BLACK CRYSTAL OIL & GAS

OUR ENVIROMENTAL RESPONSES

We recognized the need to reduce environmental impacts associated with oil and natural gas exploration, production and development. We are regarded and continue to maintain our standing as a “GREEN” conscious and environmental friendly, caring enterprise, and a major contributor to the growth and welfare of all communities in which we operate.

Our company is aware of the differences between our environmental obligations and environmental responsibility. Our obligations are moral and legal duties which compel us to give back to the environment because we owe it to the environment; while our responsibility compels us to do our duty and whatever it takes to protect the environment.

Due to increased concern for clean environment in oil and gas producing areas we are committed to dependable environmental responsibility and best-in-class practices while producing quality products and services. We will work closely with governments, community leaders, groups, individuals or specific environmental groups and other stakeholders, to address relevant concerns real or imagined as it relates to the potential or actual impact of our oil and gas operations on the environment.

Our goals however, remain the same and they are, to enhance profitability, which will make us a viable and sustainable energy producing enterprise; to develop innovative technological solutions that encourage the efficient use of oil and natural gas; and to protect the natural environment in which we operate. The following is a brief summary of our Environmental Responsibility.

Corporate Responsibilities

Black Crystal Oil and Gas is a responsible corporate member of Black Crystal Enterprises, Black Crystal World; and a responsible member of the global business community with deep concern for the protection and general improvements of the natural environment. We create products and services that improve quality of life. During the course of our business operations we will manage the available natural resources efficiently, to promote positive environmental values and desirable result that is friendly, courteous and encourages cohabitation between our operations and the environment. As a steward of the environment our company is proactive in responding to, environmental issues that may affect our various activities or operations locally and internationally.

Our operation is global with serious implication for continuous maintenance of our pride, environmental leadership and best-in-class reputation worldwide. As a result, in conducting our business activities, using best practices; we will strive to maintain a careful balance between our business operations and, preservation of the natural environmental conditions with minimal carbon or development footprints.

We are very patient in our actions and reactions, and we tend to evaluate the short- and long-term implications of all our business proposals, materials, operations, services and activities on the environment and our bottom line before making our decisions. We are environmental friendly enterprise therefore practice environmental responsibility with great care, keen interest and sensitivity to the eco-system and the people in the environment. Through positive constructive engagement, and hands on direct involvement we proactively facilitate and sponsor environmental awareness training, community growth and development programs in the areas of our operations.

Our Company is known for its use of science and technology to improve the quality of life of people and the natural environment. This we do by developing products and services used to address challenging environmental problems. We are poised to meet new challenges in the market, including the most demanding government and industry regulatory requirements with the aim of achieving, providing, and delivering the best and the highest, most uncommon-quality customer services and products.

Our reputation for quality products and service leadership does not come at the expense of the environment, we work hard for it and we earn it the old fashion way through sweat and intellectual contributions.

Our use of leading or cutting edge science and technology to solve tough environmental challenges and problems make us the envy of many in the industries. We conduct holistic scientific and technology aided review of all our current and future materials, operations and activities.

While actively developing, promoting and participating in the implementation of needed solutions through product or service development as remediation, and encouraging resource conservation, we continue to use the best available scientific and technological innovations and discoveries to guide our decision making process.

How we conduct ourselves with our owners, investors, government and industry regulators, competitors, suppliers, customers, co-workers and the general public especially the communities where we operate is a reflection of who we are and what we do. As a result we are committed to being good corporate citizens and will obey the laws of the land either locally at our home country, or internationally--especially in countries and communities where we operate, following our established corporate responsibility and set environmental policy guidelines.

Our tenacious commitment to environmental policy regulations and compliance meets and far exceeds any set standards or requirements of the regulatory authorities, the expectations of our investors, owners, and the industry.

To implement our environmental regulatory policy and guidelines, we will:

It is anticipated that this current environmental policy and practices will drive our company forward in future oil and gas explorations, production and developments, enough to bring sustainable economic benefit of growth, prosperity, integrity and global respect to the company and the communities in which we operate.

Environmental Plan

It is a requirement that an environmental impact review be conducted before any work begins on any projects involving any and all our oil and gas drilling and productions. Planning and operations conducted before, during and after drilling or completion must avoid harming marine and terrestrial life –especially in the highly sensitive area of operation.

Operation staff must provide invaluable information continuously on ways and means to protect the ecosystem directly within or adjacent to the area of operation. Our company will follow a three-step plan for waste minimization and they are:

Current Course of Actions That Incorporate Risk Management

Internal Review of Appropriate Responses to Risk Management

Involves a vision of a prosperous community supported by strategies that espouses communication with local community leaders, participative planning for community development and internal procedures that:

Oil and Gas operations require keen awareness and sensitivity to the delicate balance that exists between oil and gas exploration, drilling and production operations (Petroleum Industry’s needs), and the broad or specific needs of the ecosystem in terms of the, habitat, the people, --especially plants and animals residing and sharing the resource environments in which we operate.

A clean and safe drilling site is a sign of good environmental stewardship and proactive corporate responsibility. Due to increased concern for clean environment in oil and gas producing areas, we are committed to developing services, products and environmentally responsible operations and business practices that is best in class while producing petroleum crude and natural gas.

We are resolved and committed to out-sourcing oil and gas research and development in various local and international educational and technical institutions to bring science knowledge to bear on the use of natural gas as the most efficient and cleaner source of energy. To-date, sophisticated state-of-the-art science and technology have aided the oil and gas industry and provided unique and economical solutions to optimize well production output, improved drilling and completion operations, and foster active development of the general oil and gas well services.

Imaging technology with advance geophysical seismic 3-D and 4-D mapping techniques is an example, including improvements in well logging devices using computer assisted technology which have resulted in more successful and productive oil and gas exploration with a high yield production. Importantly, great improvements have been recorded using new drilling techniques such as multi-directional, horizontal and/or modified conventional drilling with improved fluids or mud-mix chemical composition, and durable computer designed drilling bits that not only improved drilling, but increase operational efficiency and boost production.

While oil and gas exploration, drilling and production activities are widespread globally; several trillions of cubic feet of natural gas are associated with very large oil field reserves and are produced with oil. However, substantial amount of natural gas cannot be produced due to inadequate technology, geographical location, undesirable product contents, transportability, inadequate or lack of localized commercial or international markets and/or other environmentally restrictive barriers. As a result, most of the gas is flared into the atmosphere.

Flaring of gas from oil producing field poses serious environmental consequences as related to global warming. CO2 is one of the largest greenhouse gases produced during petroleum operation -especially from burning fossil fuel. As a result, Black Crystal Oil and Gas has created multiple approaches and techniques to harness and process residual or stranded natural gas to be utilized in positive, clean, efficient, cost effective, enduring, and environmentally sensitive manners.

Black Crystal Oil and Gas is committed to providing safe, cost effective, efficient, clean and viable uses for fossil fuel –especially the excess gas currently flared worldwide through--gas gathering; including application of new technology for transportation, conservation and creation of new commercial markets for natural gas (Fossil fuel is derived from geologically ancient plant life. Alcohol and Methane can also be extracted from biomass)

Here at B.C. O&G, as we strive to meet today’s energy needs, we continue to dedicate more resources and intellectual as well as fiscal capital (properties, education, skills knowledge, abilities, science and technology) into developing clean energy for the future. As a result, we are committed to sustainable state-of- the-art research and technology that enhances and complements oil and gas exploration, drilling, completion, production, development and services; and that constitute our source of pride. From the initial discovery of petroleum crude to the drilling, completion and production of the discovery, we see our obligation as environmental stewards compelling us to identify anticipated and unanticipated potential problems of contaminant releases and deal proactively with them in a safe manner, in conformance with any and all environmental rules and regulations.

Our company’s personnel are designated to work as friends of the environment therefore, a specialized trained environmental team, with the sole purpose of identifying and defining the magnitude and context of any potential problem at the site is established to review all our field operations.

Currently, natural gas exploration and production is used to supplement our core operations, we hope to facilitate rapid deployment of new technologies that increase and improve the use of natural gas as the cleanest and most efficient energy source in our downstream operations. We take pride in our operations and corporate responsibility as a steward of the environment. We care about our operations because it impacts us and our customers. From production of crude oil and natural gas, through the refinery process to delivery of refined products into various homes and industries, we would like to play critical and responsible role as oil producer and environmental steward, while meeting the needs of the people we serve. This role and associated responsibilities we take very seriously.

At B.C. O&G, we know that “We are what we do; and performance excellence is our habit”. We believe in identifying and preventing risks and/or accidents in all our operations with a policy of “Leave No Spill Behind”

Global initiatives

One of the most remarkable resources we have at Black Crystal Oil & gas is our commitment to our current global initiatives,--especially our resolve to be a leading environmental friendly, independent oil and gas producer. Our global initiatives are to:--

Risk Management

Another key resource we have is our improved and better understanding of risk management. Petroleum crude Oil and Natural Gas exploration involve inherent high degree of risk. However, the risk must be mitigated and/or avoided; where possible it should be effectively and constantly managed depending on the project, its location, type of production and the cost associated with the project.

Science and Technology have contributed immensely to risk mitigation in the oil and gas business. While the use of 3-D and 4-D seismic combined with qualified Geologists and Geophysicists who constantly scrutinized and evaluate each prospect developed is necessary procedure, the management of risk involved in the operation is only contained and not completely eliminated. Risk of drilling a dry hole is only eliminated after the well is completed and it produces expected result. Unfortunately, risk is and will always be critical part of the oil and gas exploration.

To reduce our risk level, we will conduct and maintain the need for risk analysis of all our operations on a regular basis and send our employees to a third party training to develop better technical skills; observe and/or follow prudent industry standard operation procedures to eliminate or reduce risk.

As part of our comprehensive planning system, our corporate, business, and functional levels employees will be directly involved in the assessment of our strategic management plan and its impact on our overall operations. This participatory approach to strategic management process involves thorough evaluation of our financial and nonfinancial criteria with corporate responsibilities as measures of behavior-based effects. We normally follow an entrepreneurial mode strategy, but occasionally may be forced to pursue established corporate planning, and/or adaptive modes respectively depending on the dynamics and changes in our operating environments.

We are a forward looking organization that boldly goes where others dread. Our operation is moving into the continent of Africa despite the level of unrest and political instability on the continent. This is a calculated risk that we know must be taken and we expect it will yield great financial rewards.

We want to be a part of Africa’s development because it makes good business sense, and we will take all safety precautions necessary to actively participate in the development of its oil and gas industry.

To reduce and avoid high level risk however, we will continue to work hard to build more partnership portfolios with international operators and prospectors, conduct third party research developments, utilizes fully science and state-of-the-art technology, conduct risk management audits, and reduce our overall general operation and management costs. As we move forward, we will continue building viable business partnership portfolios with major oil and gas companies, through research, development, technology, risk management, and performance excellence.

Safety is and will always be our number one priority and the most important operational commitment we have are codified into our “Leave No Spill Behind” policy. As a result we will work closely with regulators in areas of our operations, re-double our environmental stewardship efforts to reduce the potential possibility for any number of leaks, and continue to invest more in our operations by upgrading current facilities for better operational performance. We have incorporated this policy into our business plan which is an indication of our resolve to be more environmentally responsible.