Kaybob

Kaybob (100% Working Interest)

• Kaybob is the Company’s first Light Oil development area;
• First commercial production anticipated in the Q4 2012;
• In Q2 2012, completed construction of the 100-percent owned, 63 km, 12-inch pipeline connecting the Company's Kaybob assets to the Keyera Simonette gas processing facility;
• A mid-year review of the Company's drilling, completion and testing program, effective April 30, 2012, has resulted in an increase in the Light Oil Division’s total proved plus probable reserves to 20 million boe, comprised of 45% oil and NGLs.*
• Located 24 km north and northeast of Fox Creek, Alberta;
• 400,000 net acres (or 625 sections);
• High-graded Montney inventory of approximately 140 sections (> 500 well locations);
• Duvernay acreage with > 20 m of net pay in over 220 sections (>500 well locations);
• Drilled four successful Nordegg horizontal wells, and significant resource evaluation work progressing;
• Current 2012 development includes the construction of two 13,000 bbl/d oil batteries with 36 mmcf/d compression capacity and a 63 km, 12-inch gas pipeline connected to the Simonette gas plant;
• Current overall asset production potential is projected at > 60,000 boe/d (in-house management estimate).

*Based on third party estimates, pro forma, April 30, 2012