DELTA MUTUAL, INC.

SAHF entered into the joint venture agreement for the areas: Guemes, Rosario, Cobres, La Union and Valles with Ketsal-Kilwert and Ambika SA in 2007. These concessions are all exploratory and with minimum cannons. An agreement is currently in progress by the joint venture to give Valles and Cobres to YPF; return Rosario and La Union to the province; and keep Guemes for exploration and exploitation.

Guemes

Even though SAHF does not have the majority percentage in Guemes, the Company is the operator in this site. Drilling for this well began in June, 2010, in which management decided the most efficient and cost-effective way to drill-because of the weather, environmental hazards and uneven terrain-was in close proximity. In mid-August, positive traces of hydrocarbons and natural gas were found in the samples and two side tracks later, in September, the well was completed at the target depth of 549 m. The well was in its completion phase when it was halted, along with proven reserves and expected output tests, for the rainy season. Operations will resume in the first quarter of 2011. The joint venture is currently waiting for the operator license to be able to produce commercially.

Guemes Gallery