Area of Operations

Block B (South) identified as area of greatest prospectivity

• 28,800 acres
• Discovered Petroleum Initially-In-Place⁽¹⁾⁽²⁾ of 1.0 to 1.6 billion barrels in place
• Reservoir characteristics:
  • Bluesky formation
  • Reservoir depth 400 metres
  • 10 to 16 metres bitumen thickness (24 contiguous sections average 12 metres of net pay)
  • Oil gravity averages 10º API
  • Porosity averages 31%
  • Oil saturation averages 60%
  • Marine depositional environment

⁽¹⁾

Discovered Petroleum Initially-In-Place (equivalent to discovered resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially in place includes production, reserves, and contingent resources; the remainder is unrecoverable.

⁽²⁾

Sproule Associates Ltd independent report dated December 31, 2006