Exploration & Development Activities
Chedderville Area
Chedderville (Sylvan Lake / Markerville area of Central Alberta)
- Liquids rich, sweet natural gas, shallow gas and high productivity light oil
- Chedderville area well came on at 3.3 mmcf/d plus 160 bbl/d of liquids (~710 boe/d) in late 2007
- 3 additional wells tied in late 2008
- 3 additional wells drilled in Q1 2009, with follow up locations identified
- The map represents 6 wells on production, with one additional well brought on recently
Lloydminster
Lloydminster (Saskatchewan / Alberta)
- Ongoing successful horizontal drilling since discovery in 2005
- Downspacing underway
- Original Oil in Place of ~50mmbbl
- Acquired 50% working interest in 2008 to expand play
- Assessing pressure maintenance options to enhance recovery

Southeast Saskatchewan
Southeast Saskatchewan
- Initial assets acquired in October 2003 at metrics of $15,400/ boepd & $4.85/ boe of P+P reserves
- Light oil with attractive royalty regime & strong netback
- Q1 2008 average netback: $61/boe
- 3 year average F&D costs of $11.87/boe (including FDC)
- 2008E Production: 5,500 BOE/d
- 2008 Capital: C$49MM
- 49,000 net acres of undeveloped land
- Major oil pools with dominant position on Tilston & Souris Valley playtrend; opportunity in Bakken
- Drilled 130+ wells since October 2003 with 97% success
- Grand acquisition in August 2007 increased ownership of this play
- Focus is on following up new pool discovery in 2006 (Kenosee), continue drilling in established pools, & expansion to new lands
Kenosee Pool
Kenosee Pool, Southeast Saskatchewan
- Assembled a significant land base in southeast with the acquisition of additional properties and crown land parcels.
- Shot extensive 3-D seismic, drilled exploratory wells and successfully identified new light oil pools at Hazelwood, Kennedy and Kenosee
- Most recent discovery at Kenosee (2006) was producing in over 600 boe/d of 33° API light oil from 13 horizontal wells drilled to the end of 2007
- Plan to drill another 16 wells in 2008 and invest approximately $19MM