Hi sharky;

According to the Q-3 Report, Petrolifera is currently getting $2.74/mcf for its domestic natural gas in Argentina, and $42.93/bbl for its domestic oil for the 3 months ended Sept 30 . Argentina needs to get real and allow the domestic producers to receive the world rate for natural gas and oil. As stated in the Rigzone article, it is costing Argentina $6.00 to import natural gas from Bolivia and a lot more for imported LNG from Trinidad & Tobago. The same with oil. Why the government is continuing with this "failed" policy is beyond me. All that their protectionism is doing is hurting themselves as this dumb policy has only resulted in domestic producers producing less natural gas and oil, which has led to foreign imports at far higher prices. Either the legislators in Argentina today are in the pockets of the international oil & gas exporters to Argentina or they are inept. Looks like either corruption or lack of ability on their part. Out of 179 countries, Argentina is # 105 in 2006 , according to Transparency International which publishes an international Corruption Perceptions Index: http://en.wikipedia.org/wiki/List_of_countries_by_Corruption_Perceptions_Index

It is interesting to note that Peru is #72 on the list tied with Mexico, and Colombia is #70. So it appears that Petrolifera is correct in seeking to put its investment and effort into Colombia & Peru going forward. Canada is also in the process of signing "free trade" agreements with Colombia and Peru which may be to Petrolifera's benefit in the future.

Best Wishes; Scott