Reserves

In March 2008, the company received the Reserve Report and the Statement of Reserve Data and Other Oil and Gas Activities Information for the Oil Field, which was prepared by Petrotech Engineering Ltd. with an effective date of December 31, 2007.

The reserve report was prepared in accordance with the guidelines of NI 51-101 policy and the Canadian Oil and Gas (COGE) Handbook. The Petrotech Report estimates the company's net share of the working interest proved reserve (1P) at 50.2 MMbbl of heavy oil, proved + probable reserve (2P) at 96.7 MMbbl of heavy oil, and proved + probable + possible reserve (3P) at 113.8 MMbbl of heavy oil.

Previously in May 2007, Petrotech had estimated the 1P net reserve at 5.9 MMbbl of heavy oil (8.51 times increase), 2P reserve at 47.3 MMbbl of heavy oil (2.04 times increase), and 3P reserve at 85.0 MMbbl of heavy oil (1.34 times increase).