Petro Inti Venture

Oil Exploration Venture in South America

Prime South American Oil Prospect VENTURE CAPITAL: US $5.5 million
SCOPE: South America, giant oil discoveries in the Sub-Andean Arch are progressing towards this prospect, which is stepped out from an existing oil field.

PetroInti
13 Charlottetown Place
St. John's, Newfoundland
A1A 2P5

FAX: 1 (709) REX-LIMA

For your neutral evaluation we provide these public US documents to show the added cost and bureaucracy when drilling a well supplied and managed from the USA. As a rule the USA only supports drilling operations because of pressure on US Major oil companies to use only US contractors and suppliers. The oil companies therefor must rush the actual drilling to minimize costs. The rule is that things do go wrong, and more so in Latin America when US companies, unfamiliar with the country and geology, try to rush work faster than the local infrastructure can handle that work. If, say, a drill bit is held up, it would hold up the entire rig, at what QMC estimates costing $80,000 a day!

However, there are extreme cost savings to be made by using foreign drilling systems. By preparing the well site and working at a more leasurily pace with much lower cost services, very inexpensive services may do the same work without extravagent costs such as helicopter transported expensive oil rigs and hundreds of tons of pipe, casings, muds and supplies. In the below example you will notice that the US company had to complain that a deadly gas blowout might occur unless a Russian Jet delivered the oil equipment. In fact every aspect of Russian oil services can save 80 to 90% on drilling costs! Despite the US slander of Russian oil technology, Russia has out produced the US for two decades now, and their turbo rig is today all the rage in horizontal drilling.

In summary, by using local workers at extremely low wages, progressing at the Latin American pace, and using the lowest cost contractors, we can drill several exploration wells for the cost of one US supplied exploration well. In keeping with conservative accounting practices, however, our well drilling cost schedule is for the most expensive US supplied drilling operation.

Documents of USA Protectionism
Application to use Non-USA plane
Certification that copy of Application was sent to USA air transport companies
Form ratified to allow hiring non-USA plane
SAT/Hercules will take longer to deliver
AF/Antonov can deliver in time
Southern Air Transport/Hercules objects
Air Foyle/Antonov appeals US blocking their plane
QMC claims it needs Antonov over Hercules
SAT/Hercules again objects against non-USA plane
Appeal finally given to use non-USA plane

Deep US Drilling Costs