Arbour is an oil and gas exploration and development company, with a focus on both conventional exploration and development of oil and natural gas and the use of proprietary technology to recover oil from waste sand in an environmentally and economically efficient manner.

According to the U.S. Department of Energy, global increases in the use of both natural gas and oil are expected to grow more rapidly than those of all other energy sources, combined. As well, 43% of the entire world's forecasted increasing energy needs are being driven by the developing nations of Asia.

Official reports from the World Bank, The Asian Development Bank, the United Nations and others indicate primary energy consumption in China in 2000 was 1535 MTCE. The average forecast from these same sources is that China will consume 2912 MTCE of energy by 2020, an increase of 89.8%. "China is scouring the globe for oil - and roiling the world's energy markets in the process."*

Demand for energy, specifically in the Asian regions, is expected to remain strong for the foreseeable future. According to one study, "The implications of China's shift to a world energy importer are significant. During the next 10 to 20 years, China will have to participate in international energy trade on a substantial and sustained basis (and) form energy supply and transportation alliances." **

"China's economy, the world's sixth largest, grew 9.9 percent in the fourth quarter. The country is set to surpass Japan this year as the world's largest consumer of oil after the U.S. PetroChina and Sinopec have increased domestic sales of gasoline because prices in China are about 21 percent higher than international rates." ***

* Clay Chandler, Fortune Magazine, "Can China Keep the Lights On?" February 23, 2004


** "China and Long-Range Asian Energy Security: An Analysis of the Political, Economic and Technological Factors Shaping Asian Energy Markets", Rice University, Harvard University, Texas A&M University, Petroleum Strategic Studies Institute, April 15, 1999


*** Bloomberg, January 21, 2004.