Company Information for Columbus Energy Limited

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Company Statement

Columbus Energy, which changed its name from Golden Dynasty Resources in September 2008, is listed on the TSX-Venture Exchange. The name change reflects the transformation in the company’s focus following its exit from Australia in 2007 when it sold its interests there to ARC Energy, retaining a small royalty interest in its former Canning Basin properties.

Operations and Technology

The company has explored a number of opportunities to rebuild its business, including two licence applications for acreage in Italy’s Po Valley and a failed attempt to buy a Spanish coal bed methane firm.

In the summer of 2007, Golden Dynasty bought a five per cent stake in London-based oilfield technology company Columbus Oil & Gas Inc for US$1.1 million. In October 2007 Golden Dynasty entered into an option to acquire an additional 63 per cent interest in Columbus for US$13 million. In March 2008 this option was extended for a further six months and the price tag lifted to US$20 million as the company continued to seek funding to close the deal.

This is an interesting and potentially lucrative new business area for Columbus Energy. Columbus Oil & Gas has developed a patented unmanned buoy production system, known as the Columbus Production System (CPS), which enables oil companies to extract remaining undeveloped reserves from abandoned or marginal offshore oilfields. The CPS uses the latest technology for process control, making it reliable and safe with low maintenance requirements. The buoy system has a 25-year lifespan and, importantly, can be reused in other locations when a particular field ceases production.

The oilfield technology company is building its first CPS for use on the Isis field, which lies some 90 km off the coast of Tunisia. This former Lundin Petroleum asset started producing in 2001 at an initial rate of 10,500 barrels per day but by the time of its shut-in in 2006 was pumping 1,820 bpd and 27.3 million cubic feet per day of gas, a rate that was deemed uneconomic. Columbus reckons that without the expense of an FPSO, the field could be brought back onstream and its untapped barrels profitably extracted. It signed contracts with the Tunisian government in December 2006, securing the transfer of the field, which it hopes to bring back onstream and have pumping at 1,500 barrels per day. As of October 2008, Columbus Energy was still in negotiations to raise the necessary US$20 million to play a part in this project, whether that be through a loan, equity, a combination of both or project participation.

Board of Directors and Key Management

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