price of US$5.00 per share until June 20,
2009.  The 2007 Stock Purchase Warrants and the 2007 Compensation
Options are subject to accelerated expiration in the event that the price of the
Company's common shares on the American Stock Exchange is US$12.00 or more for
20 consecutive trading days, the resale of the shares included in the Units and
the shares issuable on exercise of the 2007 Stock Purchase Warrants and the 2007
Compensation Options have been registered under the US Securities Act of 1933,
as amended (the “Act”), and the hold period for Canadian subscribers has
expired. In such events, the term will be reduced to 30 days from the date of
issuance of a news release announcing such accelerated expiration of the
term.  At December 31, 2007 since not all such events have occurred,
the accelerated expiration of the term for the 2007 Stock Purchase Warrants and
the 2007 Compensation Options has not been triggered.




The
proceeds from the issuance of the Units have been allocated between the common
shares and the 2007 Stock Purchase Warrants based on their fair
value.  The fair value of the common share was determined based on the
market price of the stock the day the financing closed.  The fair
value of the 2007 Stock Purchase Warrants was based on a Black-Scholes
option-pricing model and the following weighted average assumptions as at the
date of the financing closing as follows:




Risk-free
      interest rate
              4.97%Expected
      life
              2.0
      yearsContractual
      life
              2.0
      yearsExpected
      volatility
              69%Expected
      dividend yield
              0%




The
resulting allocation of the fair value to the common shares and the 2007 Stock
Purchase Warrants (included as additional paid-in capital) was US$24,992,000 and
US$3,408,000 respectively.




Costs of
US$2,612,973 were incurred in issuing shares in these transactions which
included a fee paid to the placement agents of US$1,704,000 along with the 2007
Compensation Options with a fair value of US$705,456 with respect to the sale of
the 5,680,000 Units.  The Company assigned a fair value to the 2007
Compensation Options based on the same Black-Scholes option-pricing model and
the same weighted average assumptions as used for the valuation of the 2007
Stock Purchase Warrants above.




The total
share issuance costs of US$2,612,973 associated with the private placement
financing were allocated to the common shares and the 2007 Stock Purchase
Warrants on the same basis utilized for the allocation of the private placement
financing proceeds as follows:




Common
                  Shares
                
                
                2007
      Stock
                  Purchase
      Warrants
                
                
                TotalUS$
                
                
                US$
                
                
                US$Proceeds
      from private placement financing
                
                
                24,992,000
                
                
                
                3,408,000
                
                
                
                28,400,000Issuance
      costs from private placement financing
                
                
                (2,299,416
                )
                
                
                (313,557
                )
                
                
                (2,612,973
                )Balance
      December 31, 2007
                
                
                22,692,584
                
                
                
                3,094,443
                
                
                
                25,787,027







FS
79
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


7.         Capital
Stock (continued)




Also,
pursuant to the terms of the transaction, GeoGlobal entered into a Registration
Rights Agreement with the placement agents whereby the Company agreed to prepare
and file at its expense with the United States Securities and Exchange
Commission ("SEC") as promptly as practicable and in any event prior to 5:00 pm
eastern time on August 17, 2007 a registration statement under the US Securities
Act of 1933, as amended (the "Act"), for an offering on a continuous shelf basis
of the shares of Common Stock included in the Units and issuable on exercise of
the 2007 Purchase Warrants included in the Units and the shares of Common Stock
issuable to the placement agents on exercise of the 2007 Compensation
Options.  Such registration statement was filed on August 17, 2007 and
was subsequently declared effective by the SEC on December 3, 2007.




b)         September
2005 Financing


During
September 2005, GeoGlobal completed the sale of 3,252,400 Units of its
securities at US$6.50 per Unit, together with a concurrent sale of an additional
1,000,000 Units on the same terms, for aggregate gross cash proceeds of
US$27,640,600.




Each Unit
is comprised of one common share and one half of one warrant.  One
full warrant ("2005 Stock Purchase Warrant") entitles the holder to purchase one
additional common share for US$9.00, for a term of two years expiring September
2007 which have been extended to June 20, 2009.  The 2005 Stock
Purchase Warrants are subject to accelerated expiration in the event that the
price of the Company's common shares on the American Stock Exchange is US$12.00
or more for 20 consecutive trading days, the resale of the shares included in
the Units and issuable on exercise of the 2005 Stock Purchase Warrants has been
registered under the Act, and the hold period for Canadian subscribers has
expired.  In such events, the warrant term will be reduced to 30 days
from the date of issuance of a news release announcing such accelerated
expiration of the warrant term.  At December 31, 2007 no such triggers
have occurred.




Costs of
US$1,541,686 were incurred in issuing shares in these transactions which
included a fee of US$1,268,436 paid to the placement agents with respect to the
sale of the 3,252,400 Units, and, in addition, compensation options ("2005
Compensation Options") were issued to the placement agents entitling them to
purchase an additional 195,144 Units at an exercise price of US$6.50 per Unit
through their expiration in September 2007 which have been extended to June 20,
2009.  The 2005 Compensation Options are also subject to accelerated
expiration on the same terms and conditions as the warrants issued in the
transaction.




c)         December
2003 Financing


On
December 23, 2003, GeoGlobal completed a brokered private placement of 5,800,000
units at US$1.00 each, together with a concurrent private placement of an
additional 200,000 units on the same terms, for aggregate gross cash total
proceeds of US$6,000,000.




Each unit
is comprised of one common share and one half of one warrant.  One
full warrant ("2003 Stock Purchase Warrant"), entitles the holder to purchase
one additional common share for US$2.50, for a term of two years from date of
closing.  The 2003 Stock Purchase Warrants are subject to accelerated
expiration 30 days after issuance of a news release to that effect in the event
that the common shares trade at US$4.00 or more for 20 consecutive trading days
and if the resale of the shares has been registered under the Act and the hold
period for Canadian subscribers has expired.  Also issued as
additional consideration for this transaction were 580,000 Broker
Warrants.




The
580,000 Broker Warrants described above entitled the holder to purchase 580,000
common shares at an exercise price of US$1.50 per share.  The Broker
Warrants were fully exercised before they expired on December 23, 2005 for gross
proceeds of US$870,000.




FS
80
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


7.         Capital
Stock (continued)




d)         Warrants
and Compensation Options


i)         2007
Compensation Options


As at
December 31, 2007, none of the 340,800 2007 Compensation Options were
exercised.  If fully exercised, the 2007 Compensation Options would
result in the issuance of 340,800 common shares for gross proceeds of
US$1,704,000




ii)         2007
Stock Purchase Warrants


As at
December 31, 2007, none of the 2,840,000 2007 Stock Purchase Warrants were
exercised.  If fully exercised, the 2007 Stock Purchase Warrants would
result in the issuance of 2,840,000 common shares for gross proceeds of
US$21,300,000.




iii)         2005
Compensation Option Warrants


As
      at December 31, 2007, none of the 97,572 2005 Compensation Option Warrants
      have been issued as a result of the 2005 Compensation Options not being
      exercised.  If the 2005 Compensation Options are exercised and
      the 2005 Compensation Option Warrants issued, such Warrants if exercised,
      would result in the issuance of 97,572 common shares for gross proceeds of
      US$878,148.




iv)
            2005
      Compensation Options


As at
December 31, 2007, none of the 195,144 2005 Compensation Options were
exercised.  If fully exercised, the 2005 Compensation Options would
result in the issuance of 195,144 Units at an exercise price of US$6.50
resulting in gross proceeds of US$1,268,436.




On
September 6, 2007, the Company extended the expiration date of all outstanding
2005 Compensation Options and associated 2005 Compensation Option Warrants which
were to expire on September 9, 2007, to June 20, 2009 (see note
7f).




v)         2005
Stock Purchase Warrants


As at
December 31, 2007, none of the 2005 Stock Purchase Warrants have been
exercised.  If all of the 2005 Stock Purchase Warrants were exercised,
it would result in the issuance of 2,126,200 common shares for gross proceeds of
US$19,135,800.




On
September 6, 2007, the Company extended the expiration date of all outstanding
2005 Stock Purchase Warrants which were to expire on September 9, 2007, to June
20, 2009 (see note 7f).




vi)         2003
Stock Purchase Warrants


As at
December 31, 2007, all 2003 Stock Purchase Warrants have been
exercised.




e)          Net
loss per share amounts


In
calculating the net loss per share – basic and diluted, the incremental fair
value of $1,320,000 associated with the 2005 Stock Purchase Warrants
modification has been included in the determination of income attributable to
common stockholders (see note 7f).  As all other warrants and options
are anti-dilutive, they have been excluded from the net loss per share – diluted
calculation.  For purposes of the determination of net loss per share,
the basic and diluted weighted-average number of shares outstanding for the year
ended December 31, 2007 was 64,389,605 (December 31, 2006 - 59,763,629 and
December 31, 2005 - 53,058,660).  The numbers exclude the 5,000,000
shares currently held in escrow (see note 9).





FS
81
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


7.
            Capital
      Stock (continued)




f)
            Extended
      warrants and compensation
modification


On
September 6, 2007, GeoGlobal passed a Board of Directors resolution extending
the expiration date of its outstanding 2005 Stock Purchase Warrants, 2005
Compensation Options and 2005 Compensation Option Warrants from September 9,
2007 to June 20, 2009.




The
Company has recorded the incremental difference in the fair value of these
instruments immediately prior to and after the modification.  The fair
value of the instruments was determined using a Black-Scholes option-pricing
model using the following assumptions prior to and as at the date of
extension:




September
      6, 2007
              September
      9, 2007Risk-free
      interest rate
              4.28%
              4.08%Expected
      life
              4
      days
              22
      monthsContractual
      life
              4
      days
              22
      monthsExpected
      volatility
              134%
              75%Expected
      dividend yield
              0%
              0%




The
resulting incremental fair value of $1,320,000 associated with the 2005 Stock
Purchase Warrants held by shareholders was recorded as a charge to the deficit,
with a corresponding entry to additional paid-in capital.




The
resulting incremental fair value of the 2005 Compensation Options and the 2005
Compensation Option Warrants of $180,000 and $60,000, respectively, were
recorded as charge to general and administrative expense, with a corresponding
entry to additional paid-in capital.





8.         Stock
Options




a)         The
Company’s 1998 Stock Incentive Plan


Under the
terms of the 1998 Stock Incentive Plan (the "Plan"), as amended, 12,000,000
common shares have been reserved for issuance on exercise of options granted
under the Plan.  As at December 31, 2007, the Company had 2,380,697
(December 31, 2006 – 3,650,697) common shares remaining for the grant of options
under the Plan.  The Board of Directors of the Company may amend or
modify the Plan at any time, subject to any required stockholder
approval.  The Plan will terminate on the earliest of: (i) 10 years
after the Plan Effective Date, being December 2008; (ii) the date on which all
shares available for issuance under the Plan have been issued as fully-vested
shares; or, (iii) the termination of all outstanding options in connection with
certain changes in control or ownership of the Company.




b)         Stock-based
compensation


The
Company adopted FAS 123(R), using the modified-prospective-transition method on
January 1, 2006.  Under this method, the Company is required to
recognize compensation cost for stock-based compensation arrangements with
employees and directors based on their grant date fair value using the
Black-Scholes option-pricing model, such cost to be expensed over the
compensations’ respective vesting periods.  For awards with graded
vesting, in which portions of the award vest in different periods, the Company
recognizes compensation costs over the vesting periods for each separate vested
tranche.




FS
82
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


8.         Stock
Options (continued)




The
following table summarizes stock-based compensation for employees and
non-employee consultants:




Year
      ended
                Dec
      31, 2007
                US
      $
              
              
              Year
      ended
                Dec
      31, 2006
                US
      $
              
              
              Year
      ended
                Dec
      31, 2005
                US
      $
              
              
              Period
      from Inception,
                Aug
      21, 2002 to
                Dec
      31, 2007
                US
      $Restated
                note
      8(c)
              
              
              Restated
                note
      8(c)
              
              
              Restated
                note
      8(c)Stock-based
      compensationConsolidated
      Statements of OperationsGeneral
      and administrative
              
              
              929,826
              
              
              
              1,048,477
              
              
              
              --
              
              
              
              1,978,303Consulting
      fees
              
              
              (258,832
              )
              
              
              539,812
              
              
              
              2,681,680
              
              
              
              3,307,344670,994
              
              
              
              1,588,289
              
              
              
              2,681,680
              
              
              
              5,285,647Consolidated
      Balance SheetsOil
      and gas interests
              
              
              852,004
              
              
              
              1,424,225
              
              
              
              1,672,576
              
              
              
              4,017,2891,522,998
              
              
              
              3,012,514
              
              
              
              4,354,256
              
              
              
              9,302,936Prior
      to the adoption of FAS 123(R), the Company used the intrinsic value method
      of accounting for employee and director stock-based compensation. As
      all options have been granted at exercise prices based on the market value
      of the Company's common shares at the date of grant, no compensation cost
      was recognized under the intrinsic value based method of
      accounting. For the year ended December 31, 2005, and the period from
      inception August 21, 2002 to December 31, 2005, had employee compensation
      expense been determined based on the fair value at the grant date
      consistent with FAS 123 pro-forma net loss and pro-forma net loss per
      share would have been as follows:Year
      ended
                Dec
      31, 2005
                US$
              
              
              Period
      of Inception,
                Aug
      21, 2002 to
                Dec
      31, 2005
                US$Restated
                note
      8(c)
              
              
              Restated
                note
      8(c)Pro-forma
      basisStock-based
      compensationOil
      and gas interests
              
              
              
              337,113
              
              
              
              438,309General
      and administrative
              
              
              
              458,766
              
              
              
              679,882Oil
      and gas interestsAs
      reported
              
              
              
              3,957,723
              
              
              
              3,957,723Pro-forma
              
              
              
              4,396,032
              
              
              
              4,396,032Net
      lossAs
      reported
              
              
              
              (3,162,660
              )
              
              
              (4,866,348
              )Pro-forma
              
              
              
              (3,621,426
              )
              
              
              (5,546,230
              )Net
      loss per share - basic and dilutedAs
      reported
              
              
              
              (0.06
              )Pro-forma
              
              
              
              (0.07
              )




i)
            At
      January 1, 2006, the impact of the adoption of FAS123(R) required the
      Company to recognize a charge for past stock-based compensation options
      granted of US$367,596 over the next 3 years in accordance with their
      respective vesting periods.  In the year ended December 31, 2007
      US$48,306 (December 31, 2006 - US$211,128) of this charge was recognized
      in the Consolidated Statement of Operations as general and administrative
      expense.  This resulted in an increase in the net loss and
      comprehensive loss for the respective periods in the same amount and no
      material impact on the net loss per share – basic and diluted for the
      periods.  In the year ended December 31, 2007 US$nil (December
      31, 2006 - US$89,900) of this charge was capitalized in the Consolidated
      Balance Sheets as Oil and gas interests, not subject to
      depletion.




FS
83
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


8.         Stock
Options (continued)




ii)
            At
      December 31, 2007, the total compensation cost related to non-vested
      awards not yet recognized was US$1,348,523 (December 31, 2006 –
      US$2,485,620) which will be recognized over a weighted-average period of
      0.7 years.  The total fair value of all options vested during
      the year December 31, 2007 was US$1,870,289 (year ended December 31, 2006
      - US$1,523,840).




No income
tax benefit has been recognized relating to stock-based compensation expense and
no tax benefits have been realized from the exercise of stock
options.




c)         Restatement


The years
ended December 31, 2006, 2005 and the period from inception August 21, 2002 to
December 31, 2006 have been restated due to an error in the classification and
calculation for stock-based compensation for non-employee
consultants.




The
following is a summary of the effects of this restatement on the Company's
Consolidated Balance Sheets and Statements of Stockholders' Equity at December
31, 2006 and 2005 and the Consolidated Statements of Operations for the years
ended December 31, 2006 and 2005 and the period from inception of August 21,
2002 to December 31, 2006.




As
      Reported
                
                
                Adjustment
                
                
                As
      RestatedDec
      31, 2006
                  US$
                
                
                
                
                
                Dec
      31, 2006
                  US$
                
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2005
                  US$
                
                
                Dec
      31, 2006
                  US$Balance
      SheetsOil
      and gas interests
                
                
                9,722,738
                
                
                
                
                
                
                657,536
                
                
                
                1,741,060
                
                
                
                12,121,334Additional
      paid-in
                  capital
                
                
                47,077,827
                
                
                
                
                
                
                1,055,649
                
                
                
                4,767,424
                
                
                
                52,900,900Deficit
      accumulated
                
                
                (2,990,674
                )
                
                
                
                
                
                (398,113
                )
                
                
                (3,026,364
                )
                
                
                (6,415,151
                )Stockholders'
      equity
                
                
                44,138,770
                
                
                
                
                
                
                657,536
                
                
                
                1,741,060
                
                
                
                46,537,366Statement
      of
                  Stockholders'
      EquityAdditional
      paid-in
                  capital
                
                
                47,077,827
                
                
                
                
                
                
                1,055,649
                
                
                
                4,767,424
                
                
                
                52,900,900Accumulated
      deficit
                
                
                (2,990,674
                )
                
                
                
                
                
                (398,113
                )
                
                
                (3,026,364
                )
                
                
                (6,415,151
                )Stockholders'
      equity
                
                
                44,138,770
                
                
                
                
                
                
                657,536
                
                
                
                1,741,060
                
                
                
                46,537,366As
      Reported
                
                
                Adjustment
                
                
                As
      RestatedYear
      ended
                  Dec
      31, 2006
                  US$
                
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2006
                  US$
                
                
                Year
      ended
                  Dec
      31, 2006
                  US$
                
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2006
                  US$
                
                
                Year
      ended
                  Dec
      31, 2006
                  US$
                
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2006
                  US$Statements
      of OperationsGeneral
      and
                  administrative
                
                
                1,406,000
                
                
                
                2,510,716
                
                
                
                484,926
                
                
                
                484,926
                
                
                
                1,890,926
                
                
                
                2,995,642Consulting
      fees
                
                
                1,190,919
                
                
                
                1,864,251
                
                
                
                (86,813
                )
                
                
                2,939,551
                
                
                
                1,104,106
                
                
                
                4,803,802Net
      loss and
                  comprehensive
      loss
                
                
                (1,150,690
                )
                
                
                (2,990,674
                )
                
                
                (398,113
                )
                
                
                (3,424,477
                )
                
                
                (1,548,803
                )
                
                
                (6,415,151
                )Net
      loss per share
                  -
      basic and diluted
                
                
                (0.02
                )
                
                
                
                
                
                
                (0.01
                )
                
                
                
                
                
                
                (0.03
                )












FS
84
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


8.         Stock
Options (continued)




As
      Reported
                
                Adjustment
                
                
                As
      RestatedDec
      31, 2005
                  US$
                
                
                
                Dec
      31, 2005
                  US$
                
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2004
                  US$
                
                
                Dec
      31, 2005
                  US$Balance
      SheetsOil
      and gas interests
                
                
                2,216,663
                
                
                
                
                1,672,576
                
                
                
                68,484
                
                
                
                3,957,723Additional
      paid-in
                  capital
                
                
                40,275,588
                
                
                
                
                4,354,256
                
                
                
                413,168
                
                
                
                45,043,012Deficit
      accumulated
                
                
                (1,839,984
                )
                
                
                
                (2,681,680
                )
                
                
                (344,684
                )
                
                
                (4,866,348
                )Stockholders'
      equity
                
                
                38,483,965
                
                
                
                
                1,672,576
                
                
                
                68,484
                
                
                
                40,225,025Statement
      of
                  Stockholders'
      EquityAdditional
      paid-in
                  capital
                
                
                40,275,588
                
                
                
                
                4,354,256
                
                
                
                413,168
                
                
                
                45,043,012Accumulated
      deficit
                
                
                (1,839,984
                )
                
                
                
                (2,681,680
                )
                
                
                (344,684
                )
                
                
                (4,866,348
                )Stockholders'
      equity
                
                
                38,483,965
                
                
                
                
                1,672,576
                
                
                
                68,484
                
                
                
                40,225,025As
      Reported
                
                Adjustment
                
                
                As
      RestatedYear
      ended
                  Dec
      31, 2005
                  US$
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2005
                  US$
                
                Year
      ended
                  Dec
      31, 2005
                  US$
                
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2005
                  US$
                
                
                Year
      ended
                  Dec
      31, 2005
                  US$
                
                Period
      of Inception,
                  Aug
      21, 2002
                  to
      Dec 31, 2005
                  US$Statements
      of OperationsConsulting
      fees
                
                
                265,446
                
                673,332
                
                
                2,681,680
                
                
                
                3,026,364
                
                
                
                2,947,126
                
                3,699,696Net
      loss and
                  comprehensive
      loss
                
                
                (480,980
                )
                (1,839,984)
                
                
                (2,681,680
                )
                
                
                (3,026,364
                )
                
                
                (3,162,660
                )
                (4,866,348)Net
      loss per share
                  -
      basic and diluted
                
                
                (0.01
                )
                
                
                
                (0.05
                )
                
                
                
                
                
                
                (0.06
                )




The
restatement had no impact on the Consolidated Statements of Cash Flows for the
years ended December 31, 2006, 2005 and from inception of August 21, 2002 to
December 31, 2006 and therefore, no changes have been reflected.




d)         Black-Scholes
Assumptions


During
the years ended December 31, 2007, 2006 and 2005, options of 830,000, 1,765,000
and 1,035,000 respectively were granted to the Company's directors and employees
under the terms of the 1998 Stock Incentive Plan.  The fair value of
each option granted was estimated on the date of grant using the Black-Scholes
option-pricing model.  Weighted average assumptions used in the
valuation are disclosed in the following table:


Year
      ended
                  Dec
      31, 2007
                
                
                Year
      ended
                  Dec
      31, 2006
                
                
                Year
      ended
                  Dec
      31, 2005Restated
                  note
      8(c)
                
                
                Restated
                  note
      8(c)Fair
      value of stock options granted
                
                $
                US1.80
                
                
                $
                US1.52
                
                
                $
                US1.06Risk-free
      interest rate
                
                
                4.94
                %
                
                
                4.13
                %
                
                
                2.75
                %Volatility
                
                
                66
                %
                
                
                70
                %
                
                
                102
                %Expected
      life
                
                1.6
      years
                
                
                1.6
      years
                
                
                1.8
      yearsDividend
      yield
                
                
                0
                %
                
                
                0
                %
                
                
                0
                %


i)
            The
      risk-free rate is based on the U.S. Treasury yield curve in effect at the
      time of grant.


ii)
            Expected
      volatilities are based on historical volatility of the Company's stock and
      other factors.


iii)
            The
      expected life of options granted represents the period of time that the
      options are expected to be outstanding and is derived from historical
      exercise behaviour and current
trends.




FS
85
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


8.         Stock
Options (continued)




During
the years ended December 31, 2007, 2006 and 2005, options of 625,000, 490,000
and 725,000, respectively were granted to non-employee consultants, in exchange
for services under the terms of the 1998 Stock Incentive Plan.  The
Company believes that the estimated fair value of the stock options is more
readily measurable than the fair value of services rendered.  The fair
value of the stock options granted to non-employee consultants is calculated at
each reporting date using the Black-Scholes option-pricing
model.  Weighted average assumptions used in the valuation are
disclosed in the following table:




Year
      ended
                Dec
      31, 2007
              Year
      ended
                Dec
      31, 2006
              Year
      ended
                Dec
      31, 2005Restated
                note
      8(c)
              Restated
                note
      8(c)Fair
      value of stock options at reporting date
              US$1.10
              US$4.15
              US$4.52Risk-free
      interest rate
              3.94%
              4.89%
              3.33%Volatility
              61%
              86%
              103%Expected
      life
              0.9
      years
              0.9
      years
              0.5
      yearsDividend
      yield
              0%
              0%
              0%





e)         Stock
option table


The
      following table summarized option activity during the year ended December
      31, 2007:




Options
              
              Shares
                #
              
              
              Weighted
      Average Exercise Price per Share
                US$
              
              
              Weighted
      Average Remaining Contractual Term (years)
              
              
              Aggregate
      Intrinsic Value
                US$Outstanding
      at January 1, 2007
              
              
              3,517,500
              
              
              
              3.32
              
              
              
              --
              
              
              
              --Granted
              
              
              1,455,000
              
              
              
              5.15
              
              
              
              --
              
              
              
              --Exercised
              
              
              (317,500
              )
              
              
              1.01
              
              
              
              --
              
              
              
              --Forfeited
      or expired
              
              
              (185,000
              )
              
              
              5.15
              
              
              
              --
              
              
              
              --Outstanding
      at December 31, 2007
              
              
              4,470,000
              
              
              
              4.04
              
              
              
              4.38
              
              
              
              4,554,000Exercisable
      at December 31, 2007
              
              
              3,020,833
              
              
              
              3.62
              
              
              
              4.66
              
              
              
              4,339,000





During
the years ended December 31, 2007 and December 31, 2006, cash received on
exercise of stock options was US$320,675 and US$2,958,890
respectively.  The weighted-average grant-date fair value of stock
options granted to employees and directors during 2007 and 2006 was US$1.81 and
US$1.38, respectively


FS
86
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


8.         Stock
Options (continued)




Stock option table


During
the year ended December 31, 2007, the options as set out below were granted for
services provided to the Company:




Fair
      Value
              
              
              
              
              Forfeited
      (f)Option
              at
      Original
              
              
              
              Granted
              Expired
      (x)
              
              BalanceGrant
              exercise
              Grant
              Expiry
              Vesting
              Balance
              during
              Exercised
      (e)
              Balance
              Exercisabledate
              price
              Date
              date
              date
              Dec
      31/06
              the
      year
              during
      the year
              Dec
      31/07
              Dec
      31/07mm/dd/yy
              US
      $
              US$
              mm/dd/yy
              mm/dd/yy
              #
              ii)
      #
              iv)
      #
              iii)
      #
              #01/17/05
              1.01
              0.38
              06/30/07
              Vested
              352,500
              --
              317,500
      (e)
                35,000
      (x)
              --
              --01/18/05
              1.10
              0.62
              08/31/08
              Vested
              600,000
              --
              --
              600,000
              600,00006/14/05
              3.49
              1.55
              06/14/15
              Vested
              150,000
              --
              --
              150,000
              150,00008/24/05
              6.50
              2.38
              08/24/08
              Vested
              110,000
              --
              --
              110,000
              110,00010/03/05
              6.81
              3.07
              10/03/15
              Vested
              16,666
              --
              --
              16,666
              16,66610/03/05
              6.81
              3.83
              10/03/15
              Vested
              16,667
              --
              --
              16,667
              16,66710/03/05
              6.81
              4.38
              10/03/15
              10/03/08
              16,667
              --
              --
              16,667
              --06/14/06
              5.09
              2.06
              06/14/16
              Vested
              200,000
              --
              --
              200,000
              200,00007/25/06
              3.95
              1.14
              12/31/09
              Vested
              100,000
              --
              --
              100,000
              100,00007/25/06
              3.95
              1.39
              12/31/09
              Vested
              660,000
              --
              --
              660,000
              660,00007/25/06
              3.95
              1.60
              12/31/09
              Vested
              50,000
              --
              --
              50,000
              50,00007/25/06
              3.95
              1.78
              12/31/09
              07/25/08
              145,000
              --
              --
              145,000
              --07/25/06
              3.95
              2.01
              12/31/09
              07/25/09
              70,000
              --
              --
              70,000
              --07/25/06
              3.95
              1.14
              07/25/16
              Vested
              500,000
              --
              --
              500,000
              500,00007/25/06
              3.95
              1.14
              07/25/16
              Vested
              500,000
              --
              --
              500,000
              500,00011/24/06
              7.52
              2.47
              11/24/09
              Vested
              10,000
              --
              --
              10,000
              10,00011/24/06
              7.52
              2.92
              11/24/09
              Vested
              10,000
              --
              --
              10,000
              10,00011/24/06
              7.52
              3.70
              11/24/09
              12/31/08
              10,000
              --
              --
              10,000
              --03/30/07
              6.11
              2.02
              03/30/10
              12/31/07
              --
              50,000
              50,000
      (f)
              --
              --03/30/07
              6.11
              2.69
              03/30/10
              12/31/08
              --
              50,000
              50,000
      (f)
              --
              --03/30/07
              6.11
              2.82
              03/30/10
              03/30/09
              --
              50,000
              50,000
      (f)
              --
              --05/16/07
              5.09
              1.51
              05/16/10
              Vested
              --
              10,000
              --
              10,000
              10,00005/16/07
              5.09
              2.09
              05/16/10
              12/31/08
              --
              10,000
              --
              10,000
              --05/16/07
              5.09
              2.09
              05/16/10
              05/31/09
              --
              10,000
              --
              10,000
              --06/20/07
              5.06
              2.08
              06/20/17
              06/20/08
              --
              200,000
              --
              200,000
              --07/03/07
              5.03
              1.70
              12/31/10
              Vested
              --
              35,000
              --
              35,000
              35,00007/03/07
              5.03
              1.70
              12/31/10
              Vested
              --
              10,000
              --
              10,000
              10,00007/03/07
              5.03
              1.70
              12/31/10
              Vested
              --
              42,500
              --
              42,500
              42,50007/03/07
              5.03
              1.70
              12/31/10
              07/03/08
              --
              847,500
              --
              847,500
              --07/03/07
              5.03
              1.98
              12/31/10
              12/31/08
              --
              20,000
              --
              20,000
              --07/03/07
              5.03
              2.25
              12/31/10
              07/03/09
              --
              120,000
              --
              120,000
              --3,517,500
              1,455,000
              502,500
              4,470,000
              3,020,833


















FS
87
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


9.         Acquisition




On August
29, 2003, pursuant to an agreement dated April 4, 2003 and amended August 29,
2003, the Company completed a transaction with Mr. Roy and GeoGlobal Resources
(India) Inc. ("GeoGlobal India"), a corporation then wholly-owned by Mr. Roy,
whereby the Company acquired from Mr. Roy all of the outstanding capital stock
of GeoGlobal India.  In exchange for the outstanding capital stock of
GeoGlobal India, the Company issued 34.0 million shares of its Common
Stock.  Of the 34.0 million shares, 14.5 million shares were delivered
to Mr. Roy at the closing of the transaction on August 29, 2003 and an aggregate
of 19.5 million shares were held in escrow by an escrow agent.  The
terms of the escrow provide for the release of the shares upon the occurrence of
certain developments relating to the outcome of oil and natural gas exploration
and development activities conducted on the KG Offshore Block.  On
August 27, 2004, 14.5 million shares were released to Mr. Roy from escrow upon
the commencement of a drilling program on the KG Offshore Block.  The
final 5.0 million shares remaining in escrow will be released only if a
commercial discovery as defined under the PSC is declared on the KG Offshore
Block.  In addition to the shares of Common Stock, the Company
delivered to Mr. Roy a US$2.0 million promissory note, of which US$500,000 was
paid on the closing of the transaction on August 29, 2003, US$500,000 was paid
on October 15, 2003, US$500,000 was paid on January 15, 2004 and US$500,000 was
paid on June 30, 2004.  The note did not accrue
interest.  The note was secured by the outstanding stock of GeoGlobal
India which has subsequently been released.  As a consequence of the
transaction, Mr. Roy held as of the closing of the transaction an aggregate of
34.0 million shares of our outstanding Common Stock, or approximately 69.3% of
the shares outstanding, assuming all shares held in escrow are released to
him.  The terms of the transaction provide that Mr. Roy has the right
to vote all 34.0 million shares following the closing, including the shares
during the period they are held in escrow.  Shares not released from
the escrow will be surrendered back to GeoGlobal.




As
discussed in note 1, the acquisition of GeoGlobal India by GeoGlobal was
accounted for as a reverse takeover transaction.  As a result, the
cost of the transaction was determined based upon the net assets of GeoGlobal
deemed to have been acquired.  These consolidated financial statements
include the results of operations of GeoGlobal from the date of
acquisition.  The net identifiable assets acquired of GeoGlobal were
as follows:


US
      $Net
      assets acquiredCash
                
                
                3,034,666Other
      current assets
                
                
                75,000Current
      liabilities
                
                
                (2,706
                )Net
      book value of identifiable assets acquired
                
                
                3,106,960Consideration
      paidPromissory
      note issued
                
                
                2,000,00034,000,000
      common shares issued par value $0.001
                
                
                34,000Additional
      paid-in capital
                
                
                1,072,9603,106,960


FS
88
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


10.         Related
Party Transactions




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




a)         Note
payable


On August
29, 2003, as part of the Acquisition (note 9), a US$2,000,000 promissory note
was issued to the sole shareholder of GeoGlobal India.  On each of
August 29, 2003, October 15, 2003, January 15, 2004 and June 30, 2004,
US$500,000 of the note was repaid.  The promissory note was
non-interest bearing and the capital stock of GeoGlobal India collateralized the
repayment of the note.  The collateral has been released.




b)         Roy
Group (Mauritius) Inc.


Roy Group
(Mauritius) Inc. is related to the Company by common management and is
controlled by an officer and director of the Company who is also a principal
shareholder of the Company.  On March 27, 2003, the Company entered
into a PIA (note 5d) with the related party.




c)         Roy
Group (Barbados) Inc. (“Roy Group”)


Roy Group
is related to the Company by common management and is controlled by an officer
and director of the Company who is also a principal shareholder of the
Company.  On August 29, 2003, the Company entered into a Technical
Services Agreement ("TSA") with Roy Group to provide services to the Company as
assigned by the Company and to bring new oil and gas opportunities to the
Company.  The term of the agreement, as amended, extends through
December 31, 2008 and continues for successive periods of one year
thereafter.   Roy Group receives consideration of US$350,000 per
year, as outlined and recorded below:




Year
      ended
                Dec
      31, 2007
              
              
              Year
      ended
                Dec
      31, 2006
              
              
              Year
      ended
                Dec
      31, 2005
              
              
              Period
      from
                Inception,
                Aug
      21, 2002
                to
      Dec 31, 2007US
      $
              
              
              US
      $
              
              
              US
      $
              
              
              US$Consolidated
      Statement of OperationsConsulting
      fees
              
              
              70,000
              
              
              
              70,000
              
              
              
              62,000
              
              
              
              268,667Consolidated
      Balance SheetsOil
      & gas interests
              
              
              280,000
              
              
              
              280,000
              
              
              
              248,000
              
              
              
              1,074,666350,000
              
              
              
              350,000
              
              
              
              310,000
              
              
              
              1,343,333




During
the year ended December 31, 2007, the Company recognized compensation cost for
stock-based compensation arrangements with the principal of Roy Group, resulting
from the vesting in 2007 of portions of the exercise rights of options granted
during the year ended December 31, 2006 as outlined and recorded
below:




Consolidated
      Statement of OperationsConsulting
      fees
                
                
                33,279
                
                
                
                80,821
                
                
                
                --
                
                
                
                114,100Consolidated
      Balance SheetsOil
      & gas interests
                
                
                133,117
                
                
                
                323,283
                
                
                
                --
                
                
                
                456,400166,396
                
                
                
                404,104
                
                
                
                --
                
                
                
                570,500









FS
89
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


10.         Related
Party Transactions(continued)




Roy Group
was also reimbursed on a cost recovery basis, for travel, hotel, meals and
entertainment expenses as outlined and recorded below:




Year
      ended
                Dec
      31, 2007
              
              
              Year
      ended
                Dec
      31, 2006
              
              
              Year
      ended
                Dec
      31, 2005
              
              
              Period
      from
                Inception,
                Aug
      21, 2002
                to
      Dec 31, 2007US
      $
              
              
              US
      $
              
              
              US
      $
              
              
              US$Consolidated
      Statement of OperationsGeneral
      and administrative
              
              
              --
              
              
              
              47,820
              
              
              
              45,430
              
              
              
              153,539Consolidated
      Balance SheetsAccounts
      receivable
              
              
              --
              
              
              
              227
              
              
              
              1,020
              
              
              
              21,597Oil
      & gas interests
              
              
              75,000
              
              
              
              86,590
              
              
              
              127,295
              
              
              
              459,387Property
      and equipment
              
              
              --
              
              
              
              --
              
              
              
              1,610
              
              
              
              37,59575,000
              
              
              
              134,637
              
              
              
              175,355
              
              
              
              672,118




At
December 31, 2007, the Company owed Roy Group (Barbados) Inc. US$33,192
(December 31, 2006 - US$29,976) for services provided pursuant to the TSA and
expenses incurred on behalf of the Company.  These amounts bear no
interest and have no set terms of repayment.




d)         D.I.
Investments Ltd. (“D.I.”)


D.I. is
related to the Company by common management and is controlled by an officer and
director of the Company.  DI charged consulting fees up to December
31, 2007 for management, financial and accounting services rendered, as outlined
and recorded below:




Year
      ended
                Dec
      31, 2007
              
              
              Year
      ended
                Dec
      31, 2006
              
              
              Year
      ended
                Dec
      31, 2005
              
              
              Period
      from
                Inception,
                Aug
      21, 2002
                to
      Dec 31, 2007US
      $
              
              
              US
      $
              
              
              US
      $
              
              
              US$Consolidated
      Statement of OperationsConsulting
      fees
              
              
              185,000
              
              
              
              185,000
              
              
              
              150,000
              
              
              
              701,715




During
the year ended December 31, 2007, the Company recognized compensation cost for
stock-based compensation arrangements with the principal of the related party,
resulting from the vesting in 2007 of portions of the exercise rights of options
granted during the year ended December 31, 2006 as outlined and recorded
below:




Consolidated
      Statement of OperationsConsulting
      fees
                
                
                166,396
                
                
                
                404,104
                
                
                
                --
                
                
                
                570,500









FS
90
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


10.         Related
Party Transactions(continued)




DI was
also reimbursed on a cost recovery basis, for office costs, travel, hotel, meals
and entertainment expenses incurred during the periods as outlined and recorded
below:




Year
      ended
                Dec
      31, 2007
              
              
              Year
      ended
                Dec
      31, 2006
              
              
              Year
      ended
                Dec
      31, 2005
              
              
              Period
      from
                Inception,
                Aug
      21, 2002
                to
      Dec 31, 2007US
      $
              
              
              US
      $
              
              
              US
      $
              
              
              US$Consolidated
      Statement of OperationsGeneral
      and administrative
              
              
              76,573
              
              
              
              21,111
              
              
              
              59,183
              
              
              
              304,329Consolidated
      Balance SheetsAccounts
      receivable
              
              
              1,436
              
              
              
              13,224
              
              
              
              14,165
              
              
              
              28,826Property
      and equipment
              
              
              4,909
              
              
              
              4,107
              
              
              
              --
              
              
              
              9,01682,918
              
              
              
              38,442
              
              
              
              73,348
              
              
              
              342,171




At
December 31, 2007, the Company owed DI US$26,007 (December 31, 2006 - US$nil) as
a result of services provided and expenses incurred on behalf of the
Company.  These amounts bear no interest and have no set terms of
repayment.




e)         Amicus
Services Inc. (“Amicus”)


Amicus is
related to the Company by virtue of being controlled by the brother of an
officer and director of the Company.  Amicus charged consulting fees
for IT and computer related services rendered, as outlined below:




Year
      ended
                Dec
      31, 2007
              
              
              Year
      ended
                Dec
      31, 2006
              
              
              Year
      ended
                Dec
      31, 2005
              
              
              Period
      from
                Inception,
                Aug
      21, 2002
                to
      Dec 31, 2007US
      $
              
              
              US
      $
              
              
              US
      $
              
              
              US$Consolidated
      Statement of OperationsConsulting
      fees
              
              
              55,347
              
              
              
              56,257
              
              
              
              35,713
              
              
              
              195,707




During
the year, the Company recognized compensation cost for stock-based compensation
arrangements with the principal of the related party as outlined and recorded
below:




Consolidated
      Statement of OperationsConsulting
      fees
                
                
                (116,426
                )
                
                
                269,906
                
                
                
                439,877
                
                
                
                616,205




Amicus
was also reimbursed on a cost recovery basis, for office costs, including
parking, office supplies and telephone as well as travel and hotel expenses
incurred during the periods as outlined and recorded below:




Consolidated
      Statement of OperationsGeneral
      and administrative
                
                
                2,841
                
                
                
                1,654
                
                
                
                685
                
                
                
                7,309Consolidated
      Balance SheetsAccounts
      receivable
                
                
                2,437
                
                
                
                3,725
                
                
                
                2,530
                
                
                
                12,711Property
      and equipment
                
                
                
                
                
                
                --
                
                
                
                --
                
                
                
                1,5995,278
                
                
                
                5,379
                
                
                
                3,215
                
                
                
                21,619




At
December 31, 2007, the Company owed Amicus Services Inc. US$6,953 (December 31,
2006 - US$3,629) as a result of services provided and expenses incurred on
behalf of the Company.  These amounts bear no interest and have no set
terms of repayment.





FS
91
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


11.         Income
Taxes




a)         Income
tax expense


The
provision for income taxes in the consolidated financial statements differs from
the result which would have been obtained by applying the combined Federal,
State and Provincial tax rates to the loss before income taxes.  This
difference results from the following items:




Year
      ended
                Dec
      31, 2007
              
              
              Year
      ended
                Dec
      31, 2006
              
              
              Year
      ended
                Dec
      31, 2005
              
              
              Period
      from
                Inception,
                Aug
      21, 2002
                to
      Dec 31, 2007US
      $
              
              
              US
      $
              
              
              US
      $
              
              
              US$Restated
              
              
              Restated
              
              
              RestatedNet
      loss
              
              
              (1,543,110
              )
              
              
              (1,548,803
              )
              
              
              (3,162,660
              )
              
              
              (7,958,261
              )Expected
      tax rate
              
              
              35.00
              %
              
              
              35.00
              %
              
              
              35.00
              %Expected
      income tax recovery
              
              
              (540,089
              )
              
              
              (542,081
              )
              
              
              (1,106,931
              )
              
              
              (2,786,375
              )Excess
      of expected tax rate over tax
                rate
      of  foreign affiliates
              
              
              207,595
              
              
              
              90,323
              
              
              
              55,912
              
              
              
              435,217Non-deductible
      expenditures
              
              
              256,147
              
              
              
              605,618
              
              
              
              965,779
              
              
              
              1,972,153Utilization
      of non-capital losses
              
              
              --
              
              
              
              (112,501
              )
              
              
              --
              
              
              
              (112,501
              )Acquisition
      of losses
              
              
              --
              
              
              
              --
              
              
              
              --
              
              
              
              (4,355,268
              )Other
              
              
              29,289
              
              
              
              92,455
              
              
              
              4,708
              
              
              
              245,087(47,058
              )
              
              
              133,814
              
              
              
              (80,532
              )
              
              
              (4,601,687
              )Valuation
      allowance
              
              
              47,058
              
              
              
              (133,814
              )
              
              
              80,532
              
              
              
              4,601,687Provision
      for income taxes
              
              
              --
              
              
              
              --
              
              
              
              --
              
              
              
              --




b)         Deferred
income taxes


The
Company has not recognized the deferred income tax asset because the benefit is
not more likely than not to be realized.  The components of the net
deferred income tax asset consist of the following temporary
differences:




Dec
      31, 2007
                  US
      $
                
                
                Dec
      31, 2006
                  US
      $RestatedDifference
      between tax base and reported amounts of depreciable
assets
                
                
                (83,552
                )
                
                
                (53,259
                )Non-capital
      loss carry forwards
                
                
                2,623,508
                
                
                
                2,546,157Capital
      loss carry forwards
                
                
                2,061,731
                
                
                
                2,061,7314,601,687
                
                
                
                4,554,629Valuation
      allowance
                
                
                (4,601,687
                )
                
                
                (4,554,629
                )Deferred
      income tax asset
                
                
                --
                
                
                
                --







FS
92
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


11.         Income
Taxes (continued)






In July
2006, the Financial Accounting Standards Board (“FASB”) issued FASB
Interpretation No. 48, “Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement No. 109" (“FIN 48”), which prescribes a
recognition threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be taken in a
tax return.  In addition, FIN 48 provides guidance on derecognition,
classification, accounting in interim periods and disclosure requirements for
uncertain tax positions.  The accounting provisions of FIN 48 are
effective for the Company in its fiscal year 2007.  As a result of the
adoption of FIN 48 and as at December 31, 2007, no material unrecognized tax
benefits and no adjustments to the Company’s financial position or results of
operations were required.




In
accordance with FIN 48, the Company will recognize interest and penalties
related to uncertain tax positions in income tax expense.  As of
December 31, 2007, no interest and penalties related to uncertain tax positions
were recorded.




The
Company and its subsidiaries file income tax returns in the US federal
jurisdiction and other foreign jurisdictions.  The Company is no
longer subject to US federal, state and local, or non-US income tax examinations
for years before 2002.  There are no income tax examinations currently
in process.




c)         Loss
carry forwards


i)
            At
      December 31, 2007, the Company has US$8,688,257 of available non-cash
      capital loss carry forwards to reduce taxable income for income tax
      purposes in the various jurisdictions as outlined below which have not
      been reflected in these consolidated financial
  statements.




Tax
      Jurisdiction
              
              Amount
                US
      $
              
              Expiry
      Dates
                CommenceUnited
      States
              
              
              7,304,375
              
              2023Canada
              
              
              109,317
              
              2015Barbados
              
              
              1,274,565
              
              20128,688,257




ii)
            At
      December 31, 2007, the Company has US$5,890,659 of available capital loss
      carry forwards to reduce capital gains for US income tax purposes expiring
      in 2008, which have not been reflected in these consolidated financial
      statements.





12.         Segmented
Information




The
majority of the Company’s oil and natural gas exploration activities are
conducted in India.  Management of the Company considers the
operations of the Company as one operating segment.  The following
information relates to the Company’s geographic areas of operation.




December
      31, 2007
                  US$
                
                
                December
      31, 2006
                  US$Restated
                  note
      8(c)Oil
      and gas interestsIndia
                
                
                24,539,932
                
                
                
                12,121,334Egypt
                
                
                2,447,061
                
                
                
                --Oman
      and Yemen
                
                
                112,554
                
                
                
                --27,099,547
                
                
                
                12,121,334





FS
93
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


13.         Commitments,
Contingencies and Guarantees




a)         Restricted
deposits


i)
            The
      Company’s PSCs relating to exploration blocks onshore and offshore India
      contain provisions whereby the joint venture participants must provide the
      GOI a bank guarantee in the amount of 35% of the participant's share of
      the minimum work program ("MWP") for a particular phase, to be undertaken
      annually during the budget period April 1 to March 31.  These
      bank guarantees have been provided to the GOI and serve as guarantees for
      the performance of such MWP and are in the form of irrevocable letters of
      credit which are secured by term deposits of the Company in the same
      amount.




The
      term deposits securing these bank guarantees are as
    follows:




December
      31, 2007
              December
      31, 2006US
      $
              US
      $Exploration
      Blocks - IndiaMehsana
              155,000
              711,445Sanand/Miroli
              920,000
              905,000Ankleshwar
              950,000
              600,000Tarapur
              940,000
              1,200,000DS
      03
              175,000
              110,000DS
      04
              175,000
              --3,315,000
              3,526,445




ii)
            Subsequent
      to the year end, in March 2008, the Company issued three new bank
      guarantees to the GOI to serve as guarantees as outlined in Note 13a(i)
      above.  The term deposits securing these bank guarantees are as
      follows:




US$Exploration
      Blocks - IndiaKG
      Onshore
              1,475,000RJ
      20
              1,475,000RJ
      21
              1,075,0004,025,000




iii)
            The
      Company has provided to its bankers as security for credit cards issued to
      employees for business purposes two term deposits, one in the amount of
      US$30,000 (December 31, 2006 – US$30,000) and the other in the amount of
      US$40,480 (Cdn$40,000) (December 31, 2006 – US$34,324
      (Cdn$40,000)).




iv)
            The
      Company has entered intoa Joint Bidding
      Agreement with GSPC, and Alkor Petroo Limited relating to exploration
      activities in Egypt.  Under the terms of the Joint Bidding
      Agreement, the bidders were required to submit a bank guarantee equal to
      2% of the financial commitment under the MWP of the First Exploration
      Phase which has a term of 4 years.  During the third quarter of
      2007, the Company provided to GSPC two bank guarantees totaling
      US$1,170,000 secured by term deposits of the Company in the same amount,
      based on their 30% PI (see note
13e).




December
      31, 2007
              December
      31, 2006US
      $
              US
      $Exploration
      Blocks – EgyptBlock
      6 N. Hap’y
              900,000
              --Block
      8 South Diyur
              270,000
              --1,170,000
              --







FS
94
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


13.         Commitments,
Contingencies and Guarantees (continued)






b)
            Production
      Sharing Contracts


The
      Company is required to expend funds on the exploration activities to
      fulfill the terms of the minimum work commitment based on our
      participating interest pursuant to the PSCs in respect of each of our
      exploration blocks as follows:




i)
            Mehsana
      Block - The Phase I work commitment is to acquire, process and interpret
      75 sq kms of 3D seismic, reprocess 650 LKM's of 2-D seismic and complete a
      geochemical survey all of which is completed.  Further, the
      Company is to drill 7 exploratory wells between 1,000 and 2,200 meters
      before May 20, 2008, of which, 6 wells have completed drilling and 1 well
      is currently drilling.  The budget for the period April 1, 2008
      to March 31, 2009 has not been prepared.  The Company estimates
      costs to be incurred to complete the Phase I work commitment as well as
      the Phase II work commitment of drilling 2 additional exploratory wells,
      to be approximately US$1.0 million.




ii)
            Sanand/Miroli
      Block - The minimum work commitment for Phase I is to be completed by July
      28, 2008 and Phase II will expire January 28, 2009.  The work
      completed to date, which fulfills the Phase I minimum work commitments
      includes the acquisition of 463 sq kms of 3-D seismic, reprocessing of
      1,000 kms of 2-D seismic and conducting a geochemical survey and analysis
      of 200 samples.  Further GSPC is to drill 12 exploratory wells
      in Phase I and 3 exploratory wells in Phase II, of which 9 exploratory
      wells have been drilled along with 1 appraisal
  well.




The
      budget for the remaining 3 exploratory wells to be drilled from Phase I
      and the 3 exploratory wells to be drilled from Phase II together with the
      drilling of 4 appraisal wells has been prepared for the period of April 1,
      2008 to March 31, 2009, at a cost to the Company of approximately US$3.7
      million.




The
minimum work commitment for Phase II requires the drilling of 2 additional
exploration wells.  It is likely that the Company will move into Phase
II at an estimated cost to the Company of approximately US$1.0
million.




iii)
            Ankleshwar
      Block - The Phase I minimum work commitment which is to be completed over
      the three year period April 1, 2006 to March 31, 2009 is to acquire,
      process and interpret 448 sq kms of 3D seismic, reprocess 650 LKM's of 2-D
      seismic and complete a geochemical survey and analysis of 500 samples, all
      of which has been completed.  Further, 14 exploratory wells are
      to be drilled between 1,500 and 2,500 meters.  These wells have
      been budgeted to be drilled during the period April 1, 2008 to March 31,
      2009 at a cost to the Company of approximately US$4.2
    million.




iv)
            DS
      03 Block -  The budget estimate for the period April 1, 2008 to
      March 31, 2009 has been calculated and the Company's 100% PI share of that
      budget is approximately US$1.3 million.  This budget entails the
      completion of the gravity and magnetic and geochemical surveys for Phase I
      along with a 50 LKM 2-D seismic line acquisition.  Upon approval
      of the budget, the bank guarantee will be required to increase from
      US$175,000 at December 31, 2007 to approximately US$450,000 for the period
      April 1, 2008 to March 31, 2009.




FS
95
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


13.         Commitments,
Contingencies and Guarantees (continued)




v)
            Tarapur
      Block - Phase III under the PSC for this exploration block expired on
      November 22, 2007.  GSPC as operator, on behalf of the
      consortium partners has submitted an application for an extension beyond
      Phase III of the PSC for an additional twelve months to November 22, 2008
      to complete an additional work program of drilling five wells under the
      GOI new extension policy at a cost to the Company of approximately US$2.2
      million.  The consortium also agreed that it would provide a 35%
      bank guarantee and a 30% cash payment as agreed pre-estimated damages for
      the additional work program (The Company's share is US$773,000 and
      US$662,000 respectively).  The Company has accrued an amount of
      US$662,000 as an estimate for its share of such agreed pre-estimated
      damages which is non-refundable and estimated to be 30% of the total cost
      required to complete the additional work program.  GOI consent
      to this application has not yet been approved or
    received.




vi)
            NELP-VI
      Blocks - On March 2, 2007,
      the Company along with its joint venture partners executed PSCs with the
      GOI for new exploration blocks awarded under the sixth round of the New
      Exploration Licensing Policy (NELP-VI).  The Company will be
      required to fund its participating interest for Phase I exploration and
      development costs incurred in fulfilling the minimum work commitments
      under these PSCs as outlined
below.




1)
            KG
      Onshore Block - Conduct a gravity and magnetic and geochemical survey;
      reprocess 564 LKM of 2-D seismic; acquire, process and interpret 548 sq
      kms of 3-D seismic; and drill 12 exploratory wells between 2,000 and 5,000
      meters.  The Company's share of these costs is originally
      estimated to total approximately US$8.5 million for a 10% PI (25% PI –
      US$21.4 million) over the four years of Phase I commencing February 18,
      2008.  On September 14, 2006, prior to the submission of our
      NELP-VI bid, the Company entered into an agreement with OIL to increase
      our PI to 25%, subject to the availability of sufficient net worth and GOI
      consent.  GOI consent is currently
  outstanding.




The
      budget estimate for the period April 1, 2008 to March 31, 2009 has been
      prepared and the Company's proportionate share of the budget at 10% is
      US$4.2 million and at 25% is US$10.5 million.  This budget
      entails performing the required surveys and studies including the
      acquisition of a 548 sq km 3-D seismic acquisition program, reprocessing
      the 564 LKM of 2-D seismic, a 50 LKM 2-D seismic acquisition program and
      processing of interpretation thereof for Phase I and the drilling of 3
      exploratory wells.




2)
            RJ
      Block 20 - Conduct a gravity and magnetic and geochemical survey;
      reprocess 463 LKM of 2-D seismic; acquire, process and interpret 250 LKM
      of 2-D seismic and 700 sq kms of 3-D seismic; and drill a total of 12
      exploratory wells between 2,000 and 2,500 meters.  The Company's
      share of these costs is estimated to total approximately US$10.2 million
      over the four years of Phase I commencing January 21, 2008.  The
      budget estimate for the period April 1, 2008 to March 31, 2009 has been
      prepared and the Company's proportionate share of that budget at 25% PI is
      US$4.2 million.  This budget entails the completion of the
      gravity and magnetic and geochemical survey, reprocessing of 463 LKM's of
      2-D seismic, acquisition, process and interpret 700 sq kms of 3-D seismic
      for Phase I and the drilling of 2 exploratory
  wells.




FS
96
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


13.         Commitments,
Contingencies and Guarantees (continued)




3)
            RJ
      Block 21 - Conduct a gravity and magnetic and geochemical survey;
      reprocess 463 LKM of 2-D seismic; acquire, process and interpret 310 LKM
      of 2-D seismic and 611 sq kms of 3-D seismic; and drill a total of 8
      exploratory wells between 2,000 and 2,500 meters. The Company's share of
      these costs is estimated to total approximately US$8.1 million over the
      four years of Phase I commencing January 21, 2008.  The budget
      estimate for the period April 1, 2008 to March 31, 2009 has been prepared
      and the Company's proportionate share of that budget at 25% PI is US$3.0
      million.  This budget entails the completion of the gravity and
      magnetic and geochemical survey, reprocessing of 463 LKM's of 2-D seismic,
      acquisition, process and interpret 611 sq kms of 3-D seismic for Phase I
      and the drilling of 1 exploratory
well.




4)
            DS
      04 Block - Gravity and magnetic and geochemical surveys; acquire, process
      and interpret 325 LKM of 2-D seismic; and drill 10 core holes to a depth
      of approximately 500 meters.  The Company's share of these costs
      is estimated to total approximately US$1.5 million over the four years of
      Phase I commencing June 7, 2007.  The budget estimate for the
      period April 1, 2008 to March 31, 2009 has been calculated and the
      Company's 100% PI of that budget is approximately
      US$500,000.  This budget entails the completion of the gravity
      and magnetic and geochemical surveys for Phase I as well as a 50 LKM 2-D
      seismic line acquisition.




Under the
terms of all the PSCs, the Company is also required to keep in force a financial
and performance guarantee, whereby the Company unconditionally and irrevocably
guarantees to the GOI to fulfill or cause to be fulfilled all of its obligations
under the PSCs.




c)         KG
Offshore Block


Under the
original terms, this PSC extended for a term of up to 6.5 years commencing on
March 12, 2003 with three exploration phases.  The agreement provides
that the first two phases cover a period of 2.5 years each, and the last phase
covers a period of 1.5 years.  During the first exploration phase, the
parties are to acquire, process and interpret 1,250 sq km of 3-D seismic data,
reprocess 2,298.4 line kilometers of 2-D seismic data and conduct a bathymetric
survey, all of which has been completed.  In addition, the parties are
to drill a total of fourteen exploratory wells between 900 to 4,118
meters.  During the second and third phases, if the parties elect to
proceed with them, in addition to bathymetric surveys in connection with each
phase, the parties are to drill four exploratory wells between 1,100 to 2,850
meters and two exploratory wells to 1,550 and 1,950 meters,
respectively.  GSPC is the operator on the KG Offshore
Block.




The first
phase of the exploration period relating to the PSC for the KG Offshore Block
has expired without the required minimum of at least fourteen exploration wells
being drilled during the first phase.  GSPC, as operator and on behalf
of the contracting parties, sought from the GOI its consent to an extension of
the expiration date of the first phase of the exploration period and also to
proceed to the second phase of the exploration period without relinquishing any
of the contract area at the end of the first phase. In connection with the
process of seeking these consents, on February 24, 2006, the Management
Committee for the KG Offshore Block, which includes members representing the
GOI, recommended an extension of the first phase of twelve months to March 11,
2007.  On February 9, 2007, GSPC proposed to the Directorate General
of Hydrocarbons, a body under the Ministry of Petroleum & Natural Gas
(“DGH”) and to the GOI that the contracting parties proceed to the next
exploration phase (Phase II) upon completion of Phase I which was to expire on
March 11, 2007.  It was also requested, on behalf of the contracting
parties, to not relinquish any of the contract area at the end of Phase
I.




FS
97
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


13.         Commitments,
Contingencies and Guarantees (continued)




On March
12, 2007, DGH noted the option of GSPC, on behalf of the contracting parties, to
enter Phase II and advised that entry into Phase II, effective March 12, 2007,
would be subject to the following conditions: (1) Any decision by the GOI on the
substitution of the Work Program of Phase I will be binding on the contracting
parties; and (2) Any decision by the GOI on relinquishment of the 25% of
original contract Area (ie. 462 sq. kms.) under the PSC would be binding on the
contracting parties.  The extension of Phase I to March 11, 2007 would
be deducted from Phase II.  As such, Phase II had a term of one year
and was to expire March 11, 2008 and four additional wells would be required to
be drilled between 1,100 and 2,850 meters.




On July
4, 2007, the Directorate General of Hydrocarbons ("DGH"), a body under the
Ministry of Petroleum & Natural Gas, advised GSPC and GeoGlobal that,
because of the worldwide supply and availability shortage of offshore drilling
rigs, on June 27, 2007 the GOI had issued two new policy
guidelines.  Policy I covers the merging of the duration of the
exploration phases I and II of PSCs granted under NELP III and NELP IV into a
new phase to be called New Phase I and to merge the MWP of Phase II and III to
be called New Phase II.  Policy II covers the substitution of
additional meterage drilled in deeper wells against the total meterage
commitment as part of the minimum work program ("MWP") in the PSCs.




On July
12, 2007, GSPC, on behalf of the contracting parties for the KG Offshore Block,
notified the DGH that it was exercising the option granted under the Policy I of
the new policies to (1) request a merger of the duration of the exploration
Phases I and II of the KG Offshore Block work program , now referred to as the
New Phase I with the effect of establishing a new work program phase expiring
March 11, 2008 and (2) to merge the MWP of Phase II and Phase III into a new
phase to be called New Phase II.  In addition, GSPC exercised the
option under Policy II to substitute a total meterage drilled commitment in the
new work program phase that would be irrespective of the number of wells
drilled.  Under these new policies, any contractors who exercise this
option would be required to relinquish 50% of the contract area at the end of
the New Phase I.




On July
13, 2007, the Operating Committee under the KG Offshore Block PSC approved
GSPC’s recommendation of exercising the option under the policy
guidelines  The MWP for the New Phase I would be to drill 33,102
meters.  GSPC informed DGH in a Management Committee Meeting held on
September 24, 2007 that as at September 17, 2007 a total of 33,224 meters have
been drilled, and as such, subject to the GOI approval of the merger of Phases I
and II, the MWP for the New Phase I has been completed.  At the end of
the New Phase I on March 11, 2008, the contracting parties will be required to
relinquish 50% of the Contract Area of the KG Offshore Block that is not a
Discovery or Development Area as defined in the PSC.  The New Phase II
would have a term of 1.5 years expiring September 11, 2009 and the drilling of a
further 12,250 meters would be required in order to meet the
MWP.  Approval of the merger of the Phase I and II into a New Phase I
and the merger of the MWP of existing Phase II and Phase III as New Phase II
from the GOI is currently outstanding.




Unless
approval is granted by the GOI to merge Phases I and II of the work program
under the new policy guidelines, we may be liable for the consequences of
non-fulfillment of the minimum work commitment in a given time frame under the
PSC.  The PSC has provisions for termination of the PSC on account of
various reasons specified therein including material breach of the
contract.  Termination rights can be exercised after giving ninety
days written notice.  This failure to timely complete the minimum work
commitment, though we have been advised by GSPC there is no precedence,may be deemed by the
GOI to be a failure to comply with the provisions of the contract in a material
particular.




FS
98
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


13.         Commitments,
Contingencies and Guarantees (continued)




The
termination of the PSCby the GOI would result
in the loss of the Company's interest in the KG Offshore Block other than areas
determined to encompass "commercial discoveries".  The PSC sets forth
procedures whereby the operator can obtain the review of the Management
Committee under the PSC as to whether a discovery on the exploration block
should be declared a commercial discovery under the PSC.  Those
procedures have not been completed at present with respect to the discovery on
the KG Offshore Block and, accordingly, as of December 31, 2007, no areas on the
KG Offshore Block have been determined formally to encompass "commercial
discoveries"as
that term is defined under the PSC.




In the
event the PSC for the KG Offshore Block is terminated by the GOI, or in the
event the work program is not fulfilled by the end of the relevant exploration
phase, the PSC provides that each party to the PSC is to pay to the GOI its
participating interest share of an amount which is equal to the amount that
would be required to complete the MWP for that phase.  We are of the
view that GSPC, under the terms of our CIA, would be liable for our
participating interest share of the amount required to complete the MWP for the
phase.




Certain
exploration costs related to the KG Offshore Block are incurred solely by and on
behalf of the Company in providing its services under the CIA and are therefore
not reimbursable under the CIA.  As such, these costs have been
capitalized in the Company's accounts under Oil and gas interests and at
December 31, 2007, amount to US$5,346,137 (December 31, 2006 -
US$3,111,676).




d)         Carried
Interest Agreement Dispute


The
Company has been engaged in discussions with GSPC seeking a resolution to this
dispute, however, no agreement has been reached as of May 30,
2008.  The Company has been advised by GSPC, that GSPC is seeking
payment of the amount by which the exploration costs attributable to the Company
under the PSC relating to the KG Offshore Block exceeds the amount that GSPC
deems it is obligated to pay on behalf of the Company (including the net 5% PI
of RGM) under the terms of the CIA.  GSPC asserts that the Company is
required to pay 10% of the exploration expenses over and above gross costs of
US$59.23 million (10% being US$5.923 million).  Based upon the most
recent letter dated February 4, 2008 received from GSPC, GSPC has incurred costs
of Rs. 246.20 crore (or approximately US$57.3 million) on behalf of the Company
as of December 31, 2007, of which, 50% is for the account of RGM.




The
Company has advised GSPC that, under the terms of the CIA, the PSC, and the
Joint Operating Agreement dated August 7, 2003 (the “JOA”), GSPC has no right to
seek the payment and that it believes the payment GSPC is seeking is in breach
of the CIA.  The Company further reminded GSPC, that the Company under
the terms of the CIA, shall be carried by GSPC for 100% of its entire share of
any costs during the exploration phase prior to the start of commercial
production.  The Company obtained the opinion of external Indian legal
counsel which supports management's position with respect to the
dispute.




The
Company intends to vigorously protect its contractual rights in accordance with
the dispute resolution process under the CIA, the PSC and the JOA as may be
appropriate.




The
annual budget for the KG Offshore Block has been prepared for the twelve month
period April 1, 2008 to March 31, 2009.  Estimated gross costs for the
upcoming twelve month period is approximately US$599
million.  Accordingly, GSPC is expected to incur costs of
approximately US$59.9 million (10% PI) on behalf of the Company (including the
5% PI for RGM) under the terms of the CIA.




FS
99
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


13.         Commitments,
Contingencies and Guarantees (continued)




e)         Egyptian
Blocks


The
Company entered into a Joint Bidding Agreement with GSPC, as operator (50%) and
Alkor Petroo Limited of Hyderabad, India (20%) to bid on certain exploration
blocks in the Arab Republic of Egypt. The agreement provides that the Company is
to have a 30% PI of any concession agreements entered into.




These
blocks include offshore exploration Block 6 (also referred to as N. Hap’y) and
onshore exploration Block 8 (also referred to as South Diyur) in the Arab
Republic of Egypt.  On March 22, 2008 GSPC entered into two concession
agreements covering these blocks with the Arab Republic of Egypt.




On
January 8, 2008, effective December 31, 2007, the Company entered into two
agreements with GSPC. An Assignment Agreement sets out the terms whereby the
Company assigned to GSPC all of their rights to receive a 30% participating
interest in the two exploration blocks awarded by the Arab Republic of Egypt in
exchange for an option (the Option Agreement) exercisable on or before April 30,
2008 to reacquire all or a portion of those rights.  GSPC provided the
Company with a 45 day extension of time for exercising the option to June 15,
2008.




In the
event the Company exercises the option, the Company will be required to pay to
GSPC their pro rata share of all costs and expenses from the effective date of
the option agreement (December 31, 2007). The Company will also have to provide
to GSPC bank guarantees equal to the remaining 98%, based upon their share of
the rights the Company elects to reacquire, of the total financial commitment
for conducting the first exploration phase on the two exploration
blocks.  If the Company elects to reacquire and participate to the
full 30% of the option, these additional bank guarantees would amount to
approximately US$56.4 million.  In addition to the non-refundable
US$1.17 million of bank guarantees, the Company's oil and gas interests included
at December 31, 2007 approximately US$2,447,061 relating to the Company's
interests in the two exploration blocks which will be carried forward as an
investment in the option pending the Company's determination whether the Company
will exercise any portion of the option.




f)         Corporate
Head Office


The
Company has entered into a lease for office space for a term of two years ending
April 30, 2009 at an annual rental of approximately US$103,500.





14.         Comparative
figures




a)
            As
      the Company is in its development stage, these figures represent the
      accumulated amounts of the continuing entity for the period from inception
      August 21, 2002 to December 31,
2007.




b)
            Certain
      comparative figures have been reclassified to conform to the presentation
      adopted in the current year.





15.
            Recent
      Accounting Standards




a)         Fair
Value Measurements


In
September 2006, the FASB issued FAS No. 157, “Fair Value Measurements” (“FAS
157”), which defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. FAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years, and is
applicable beginning in the first quarter of 2008. The FASB has also issued
Staff Position FAS 157-2 (“FSP No. 157-2”), which delays the effective date
of FAS No. 157 for nonfinancial assets and liabilities, except for items
that are recognized or disclosed at fair value in the financial statements on a
recurring basis (at least annually), until fiscal years beginning after
November 15, 2008. The Company is currently evaluating the impact that FAS
157 and FSP No. 157-2 will have on its consolidated financial statements and FAS
157 will be applied prospectively.




FS
100
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


15.
            Recent
      Accounting Standards (continued)




b)         The
Fair Value Option for Financial Assets and Financial Liabilities


In
February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial
Assets and Financial Liabilities – Including an amendment of FASB Statement No.
115”, (“FAS 159”) which permits entities to choose to measure many financial
instruments and certain other items at fair value at specified election dates. A
business entity is required to report unrealized gains and losses on items for
which the fair value option has been elected in earnings at each subsequent
reporting date. This statement is expected to expand the use of fair value
measurement. FAS 159 is effective for financial statements issued for fiscal
years beginning after November 15, 2007, and interim periods within those fiscal
years, and is applicable beginning in the first quarter of 2008. The Company is
currently evaluating the impact that FAS 159 will have on its consolidated
financial statements and FAS 159 will be applied prospectively.




c)         Accounting
for Derivative Instruments and Hedging Activities


Statement
161, issued March 2008 amends FASB Statement No. 133, Accounting for Derivative
Instruments and Hedging Activities and requires companies with derivative
instruments to disclose information about how and why a company uses derivative
instruments, how derivative instruments and related hedged items are accounted
for under Statement 133, and how derivative instruments and related hedged items
affect a company’s financial position, financial performance, and cash flows.
The required disclosures include the fair value of derivative instruments and
their gains or losses in tabular format, information about credit-risk related
contingent features in derivative agreements, counterparty credit risk, and the
company’s strategies and objectives for using derivative instruments. The
Statement expands the current disclosure framework in Statement 133. Statement
161 is effective prospectively for periods beginning on or after November 15,
2008. The Company plans to provide these additional disclosures in the first
quarter of 2009.




d)         Business
Combinations


In
December 2007, the FASB issued FAS No. 141(R), Business Combinations.
FAS 141(R) replaces FAS No. 141, Business Combinations. FAS 141(R) retains
the purchase method of accounting for acquisitions, but requires a number of
changes, including changes in the way assets and liabilities are recognized in
purchase accounting. It also changes the recognition of assets acquired and
liabilities assumed arising from contingencies and requires the expensing of
acquisition-related costs as incurred. Generally, FAS 141(R) is effective on a
prospective basis for all business combinations completed on or after
January 1, 2009. The Company does not expect the adoption of FAS 141(R) to
have a material impact on the Company’s financial position or results of
operations, provided that the Company does not undertake a significant
acquisition or business combination.




e)         Non-controlling
Interests in Consolidated Financial Statements.


In
December 2007, the FASB Issued FAS No. 160, “Noncontrolling Interests in
Consolidated Financial Statements, an amendment of Accounting Research Bulletin
No. 51” (“FAS No. 160”), which improves the relevance, comparability
and transparency of the financial information that a reporting entity provides
in its consolidated financial statements by establishing accounting and
reporting standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. This statement is effective for fiscal years
beginning after December 15, 2008. The Company does not expect the adoption
of FAS No. 160 to have a material impact on the Company’s consolidated
financial position, results of operations or cash flows.





FS
101
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


16.         Supplementary
Disclosures about Oil and Gas Production Activities (Unaudited)





The
following information about the Company’s oil and gas activities is presented in
accordance with U.S. Statement of Financial Accounting Standards No. 69,
“Disclosures about Oil and Gas Producing Activities”.


a)         Reserve
Quantity Information


The
Company has no proved developed or undeveloped reserves.


b)         Capitalized
Costs


Unevaluated
                US$
              
              
              Proved
                US$
              
              
              Accumulated
                DD&A
      and
                Valuation
                Allowances
                US$
              
              
              Total
                Capitalized
                Costs
                US$December
      31, 2005India
              
              
              3,957,723
              
              
              
              --
              
              
              
              --
              
              
              
              3,957,723Egypt
              
              
              --
              
              
              
              --
              
              
              
              --
              
              
              
              --Other
              
              
              --
              
              
              
              --
              
              
              
              --
              
              
              
              --Total
      capitalized costs
              
              
              3,957,723
              
              
              
              --
              
              
              
              --
              
              
              
              3,957,723December
      31, 2006India
              
              
              12,121,334
              
              
              
              --
              
              
              
              --
              
              
              
              12,121,334Egypt
              
              
              --
              
              
              
              --
              
              
              
              --
              
              
              
              --Total
      capitalized costs
              
              
              12,121,334
              
              
              
              --
              
              
              
              --
              
              
              
              12,121,334December
      31, 2007India
              
              
              24,539,932
              
              
              
              --
              
              
              
              --
              
              
              
              24,539,932Egypt
              
              
              2,447,062
              
              
              
              --
              
              
              
              --
              
              
              
              2,447,062Other
              
              
              112,553
              
              
              
              --
              
              
              
              --
              
              
              
              112,553Total
      capitalized costs
              
              
              27,099,547
              
              
              
              --
              
              
              
              --
              
              
              
              27,099,547





FS
102
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


16.         Supplementary
Disclosures about Oil and Gas Production Activities (Unaudited)
(continued)


c)         Costs
incurred


India
                  US$
                
                
                Egypt
                  US$
                
                
                Other
                  US$
                
                
                Total
                  US$Total
      costs incurred before DD&AYear
      ended December 31, 2005Property
      acquisition costsProved
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Unproved
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Exploration
      costs
                
                
                3,250,700
                
                
                
                --
                
                
                
                --
                
                
                
                3,250,700Development
      costs
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Total
      costs incurred
                
                
                3,250,700
                
                
                
                --
                
                
                
                --
                
                
                
                3,250,700Year
      ended December 31, 2006Property
      acquisition costsProved
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Unproved
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Exploration
      costs
                
                
                8,163,611
                
                
                
                --
                
                
                
                
                
                
                
                8,163,611Development
      costs
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Total
      costs incurred
                
                
                8,163,611
                
                
                
                --
                
                
                
                --
                
                
                
                8,163,611Year
      ended December 31, 2007Property
      acquisition costsProved
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Unproved
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Exploration
      costs
                
                
                12,390,508
                
                
                
                2,447,062
                
                
                
                112,553
                
                
                
                14,950,123Development
      costs
                
                
                --
                
                
                
                --
                
                
                
                --
                
                
                
                --Total
      costs incurred
                
                
                12,390,508
                
                
                
                2,447,062
                
                
                
                112,553
                
                
                
                14,950,123


d)         Results
of Operations for Producing Activities


The Company had no production in 2007,
2006 or 2005


e)         Standardized
Measure of Discounted Future Net Cash Flows


The Company had no proved reserves as
of December 31, 2007, 2006 or 2005


FS
103
 GeoGlobal
Resources Inc.
 (a
development stage enterprise)
 Notes
to the Consolidated Financial Statements
 December
31, 2007


17.         Selected
Quarterly Information (Unaudited)





The
following represents selected quarterly financial information:




For
      the three months endedMarch
      31
                
                
                June
      30
                
                
                September
      30
                
                
                December
      31US$
                
                
                US$
                
                
                US$
                
                
                US$2007Interest
      income
                
                
                435,693
                
                
                
                421,199
                
                
                
                694,292
                
                
                
                614,736Net
      earnings (loss) and
                  comprehensive
      earnings (loss)As
      previously reported
                
                
                (456,560
                )
                
                
                (391,068
                )
                
                
                (599,131
                )
                
                
                (96,351
                )Adjustment
                
                
                89,763
                
                
                
                241,673
                
                
                
                354,722
                
                
                
                --As
      restated
                
                
                (366,797
                )
                
                
                (149,395
                )
                
                
                (244,409
                )
                
                
                (96,351
                )Net
      earnings (loss) per share
                  –
      basic and dilutedAs
      previously reported
                
                
                (0.01
                )
                
                
                (0.01
                )
                
                
                (0.03
                )
                
                
                (0.04
                )Adjustment
                
                
                0.00
                
                
                
                0.01
                
                
                
                0.01
                
                
                
                0.02As
      restated
                
                
                (0.01
                )
                
                
                (0.00
                )
                
                
                (0.02
                )
                
                
                (0.02
                )2006Interest
      income
                
                
                399,869
                
                
                
                427,749
                
                
                
                461,123
                
                
                
                462,809Net
      earnings (loss) and
                  comprehensive
      earnings (loss)As
      previously reported
                
                
                (31,726
                )
                
                
                (125,873
                )
                
                
                (368,527
                )
                
                
                (624,564
                )Adjustment
                
                
                33,713
                
                
                
                --
                
                
                
                (87,769
                )
                
                
                (344,057
                )As
      restated
                
                
                1,987
                
                
                
                (125,873
                )
                
                
                (456,296
                )
                
                
                (968,621
                )Net
      earnings (loss) per share
                  –
      basic and dilutedAs
      previously reported
                
                
                0.00
                
                
                
                0.00
                
                
                
                (0.01
                )
                
                
                (0.02
                )Adjustment
                
                
                0.00
                
                
                
                0.00
                
                
                
                0.00
                
                
                
                (0.00
                )As
      restated
                
                
                0.00
                
                
                
                0.00
                
                
                
                (0.01
                )
                
                
                (0.02
                )




Quarterly
net earnings (loss) and comprehensive earnings (loss) and net earnings (loss)
per share – basic and diluted have been restated due to an error in the
classification and calculation for stock-based compensation for non-employee
consultants.
















FS
104























SIGNATURES








Pursuant
to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned, thereunto duly authorized.








GeoGlobal
Resources Inc.





By:           /s/ Allan J.
Kent


Allan
J. Kent


Executive
Vice President and CFO











Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the Company and in the
capacities and on the dates indicated.





Signature
            
            Title
            
            Date/s/ Jean Paul Roy
              Jean
      Paul Roy
            
            President,
      Chief Executive Officer and Director
            
            January
      16, 2009/s/ Allan J. Kent
              Allan
      J. Kent
            
            Executive
      Vice President, Chief Financial Officer and Director
            
            January
      16, 2009/s/ Brent J. Peters
              Brent
      J. Peters
            
            Director
            
            January
      16, 2009/s/ Peter R. Smith
              Peter
      R. Smith
            
            Chairman
      of the Board and Director
            
            January
      16, 2009/s/ Michael J. Hudson
              Michael
      J. Hudson
            
            Director
            
            January
      16, 2009/s/ Dr. Avinash Chandra
              Dr.
      Avinash Chandra
            
            Director
            
            January
      16, 2009