Quetzal Commences Drilling in Llanos Basin


Llanos Basin, Colombia
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Quetzal has commenced drilling the Canaguay # 1 well on the Canaguaro Block in the Llanos Basin of Colombia on June 4, 2010. The well has a planned total depth of 16,000 feet and drilling is expected to take 75 days. The well is programmed to test the hydrocarbon potential of several reservoirs including the Carbonera, Mirador, Gacheta, and Une. The Company has a 25% working interest in the Canaguaro Block and is the operator.

Operational update:
Colombia:

The acquisition of 220 square kilometers of 3-D seismic data on Block LLA-27 in the Llanos Basin has been completed and the seismic data is currently in processing. It is expected that processing and interpretation of the LLA-27 3-D seismic will be completed in the third quarter of 2010. The seismic program on Block LLA-21 has been postponed till after the rainy season and is now expected to be completed by late 2010 to early 2011.

Guatemala:

Quetzal continues to test the Atzam #3A well, with completion and testing activities currently suspended due to a recent tropical storm and volcanic activity in Guatemala which has seriously disrupted logistics in support of operations at the well. It is anticipated that the testing will be completed in June, 2010

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