President’s Message

On behalf of the directors, management and staff of Armadillo Energy Inc., it is both an honour and privilege for me to extend a hearty welcome to you.

In current times, there is considerable volatility in the world’s economies. This is also true in the world of energy. Pundits on all sides of the energy space provide commentary on oil, reserves and etc. But the question isn’t whether there is enough oil. There is enough oil. It is the ease of obtaining or producing oil that is in short supply. The oil to replace production is more expensive to extract and produce. With emerging economies continuing to use more and more oil, it places pressure on prices.

As oil prices rise so, too, does the cost of shipping the oil from the Middle East to refineries. This in effect adds to the cost of distillates and gasoline.

Armadillo is skilfully positioned; both geographically and with low cost production techniques. We maintain a large body of extractable oil reserves and continue to build on those reserves by way of drilling and new lease acquisitions. Our strategic plan includes producing the reserves over a 25-year period, at the lowest cost and highest value.

With kindest regards,

Paul Schuett