Suroco Energy Inc. provide the results of the independent reserves report effective December 31, 2011 for the Corporation. The Corporation's Colombian and Canadian reserves were evaluated by GLJ Petroleum Consultants of Calgary, Alberta, independent qualified reserves evaluators, in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and in accordance with the COGE (Canadian Oil and Gas Evaluation) Handbook.

2011 YEAR-END RESERVE HIGHLIGHTS

• Total proved reserves of approximately 0.9 million barrels of oil (net after royalty), with a net present value (before tax and discounted at 10%) of approximately US$43.2 million. • Total proved plus probable reserves of approximately 1.8 million barrels of oil (net after royalty), with a net present value (before tax and discounted at 10%) of approximately US$72.5 million. • Total proved, probable and possible reserves of approximately 2.7 million barrels of oil (net after royalty), with a net present value (before tax and discounted at 10%) of US$118.6 million. • Positive revisions of 64% as compared to 2010 year-end company gross proved producing reserves, resulting in a net increase of 12% after accounting for 2011 production. • Positive revisions of 20% as compared to 2010 year-end company gross total proved reserves, resulting in a net decrease of 12% after accounting for 2011 production. • Positive revisions of 35% as compared to 2010 year-end company gross total proved plus probable reserves, resulting in a net increase of 14% after accounting for 2011 production. • Positive revisions of 12% as compared to 2010 year-end company total gross proved plus probable plus possible reserves, which essentially offset 2011 production to result in no significant net change for this category. • Recognition by GLJ of significant undeveloped waterflood reserve potential in the Cohembi area in both the probable and possible reserves categories.

Tags: Suroco Energy