Quadra Suspends Drilling on B-2X Well in Colombia

Quadra has suspended drilling operations on its B-2X exploration well after having concluded initial testing operations. The B-2X well was drilled to a total depth of 3,900 feet and penetrated both the LaLuna and Maracas formations of Cretaceous age. Hydrocarbons were encountered during drilling operations and testing of both formations was undertaken upon completion of drilling operations. The drilling rig, Pride 9 was released on January 22, 2005.

Michael Nugent, President, stated, "Test results of both the Maracas and LaLuna formations clearly indicated hydrocarbons were present, however, both formations appear to be tight as a result of low permeability. Our recoveries indicate that the zones are not commercially productive without further stimulation." The Company has initiated an in-depth study of the results to determine the viability of formation stimulation which may be undertaken at a future date utilizing a service rig. Mr. Nugent went on to say, "Although we are disappointed with the test results over the combined 1,200 feet of potential hydrocarbon pay zones, we are very encouraged that both zones demonstrate that the structural interpretation model we forecast is accurate. We can conclude from this first stage exploration activity that the Cesar Basin, and in particular, our 180,000 acres continue to have tremendous potential. Our challenge now is to utilize existing technical evaluation tools, readily available in Canada where tight gas with even greater technical challenges is being successfully produced, to apply in B2X and as