PEMBINA, ALBERTA

New natural gas pool discovery announced in 2006
$7.5 m exploration program
$2.5m expended to date
3 well earn-in drilling program completed in 2007 to earn 40% WI in 7 sections
5-19-48-08 W5 completed and tied in as Belly River natural gas producer
10-24-48-9 W5, cased and standing as potential Belly River oil producer
5-30-48-8W5M, completed tied in as Edmonton Sands natural gas producer
10-28-48-9W5, third party completion, being tied in as Edmonton Sands gas producer
Up to 10 additional wells targets in Belly River, Edmonton Sands, Paskapoo natural gas zones