STRATEGY

Plan for 2013

Growth from liquids rich natural gas in the Montney at Umbach
Shallow decline production at Grande Prairie provides cash flow to advance Umbach
Major expenditures in 2013 will include:

(1) $20.0 million of proceeds from property dispositions;

(2) $4.5 million to acquire a working interest in an existing facility at Umbach;

(3) $10.0 million to drill five horizontal wells (4.6 net) at Umbach;

(4) $15.0 million to complete and tie in seven horizontal wells (5.8 net) at Umbach;

(5) $6.0 million for the purchase of undeveloped land; and

(6) $5.0 million to expand the gathering pipeline system at Umbach.

Long Term

Significant leverage to improvement in natural gas prices through Horn River Basin shale gas (core project area DPIIP 2.8 to 3.4 Tcf)