PEACE RIVER ARCH
BRITISH COLUMBIA AND ALBERTA

The Peace River Arch operations are located in the NE British Columbia and NW Alberta and is recognized by industry as having a history of high quality reserves and continues to be a highly competitive area.  The Arch offers significant opportunities for the recovery of new and remaining reserves of that same quality.  Due to the Arch’s impressive geologic and geographic diversity, success is rewarded with prolific natural gas production, that can be both sweet and rich in natural gas liquids. Producers such as Encana, Duvernay, Murphy Oil, Birchcliff Energy and ARC Energy Trust are actively increasing their spending in this region .

In specific areas within the Arch, the maturity of development also provides a well-developed infrastructure thereby allowing for ease of tie-in resulting in early on-stream production.

Map of area: Interactive Map

Peace River Arch

• 35,685 gross acres
• 17,615 net acres

Wells: 10 Production Wells, 8 Operated

Target zones: Halfway, Monteny/Doig, Charlie Lake light oil

Production:
     Daily Average Production
                                                                Q2/08                      
     Natural Gas (mcf)                                   2.2 Mmcf/day
     Total (Boe)                                            396

*barrels of oil equivalent per day

BOES may be misleading, particularly if used in isolation.  A boe conversion rate is 6 to 1 bbl is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency of the wellhead.  This conversion factor is an industry accepted norm and is not based on either energy content or current prices.
Activity Highlights:

Q1/09 Exploration Program

• 8 development wells planned
• Add up to 6 Mmcfe/d est (1000)BOE/day by Q3/09