4G Energy

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GMAST Group Colombia 2009-2011
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GMAST Group Briefing

• The Group began in 1987 under the leadership of
  its main shareholder Menahem Kroll.
• The first areas of action were Integral Security,
  specialized in Adaptive Perimeter Security based
  on Neural Nets and High Security Construction,
  including afterwards Logic Security and Complex
  Process Monitoring. Further the activities grew
  to Investment and Financing Projects targeting
  the financing and oil markets.
• The Groups success secret is its highly
  qualified personnel, strategic planning of all is
  activities and including its most prominent
  employees in the shares of the company they work
  for.
• Actually the Group has own offices in Israel,
  Colombia, Venezuela, and Madrid, and
  representatives in Russia, Finland, Sweden,
  Denmark, England, EEUU, México, Brazil, Costa
  Rica, Argentina, India, China Singapore and
  Australia.

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GMAST Group Briefing

• At present, the Group is active in four areas
• Perimeter Security Technology
• Integration Platforms
• Data Security
• Static and transactional anti fraud systems
• Transactional technology
• Neural Systems for Dynamic Discrimination and
  Segmentation
• Payment Systems Authorizing Platform
• Risk Capital
• Currency Arbitration Fund
• Latin-American Real Estate Investment Fund
• Latin-America Oil Services Investment Fund
• Financing Transactions Process Centre
• ASP services for Financing Industry
• Transactional Authorization Services
• Development and Processing of Financing Products
  for Entities
• Development and Processing of Financing Products
  for Unbanked Population

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Creway Investments Ltd

• Creway is a company incorporated in British
  Virgin Islands in 2002.
• It has a portfolio of investors with a capital
  investment of 30 million.
• Operates mainly in the Americas (North, Central
  and South), Europe and Israel.
• Participates in the business lines
• Venture Capital Real Estate, Technology,
  Petroleum Services
• Funds Arbitration
• Creway Investments Group Ltd is part of GMAST
• www.gmast.com

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GMAST Group Risk Capital
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Risk Capital Investments

• Israel
• Risk Capital
• Risk Fund
• Real Estate Investments

• Panamá/Colombia
• Risk Capital
• Risk Fund in the Oil Industry

• British Virgin Islands
• Groups Research Development
• Risk Capital

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GMAST Group Oil Services
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Preview
Why Colombia?

• Colombia is a country attractive for oil
  projects.
• The guerrilla demobilization process increased
  confidence in the oil industry and attracting
  investment in oil business development.
• The government provides full constitutional
  warranty to investors .
• Companies in Colombia are increasing their
  activity in order to increase the production.
• The State is interested in camp exploration and
  grants exploration licenses to national and
  international companies.
• International high oil prices brought a global
  boom in oil investments.

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Type of Companies and their Services

• OPERATION COMPANIES Perform oil and/or gas
  exploration and exploitation in an assigned area
  under a Government granted license.
• SERVICE COMPANIES Supply materials equipments
  and services to the Operator Companies
• Oil well drilling recondition maintenance and
  engineering works.
• Slick line services.
• Well acidification.
• Well un-sanding.
• Well cement.
• Artificial Production Systems.
• Others Electric Registry Well Geology
  Geophysics Perforation Fluids Completing
  Fluids Production, Storage, Processing,
  Refining, and Transport Facilities Provision
  Oil and Gas Pipeline Construction.
• Each area has its own specialization and
  generates an organization for its performance.

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Oil Well Drilling and Recondition

• DRILLING SERVICE
• Earth surface is drilled using a drilling
  equipment, piping and rock-drill, to achieve
  defined targets for a specific client and
  reaching depths between 1.000 and 7.000 meters.
• The Client rents all the equipment including
  pipes, operating personnel, fuel, to work on a 24
  hour basis and pays a daily fee. This fee can
  stand from 12.000 to 50.000 USA per day,
  depending on the equipment capacity.
• The deeper the equipment can drill the higher
  the fee is. Platforms that work in open seas are
  the most expensive.
• WELL MAINTENANCE OR RECONDITION SERVICE
• Equipments are similar to the former but makes
  work-over jobs. This means it is used to
  recondition or maintain an oil well. There are
  small and big equipments depending on the depth
  reached and the tools and pipes to manage. They
  are also rented on a daily basis.

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Drilling and Workover Companies in Colombia
Company RIGS
OCUPATION Pride de Colombia ltd. 20 100 Naibor
s Drilling 8 100 Saxon Drilling
5 100 Zigma Colombia Petroleum Services
5 100 Discovery Energy Services
3 100 Petrotesting Drilling 2 100 Varisur
S.A 5 100 Serinco Drilling
3 100 DWS 2 100 Independence Drilling
15 80 Helmerich Pyne
4 100 Parker Drilling (equipment over
5.000 m) 4 100 OPA
2 100 Others 10 80
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Operation Companies

• Operation Companies that own exploration and
  production blocks and require equipment and
  service permanently
• NAME RIGS NAME
  RIGS NAME RIGS
• Petrobras 6 BP 5 Perenco 4
• Harken 1 Mansarovar 7 Pacific Stratus 7
• Sogomi 1 Hocol 6 Petrocol 1
• Petrotesting 1 Montecz 2 Petrominerales 5
• Ecopetrol 25 Interoil 2 Rancho Hermoso 1
• Kappa 2 Texas 2 Hupecol 2
• Occidental 5 CC oil 2 Wogsa 1
• Petropulí 1
• Other 30 Companies exist and can be seen in
  www.anh.gov.co

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State Involvement

• There are two kind of contracts in Colombia
• ASOCIATION CONTRACT Where the Colombian
  Petroleum Company ECOPETROL associates in
  various percents depending on the found oil
  reserves. When these reserves are high
  ECOPETROLs percent is also high. The percent
  runs from 30 50.
• AREA ASSIGNATION Colombian State, through the
  AGENCIA NACIONAL DE HIDROCARBUROS that rules oil
  politics in the country, grants areas to Oil
  Operators. The operator company pays the state an
  8 fee and the rest is for itself. This is a very
  attractive system that has interested foreign
  companies to invest in Colombia.

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Oil Camps in Colombia

• CAMPS IN EXPLORATION see www.anh.gov.co
• CAMPS IN PRODUCTION see www.anh.gov.co
• WELLS IN PRODUCTION see www.anh.gov.co and
  www.ecopetrol.com.co
• PRODUCTION PER DAY www.acipet.com
• SHORT TIME PROGNOSIS 1MM BOPD
• NEW CONTRACTS SIGNED IN 2007 100
• NEW CONTRACTS SIGNED IN 2008 30
• WELLS DRILLED IN 2008 100
• WORKOVER DONE IN 2008 1.500 up to date
• FOR ADDITIONAL STATISTICS
• www.ecopetrol.com.co
• www.anh.gov.com.co
• www.acipet.com

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4G Energy, S.A. (Colombia)
4G Energy, S.A. is a company owned in100 by 4G
Energy Inc. Panama, and formed in Colombia to
provide services to the Oil Industry. The Company
has now a capital of USD 8.000.000. 4G Energy
S.A. Oil Services activity is divided in two
areas Purchase and Rent of Oil related
Equipment Using funds provided by the
headquarters 4G Energy, Inc. (Panama), 4G
Energy, S.A. purchases new or used drilling and
workover equipment with its peripherals. These
are further rented or leased to the Oil Services
Companies that work in the Oil Rigs which are
already assigned to them or are in final
contracting steps. Actually 4G Energy S.A. has
two drilling machines of 350 HP and 550 HP, with
all their additional peripherals.  
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4G Energy S.A. (Colombia)

• Strategic Associations with Oil Operating
  Companies
• 4G Energy S.A. has special associations with Oil
  Services Companies through two figures
• A company with 50 share for each part.
• A business association with benefits shared in
  50 per each part.
• Each of this new business ventures owns the
  exclusive rights over the contracts between the
  Oil Service Company and the Oil Operating
  Company.
• Actually two strategic associations have been
  created with the following companies
• Operaciones Petroleras Andinas S.A (OPA S.A.)
• Discovery Energy Ltda.
•  
• 4G Energy S.A. has constant technical and
  administrative supervision on the operation of
  these ventures.

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GMAST Group Coal Services
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Preview
Why Colombia?

• Colombia has the largest coal reserves of coal
  in Latin America, and it is the worlds fifth
  leading exporter of thermal coal.
• Colombian coal is recognized worldwide for its
  low ash and sulfur contents, high volatile
  components, and calorific value. Being low in
  acid-rain-causing sulfur and cheap to produce,
  Colombias coal has always been coveted.
• State acts as facilitator in the mining area,
  strengthening its role as manager of the
  resource, as regulator, and as controller of its
  exploitation. The policy is consolidation and
  expansion of production in the Caribbean coast as
  well as in the of the interior of the country.
• Despite calls for more environmentally forms
  of energy, the lower cost of Colombian coal
  ensures its continued use for electrical
  generation.
• The majority of Colombia's coal exports are
  shipped to European markets due to shorter
  distances and lower freight costs compared to the
  rapidly growing Asian markets. Colombia is
  considered to be a low-cost producer with its
  coal highly sought after due to its low sulfur
  content.
•  

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Sector Organization
Colombia completed the privatization of its coal
sector in 2004 with the closing of Minercol, the
former state-owned coal company. The largest
coal producer in the country is the Carbones del
Cerrejon consortium, composed of Anglo-American,
BHP Billiton, and Glencore. The consortium
operates the Cerrejon Zona Norte (CZN) project,
the largest coal mine in Latin America and the
largest open-cast coal mine in the world. CZN,
which consists of an integrated mine, railroad,
and coastal export terminal, produces about 30
MMst per year. Drummond operates the
second-largest coal mine in Colombia, La Loma,
also an integrated mine-railway-port project,
producing about 25 MMst per year. In 2008,
Drummond received a permit to begin operations at
the El Descanso mine, near La Loma, which is
expected to produce 20 MMst per year by
2010. Glencore operates the Jagua and Prodeco
coal mines, with total production capacity of 8
MMst per year. The next largest coal mine is a
privately owned Paz del Rio mine in Boyaca
Department which produced 600,000 t. The
Government expects the production of coal to
increase to 124.9 MMt in 2011 and to 134.2 MMt in
2019.
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4G Energy S.A. (Colombia)
4G Energy S.A. activities in the Coal area 4G
Energy extended its investments to the coal area
offering services to the companies that own
concessions to exploit coal. The company
purchases working modules. Each module consists
of the following equipments 1 Digger
Equipment extracts coal in the Pit and loads the
trucks 5 Dumping Trucks transport the coal from
the Pit to the gathering area The company that
operates these modules is a business venture
between 4G Energy (80) and a local operator
(20) who has the required experienced personnel
to operate the modules. The venture has a
renewable contract with a Prime Line Company that
has the Exploitation Concession. This contract is
guarantied by a fiduciary account, minimizing
thus the risks.
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4G Energy S.A. (Colombia)

• The business is based in the following points
• Operating contract for the modules to extract
  and transport thermal coal
• Validity of contract 3 years plus renewal
  for 2 additional years
• Each module consists of 1 Digger and 5
  Dumping Trucks working in shifts of 11 hours with
  1 hour for maintenance during 26 days per month.
• Payment per each transported ton through a
  fiduciary account.
• Company that exploits the mine Glencore
  International AG
• The market demand for transport modules is
  growing and is bigger that the offer. Actually
  Glencore itself has a need for 120 modules.

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Companys Configuration
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Organization
Administrative and Operational Management Control
GENERAL MANAGEMENT
INVESTOR ATENTION
Directive Board Reports
Contracts and Litigations
TREASURY AND ADMINISTRATION
OPERATIONS

• General Balance
• Loss / Gain
• Accounting Registry
• Taxes

LEGAL
ACCOUNTING
Directive Board Reports
Investors Report
SW and HW maintenance
SYSTEMS
ACTIVES MANAGEMENT STRATEGIC ASSOCIATION
OPERATIONAL MANAGEMENT AUDIT
ADMINISTRATION
ADMINISTRATIVE MANAGEMENT AUDIT
TREASURY
Collection
Invoicing
Income Registry
OPA
Operational Registry Control
Banks
Budget and Costs
Expenses Registry
Discovery
Equipment Maintenance Control
Investments
Obligations
Tax
Equipment Rental
Inventory Control
Cash Flow
Human Resources
Purchases
Purchase / Sales
Execution and Control
Statistics
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4G Energys Equipment
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4G Energys Equipment
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4G Energys Equipment
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4G Energys Equipment
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4G Energys Equipment
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4G Energys Equipment