BUSINESS STRATEGY

We plan to increase our oil and gas production and reserves through the development and additional exploration of our existing areas, focusing on relatively low-risk projects. We also plan to expand our oil and gas production and reserves by undertaking new farm-outs, joint-ventures or similar arrangements in long-cycle strategic investments that should allow us to seize growth opportunities, reducing capital expenditure requirements and thus avoiding significant increases in our leverage. Our intention is to continue to expand our upstream activities and to maintain our strategic investment in our midstream business, the low-risk and predictable nature of which we believe provides us with greater balance in light of the greater volatility intrinsic to our upstream business. The key components of our business strategy are: