Oil and Gas Players Back in the Game Message from the President

iradesso QUARTERLY Q1 2008 CANADIAN OIL & GAS COMPARISON

FINANCIAL & OPERATING RESULTS for 65 Juniors & 27 Intermediates

Featuring Updated Proﬁles From Juniors & Intermediates

Oil and gas players back in the game Message from the President

OIL AND GAS PLAYERS Round the Bases For Investors

What a difference a year makes. While most oil and gas players of 2008, the second highest quarterly netback on record since struck out in the stock market in 2007, almost everyone is back we started tracking the numbers in the second quarter of in the game so far in 2008. All but eight of the 92 juniors and 2003. The netback for the intermediates was even higher at intermediates compared in this iQ Report experienced an increase $30.36 per boe. in their share or unit price in the first five months of the year. The The Canadian energy sector saw its fair share of adversity in average intermediate producer has produced a total return since 2007. This adversity weeded out some weaker players and set up the beginning of 2008 of 46 percent while the average junior others to come out even stronger. Now companies with reputable producer has returned 49 percent. We’ve defined intermediates as management teams, strong balance sheets and quality assets companies that produce between 10,000 and 100,000 boe/d while are enjoying renewed access to capital, another key component juniors produce between 500 and 10,000 boe/d. We decided it that drives growth in the sector. When a company gets a capital is time to drop the shrinking energy trust category from our report advantage, options open up for making acquisitions and expanding and incorporate remaining trusts into the junior and intermediate drilling programs. In this way, success can beget success. categories. Our team at BMIR works with many energy companies on capital Fortunately or unfortunately, depending how you want to see market strategies and communications. Admittedly our job has things, the run-up in share prices in 2008 only brings most been more enjoyable so far this year with clients and investors in companies a fraction of the way back to share price highs reached better moods. We hope to see this continue. in 2006. Meanwhile, valuation multiples remain at the low end of recent norms, meaning a great amount of upside may remain. For On a personal note, my wife and I were fortunate to welcome example, the average enterprise value versus production of the babies number two and three to our family less than two weeks juniors at $59,254 per boe/d is well below the high of $82,946 ago. Having newborn twins presents its challenges, but it is made per boe/d recorded in the third quarter of 2005. Annualized first much easier by having an excellent team in my office that carries quarter cash flow multiples for the juniors are also relatively low. on work and picks up slack when I’m not able to be there. Thanks The average enterprise value to annualized cash flow for the especially to Geoffrey Vanderburg for his relentless work, but also first quarter of 2008 was 5.8 times compared with 7.1 times in to the rest of the BMIR iQ team – Suzy, Jory, Ken, Penny, Sam, the first quarter of 2007. The average market capitalization to Kelsey and Steph. Your work is much appreciated by me and the annualized cash flow in the first quarter of 2008 was 4.5 times thousands of investors that subscribe to and read this report. compared to 5.6 times in the first quarter of 2007. Best regards, The stock market has rallied, but so have corporate results. The average cash flow netback for the juniors, the oil and gas equivalent of a gross margin, increased from $22.97 per boe in the first quarter of 2007 to $28.33 per boe in the first quarter Peter Knapp table of contents IN THIS ISSUE | JUNE 2008 4 Junior & Intermediate 68 International Oil and Gas Entrance and Exits Comparison

52 Intermediate Comparison Charts

61 Intermediate Data Table

62 Intermediate Profiles

Canadian Companies 80 Operating Abroad Emerging Oil Sands Companies 70 3 Highlights

5 Junior Comparison Charts

21 Junior Data Table 81 Measuring Investor Relations Success 22 Junior Profiles 82 Emerging Conventional Companies Watch List

84 Quarterly Earnings: An Easy Read Means Better Analysis

82 Emerging Conventional Companies Watch List ABBREVIATIONS

bbls • barrels of oil

mcf • thousand cubic feet

boe • barrels of oil equivalent

mmcf • million cubic feet

boe/d • barrels of oil equivalent per day

NGLs • natural gas liquids

ASSUMPTIONS

• Barrels of oil equivalent calculated using 6 mcf = 1 boe

• Net debt calculated by including bank debt, debentures, preferred convertible shares and FEATURING working capital. INVESTMENT PROFILES FROM: • For companies with A/B share structures, B shares have been converted to A shares using end-of-period share prices. Accrete Energy...... 22 • For trusts, exchangable units have been converted to trust units using end-of-period Avery Resources ...... 72 exchange ratios. Breaker Energy...... 24 Buffalo Resources ...... 26 Canext Energy ...... 28 Crescent Point Energy Trust ...... 62

DISCLAIMER Delphi Energy ...... 30 DualEx Energy ...... 74 The information used to compile this report is publicly available. Bryan Mills Iradesso provides the comparison to Galleon Energy ...... 64 shine the spotlight on this portion of the energy industry, and to communicate the achievements and growth potential Gentry Resources ...... 32 of the oil and gas companies and trusts. The iQ Report does not constitute a solicitation or recommendation Great Plains Exploration ...... 34 for the purchase or sale of any security; it is provided for information only and is not intended to serve as investment NAL Oil and Gas Trust ...... 66 advice. Bryan Mills Iradesso cannot be held responsible for accuracy and all readers are encouraged to conduct their One Exploration ...... 36 own research. This report is provided by Bryan Mills Iradesso as a service to the reader without responsibility for accuracy. Petrolifera Petroleum ...... 76 Bryan Mills Iradesso must be credited with developing the iQ Report if any part of it is reproduced. The companies that Petro-Reef Resources ...... 38 have provided a corporate proﬁle for this report have paid Redcliffe Exploration ...... 40 Bryan Mills Iradesso a fee. Reece Energy Exploration ...... 42 Terra Energy ...... 44 TransGlobe Energy ...... 46 Upper Lake Oil and Gas ...... 48 Winstar Resources ...... 78 PUBLICATIONS MAIL AGREEMENT NO. 41045505 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: Yoho Resources ...... 50

BRYAN MILLS IRADESSO 400, 805 - 10 AVENUE SW CALGARY AB T2R 0B4

2 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 HIGHLIGHTS

JUNE 2008 / VOL. 13 There is a resurgence going on in the intermediate sector. The EDITOR 27 intermediate Canadian producers had total Q1 production Geoffrey Vanderburg of 771,000 boe/d. Twelve of the intermediates are structured as corporations with only 15 still structured as income trusts. PRESIDENT 12/15 Peter Knapp Another handful of corporations seem poised to move from the page 53 junior sector into the intermediate ranks. This shift to corporate DESIGNER Suzy Thomas structure for intermediates translates to renewed hunger for growth by acquisitions and capital investments. RESEARCHERS & CONTRIBUTORS Penny Antoniuk, Jory Debenham, Peter Knapp, Samantha Marcelo, Stephanie Mesher, Kelsey Mullen, Geoffrey Of the 65 junior Canadian oil and gas companies, 45 percent Vanderburg and Ken Wetherell reported positive earnings for Q1, while the remaining 55 percent had a loss for the period. Meanwhile 63 percent of PRODUCTION COORDINATOR Ava Vigna 45 intermediates reported positive earnings. In a period of record high oil prices, these numbers emphasize two things. First, oil PRINTER and gas is an expensive business in Canada. Second, this sector McAra Printing is more weighted to natural gas prices than oil.

RELEASE SCHEDULE The median junior oil and gas company’s production by volume is weighted 71 percent to natural gas versus oil and liquids. As Q2 2008 Release: such, this group is beneﬁting immensely from a run up in natural Week of September 8, 2008 gas prices from around $7/mcf at the beginning of the year to 71 around $12/mcf in June. We should see more of this beneﬁt pages 7 & 54 in Q2 results. Meanwhile, the median intermediate company’s production is weighted 63 percent to natural gas.

So far 2008 has been a comeback year for the Canadian oil and gas sector. After miserable returns in 2007, the median share price for juniors rose 20 percent during Q1 and 49 percent if you 400, 805 - 10th Avenue SW +49 include the months of April and May. Most of these companies’ Calgary, AB Canada T2R 0B4 shares still aren’t near the highs that they reached in 2006 in pages 20 & 59 terms of raw share prices or their multiples of cash flow. The telephone: 403.503.0144 toll-free: 1.866.415.1070 same numbers for the intermediates were 21 percent and 46 percent, including distributions by trusts. [email protected] www.bmir.com iq.bmir.com Intermediate companies and trusts enjoy a capital markets advantage in that they trade at a median enterprise value to 7.1 cash flow multiple of 7.1 times. Enterprise value takes into account both equity and debt capitalization. The same number pages 14 & 60 Please e-mail us at [email protected] for the median junior is only 5.8 times. This makes a significant or fill out the subscription form at difference when it comes time to access equity capital for iq.bmir.com to ensure you receive your growth. free copy of the iQ Report.

Operating expenses followed commodity prices upward in the $11.07 ﬁrst quarter of 2008, increasing to $11.07/boe for the juniors pages 11 & 56 and $10.29/boe for the intermediates. The paper used to print this document uses 50% post consumer ﬁber.

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 3 junior & intermediate ENTRANCES AND EXITS

DEALS ANNOUNCED, BUT NOT CLOSED As of the writing of this report, the following deals had been announced, but were yet to close.

Cadence to be acquired by Daylight Resources Trust (July 2008 close) Endev to be acquired by Penn West (July 2008 close) Grand Banks to be acquired by Fairborne (June 2008 close) Burmis to be acquired by Baytex (June 2008 close) Cordero to be acquired by Ember or Enmax (competing bids)

DONE DEALS The following deals have closed since our previous iQ Report, meaning certain companies affected are not included in this report

Berkana acquired by Quatro Bulldog acquired by Tristar Canetic acquired by Penn West Cyries acquired by Iteration Deﬁant acquired by Profound Mar 31 E4 acquired by Twin Butte Exalta acquired by Galleon Focus acquired by Enerplus Milagro acquired by Second Wave Peerless acquired by PetroBank Pilot acquired by Crescent Point Redstar acquired by Great Plains Rider acquired by NuVista Rival acquired by Zargon Rockyview acquired by Direct Energy RSX acquired by Talisman Titan acquired by Canetic

Please note that this summary is not exhaustive and only covers conventional juniors and intermediate producers meeting the criteria for our comparison charts, not those added to our watch list, international or non-conventional lists. JUNIOR COMPARISON

4 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 junior oil & gas company COMPARISON

INCLUSION CRITERIA

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 5 Q1 PRODUCTION (BOE/D)

Celtic 9,762 Birchcliff 9,471 Zargon 9,014 Freehold 8,152 Anderson 7,880 Storm 6,500 Delphi 6,055 West 5,794 Vero 5,771 Breaker 5,060 Gentry 4,854 Terra 4,675 Bonterra 4,343 Tusk 4,226 Cadence 4,132 Berens 3,812 Burmis 3,791 Orleans 3,785 ProspEx 3,781 Buffalo 3,777 Endev 3,503 Sabretooth 3,032 Accrete 2,935 AlbertaClipper 2,837 Rock 2,798 Zapata 2,713 TwinButte 2,499 Culane 2,477 Profound 2,220 Crocotta 2,160 GreyWolf 2,115 Geocan 2,022 OpenRange 1,840 Yoho 1,839 Midnight 1,756 Arsenal 1,726 Masters 1,675 Action 1,584 Cinch 1,579 WranglerWest 1,558 Arcan 1,477 GrandBanks 1,454 Questerre 1,274 Fortress 1,265 Twoco 1,224 Petro-Reef 1,189 Canext 1,096 GreatPlains 1,069 sizing up the competition Ironhorse 1,013 BMIR’s iQ Report defines junior oil and gas companies as those Upper Lake 967 with production from 500 barrels of oil equivalent per day (boe/d) Reece 918 to 10,000 boe/d with conventional oil and gas development and Redcliffe 914 production as their primary business, the majority of their production Trafalgar 903 in Western Canada, and their shares or units must be publicly traded on the TSX or TSX Venture exchange. Companies with less than Triton 888 500 boe/d of production are classified as “emerging,” shown in our Result 883 watch list on page 82. Larger companies are in an “intermediate” Fairwest 856 or “senior” class. Intermediate companies, defined as those with One 829 production from 10,000 boe/d to 100,000 boe/d, are included in the intermediate oil and gas company comparison section of this Diaz 816 report, beginning on page 52. Flagship 784 Silverwing 687 Since our last report, a few companies slipped out of the junior category into the emerging category, a few companies joined the Ivory 651 ranks of the juniors and other companies moved into the realm of Pegasus 650 intermediates. See our “entrances and exits” section on page 81 for Welton 604 a list of recent transactions. Tango 580 Second Wave 504

JUNIOR COMPARISON 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

6 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Q1 PRODUCTION MIX — NATURAL GAS WEIGHTING (%) Median = 71%

Twoco 100 Ironhorse 99 Fortress 97 Tango 96 Triton 96 Silverwing 94 Petro-Reef 90 Result 90 Trafalgar 90 OpenRange 88 Delphi 87 Sabretooth 87 Pegasus 87 Storm 86 Fairwest 86 Yoho 85 ProspEx 84 Canext 84 Berens 84 Cinch 83 Anderson 83 Diaz 81 One 80 Orleans 80 Endev 77 Vero 77 Flagship 77 GreyWolf 77 Questerre 76 WranglerWest 75 TwinButte 74 Profound 71 Burmis 71 Terra 71 Redcliffe 70 Birchcliff 67 Celtic 66 Reece 66 Upper Lake 66 Accrete 64 Crocotta 63 Tusk 59 AlbertaClipper 56 Zargon 54 Zapata 53 Masters 52 Breaker 51 gas is common, but oil is where it’s at Gentry 51 As is standard, we convert natural gas into oil equivalence by using GrandBanks 50 a ratio of six thousand cubic feet (mcf) of natural gas to one barrel Midnight 50 of oil equivalent (boe). This ratio comes from an energy equivalence at the burner tip. If we were to use a dollar value equivalence with Buffalo 48 current prices, one barrel of oil would in fact be equivalent to about Rock 45 1.75 times the standard, or 10.5 mcf of natural gas, per barrel Welton 45 of oil. Action 44 With a median production mix of 71 percent natural gas, juniors GreatPlains 39 continue to be heavily weighted toward that commodity. However, Freehold 36 many juniors are trying to gear their drilling more towards oil to take Cadence 34 advantage of the better economics that it affords. Culane 34 Second Wave 30 FORMULA

Geocan 29 avg. natural gas production per day (boe/d) Bonterra 27 avg. total production Arcan 27 West 19 Note: Gas production converted to boe at 6 mcf:1boe Arsenal 18 Ivory 2 JUNIOR COMPARISON 0 102030405060708090100

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 7 CHANGE IN PRODUCTION — Q4 2007 TO Q1 2008 (%) Median = 3%

Profound 96 Petro-Reef 54 Ironhorse 53 Redcliffe 47 Upper Lake 32 Arcan 32 Burmis 28 TwinButte 25 Terra 21 Orleans 21 Fairwest 17 West 17 Triton 14 Breaker 12 Second Wave 12 OpenRange 12 Anderson 11 AlbertaClipper 11 Vero 10 Storm 8 GrandBanks 8 Crocotta 8 Masters 8 Tusk 7 Gentry 7 Celtic 6 Pegasus 6 Diaz 6 Questerre 5 Rock 5 Canext 4 Reece 4 Delphi 3 Zargon 3 Arsenal 2 Birchcliff 2 Cinch 2 Bonterra 1 One 1 Fortress 1 Berens 0 Accrete (0) Yoho (1) Culane (1) GreatPlains (1) ProspEx (4) LQFUHDVLQJWKHÁRZ Freehold (5) When comparing the first quarter of 2008 with the fourth quarter WranglerWest (5) of 2007, most juniors have managed to increase their production Result (6) levels. Many investors are attracted to companies that can report production growth quarter after quarter. Zapata (7) Buffalo (7) Those companies that experienced the highest rates of growth on Silverwing (8) this page did so because they either made acquisitions that took effect during the quarter or they were able to bring significant new Trafalgar (9) wells on stream. For an investor in these companies, it is worth the Tango (9) time to find out why production levels increased and asses whether Endev (9) the growth is likely to continue. Twoco (9) Sabretooth (10) FORMULA Midnight (11) current period avg. production – previous period avg. production GreyWolf (14) Geocan (16) previous period avg. production Ivory (16) Note: Gas production converted to boe at 6:1 Flagship (17) Action (18) Welton (26) Cadence (52) JUNIOR COMPARISON (60) (40) (20) 0 20 40 60 80 100 120

8 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 ENTERPRISE VALUE VERSUS Q1 PRODUCTION ($ PER BOE/D) Median = $59,254 per boe/d

Questerre 733,454 Bonterra 165,120 Second Wave 163,905 Birchcliff 145,983 Freehold 144,583 Storm 119,447 Reece 107,172 Pegasus 97,900 Breaker 92,390 Arcan 92,260 Celtic 84,175 AlbertaClipper 78,157 Profound 76,444 Culane 75,358 OpenRange 74,723 GrandBanks 73,297 GreyWolf 73,194 Canext 72,540 ProspEx 70,683 Cinch 69,555 Ivory 68,593 Cadence 66,810 Redcliffe 66,200 One 65,789 Tusk 65,655 Action 65,518 TwinButte 65,222 Anderson 64,407 Midnight 61,811 Zargon 61,708 GreatPlains 60,493 Trafalgar 60,317 Result 59,254 Orleans 56,813 Crocotta 56,432 Tango 56,197 Vero 55,594 Arsenal 55,105 Welton 54,536 Burmis 54,464 Flagship 53,000 Twoco 52,897 WranglerWest 52,122 Rock 51,942 Accrete 51,715 Gentry 51,094 West 50,400 Yoho 50,298 Fortress 49,438 Delphi 48,561 valuation of production Petro-Reef 45,789 This chart shows the total of each company’s market capitalization Endev 44,827 and debt in relation to its production levels. The chart does not take into account the value of land and seismic data or the quality and Fairwest 44,443 life expectancy of oil and gas reserves. Ironhorse 43,825 Companies that are high on this chart may be there because Berens 43,149 investors deem them to have strong growth prospects, quality Masters 43,115 long-life reserves or exceptional management teams. Meanwhile, Silverwing 42,428 companies that are low on this chart may be good value investments. Terra 42,416 Zapata 41,792 FORMULA Sabretooth 41,526 market capitalization + net debt Buffalo 39,172 Diaz 38,509 avg. production Upper Lake 29,043 Note: Market capitalization = May 30 share price x Q1 weighted avg. basic shares outstanding Triton 27,159 Net debt = bank debt + debentures - working capital Geocan 21,648 JUNIOR COMPARISON 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 9 Q1 CASH FLOW NETBACK ($/BOE) Median = $28.33/boe

Freehold 52.91 Arcan 46.39 Bonterra 45.69 GrandBanks 43.43 Breaker 42.21 West 39.98 Culane 39.52 Crocotta 37.99 GreatPlains 37.08 Tusk 35.63 Second Wave 35.22 AlbertaClipper 34.80 Questerre 34.77 Cadence 34.04 Vero 33.97 OpenRange 33.44 Storm 33.00 Midnight 32.77 Burmis 32.40 Celtic 31.86 Birchcliff 31.64 Masters 31.46 Delphi 30.96 Zargon 30.44 Endev 29.75 Profound 29.75 Rock 29.61 Upper Lake 29.23 Petro-Reef 29.03 Gentry 29.02 Cinch 28.75 Sabretooth 28.46 Geocan 28.33 Accrete 28.27 Yoho 27.83 Zapata 27.28 Orleans 27.24 ProspEx 26.79 Berens 26.72 Action 26.47 GreyWolf 26.36 WranglerWest 25.98 Redcliffe 25.93 Tango 25.47 TwinButte 25.41 cash for barrels Buffalo 25.39 Pegasus 25.11 Here we can see the amount of cash a company brings in for each barrel of oil equivalent it produces. This chart demonstrates that all Anderson 24.53 production isn’t equal. Arsenal 24.19 Cash flow netbacks are influenced by commodity mix, spot or hedged Twoco 24.14 prices, cash taxes, royalties, and associated expenses. A number of Canext 23.47 the companies with the best netbacks on this chart are weighted Diaz 22.12 towards oil production, which fetches the highest relative prices in Triton 21.79 today’s markets. Reece 21.03 Cash flow, also commonly referred to as “funds from operations”, is Trafalgar 20.77 the result of adding back non-cash expenses such as depreciation Silverwing 20.59 and future taxes to net earnings. It is a measurement that is not defined by generally accepted accounting principles (GAAP) in Result 20.56 Canada. Terra 20.26 Ironhorse 18.97 FORMULA Fortress 17.59 cash flow from operations Fairwest 13.13 One 12.18 total production in the period Welton 10.42 Note: Ivory (4.04) Total production in the period = avg. daily production x # days in period Flagship (6.01) JUNIOR COMPARISON -15.00 -5.00 5.00 15.00 25.00 35.00 45.00 55.00 65.00 75.00

10 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Q1 OPERATING EXPENSES ($/BOE) Median = $11.07/boe

Ivory 25.63 Arsenal 22.64 One 20.70 Fairwest 19.49 Reece 19.42 Welton 19.24 Flagship 19.17 Second Wave 18.07 Action 17.08 Bonterra 15.98 Zapata 15.80 Geocan 15.80 Buffalo 15.57 Gentry 15.34 GreatPlains 14.99 Midnight 14.77 Canext 13.74 WranglerWest 13.35 Cadence 12.95 Pegasus 12.56 Rock 12.49 Questerre 12.33 GreyWolf 12.16 Anderson 12.12 Fortress 11.94 Silverwing 11.64 Sabretooth 11.46 Masters 11.35 Diaz 11.29 Arcan 11.20 TwinButte 11.18 Zargon 11.17 Terra 11.07 Orleans 11.05 Endev 10.96 GrandBanks 10.76 Tusk 10.50 Celtic 10.42 Birchcliff 10.32 AlbertaClipper 10.18 ProspEx 10.17 West 10.03 Redcliffe 9.93 Triton 9.85 Trafalgar 9.42 Crocotta 9.39 Breaker 9.37 Delphi 9.35 Upper Lake 9.32 Culane 8.79 Burmis 8.78 RSHUDWLQJHIÀFLHQWO\ Profound 8.61 Companies that do a good job of controlling operating costs give their Berens 8.30 shareholders the ability to make more money from their production. The ability to be an efﬁcient operator relates to the productivity of Result 8.29 wells, the proximity of producing areas, economies of scale, control Petro-Reef 7.83 over facilities and a company’s production methods. Storm 7.52 Whenever we can identify them, we do not include transportation OpenRange 7.45 expenses with operating expenses for this comparison. Tango 7.43 Yoho 6.31 FORMULA Cinch 5.93 operating expenses (excluding transportation costs where possible) Twoco 5.47 Vero 5.13 total production in the period Accrete 4.66 Note: Freehold 3.58 Total production in the period = avg. daily production x # days in period Ironhorse 2.47 JUNIOR COMPARISON 0.00 5.00 10.00 15.00 20.00 25.00 30.00

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 11 Q1 GENERAL AND ADMINISTRATIVE CASH EXPENSES ($/BOE) Median = $3.55/boe

Ivory 15.92 Silverwing 14.04 Flagship 11.07 Welton 9.35 Arsenal 8.10 Second Wave 8.06 Pegasus 7.26 Action 7.12 Fairwest 6.96 One 6.94 GreatPlains 6.51 Upper Lake 5.96 Fortress 5.87 Cinch 5.61 GrandBanks 5.24 Diaz 5.21 Midnight 5.07 Arcan 5.07 Redcliffe 5.01 Triton 4.92 TwinButte 4.69 Result 4.67 Questerre 4.62 Reece 4.48 Geocan 4.27 Trafalgar 4.23 Canext 4.19 Freehold 4.03 OpenRange 3.98 Crocotta 3.97 Tango 3.90 AlbertaClipper 3.66 Zapata 3.55 GreyWolf 3.49 Cadence 3.48 Berens 3.46 Masters 3.45 Buffalo 3.36 Accrete 3.25 Endev 3.23 Tusk 3.16 Ironhorse 3.16 Rock 3.11 Gentry 3.10 Profound 2.91 watching overhead Petro-Reef 2.85 Somebody has to do the engineering, geology, accounting and Zargon 2.72 business development for each of the junior companies. These people need to be paid and they need to have a place to work. That Breaker 2.54 is where general and administrative expenses (G&A) come in. ProspEx 2.53 Twoco 2.50 G&A tends to be lower per barrel of oil equivalent (boe) for larger companies because many of these costs are ﬁxed and do not Sabretooth 2.40 increase with the amount of production. For investors, it is obviously Terra 2.40 better to see comparably lower amounts of G&A per boe, as long as Bonterra 2.22 it isn’t at the cost of potential growth or of meeting the regulatory Yoho 2.19 and legal requirements of being a public company. Anderson 2.16 Non-cash compensation expenses, mostly stock options and other Orleans 2.06 share-based incentives, often make up a signiﬁcant portion of compensation packages at junior oil and gas companies. These are West 2.00 not included in this chart. Delphi 1.77 WranglerWest 1.74 FORMULA Birchcliff 1.72 general & administrative expenses Vero 1.70 Burmis 1.69 total production in the period Culane 1.48 Note: Celtic 1.18 Total production in the period = avg. daily production x # days in period Storm 1.08 JUNIOR COMPARISON 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00

12 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Q1 DEPLETION, DEPRECIATION AND ACCRETION EXPENSES ($/BOE) Median = $24.05/boe

Ivory 54.69 West 48.95 Action 47.11 Fairwest 42.08 GreatPlains 40.72 Tusk 35.43 Tango 33.34 Cadence 32.32 Midnight 31.61 Crocotta 31.33 Upper Lake 30.94 Questerre 30.64 AlbertaClipper 30.62 Silverwing 30.39 Canext 30.20 Welton 28.96 Result 28.85 Arcan 27.98 Delphi 27.50 Orleans 27.34 TwinButte 27.27 Redcliffe 27.06 Fortress 27.03 Cinch 26.89 Diaz 26.32 Endev 25.79 Berens 25.74 OpenRange 25.61 Birchcliff 25.08 One 25.02 Pegasus 24.27 Geocan 24.11 GreyWolf 24.05 Reece 23.85 Freehold 23.82 Gentry 23.77 Second Wave 23.37 WranglerWest 23.32 Rock 22.74 Celtic 22.69 Triton 22.11 Arsenal 22.07 Sabretooth 21.76 Breaker 21.69 ProspEx 21.43 Anderson 20.82 Profound 20.76 GrandBanks 20.74 Twoco 20.64 Trafalgar 20.37 ÀQGLQJRLODQGJDVUHVHUYHVKDVDFRVW Culane 20.23 Depletion, depreciation and accretion expenses (DD&A) can be Masters 20.00 considered an approximation of ﬁnding and development costs for Yoho 18.66 oil and gas reserves. DD&A expenses are an ongoing writedown of assets as they are used up. Increasing amounts may mean reserves Zapata 17.99 were more expensive to acquire in the ﬁrst place and are losing Petro-Reef 17.99 value at a faster pace. Zargon 17.96 Storm 17.21 FORMULA Burmis 17.20 depletion, depreciation & amortization expenses Buffalo 16.70 total production in the period Vero 16.67 Flagship 15.73 Note: Total production in the period = avg. daily production x # days in period Terra 14.84 Accrete 14.13 Ironhorse 12.80 Bonterra 8.84 JUNIOR COMPARISON 0.00 10.00 20.00 30.00 40.00 50.00 60.00

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 13 ANNUALIZED Q1 CASH FLOW MULTIPLES Enterprise Value to Annualized Cash Flow Median = 5.8 Share Price to Annualized Cash Flow Median = 4.5

Questerre 57.9 One 14.8 Welton 14.4 Reece 14.0 Second Wave 12.8 Birchcliff 12.7 Pegasus 10.7 Storm 9.9 Bonterra 9.9 Fairwest 9.3 Canext 8.5 Trafalgar 8.0 Result 7.9 Fortress 7.7 GreyWolf 7.6 Freehold 7.5 Celtic 7.3 ProspEx 7.2 Anderson 7.2 Profound 7.1 TwinButte 7.1 Redcliffe 7.0 Action 6.8 Cinch 6.6 Ironhorse 6.3 Arsenal 6.3 AlbertaClipper 6.2 OpenRange 6.1 Tango 6.1 Twoco 6.0 Breaker 6.0 Terra 5.8 Orleans 5.7 Silverwing 5.7 Zargon 5.6 WranglerWest 5.5 Arcan 5.5 Cadence 5.4 slipping multiples Culane 5.2 Although share prices have been increasing, share price multiples Midnight 5.2 have been decreasing. The average enterprise value to annualized cash flow for the first quarter of 2007 for the juniors was 7.1 times Tusk 5.1 compared to only 5.8 times in the first quarter of 2008. The average Accrete 5.0 market capitalization to annualized cash flow in the first quarter of Yoho 5.0 2007 was 5.7 times compared to only 4.5 times in the first quarter of 2008. Gentry 4.8 Rock 4.8 This calculation of annualized cash flow multiples uses the closing Diaz market price on May 30, 2008 combined with first quarter 2008 4.8 weighted average shares outstanding, net debt and cash flow. The GrandBanks 4.6 values shown on the chart relate to the enterprise value multiples Burmis 4.6 of annualized cash flow denoted by the dark bars. The grey bars do not take debt into account as they are simply a reflection of market Vero 4.5 capitalization as a multiple of annualized cash flow. GreatPlains 4.5 Berens 4.4 FORMULA Petro-Reef 4.3 enterprise value Delphi 4.3 (cash flow for period x 4) Buffalo 4.2 Zapata 4.2 Note: Endev 4.1 Enterprise value = basic shares x May 30, 2008 share price + net debt Crocotta 4.1 Sabretooth 4.0 Ivory and Flagship are not included in chart as cash flow was negative, making cash flow multiples incomparable. Masters 3.8 West 3.5 Triton Enterprise Value to Annualized Cash Flow 3.4 Market Capitalization to Annualized Cash Flow Upper Lake 2.7 Geocan 2.1 JUNIOR COMPARISON 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

14 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Q1 NET DEBT TO ANNUALIZED CASH FLOW Median = 1.3

Welton 7.2 Fairwest 5.8 Fortress 4.1 Result 3.3 Silverwing 2.6 Profound 2.5 GreyWolf 2.4 Diaz 2.3 One 2.1 Action 2.1 TwinButte 2.0 Accrete 1.9 Terra 1.9 Buffalo 1.8 Redcliffe 1.8 Cinch 1.8 Ironhorse 1.7 Zapata 1.7 Berens 1.7 Midnight 1.7 Anderson 1.6 Delphi 1.6 Birchcliff 1.6 Twoco 1.6 ProspEx 1.5 Trafalgar 1.5 Reece 1.4 AlbertaClipper 1.4 Yoho 1.3 Arcan 1.3 Celtic 1.3 Sabretooth 1.3 GreatPlains 1.3 Rock 1.3 Arsenal 1.2 OpenRange 1.2 Storm 1.2 Canext 1.2 Gentry 1.1 Endev 1.1 Masters 1.1 WranglerWest 1.1 thank the bank Tusk 1.1 This measurement compares, in years, how long it would Freehold 1.0 theoretically take to become debt free if all the company’s cash Zargon 0.9 flow were dedicated to paying down debt. In times where equity Petro-Reef 0.8 markets aren’t providing capital at a reasonable value, it is good for companies to be able to utilize debt to finance their growth. Orleans 0.8 Assuming they are creditworthy, those companies with less debt Breaker 0.8 may be in the fortunate position of having more options open to take Culane 0.8 advantage of potential asset-buying opportunities. Companies with Bonterra 0.7 higher debt may not have nearly as many desirable options. Tango 0.7 Companies at the bottom of this chart have a positive working capital Burmis 0.7 position that they will be able to use to fund future growth. Upper Lake 0.7 FORMULA Vero 0.7 GrandBanks 0.5 net debt Crocotta 0.5 (cash flow for period x 4) Geocan 0.4 Note: Net debt = bank debt + debentures - working capital Triton 0.4 Companies with negative values on this chart have no net debt and a Questerre 0.3 positive working capital position. Meanwhile Ivory and Flagship have Second Wave 0.1 not been included in chart as cash flow was negative. West (0.1) Cadence (0.1) Pegasus (0.4) JUNIOR COMPARISON (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 15 RESERVE LIFE INDICES (YEARS) Median = 9.3 years

Bonterra 17.2 GreyWolf 16.7 Action 16.7 Birchcliff 16.4 Diaz 16.2 Pegasus 14.6 Ivory 14.4 Fortress 14.0 Anderson 13.9 Welton 13.5 Masters 13.5 Arcan 13.3 Reece 12.7 Cadence 12.1 Profound 11.9 Tango 11.8 Accrete 11.3 Flagship 11.1 Result 11.0 Buffalo 10.9 Cinch 10.8 Second Wave 10.6 GreatPlains 10.3 Terra 10.1 Orleans 9.9 Fairwest 9.9 Midnight 9.8 Breaker 9.7 Silverwing 9.5 Celtic 9.5 Freehold 9.4 Redcliffe 9.3 GrandBanks 9.3 Rock 9.1 AlbertaClipper 9.1 Geocan 9.0 Zapata 8.8 Storm 8.6 Tusk 8.6 OpenRange 8.3 Zargon 8.2 Trafalgar 8.0 Delphi 7.8 Canext 7.7 Endev 7.6 Twoco 7.5 Sabretooth 7.5 Gentry 7.3 ProspEx 7.2 One 7.0 hypothetically speaking Burmis 6.9 These reserve life calculations provide a hypothetical measurement Crocotta 6.8 of the number of years it would take to produce all of a given Ironhorse 6.8 company’s December 31, 2007 proven plus probable reserves, based on annualized Q1 2008 daily production rates. TwinButte 6.6 Berens 6.5 Note that for some juniors, reserves volumes may already have changed signiﬁcantly through acquisitions or discoveries since the WranglerWest 6.4 December 31, 2007. Vero 6.3 Arsenal 5.3 FORMULA Triton 5.2 proved plus probable reserves volumes Questerre 5.0 Culane 4.9 average daily production x 365 Upper Lake 3.7 West 3.7 Petro-Reef 3.6 JUNIOR COMPARISON 02468101214161820

16 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 ENTERPRISE VALUE (LESS LAND VALUE) VERSUS RESERVES ($/BOE) Median = $16.51/boe

Questerre 352.36 Freehold 42.64 Culane 40.79 West 37.66 Storm 36.14 Second Wave 29.56 Arsenal 28.16 Petro-Reef 27.04 Bonterra 26.32 Birchcliff 24.71 Breaker 24.11 Vero 23.96 ProspEx 23.39 Celtic 23.20 Cadence 22.73 OpenRange 21.62 Reece 21.49 WranglerWest 21.40 Canext 21.29 GrandBanks 20.78 Burmis 20.71 One 20.41 Crocotta 20.26 AlbertaClipper 20.22 Tusk 18.89 Arcan 18.15 Twoco 17.94 Zargon 17.36 Pegasus 17.29 Redcliffe 17.28 TwinButte 17.25 Berens 16.87 Gentry 16.14 Orleans 15.99 Cinch 15.95 Delphi 15.90 Ironhorse 15.74 Upper Lake 15.72 Endev 15.18 Profound 14.25 Rock 13.83 Midnight 13.28 Geocan 12.65 Tango 12.63 The value of reserves Silverwing 12.60 GreatPlains 12.30 Companies at the top of this chart may be there because investors believe they have strong growth prospects and high quality reserves Accrete 12.22 that will supply higher total returns than their peers in years to Result 12.04 come. The juniors at the bottom of this chart may be there because Anderson 11.84 investors have not yet recognized their value, and may represent a Fairwest 11.69 buying opportunity; or they may be there because their reserves are of relatively low quality and may be difﬁcult or expensive to produce Sabretooth 11.54 or transport. Trafalgar 11.50 This measurement is found by adding market capitalization and debt Terra 10.80 capitalization, less an estimated value for undeveloped land at $125 Zapata 10.45 per acre, divided by the amount of proved and probable reserves at Ivory 10.33 year end. The result is a wide range of values per boe of reserves. GreyWolf 9.95 Triton 8.83 FORMULA Action 8.72 market capitalization + net debt Buffalo 8.63 - net acres of undeveloped land X $125/acre Welton 8.31 proved plus probable reserves volumes Masters 7.40 Note: Market capitalization = May 30 share price x Dec. 31, 2007 basic shares outstanding Flagship 6.67 Net debt = December 31, 2007 bank debt + debentures - working capital Fortress 6.63 Diaz 5.06 JUNIOR COMPARISON 0 50 100 150 200 250 300 350 400

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 17 PERCEIVED TRADING PREMIUM TO SIMPLIFIED NET ASSET VALUE ESTIMATE (%) Median = -2%

Questerre 506 Storm 119 Second Wave 111 Freehold 88 Arsenal 87 Culane 86 ProspEx 67 Celtic 56 Bonterra 49 Breaker 47 Birchcliff 47 Vero 41 Petro-Reef 38 OpenRange 37 Ironhorse 30 Reece 29 Tusk 28 Canext 27 Berens 23 West 23 One 22 Cadence 20 Burmis 20 Orleans 19 Pegasus 14 WranglerWest 12 Cinch 12 TwinButte 7 Delphi 4 Silverwing 2 Gentry 1 Zargon (1) AlbertaClipper (3) Endev (6) Crocotta (7) Result (8) Profound (10) Tango (11) GrandBanks (13) GreyWolf (13) Anderson (13) Redcliffe (15) Terra (17) premiums and bargains Rock (18) This chart compares May 30, 2008 share or unit prices to a Arcan (19) simpliﬁed estimate of each junior’s December 31, 2007 net asset Accrete (21) value. All undeveloped land has been valued equally at $125 per Sabretooth (24) acre and no value has been assigned to seismic data, joint venture agreements or prospects. Although this measurement generally Trafalgar (25) provides a good overall snapshot, investors are cautioned that the Twoco (25) results can be misleading. Upper Lake (28) Some investors may look for juniors that appear to be trading at a Geocan (31) bargain, while others may ﬁnd it attractive to invest in juniors even Midnight (33) though they trade at a premium due to factors such as the quality Fairwest (38) of the management team or growth prospects. It is also easier for juniors that trade at a premium to make accretive acquisitions or Triton (38) raise capital by issuing new shares or units. In this way, success GreatPlains (44) can build on success. Buffalo (44) Action (45) FORMULA Zapata (52) May 30 market cap – (net present value of P+P reserves Welton (53) – net debt + net acres of undeveloped land x $125/acre) Fortress (54) Masters (55) May 30 market cap Ivory (57) Flagship (77) Diaz (78) JUNIOR COMPARISON -200 -100 - 100 200 300 400 500 600

18 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 YEAR END UNDEVELOPED LAND (NET ACRES) Median = 72,618 net acres

Zargon 362,000 Gentry 314,344 Birchcliff 266,966 Celtic 248,135 Storm 226,000 Tusk 210,900 Breaker 206,400 AlbertaClipper 186,719 Cadence 167,652 Action 163,440 Flagship 158,060 Sabretooth 155,000 Zapata 150,991 Midnight 148,000 Terra 145,501 ProspEx 143,474 Buffalo 140,996 Anderson 137,987 Trafalgar 114,914 Geocan 111,501 Burmis 110,316 GreyWolf 109,714 Canext 105,783 GreatPlains 99,074 Endev 98,054 Delphi 89,726 Fortress 87,011 Masters 83,842 Berens 80,595 Vero 75,704 West 75,335 Crocotta 69,900 Rock 61,718 One 61,261 Triton 59,386 Welton 59,186 Result 58,089 TwinButte 57,896 Twoco 49,492 Diaz 48,976 Cinch 48,641 Reece 48,282 Accrete 46,752 Orleans 45,855 Second Wave 44,837 Profound 42,977 Redcliffe 38,892 Ivory 36,178 Pegasus 35,606 landing the big one GrandBanks 35,445 Owning the mineral rights for undeveloped land that can be utilized Fairwest 29,210 in future drilling programs can make a company successful, OpenRange 25,919 particularly if the land is highly prospective and is in close proximity Arsenal 23,629 to infrastructure. However, some companies maintain that it is better WranglerWest 23,540 to keep a smaller focused undeveloped land position. Arcan 19,159 The number of undeveloped acres on this graph does not take into Upper Lake 18,837 account acres for which a company has access to through a farm-in arrangement, because the land is yet to be earned. Tango 17,417 Petro-Reef 11,751 FORMULA Culane 6,876 Freehold 6,626 gross acres of undeveloped land x percentage interest Silverwing 6,320 Ironhorse 4,476 Bonterra 1,500 JUNIOR COMPARISON 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 19 Q1 TOTAL RETURN - CAPITAL GAINS AND DISTRIBUTIONS (%) January through March Median: 20% January through May Median: 49%

Burmis 161 Arsenal 122 GrandBanks 119 Orleans 113 Geocan 107 Canext 105 Yoho 83 Breaker 81 OpenRange 80 Berens 77 Terra 76 Storm 72 Rock 72 Tusk 71 Endev 68 Bonterra 68 Birchcliff 68 Cinch 67 Zapata 66 Fortress 64 West 62 Celtic 60 One 60 Vero 59 AlbertaClipper 58 Anderson 56 Upper Lake 56 Result 54 Profound 54 Gentry 50 GreyWolf 49 Delphi 48 TwinButte 45 Midnight 44 Petro-Reef 43 Masters 42 Freehold 39 Second Wave 35 Trafalgar 34 Crocotta 34 Tango 32 Triton 29 Ironhorse 27 ProspEx 25 Cadence 24 23 GreatPlains a dramatic turnaround Buffalo 21 The median junior’s share or unit price increased dramatically during Accrete 19 the first quarter of 2008. When distributions are added into the mix, 18 the growth is even greater, with the median junior increasing 20% in Zargon the first quarter and 49% in the first five months of 2008. Redcliffe 18 18 Contrarian investors did well investing in junior oil and gas Arcan companies late in 2007. But with the significant increases in share Culane 12 prices in 2008, some investors are asking whether they’ve missed Sabretooth 7 the boat. Given the continuing strength in commodity prices, there Diaz 4 appears to be a lot of upside left in this market for investors who pick the right companies. The information in this report can help 2 Action ease that challenge. Pegasus 0 WranglerWest (7) FORMULA (16) Twoco end of period share price – beginning of period share price Fairwest (17) beginning of period share price Ivory (28) Welton (40) Share price change January through March 2008 Share price change January through May 2008 Silverwing (55) Flagship (66) JUNIOR COMPARISON (100) (50) 0 50 100 150 200

20 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 junior DATA TABLE

Mar 31/08 Stock Dec. 31/07 Dec. 31/07 Mar 31/08 net debt symbol P+P reserves 10% BT NPV of Dec. 31/07 Dec. 31/07 Q108 shares including Mar 31/08 Shortened & exchange Share price (forecast price, 2P reserves . undeveloped simple NAV average daily outstanding convertible convertible Q108 company Chief (T=TSX, May 30/08 gross) forecast prices land per share production - basic debentures debentures cash flow name executive V=Venture) ($) (mboe) ($000) (net acres) ($) (boe/d) (000) ($000) ($000) ($000) Accrete Peter Salamon GZ-T 5.86 12,101 173,342 46,752 7.43 2,935 16,272 56,432 0 7,551 Action Roger Tang AEC-T 1.26 9,652 142,439 163,440 2.28 1,584 57,257 31,637 0 3,815 AlbertaClipper Kel Johnston ACN-T 3.05 9,390 195,951 186,719 3.16 2,837 56,473 49,515 0 8,985 Anderson Brian Dau AXL-T 4.50 39,888 532,455 137,987 5.19 7,880 87,294 114,700 0 17,591 Arcan Ed Gilmet ARN-V 2.80 7,156 153,600 19,159 3.45 1,477 37,827 33,495 0 6,236 Arsenal Tony van Winkoop AEI-T 0.91 3,336 58,494 23,629 0.49 1,726 89,182 18,710 3,366 3,798 Berens Dan Botterill BEN-T 1.10 9,016 132,659 80,595 0.89 3,812 93,172 61,996 0 9,269 Birchcliff Jeffery Tonken BIR-T 12.27 56,637 1,031,108 266,966 8.37 9,471 111,863 169,616 0 27,264 Bonterra George Fink BNE.UN 39.15 27,321 499,764 1,500 26.19 4,343 16,940 53,953 0 18,058 Breaker Dan O'Neil WAV.A-T 10.84 18,005 302,576 206,400 7.35 5,060 37,402 62,562 0 19,437 Buffalo William Trickett BFR-V 1.28 15,068 196,521 140,996 2.29 3,777 65,702 63,869 0 8,726 Burmis Aidan Walsh BME-T 4.43 9,517 168,209 110,316 3.70 3,791 39,878 30,218 0 11,178 Cadence Grant Fagerheim KCO-T 4.84 18,245 368,205 167,652 4.04 4,132 58,446 (7,277) 54,396 12,799 Canext Stephen Kapusta CXZ-V 0.90 3,089 51,124 105,783 0.71 1,096 76,228 10,863 0 2,342 Celtic David Wilson CLT-T 17.94 33,699 538,719 248,135 11.48 9,762 37,772 145,360 0 28,298 Cinch John Elick CNH-T 1.45 6,227 90,824 48,641 1.30 1,579 55,625 29,160 0 4,130 Crocotta Robert Zakresky CTA-T 3.21 5,391 117,298 69,900 3.45 2,160 33,045 15,829 0 7,467 Culane Donald Staus CLN-V 7.70 4,461 108,228 6,876 4.13 2,477 20,811 27,338 0 8,907 Delphi David Reid DEE-T 2.70 17,180 265,846 89,726 2.59 6,055 68,441 109,719 0 17,059 Diaz Robert Lamond DZR-T 0.24 4,817 83,200 48,976 1.11 816 67,232 15,300 5,896 1,643 Endev Cam MacGillivray ENE-T 1.28 9,668 153,487 98,054 1.36 3,503 88,758 43,135 0 9,484 Fairwest James Gettis FEC-T 0.15 3,082 44,850 29,210 0.24 856 96,742 23,547 2,000 1,023 Flagship Glenn Carley FG.A-V 0.08 3,182 41,867 158,060 0.32 784 83,112 35,292 0 (429) Fortress Cameron Bailey FEI-T 1.85 6,456 78,070 87,011 4.06 1,265 15,987 32,967 0 2,025 Freehold David Sandmeyer FRU.UN 20.81 27,963 711,624 6,626 11.06 8,152 49,352 152,405 0 39,255 Gentry Hugh Ross GNY-T 3.44 13,000 208,127 314,344 3.41 4,854 55,052 58,680 0 12,820 Geocan Wayne Wadley GCA-T 0.62 6,674 99,922 111,501 0.90 2,022 55,973 9,077 0 5,214 GrandBanks Edward McFeely GBE-V 2.89 4,931 116,073 35,445 3.31 1,454 32,559 12,509 0 5,748 GreatPlains Stephen Gibson GPX-T 0.92 4,010 85,151 99,074 1.63 1,069 50,554 18,157 0 3,607 GreyWolf Robert Watson GWE-T 2.50 12,912 144,000 109,714 2.87 2,115 42,345 48,969 0 5,075 Ironhorse Larry Parks IOG-V 1.65 2,513 32,091 4,476 1.27 1,013 19,509 12,205 0 1,748 Ivory Ian Gallie IV-V 0.46 3,419 64,773 36,178 1.08 651 47,684 22,742 15,625 (239) Masters Geoffrey Merritt MSY-T 3.32 8,280 122,800 83,842 7.33 1,675 15,291 21,377 0 4,797 Midnight Fred Woods MOX-T 1.55 6,301 120,698 148,000 2.33 1,756 47,423 34,996 0 5,237 One Walter Vrataric OE.A-V 1.20 2,116 34,753 61,261 0.98 829 39,072 7,619 0 918 OpenRange Scott Dawson ONR-T 5.05 5,557 90,600 25,919 3.69 1,840 21,813 27,430 0 5,600 Orleans Barry Olson OEX-V 4.71 13,719 190,674 45,855 3.94 3,785 44,596 31,158 0 9,383 Pegasus Patrick Mills POG.A-V 1.80 3,452 52,127 35,606 1.57 650 41,232 (2,609) 0 1,485 Petro-Reef Joseph Werner PER-V 1.30 1,571 30,447 11,751 0.94 1,189 33,725 10,594 0 3,140 Profound Bill Davis PFX-T 4.37 9,615 149,195 42,977 4.86 2,220 37,339 60,270 0 6,010 ProspEx John Rossall PSX-T 3.74 9,874 145,900 143,474 2.23 3,781 56,849 55,797 0 9,217 Questerre Michael Binnion QEC-T 5.48 2,338 50,710 735,746 0.90 1,274 170,890 4,279 0 4,031 Redcliffe Darryl Connolly RXP.A-V 0.65 3,103 61,870 38,892 0.77 914 69,344 15,422 0 2,156 Reece Lorne Swalm RXR-V 3.20 4,256 71,719 48,282 2.49 918 27,738 9,938 0 1,757 Result William Matheson RTE-V 0.54 3,548 45,231 58,089 0.58 883 56,942 21,928 955 1,652 Rock Allen Bey RE-T 4.15 9,309 152,420 61,718 5.06 2,798 25,878 37,933 0 7,540 Sabretooth Marshall Abbott SAB-T 2.20 8,284 123,423 155,000 2.91 3,032 39,066 39,956 0 7,853 Second Wave Robert Goods SCS.A-V 0.35 1,960 32,306 44,837 0.17 504 264,537 462 0 1,616 Silverwing Oleh Wowkodaw SVW-T 0.09 2,373 29,568 6,320 0.08 687 188,068 13,162 0 1,287 Storm Brian Lavergne SEO-T 15.35 20,476 369,003 226,000 7.02 6,500 44,619 91,952 0 19,518 Tango John Gunn TEI-V 0.44 2,485 34,822 17,417 0.49 580 65,725 3,976 0 1,343 Terra Cas Morel TTR-V 1.81 17,167 213,522 145,501 2.19 4,675 74,241 64,222 0 8,620 Trafalgar Robert Wollmann TFL-T 3.75 2,641 44,878 114,914 4.98 903 11,836 10,081 0 1,707 Triton Michael Zuber TEZ-V 0.62 1,674 27,898 59,386 1.00 888 34,532 2,694 0 1,760 Tusk John Rooney TSK-T 2.43 13,236 201,928 210,900 1.90 4,226 90,442 57,695 0 13,702 TwinButte Ron Cawston TBE-T 3.18 6,046 98,772 57,896 2.98 2,499 43,415 46,297 0 5,780 Twoco Wayne Malinowski TWO-V 3.15 3,346 76,265 49,492 4.22 1,224 15,581 16,734 11,873 2,690 Upper Lake Kelly Ogle UP-T 0.84 1,314 29,036 18,837 1.17 967 25,337 6,787 0 2,571 Vero Douglas Bartole VRO-T 9.25 13,345 242,671 75,704 6.58 5,771 30,855 47,059 0 17,842 Welton Donald Engle WLT-T 0.33 2,987 43,166 59,186 0.70 604 49,836 16,503 10,280 573 West Ken McCagherty WTL-T 3.73 7,805 239,436 75,335 3.04 5,794 79,437 (4,264) 0 21,079 WranglerWest Steven Johnson WX-V 10.26 3,641 70,786 23,540 9.14 1,558 6,361 15,935 0 3,683 Yoho Brian McLachlan YO-V 3.70 n/a n/a n/a n/a 1,839 18,230 25,057 0 4,658 Zapata Lloyd Driscoll ZCO-V 3.90 8,673 162,736 150,991 8.09 2,713 17,192 45,816 0 6,736 Zargon Craig Hansen ZAR.UN 26.36 26,908 470,138 362,000 26.53 9,014 17,681 94,353 0 24,973

For A/B share structures, B shares have been converted to A shares using Q1 2008 closing prices. Yoho’s year end is September 30. As such, Yoho’s second quarter ended March 31, 2008 is Coalbed methane-focused junior companies have not been included in this comparison such as used to compare with the ﬁrst quarter for other companies. Yoho’s reserve information is not Mahalo, Ember, Canadian Spirit, Richards and Stealth. included as it dates back to September 30. Oil sands-focused junior companies are not included in this comparison. Freehold’s reserves are net, not gross, due to a majority of reserves coming from royalty JUNIOR COMPARISON Arsenal net undeveloped land does not include 1,680,000 net acres in Egypt. interests. Sabretooth’s net debt calculation includes $23.2 million in commercial paper assets. Questerre’s net undeveloped land includes 657,259 net acres in Quebec.

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 21 TSX: GZ

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ecember 31, 2006 December 31, 2007 % Increase ,9/!;0=,?4:9> 9/D4=-D Production 2,540 boe/d 2,937 boe/d 16% (4.0"=0>4/09?,9/ Reserves (P+P) 9.8 mmboe 12.1 mmboe 24% $4.6,8;-077 Land 37,903 (net acres) 59,267 (net acres) 56% (4.0"=0>4/09?924900=492 Cash Flow $19.7 MM $21.2 MM 7% A09@0%) Cash Flow Per $1.28 $1.29 1% ,72,=D7-0=?,& " ( Share Basic &07 ,C Shares (Diluted) 17,923,747 18,118,647 1.09% BBB,..=0?0090=2D.:8 JUNIOR PROFILES

22 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 %*! ! & +

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G B:=649249?0=0>? G B077>3,77:B:47 2,> /0A07:;809?:;;:=?@94?D:9 G 2,>B077>/=4770/?:/,?0 0C4>?4927,9/> G.<@4=0/;,=?90=F>49?0=0>?> 1:=84774:9=0>@7?49249 90?7,9/,//4?4:9>:1 ,.=0>,9/ 90?-:0 G9# >3:?:90 >04>84. ;=:2=,8.:8;70?0/ 2,> B077> :47B077>,9/3,/ /=D3:70 G 0?"=:/@.?4:9,;;=:C48,?07D -:0 /?3=:@23..=0?0F> :;0=,?0/1,.474?DB4?3 -:0> -0349/;4;0 G B077>;7,990/1:=-,7,9.0 :1?30D0,= JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 23 TSX: WAV.A and WAV.B

May 21, 2008

AVERAGE PRODUCTIONOPERATING COSTS FUNDS FROM OPERATIONS PER SHARE 5,060 $ 0.52/ $10.07/ share boe/d boe $9.37/ 4,141 boe Breaker Energy Ltd. is a junior oil and gas company boe/d focused on building shareholder value by growing $ 0.26/ per share production and reserves. Breaker Energy share has greater than 350 predominantly low risk drilling Q1 2007 Q1 2008 Q1 2007 Q1 2008 Q1 2007 Q1 2008 locations (net) and access to greater than 300,000 22% INCREASE 7% DECREASE 100% INCREASE net acres of land in Western Canada – focused in two core areas. A large oil and gas inventory allows Breaker ﬂexibility in its capital program.

C#$""*:;9:>;9:FE Financial and Operating Summary % FZWÌdefcgSdfWd$""*Vd[^^[`YbdaYdS_iSea`WaX Quarter ended March 31 2008 2007 Change 4dWS]WdÃe_aefegUUWeeXg^[`[feZ[efadkSUZ[Wh[`YS Financial ($000s except per share amounts) #""bWdUW`fegUUWeedSfWVd[^^[`Y#%Ydaee## '`Wf Total revenue 33,108 19,756 68 iW^êS`V[`hWef[`Y%" +_[^^[aàXUSb[fS^ Funds from operations 1 19,283 9,210 109 4dWS]WdSUZ[WhWVbdaVgUf[a`YdaifZaX$$bWdUW`ffa Per share basic 0.52 0.26 100 S`ShWdSYWaX'"("TaWbWdVSk[`fZWÌdefcgSdfWdaX Per share diluted 0.51 0.25 104 Net earnings (loss) 6,544 (187) nm $""*Xda_S`ShWdSYWaX&#&#TaWbWdVSk[`fZWÌdef Per share basic 0.18 (0.01) nm cgSdfWdaX$"")S`VS#$bWdUW`f[ÙdWSeWahWdfZW Per share diluted 0.17 (0.01) nm XagdfZcgSdfWd$"")ShWdSYWaX&'$%TaWbWdVSk Net debt (end of period) 62,562 46,402 34 4dWS]WdÃe`SfgdS^YSeiW[YZf[`YZSefdSè[f[a`WVXda_ S)"bWdUW`f`SfgdS^YSeiW[YZf[`Y[`fZWÌdefcgSdfWd Operating aX$""(faS'#bWdUW`fiW[YZf[`Y[`fZWÌdefcgSdfWd Production aX$""*i[fZ((bWdUW`faXdWhW`gW[`fZWÌdefcgSdfWd Crude oil (bbls/d) 2,484 1,683 48 aX$""*dWeg^f[`YXda_fZWeS^WaXa[^S`V`SfgdS^YSe Natural gas (mcf/d) 15,458 14,746 5 ^[cg[Ve Total (boe/d) (6:1) 5,060 4,141 22 Average Realized Price 8g`VeXda_abWdSf[aèbWdTSe[UeZSdWYdWiTk#"" Crude oil ($/bbl) 96.63 63.72 52 bWdUW`ffa" '$[`fZWÌdefcgSdfWdaX$""*Xda_" $( Natural gas ($/mcf) 7.83 7.46 5 [`fZWeS_WbWd[aVaX$"") 8g`VeXda_abWdSf[aè Combined average ($/boe) 71.90 53.01 36 YdWiTk#"+bWdUW`f[`fZWÌdefcgSdfWdaX$""*fa Operating netback ($/boe) 45.91 29.65 54 #+ %_[^^[a`Xda_+ $_[^^[a`[`fZWÌdefcgSdfWdaX $"") Undeveloped land access (period-end) >300,000 345,000

@WfWSd`[`YebWdeZSdW[ÙdWSeWVfa" #*Xda_Sâee Common Shares (000s) aX" "#bWdeZSdW[`fZWeS_WbWd[aVaX$"") @Wf Class A shares outstanding, end of period 36,298 34,124 3 WSd`[`YeXadfZWÌdefcgSdfWdaX$""*iSe( '_[^^[a` Weighted average Class A shares 36,254 34,984 4 Vd[hW`Tk[ÙdWSeWe[`bdaVgUf[a`S`VdWhW`gWbWdTaW Weighted average Class B shares 900 900 – [`fZWÌdefcgSdfWdaX$""*SeUa_bSdWVfafZWeS_W Weighted average diluted shares outstanding (2, 3) 37,676 37,032 2 bWd[aVaX$"") 1 Management uses funds from operations (before changes in non-cash working capital) to analyze operating performance and leverage. Funds from operations as presented does not have any standardized meaning prescribed by Canadian 4dWS]WddWVgUWVabWdSf[`YUaefeTk)bWdUW`ffa+ %) GAAP and, therefore, may not be comparable with the calculation of similar measures for other entities. bWdTaW[`fZWÌdefcgSdfWdaX$""*Xda_#" ")bWd 2 For the period ended March 31, 2008 the Class B shares are converted at the quarter-end Class A share price of $8.15 and added to the Class A shares to calculate basic shares outstanding. For the period ended March 31, 2007 the Class B TaW[`fZWeS_WbWd[aVaX$"") shares are converted at the quarter-end Class A share price of $5.58. 3 In computing the net loss per diluted share for the quarter ended March 31, 2007, nil shares were added to the weighted 4dWS]WdÃeabWdSf[aè[`fZWÌdefcgSdfWdaX$""* average number of shares outstanding because they were anti-dilutive. dWeg^fWV[`ShWdkefda`YShWdSYWabWdSf[`Y`WfTSU] nm - not meaningful. VWÌ`WVSedWhW`gW-^WeedakS^f[WeabWdSf[`YS`V fdSèbadfSf[a`WjbWèWea`SbWdTaWTSe[eaX&' +# 2008 GUIDANCE 2008 1 2008 2 bWdTaWS`VSUadbadSfW`WfTSU]VWÌ`WVSeabWdSf[`Y Average production (boe/d) 5,900 5,900 `WfTSU]bWdTaW^Wee93S`V[`fWdWefWjbWèWbWd Exit production (boe/d) 6,200 6,200 TaWaX&$ $# Cash flow (MM) $66 $105 Cash flow per A share $1.84 $2.94 4dWS]WdÃeTS`]^[`W[e+'_[^^[a`S`V_S`SYW_W`f Capital expenditures (MM) $70 $70 XadWUSefeSUaèWdhSf[hW^WhWâX^WhWdSYWSfkWSd W`V Credit Facility (Scotia) (MM) $95 $95 i[fZSVWTffaS``gS^[lWVXagdfZcgSdfWd$""*Xg`Ve Unused bank line at year end (MM) $37 $77 Xda_abWdSf[aèdSf[aaX" *fa# 3ffZWW`VaXfZWÌdef Debt/Annualized Q4 cash flow 0.8x 0.2x cgSdfWd4dWS]WdÃeVWTffaS``gS^[lWVÌdefcgSdfWd$""* 1 Price assumptions (2008): Oil ($US WTI/bbl) 80.00; Natural Gas ($AECO/mcf) 6.50 and $US / CDN $1.00 Xg`VeXda_abWdSf[aèdSf[aiSe" *fa# 2 Price assumptions (2008): Oil ($US WTI/bbl) 110.00; Natural Gas ($AECO/mcf) 9.00 and $US / CDN $1.00 JUNIOR PROFILES

24 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Breaker Energy is growing rapidly within two large core areas: the West Central and CORPORATE INFORMATION Southern Focus areas of Alberta. The Company is exploiting under-developed assets in these areas through a focused exploration and development plan. The areas are MANAGEMENT characterized by: Dan O’Neil aÚ4¨bJ¨Ü å¨lvëv¬»vl J¨l ìÜ ì¬Ð¨ ¨ÜvÐvÓÜÓ J¨l ¬»vÐJÜ¬ÐÓ»Ö President & CEO aÚ"åÜò¬¨v »¬Üv¨ÜJ J¨lÙ¬Ð bJ»JbÜî ¬Ð JÐvi ÓbJJXv ÐvÓvÐëvÓÖ Max Lof Vice President,Pre Finance & CFO aÚëJJXv ¨ÐJÓÜÐåbÜåÐvÖ J¨l Polley BRITISH aÚÓvJÓ¬¨ JbbvÓÓÀ COLUMBIA President, Exploration ALBERTA Langdon Fort St. John President, Engineering T WEST CENTRAL FOCUS AREA MONIAS g McClelland aÚÐvJ b¬¨ÓÓÜÓ ¬ £»JbÜ Ü ¬ ví»¬ÐJÜ¬¨ JÜ President, Land Girouxville and high impact light oil and gas exploration and T GIROUXVILLE development at East Prairie and Monias, British Columbia T EAST PRAIRIE ECTTORS aÚ ì¬Ð¨ ¨ÜvÐvÓÜÖ bÐ¬ì¨ J¨l JëJJXv ¬¨ ÜÐv¨l Edmonton Leache aÚ;¨lvÐåÜòvl ¨ÐJÓÜÐåbÜåÐv rmman of the Board aÚBJÜvÐ¬¬l J¨l £»JbÜ ví»¬ÐJÜ¬¨ »¬Üv¨ÜJ dent, International Fitness Inc. PROVOSTT aÚ7JÐvÜ ò¬¨vÓh £åÜò¬¨v ÐvÜJbv¬åÓ J¨l vë¬¨J¨ T IRRICANA r Bannister deent aÚ.Ð£JÐî JÓvJÓ¬¨ JbbvÓÓ Calgary T ny Energy Inc. aÚÐ¬åíëv ~ ³ôô¿ ÓåbbvÓÓ ÐJÜv ¬¨ JÓÜ © ví»¬ÐJÜ¬Ðî lÐÓÀ MEDICINE HAT 10 high impact drill locations identified. New Unintended n Bowlen Consequences Royalty Holidays for new pool discoveries apply. deent & CEO nt Resources Ltd. aÚJÓÜ .ÐJÐv ~ 3 J»»Ð¬ëvl ìJÜvÐ¬¬l J»»bJÜ¬¨ ¬¨ Üv 10 mmbbls light OOIP (internal estimate) pool. Source and injector wells completed. Colborne Presideent Injection to commence later in 2008. StarValley Oil & Gas Ltd. a Completed shooting a 3D early in Q2 2008 to define a drilling location on the company’s Denny Hop 1 TCF (unrisked) Leduc target at Monias. President Hop Asset Management Ltd. Keith Macdonald SOUTHERN FOCUS AREA President aÚÐvJ b¬¨ÓÓÜÓ ¬ £»JbÜ Ü ¬ lvëv¬»£v¨Ü lÐ¨ JÜ ÐÐbJ¨J J¨l Ðv»vJÜJXv JÓ Bamako Investment and oil drilling opportunities at Provost, Medicine Hat and Millard Management Ltd. aÚ7JÐvÜ ò¬¨vÓh £åÜò¬¨v ÐvÜJbv¬åÓi "ÓÓÓÓ»»J¨ J¨l vë¬¨J¨ Dan O’Neil President & CEO aÚëJJXv ¨ÐJÓÜÐåbÜåÐvÖ JÓvJÓ¬¨ JbbvÓÓ Breaker Energy Ltd. a Irricana – Breaker has recently seen significant light oil production gains from its horizontal multi-frac drilling development in this large original light oil-in-place pool. All Rob Peters President, six wells drilled since mid-December have now been completed and brought on stream. Black Diamond Land & Cattle Co. Breaker’s last two wells have performed at initial rates that rank second and third out of the ten horizontals Breaker has drilled to date, with peak measured rates of approximately TRANSFER AGENT 800 boe per day each (from field estimates). Notably, both wells were drilled directly Olympia Trust Company beside old wells that had historically performed at below average rates, confirming that LEGAL COUNSEL the multiple fracture technique can be even more lucrative in less-developed portions of Heenan Blaikie LLP the pool. BANKERS Twenty-two locations remain in inventory at 400 metre inter-well spacing, with an The Bank of Nova Scotia additional 57 possible at 200 metre inter-well spacing. A waterflood study and design is EVALUATION ENGINEERS ongoing, and pilot injection is planned for later in 2008 which could significantly increase Sproule Associates Limited light oil recovery in this large pool. AUDITORS KPMG LLP

MARKET ACTIVITY (as of May 21, 2008) INVESTOR RELATIONS 52-week trading range ($) 5.11 – 12.10 Dan O’Neil, President & CEO A shares outstanding (MM) 36.4 Max Lof, VP Finance & CFO B shares outstanding (MM) 0.9 Stock options (MM) 3.1 2300, 635 – 8th Avenue S.W. Return on A shares since inception Nov. 2/04 (%) 396 Calgary, Alberta T2P 3M3 Phone: (403) 215-5264 Fax: (403) 263-8665 ACQUISITION REPORT CARD Email: [email protected] -Includes all property acquisitions by Breaker to date Web: www.breakerenergy.com Production Reserves CAPITAL P+P ($MM) BOE/D $/BOE/D (MMBOE) $/BOE Acquired Base Assets 116 2,170 53,244 8.1 14.26 2005 development on acquired assets 15 1,000 15,000 2.3 6.52 2006 development on acquired assets 42 1,650 25,285 3.4 12.42 2007 development on acquired assets 56 2,068 27,226 6.9 8.11 Total development on acquired assets 113 4,718 23,956 12.6 8.97 JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 25 JUNIOR PROFILES

26 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 27 660, 639 - 5th Avenue SW Calgary, Alberta T2P 0M9 phone. 403.263.3232 fax. 403.234.8773 canextENERGY LTD. www.canextenergy.com

Canext Energy Ltd. is a Calgary based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and medium to light gravity crude oil reserves in Alberta. Canext’s common shares trade on the TSX Venture Exchange under the symbol CXZ. FOCUSED GROWTH. DEFINED OPPORTUNITIES. • Focused oil and gas exploration and development • Delineate and develop the Triassic light oil discovery on the Peace River Arch of Northwest Alberta at Clear Prairie • Accelerate development drilling of Montney and Doig at Pouce Coupe with verticals and horizontals

OVERVIEW PRODUCTION GROWTH 52-week High/Low $1.15/$0.33 (SINCE INCEPTION) BOEPD Shares Outstanding (March 31) basic 76.2 MM 1800 Market Cap ~ $50 MM Q1 Production 1,096 boepd 90% operated 1350 'HEWDQG:RUNLQJ&DSLWDO'HÀFLHQF\ $10.9 MM (March 31, 2008)

P+P Reserves (December 31, 2007) 3,088 MSTBOE 900 Undeveloped Land 105,783 net acres 1,254 1,052 450

2008 CAPITAL BUDGET 1,096

• $16,000,000 budget to drill 15 (9.3 net) wells 427 332 276 0 • Two (0.75 net) horizontals and three (1.6 net) Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 verticals at Pouce Coupe PRODUCTION • Three (1.8 net) vertical step outs at Clear Prairie PER MM SHARES BOEPD • Four (3 net) wells at Birch/Viking Kinsella

15 • 12 sq mile 3D seismic program on Clear Prairie oil discovery

FORWARD LOOKING STATEMENTS 12 This presentation contains forward-looking information. Implicit in this information are assumptions, among other things, regarding oil and natural gas prices, production, royalties and expenses that, although considered reasonable by Canext at the time of preparation, may prove to 16.2 be incorrect. These forward-looking statements are based on certain assumptions that involve a 9 14.4 number of risks and uncertainties and are not guarantees of future performance. Actual results 13.7 could differ materially as a result of changes in Canext’s plans, changes in the commodity prices, 12.8 general economic, market, regulatory and business conditions as well as production, development 6

and operating performance and other risks associated with oil and gas operations. There is no 11.7 guarantee by Canext that actual results achieved will be the same as those forecast herein. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking 9.7 statements contained in this presentation are made as of the date hereof and Canext undertake 3 no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this presentation 0 DUHH[SUHVVO\TXDOLÀHGE\WKLVFDXWLRQDU\VWDWHPHQW Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08

TSX-V:CXZ JUNIOR PROFILES

28 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 A A AAA A A AAA A A A AA A A POUCE COUPE AA AA A LARGE GAS RESOURCE PLAY A A • 7,240 undeveloped acres targeting Upper and A A A Lower Montney and Doig gas resource play A A A A A AA • Development inventory of 43 net Montney A AA A A A A A A A AA vertical locations assuming four well per A A A AA AAA A A A A AA AA A AAAA A A AAA AAAAAAA A A A A A section or 21 horizontals assuming two wells A AAAAAA A A AAAAAAA AA A A A A AAAA AA A per section AA AAAA A A A AAAAA A A A A A AA A A • Off-setting Birchcliff and Encana horizontal A AA A A A A A A A A A AA A A A A AAAA A drilling activity A A AAAAAAAAAA A AAAAAAAA A A AAAAAAAA A A A AAA A A AA • Off-setting Talisman down spacing to eight A A AA A A A A AAAA A A A AAA wells per section A AAAAA AAAAA AA A A AAAAAA A A AAAAAA • Recent land sales have exceeded $1,420/ A A AAAAAA AAAAA A AAAAAA acre for Montney rights A A A A A A

KFC C CLEAR PRAIRIE F KFU E G GG L UC LIGHT OIL DEVELOPMENT & EXPLORATION G G GC G

GU • Winter 07/08 light oil discovery G G G G G F U • Discovery well flowed 41 API oil at 125 bopd E C C G G I GC and 200 mscf/d G C • Canext has 60% WI in the discovery well and 12 sections at an average 68% WI on the play • Planning to drill 2 to 3 wells this summer and

FG shoot a 12 square mile 3D in December 2008 C F FA FCU FG FC • Potential to drill 20 to 30 wells C FG • 28,250 net undeveloped acres G C FGL GCE C GC FGC GC

PROVEN MANAGEMENT TEAM BOARD OF DIRECTORS Stephen Kapusta (P.Eng.) CEO and President Stephen Kapusta CEO Canext Energy Lesley Miller (CA) CFO William Hess Independent Businessman Mark Birchard (M.Sc.) VP Exploration C. Lal Narang Independent Businessman Neil Holmes (P.Land) VP Land Steve Dabner Independent Businessman Mike Woloschuk (P.Eng) VP Operations Thomas Love Independent Businessman Randall Green 3ULQFLSDO1LYHQ)LVFKHU(QHUJ\0JPW Gerald DeNotto 3UHVLGHQW,QGHFN(QHUJ\6HUYLFHV CONTACT INFO +HDG2IÀFH #660, 639 - 5th Avenue SW., %DQNHU National Bank of Canada Calgary, Alberta T2P 0M9 /HJDO&RXQVHO Burstall Winger LLP $XGLWRUV KPMG LLP (QJLQHHUV 7ULPEOHDQG$VVRFLDWHV &RQWDFW,QIR Stephen Kapusta 3KRQH (403) 263-3232 )D[ (403) 234-8773 TSX-V:CXZ JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 29 300, 500 - 4 Avenue S.W. Calgary, Alberta T2P 2V6

Telephone: (403) 265-6171 DELPHI ENERGY CORP. Facsimile: (403) 265-6207 Website: www.delphienergy.ca Email: [email protected]

C O R P O R A T E P R O F I L E MAY 2008 Delphi Energy is a public junior oil and natural gas company based out of Calgary, operating mainly in northwest Alberta and northeast British Columbia. The company is well-positioned for organic growth with a large inventory of development opportunities complemented by a high impact exploration program.

Overview Strategy Toronto Stock Exchange DEE • Targeting 15% growth for 2008 over 2007 Share price (May 14, 2008) $2.80 • Squeezing more out of each barrel of oil equivalent, decreasing transportation and operating Shares outstanding (March 31, 2008) costs with growth in production Basic 68.4 million • Mitigating natural gas commodity downside price risk through active hedging program with Diluted 73.8 million 47% of production locked in at a floor of $7.99/mcf for 2008 Reserves – December 31, 2007 • Greater financial flexibility with cash flow growth and lower debt in Q4 / 08 over Q4 / 07 Proved 11.4 million boe Proved plus probable 17.3 million boe Reserve life index (P+P) Nine years

Q1 2008 Highlights

• Achieved record production of 6,056 barrels of oil equivalent per day (boe/d), an increase of 40 percent over the same period in 2007. This exceeds Delphi’s guidance of 6,000 boe/d.

• Generated first quarter funds from operations (cash flow) of $17.1 million ($0.25 per share), a 60 percent increase over $10.7 million ($0.17 per share) in the comparative quarter of 2007.

• Reduced net debt to 1.6 times annualized first quarter funds from operations, down from 1.8 times at the end of 2007. Net debt amounted to $109.7 million at the end of the first quarter.

• Achieved a success rate of 100 percent drilling 11 (8.0 net) wells in Northwest Alberta and Northeast British Columbia. This drilling activity resulted in 36 separate intervals being completed in these multi-zone wells. Eight (5.4 net) of the wells have already been tied- in and are on production.

• Realized hedging gains of $1.4 million on physical and financial contracts through the Company’s risk management program, increasing the average realized natural gas price by $0.47 per thousand cubic feet.

Production Growth Profile (boe/d) Cash Flow ($millions) $60 - $65

Production Debt to Cash Flow Assumptions 2008 AECO (Cdn$/mcf) $7.00 - $7.75 $49.6 7,000 3.5 $48.5 6,200 5,868 6,056 Sensitivity 6,000 5,700 3.0 5,379 5,228 ±$1.00/mcf = $5.0 cash flow $40.2 = $0.07 cash flow/share 5,000 2.5 4,221 4,322 4,000 2.0

3,000 1.5

2,000 1,706 1.0 $12.1 1,000 0.5 $6.7 - 0.0 2004 2005 2006 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 $0.77 (F) Production Debt to Cash Flow '02'03'04'05'06'07'08 (F) JUNIOR PROFILES

30 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 2008 Guidance Areas of Focus

North East British Columbia Region Average Production (boe/d) 6,100 to 6,300 - PXOWL]RQHQDWXUDOJDVWDUJHWV Natural gas price (AECO Cdn $/mcf) $7.00 - $7.75 Cash flow (millions) $60-$65 Cash flow per share $0.87 - $0.95 North West Alberta Region -high-impact exploration Dec 31, 2008 net debt (millions) $90 -shallow gas development Debt to cash flow – Q4 2008 annualized 1.4X -multi-zone natural gas targets

East Central Alberta Region Management - low-risk development David Reid North West Alberta • President & CEO, Director High working interest in mostly operated properties. )RFXVRIZLQWHUDQGVXPPHU&$3(;SURJUDPV Tony Angelidis /DUJHXQGHYHORSHGODQGEDVHZLWKPXOWL]RQHQDWXUDOJDVSURVSHFWV • Senior Vice President Exploration, Director ([SORUDWLRQGULOOLQJIRU&UHWDFHRXVWR'HYRQLDQSURVSHFWVGHILQHGRQ'VHLVPLF $SSUR[LPDWHO\SHUFHQWQDWXUDOJDVILYHSHUFHQW1*/V Hugo Batteke • Vice President Operations Bigstone: &XUUHQWSURGXFWLRQLVDSSUR[LPDWHO\ERHG QDWXUDOJDV 2SHUDWHGKLJKZRUNLQJLQWHUHVW Rod Hume 0XOWL]RQHSRWHQWLDO • Vice President Engineering /LTXLGVULFKVZHHWJDV 2ZQHUVKLSLQLQIUDVWUXFWXUH Mike Kaluza /RZRSHUDWLQJFRVWV² OHVVWKDQSHUERH • Chief Operating Officer ,QYHQWRU\RIGULOOLQJORFDWLRQV 'HOSKLGULOOHGDQGFDVHGVL[ZHOOV QHW GXULQJWKHZLQWHUSURJUDP Brian Kohlhammer • Vice President Finance & CFO Hythe: 3URGXFWLRQRIDSSUR[LPDWHO\ERHG QDWXUDOJDV 'RPLQDQWIRRWSULQWIRUH[SDQVLYHJURZWK 2ZQDFUHV VHFWLRQV RIXQGHYHORSHGODQGZLWKGHSWKVRI²PHWUHVDWD:, 2ZQHUVKLSLQLQIUDVWUXFWXUHLQWHUHVWLQPPFIGSODQWDQGNPJDWKHULQJV\VWHP +\WKHKDVFRQYHQWLRQDOPXOWL]RQHSOD\W\SHVZKLFKDUHFRPSOHPHQWDU\WR%LJVWRQH 'ULOOHGDQGFDVHGWKUHH QHW ZHOOVGXULQJWKHZLQWHUSURJUDPHLJKWWRZHOOVDUHSODQQHGIRUWKH Board of Directors VHFRQGKDOIRI David Reid • President & CEO, Delphi Energy Corp. Fontas: &XUUHQWSURGXFWLRQRIDSSUR[LPDWHO\ERHGQHW DFUHVRIFRQWLJXRXVODQGFRQWUROOHGE\'HOSKLDQGLWVSDUWQHUV Tony Angelidis • Senior Vice President Exploration, North East British Columbia Delphi Energy Corp. QHWDFUHVRIXQGHYHORSHGODQG 3URGXFWLRQRIDSSUR[LPDWHO\ERHG Harry Campbell SHUFHQWQDWXUDOJDV • Partner, Burnet, Duckworth, Palmer LLP 7KHDUHDRIIHUVPXOWL]RQH&UHWDFHRXVJDVWDUJHWVZLWKSUHGLFWDEOHPRGHUDWHGHFOLQHVLQWKHVRXWKDQG KLJKHUGHOLYHUDELOLW\0LVVLVVLSSLDQDQG'HYRQLDQQDWXUDOJDVWDUJHWVLQWKHQRUWK Henry Lawrie • Independent businessman Exploration Robert Lehodey • Partner, Osler, Hoskin & Harcourt LLP Noel (NE BC): DFUH JDVVSDFLQJXQLWV IDUPLQRQDUROOLQJRSWLRQEDVLV([LVWLQJJDVJDWKHULQJ Andrew Osis LQIUDVWUXFWXUHRQDFUHDJH'HOSKLSD\VSHUFHQWWRHDUQSHUFHQW • CFO & Director, Multiplied Media Corporation 0XOWL]RQHVZHHWRLODQGJDVWDUJHWV 'HYHORSPHQWORFDWLRQVZLWKWKHSRWHQWLDOIRUQHZSRROGLVFRYHULHV Lamont Tolley 7HVWHGLQH[FHVVRIPPFIGIURPILYHLQWHUYDOVZLWKDYHUDJHSHUFHQWZRUNLQJLQWHUHVW • Independent businessman 'ULOOHGFRPSOHWHGDQGWLHGLQWZR QHW PZHOOVWDUJHWLQJPXOWL]RQHVZHHWJDVLQ4 'HOSKLKDVLGHQWLILHGVL[GULOOLQJORFDWLRQVDQGSODQVWRGULOO XSWRWKUHHZHOOVLQWKHVHFRQGKDOIRI

Red Rock (NW AB): DFUH VHFWLRQ IDUPLQRQDUROOLQJRSWLRQEDVLV'HOSKLSD\VSHUFHQWWRHDUQ SHUFHQW 0XOWL]RQHVZHHWJDVWDUJHWVODQGVIXOO\FRYHUHGZLWK'VHLVPLF Contact Information 'HOSKLKDVOLFHQVHGDQGLVGULOOLQJWKHVHFRQGRIWZRSODQQHGPHWUHWHVWV 7KH&RPSDQ\SODQVWRGULOODVHFRQGZHOOLQWKHDUHDLQWKHVHFRQGKDOIRI Delphi Energy Corp 300, 500 - 4 Avenue SW Hythe (NW AB): Calgary, Alberta JURVVDFUHV DYHUDJHZRUNLQJLQWHUHVWRISHUFHQW T2P 2V6 ([SORUDWLRQHIIRUWVDW+\WKHDUHIRFXVHGRQNQRZQQDWXUDOJDVDFFXPXODWLRQVZKHUHKRUL]RQWDOZHOODQG QHZPXOWLVWDJHIUDF WHFKQRORJ\FDQVLJQLILFDQWO\HQKDQFHSURGXFWLYLW\DQGUHVHUYHGHYHORSPHQW T : 403-265-6171 1LNDQDVVLQDQG%OXHVN\IRUPDWLRQV F : 403-265-6207 Bigstone (NW AB): JURVVDFUHV DYHUDJHZRUNLQJLQWHUHVWRISHUFHQW [email protected] ([SORUDWLRQHIIRUWVDW%LJVWRQHDUHIRFXVHGRQNQRZQQDWXUDOJDVDFFXPXODWLRQVLQWKH0RQWQH\ www.delphienergy.ca IRUPDWLRQXOWLPDWHO\XWLOL]LQJKRUL]RQWDOZHOODQGQHZPXOWLVWDJHIUDF WHFKQRORJ\

Toronto Stock Exchange : DEE DELPHI ENERGY CORP. • CORPORATE PROFILE • MAY 2008 • TSX: DEE JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 31 21(675$7(*<(;&(37,21$/23325781,7<1,7<

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BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 33 June 2008

Great Plains has the financial strength, technical depth and prospect inventory to grow in the current environment.

Why Great Plains? Solid Underlying Value with We have the Plan 9DOXHFUHDWLRQIURPKLJKLPSDFW Upside Potential H[SORUDWLRQDQGJURZWKIURP PHUJHUVDQGDFTXLVLWLRQV ERHGQDWXUDOJDVDQG RYHURSHUDWHG We have the People &RPELQHGH[SHULHQFHRIWKH*3; WHDPHQVXUHVH[HFXWLRQRIWKH3ODQ PERHRIUHVHUYHVSURYHQ We have the Prospects +LJKTXDOLW\EDODQFHGPXOWL\HDU LQYHQWRU\OLJKWRLOXSVLGH PLOOLRQRIUHVHUYHYDOXH 3339

We can combine these three components to provide superior returns. 2YHUQHWXQGHYHORSHGDFUHV

([SHFWHG DQQXDOL]HG FDVK IORZ PLOOLRQ The Acquisition of RedStar Oil and Gas on May 9th, 2008 UXQ UDWH EDVHG RQ FXUUHQW SURGXFWLRQ DQG :7,DQG$(&2 7KLVWUDQVDFWLRQSURYLGHG*UHDW3ODLQVZLWKWKHIROORZLQJ 6WURQJEDODQFHVKHHWGHEWWRFDVKIORZ PLOOLRQERHRISURYHQDQGSUREDEOHUHVHUYHVYDOXHGDW PLOOLRQFUHGLWIDFLOLW\SOXVPLOOLRQ PLOOLRQDVGHWHUPLQHGE\DQLQGHSHQGHQWHQJLQHHULQJ UHSRUWHIIHFWLYH'HF DFTXLVLWLRQOLQH

$SSUR[LPDWHO\ERHGRISURGXFWLRQQDWXUDOJDV +LJKLPSDFWRLOH[SORUDWLRQEDODQFHGZLWK 8QGHYHORSHGODQGEDVHRIDSSUR[LPDWHO\DFUHV VKDOORZRSSRUWXQLWLHVDQGDQHZJDVIRFXV LQGHSHQGHQWO\YDOXHGDWPLOOLRQ DUHDLQ1(%& &DVKDQGSRVLWLYHZRUNLQJFDSLWDORIPLOOLRQ Acquisition metrics for this transaction were approximately $8.00 per boe for reserves with production acquired for approximately $20,000 boe/d; net of cash and land values Core Areas

Net Asset Value / Share 13900 33 39 1(%ULWLVK&ROXPELD SURGXFWLRQ VKDUH'HF3ULFLQJ² 3UH15) QHWXQGHYHORSHGDFUHV LQGHSHQGHQWO\YDOXHGDW00 VKDUH$SULO6WULS² 3RVW15) 3URSULHWDU\'VHLVPLFGDWDEDVHZLWKD 5DQGHOO triS PDUNHWYDOXHRI 00 SURGXFWLRQ riO 6 $WKDEDVFD $S ing 0RULQYLOOH 3riF 'HEWDQGZRUNLQJFDSLWDOGHILFLW .0 SURGXFWLRQ 0 00 \HDUHQG GHDOFRVWV /DQG 33 (GPRQWRQ 39 7D[3RROV00 iF iVP %DVLFVKDUHVRXWVWDQGLQJ00 6e 8 . 3HPELQD&URVVILUH &DOJDU\ 0 5HVHUYHVHII'HFEDVHGRQ*/-DQG6SURXOH SURGXFWLRQ t E -DQ3ULFH'HFNV :7, $(&2&6SRW e . 86EEO &GQ0FI ' 0 */- 2WKHUSURGXFWLRQ 6SURXOH 15)² 1HZ5R\DOW\)UDPHZRUNIRU$OEHUWD $SULO6WULS Energized for Growth JUNIOR PROFILES

34 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 3HPELQD&URVVILUH² +LJK,PSDFW1LVNX2LO 0DQDJHPHQWDQG7HFKQLFDO7HDP Stephen Gibson, President & CEO +LJKQHWEDFNOLJKWRLOIURPRQHRI:HVWHUQ 8SWRVL[ZHOOVSODQQHGIRUZLWK Sean Bovingdon, VP Finance & CFO DGGLWLRQDOORFDWLRQVLQLQYHQWRU\ &DQDGD·VKRWWHVWSOD\DUHDV Rob Poole, VP Engineering & Operations 1LVNXWDUJHWVDYHUDJH00EEOV 4GLVFRYHU\DW Terry Fink, Operations Manager bopd per well WHVWHGDWERHG :, -RKQ2VWURP93([SORUDWLRQ3*HRO FRQILUPV1LVNXIDLUZD\H[WHQVLRQ David Cairns, P. Geol. *UHDWHU3HPELQDDUHD:,RILQProved (PV 10%) David Weiss, P. Geol. RYHUXQGHYHORSHGDFUHV David Hibbert, P. Geoph. $1.265 5 5 :HVW*3; David Klepacki, P. Geoph. GLVFRYHU\ Michael Bergstrom, Land Manager X .H\VSDQ DZDLWLQJWLHLQWHVWHG isN ERHG 1 D\ PSD\ %LJRUD\*DV ERHG :, irw %RDUGRI'LUHFWRUV 3ODQW Fa Donald Charter 7 Daryl Connolly Gary Dundas (DV\IRUG 2LO%DWWHU\ William Gallacher Stephen Gibson ++3RRO Donald Leitch :, ERHG Crossfire QHW $UHD %DQNHUV :7/ 7 $7%)LQDQFLDO 003RRO SURGXFHU :, ERHG 1H[W/RFDWLRQ (QJLQHHUV ERHG PSD\ : QHW GLJ Petroleum Consultants

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)RUZDUG/RRNLQJ6WDWHPHQWV Some of the statements contained herein including, without limitation, financial and business prospects and financial outlooks,PD\EHIRUZDUGORRNLQJVWDWHPHQWVZKLFKUHIOHFWPDQDJHPHQW·VH[SHFWDWLRQVUHJDUGLQJIXWXUHSODQVDQGLQWHQWLRQVJURZWKUHVXOts of operations, performance and business prospects and opportunities and in particular all information regarding RedStar and the combination of its assets with Great Plains. There is no assurance that the transaction will be completed as it is subject to regulatory and VKDUHKROGHU DSSURYDOV :RUGV VXFK DV ´PD\µ ´ZLOOµ ´VKRXOGµ ´FRXOGµ ´DQWLFLSDWHµ ´EHOLHYHµ ´H[SHFWµ ´LQWHQGµ ´SODQµ ´SRWHQWLDOµ ´FRQWLQXHµ DQG VLPLODU H[SUHVVLRQV KDYH EHHQ XVHG WR LGHQWLI\ WKHVH IRUZDUGORRNLQJ VWDWHPHQWV 7KHVH VWDWHPHQWV UHIOHct PDQDJHPHQW·VFXUUHQWEHOLHIVDQGDUHEDVHGRQXQFHUWDLQWLHV$QXPEHURIIDFWRUVFRXOGFDXVHDFWXDOUHVXOWVWRGLIIHUPDWHULDOOy from the results discussed in the forward-looking statements including, receiving requisite approvals for, and the completion of the WUDQVDFWLRQZLWK5HG6WDUFKDQJHVLQJHQHUDOHFRQRPLFDQGPDUNHW FRQGLWLRQVDQGRWKHUULVNIDFWRUV$OWKRXJKWKHIRUZDUGORRNLQJ statements contained within this presentation are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances. JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 35 TSX Venture Exchange: OE.A & OE.B

ONE EXPLORATION INC. IS AN EMERGING JUNIOR OIL AND NATURAL GAS COMPANY BASED IN CALGARY, ALBERTA. ONE IS FOCUSED ON THE PROFITABLE EXPLORATION AND DEVELOPMENT OF RESERVES IN WESTERN CANADA.

PEACE RIVER ARCH • Q1/08 average production: 75 boe/d • 24,000 net undeveloped acres • Q2/Q3: Complete 2 wells • Early phase of exploration cycle in multi zone areas

Peace River CENTRAL ALBERTA Arch • Q1/08 average production: 540 boe/d • 11,000 net undeveloped acres • Q2/Q3: Recomplete 3 wells, drill 5 wells, complete and tie-in 2 wells • Commenced Op Cost reduction on Paddle River acquisition assets (avg. $15/boe op. cost) • Ongoing rework/recompletion operations • Active farm-in area

Producing Properties Core Areas Central SOUTHEAST ALBERTA Alberta • New exploration focus area with 3 new discoveries in 2007 • Atlee • Kirkwall • Coyote • Acquired 8,400 net acres of land • Good access with reasonable drilling costs (1,000m = $300k drill & case) • Q3/07: Drilled and cased 2 successful exploration and 1 development well Southeast • Q2 Exit: 160 boe/d Alberta • Q2/08: Tie-in 2 wells (net 100 boe/d) • Q2/Q3: Drill 5 wells, recomplete 2 wells • Continue farmin/joint venture and landsale posting strategy

OVERVIEW ONE EXPLORATION OFFERS SHAREHOLDERS: TSX Venture Exchange: OE.A & OE.B Class A Shares 26.4 million 1. A dynamic company with a strong balance sheet quickly establishing a Class B Shares 1.27 million history of value added asset acquisitions Stock Options 1.94 million @ $0.58 2. High potential exploration upside not currently refl ected in share price Offi cers & Directors: 12.8% A & 11.3% B Shares Market Cap (June 2nd): $38.3 million 3. Stable production base (A $1.25/B $4.25) Q1 Net Debt: $7.7 million 4. Technical focus, with a large undeveloped landbase and proprietary Q1 Production: 828 boe/d seismic database Credit Facility: $10 million (Scotiabank) 5. Steep growth curve to date with signifi cant growth potential through 2008. Tax Pools: $94 million

Corporate Proﬁ le June 2008 JUNIOR PROFILES

36 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 AVERAGE DAILY PRODUCTION GROWTH Executives PRODUCTION GROWTH PER MILLION A SHARES Walter Vrataric President & CEO Dennis Ward 828 Vice President, Finance & CFO Jeff Heim 825 31 31 Vice President, Engineering 26

693 18 on A Shares i ll

i Directors 344 Dave Ambedian, Chairman

BOE/D M Partner – 32° Energy Management BOE/D Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Barry Olson President & CEO – Orleans Energy Ltd. Jay Reid Partner – Burnet Duckworth & Palmer LLP BUILDING A DIVERSIFIED ASSET BASE - FIRST QUARTER Al Kroontje • Drilled nine wells (5.9 net) of which three (2.7 net) resulted in new pool discoveries in Southeast President – Telford Services Group Alberta and Central Alberta, and a successful follow up to the 2007 discovery in Southeast Alberta. Walter Vrataric President & CEO – One Exploration Inc. • Obtained a 43 percent increase in its bank line to $10 million from $7 million. • Holds approximately 61,000 net acres of undeveloped lands independently valued at December 31, 2007 at $4.1 million. Banker Scotiabank Calgary, Alberta

GROWTH STRATEGY Auditors • Position company into development cycle of drilling while maintaining exploration upside growth through PricewaterhouseCoopers a $10mm exploration budget for 2008 Calgary, Alberta • Generate exposure to material upside with $1 million capital exposure in Atlee-Buffalo and Watelet areas Legal Counsel • Reduced operating expenses in core Central Alberta property Burnet, Duckworth and Palmer • Corporate and asset acquisition opportunities Calgary, Alberta

Independent Reserves Barrels of oil equivalent (boes) may be misleading, particularly if used in isolation. In accordance with NI 51-101, a Sproule & Paddock Lindstrom boe conversion ratio for natural gas of 6 Mcf:1bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 750, 425 - 1st Street SW Calgary, Alberta T2P 3L8 FORWARD LOOKING STATEMENTS This corporate proﬁ le contains forward-looking information. Implicit in this information are assumptions, among other Phone: 403.265.4115 things, regarding oil and natural gas prices, production, royalties and expenses that, although considered reasonable Fax: 403.232.8463 by One at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual www.one-ex.ca results could differ materially as a result of changes in One’s plans, changes in the commodity prices, general economic, market, regulatory and business conditions as well as production, development and operating performance and other TSX Venture Exchange: risks associated with oil and gas operations. There is no guarantee by One that actual results achieved will be the same as those forecast herein. Readers are cautioned that the foregoing list of important factors is not exhaustive. OE.A & OE.B The forward-looking statements contained in this presentation are made as of the date hereof and One undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this presentation are expressly qualiﬁ ed by this cautionary statement.

Corporate Proﬁ le June 2008 JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 37 February 2008

INVESTOR RELATIONS Suite 970, 10655 Southport Road S.W. John Pantazopoulos Calgary, Alberta T2W 4Y1 CANADA VP Finance and CFO Tel: (403) 265-6444 Tel: (403) 265-6444 Fax: (403) 264-1348 e-mail: [email protected] e-mail: [email protected] CORPORATE PROFILE website: www.petro-reef.ca

Petro-Reef Resources Ltd. is a Canadian junior oil andCORPORATE gas company PROFILE focused on petroleum and natural gas lease acquisition and exploration, and development of crude oil and natural gas properties in Alberta, Canada. Its principal asset is a working interest ranging from 2 percent to 94 percent (average 75 percent) in approximately 30 sections (20,000 acres) in the Alexander/Qui Barre area near Edmonton, Alberta, Canada. With solid growth and a low to medium risk strategy, Petro-Reef’s goal is to maximize its return on investment and minimize its operational costs by concentrating on multi-zone exploration and development activities.

RECENTRECENT NEWS NEWS

• Announced the acquisition of 400 boe/d, including 70 bbls/d of crude oil for $10,400,000 increasing current production to 1,250 – 1,300 boe/d, including 150 bbls/d of crude oil.

• Forecast 2008 cash flow of $10,000,000 double forecasted 2007 cash flow forecast.

• Increased proved plus probable reserves by 167% in 2006 to 1.3 million barrels of oil equivalent from 503,500 BOE in 2005, increasing the present value of the Company’s reserves to $23.9 million.

• Q1 – 2008 production levels over 100% above Q3 – 2007

AVERAGEAVERAGE DAILY DAILY PRODUCTIONPRODUCTION CAPITAL STRUCTURE STRUCTURE

1,800 1,600 1,600 February 2008 1,400 1,250 1,200 Shares outstanding 1,000 455 600 800 Common 33,574,781 600 400 Options 2,975,000 182 200 Warrants 2,814,565 0 2005 2006 2007 Current 2008 Director and officer holdings 37% CASH FLOW FROM OPERATIONS ($M) Registered shareholders 104 CASH FLOW FROM OPERATIONS ($M) Recent price $ 0.85 12,000 10,000 Market capitalization $ 28 million 10,000

8,000 Actual production 6,000 4,700 2007 Average 600 BOE/d 3,557 4,000 2,008 Current 1,250 BOE/d 2,000 2008 Forecast 1,600 BOE/d 0 2005 2006 2007* 2008* *Company Forecast based on $6.00 / mcf natural gas JUNIOR PROFILES

38 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 PETRO-REEF’S CORE AREA PETRO-REEF’S CORE AREA February 2008 Alexander/Qui Barre, Alberta (75% working interest):

• 95% of current production (1,200 BOE/D). • 10 – 15 oil locations identified upon approval of down spacing application. • 5-10 high impact natural gas drilling locations • High growth area with long-life, low cost reserves • Significant natural gas discovery at 13-6 in September 2007. • Infrastructure in place to handle increased production.

DIRECTORS & OFFICERS GROWTH STRATEGY GROWTH STRATEGY Joseph Werner,DIRECTORS P.Eng & OFFICERS • Acquire large and contiguous land positions. Director • Operate with a focus on high working interest projects that have President & Chief Executive Officer multi-zone potential (minimum of three zones). Theodore M. Donhuysen • Target reservoir zones that have a minimum economic reserve life of 15 Director years. Vice President, Exploration & Production & Chief Operating Officer • Use 2-D and 3-D seismic to identify and confirm potential drilling John R. Pantazopoulos, CFA locations using state-of-the-art technology. Vice President, Finance • Strive for a balanced portfolio of oil and gas. Chief Financial Officer Dennis K. Ulrich Vice President, Shareholder Relations Southern Alberta FINANCIAL & OPERATING RESULTS Alan P. Hallman President, Director Alan Hallman & Associates Inc. Three months ended Three months ended FINANCIAL September 30, 2007 September 30, 2006 %Chg. Jack P. Donhuysen, RET Director Founder & President Status Gross revenue($) 1,795,473 1,190,883 +51 Engineering Associates Ltd. Cash flow from operations ($) 951,444 590,330 Richard W. DeVries, LLB +61 Director Cash flow from operations Independent Businessman per share ($) 0.03 0.03 0 Huba A. Sebo Capital expenditures ($) 2,960,159 2,478,043 +19 Director Bank balance 6,012,225 0 n/a Independent Businessman Working capital surplus (deficit) 2,335,731 (2,815,606) n/a Robert N. Maertens-Poole, CA Director Shareholder equity ($) 19,473,249 7,003,587 +178 Common shares outstanding Peter A. Lubey weighted average basic 33,574,781 22,392,458 +50 Director Vice President, Engineering, Buffalo Resources Corp. OPERATIONS R. Greg Powers, QC Daily Average Production Director Corporate Secretary & Legal Counsel Crude oil and NGLs (Bbls/day) 27 28 -4 Partner, Fasken Martineau DuMoulin LLP Natural gas (Mcf/day) 3,406 1,861 +83 Total BOE/day 595 338 +76 Gary W. Coleman Assistant Secretary

DISCLAIMERS DISCLAIMERS All statements, other than statements of historical fact, set forth in this Fact Sheet, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management’s control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Note: BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 39 JUNIOR PROFILES

40 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 41 ‘RXR’ on the TSX-V

Corporate History At a Glance (June, 2008) Based in Medicine Hat, Alberta, Reece Energy Exploration Corp. (“Reece”) is a junior oil and gas exploration and production company. Formed through the acquisition of three private Shares (Basic): 32,485,862 companies in 2005, Reece’s aggressive growth strategy focuses on a balance of exploration and Shares (Diluted): 34,359,610 developmental drilling, as well as synergistic acquisitions which compliment Reece’s existing Production (May.): 1,130 BOE/d assets. Reece has positioned itself with an interest in over 50 sections of minerals in the Bakken Oil/Gas Ratio: 52% / 48% light oil play in south eastern Saskatchewan. Reserves* (P+P): 4.2 MMBOE Reserve Life*: ~10 years 2008 Highlights Land: ~85,000 net acres Reece has: Cash Flow (Mar.): $700,000/mo t Drilled, Tested and Produced the ﬁrst well utilizing horizontal multi-stage frac Credit Facility: $20,000,000 techniques in the Dodsland area of Saskatchewan and established a new area of N.P.V.* (BT, 10%): $71,719,000 focus with in excess of 20 additional locations; *As at December 31, 2007 1,20 0 t Drilled six (6 net) additional horizontal wells in the Dodsland Play based on the success of the ﬁrst well. These wells are being brought on production shortly after 1,10 0

drilling is completed; 1,0 0 0

t Acquired a land base of approximately 50 gross sections of land in SE Saskatchewan 6:1 conversion 900 with a focus on the exploration of the Bakken formation. Completed drilling of the 800 ﬁrst (0.5 net) exploratory Bakken well on Reece lands with two (1 net) further wells PROUCTION (BOE/D) 700 to be drilled shortly to prove up the acreage; J J A S O N D J F M A M t Completed a $7.5 million Private Placement ﬁnancing and increased its bank loan to $20 million. 20,000

2008 Forecast 15,000 Reece has recently increased its 2008 capital budget to $36 million. This increase t 10,000 was based on the encouragement brought forth by successful drilling results, as well as higher than expected commodity prices; 5,000 t The majority of Reece’s 2008 capital budget is anticipated to be spent in the ($000s) FLOW CASH 0 development of its multiple light oil drilling opportunities in West Central and South 2005 20062007 2008-F Eastern Saskatchewan; t Reece currently has room for up to 20 (20 net) additional locations in its Dodsland Viking light oil play, and is planning to continue drilling in this play through the end 5,000 of the year; 4,000 Depending on the success of the initial wells in its Bakken play, Reece will drill at t 3,000 least 3 (net 1.5) wells in the ﬁeld this year. With success in all 3 wells, Reece will 2,000

have an inventory of at up to 200 (100 net) further locations in the area. Original as at December 31

plans called for 10 (net 5) Bakken wells to be drilled in 2008 with the remainder to be 1,000

developed in future years. Depending on results, development may be accelerated. (MBOE) P+P RESERVES 0 For latest information see our website at www.reeceenergy.com. 2004 20052006 2007

Corporate Profile - June, 2008 Page: 1 JUNIOR PROFILES

42 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Land/Operations

South Eastern Saskatchewan West Centr al Sask atchewan Reece has been gathering a sizeable land position in a Seven horizontal light oil wells have been drilled in Reece’s prospective Bakken play in south eastern Saskatchewan. Dodsland field. In addition, a further 20 drilling locations Currently, Reece has over 32,000 gross acres of land with have been identified in the field, most of which will be potential Bakken production that is will begin to explore drilled in the 2008. In addition to this field, Reece’s core in 2008. Additionally, Reece is active in several other plays area in west central Saskatchewan represents the majority of in this area including the Crystal Hill, Stoughton, Chandler, its development drilling opportunities. The North Dodsland Midale and Workman gas field is Reece’s “bread & butter” play with more than 20 Board of Directors fields. low-risk development infill drilling locations available. Lorne Swalm, Chairman Greg Peterson Ken MacPhail Kevin Patterson, C.F.A. John Styles, P.Eng Management Lorne Swalm C.E.O., President Ron Stuckert C.F.O., V.P. Finance Michelle Jacobs Corporate Secretary, Treasurer Elizabeth Troniak Senior Land Manager Tom Morton Alberta Saskatchewan Production Operations Manager Jordan Kevol Drilling & Geology Manager Brian Radiff Investor Relations Manager Contact Info #200, 1111 Kingsway Ave. S.E. Medicine Hat, AB T1A 2Y1 Kindersley Canada Areas of Phone: (403) 526-9700 Calgary Activity Fax: (403) 527-9739 Web Site: www.reeceenergy.com E-Mail: [email protected] Estevan Medicine Hat

‘RXR’ on the TSX-V

Corporate Profile - June, 2008 Page: 2 JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 43 1HZVOHWWHU7LWOH

Corporate Profile Terra Energy Corp. is a junior, full-cycle exploration and production -XQH company engaged in the exploration for, development and production of natural gas and oil, with operations concentrated primarily in Revenue Growth ($ millions) northeastern British Columbia and the Peace River Arch region of Alberta. 90 Based on $8.25 per 7KH &RPSDQ\¶V FDSLWDO SODQ IRU IRFXVHG RQ FRPSOHWLRQ RI 80 $83,500 mcf forecast average (approx) infrastructure projects designed to bring more production onstream. 70 )RUWKH&RPSDQ\SODQVWRGHYHORSDQGH[SORLW.QRZQSRROVWR 60 Based on $7.25 per $71,329 mcf forecast average (approx) grow the production base. 50 40 Q1 2008 HIGHLIGHTS $47,880 $47,960 30 x The Company announced on May 13,WKDWLWKDGVXEVWDQ $40,256 tially completed the sale of apprR[LPDWHO\VHFWLRQVRI0RQW 20 QH\ULJKWVLQ%&IRUDSSUR[LPDWHO\PLOOLRQ 10 $16,470 x Only mineral rights in the Montney formation were sold 0 All mineral rights above and below Montney formation 2004 2005 2006 2007 2008 x retained by Terra x No current production was included in the sale x $YHUDJHSURGXFWLRQSHUGD\LQFUHDVHG\HDURYHU\HDUIURP LQ4WRGXULQJ4 x *URVVUHYHQXHLQFUHDVHG\HDURYHU\HDUIURPPLOOLRQ GXULQJ4WRPLOOLRQGXULQJ4 x Cash flow from operations increased\HDURYHU\HDUIURP PLOOLRQGXULQJ4WRPLOOLRQGXULQJ4 x 6XFFHVVIXOO\FRPSOHWHG7HUUD¶V:0'RLJJDVZHOO ZKLFKKDGWKHHIIHFWRIH[WHQGLQJWKH&RPSDQ\¶V'RLJWUHQGLQWKH DUHDE\NLORPHWHUVWRWKHVRXWK x Completed first segment of Eight Mile / Sunrise pipeline which is DQ´NPSLSHOLQHGHVLJQHGWRFRQQHFWWKH6XQULVHJDVILHOG LQWR WKH &RPSDQ\ RZQHG 7RZHU 'HK\GUDWLRQ DQG &RPSUHVVLRQ facility

COMPELLING INVESTMENT OPPORTUNITY x Consistent year-over-year production and reserves growth Cash Flow Growth ($ millions) x Management team focused on building shareholder value through production and reserves per share growth $40.0 x Large, complementary and opportunities-rich core operating area

$36.0 $38,000 x &XUUHQW1HW$VVHW9DOXHH[FHHGVSHUVKDUH EDVLF Based on $8.25 per mcf (approx) $32.0 forecast average x /RQJOLIHUHVHUYHV \HDUUHserve life index proved plus prob- DEOHEDVHGRQFXUUHQWSURGXFWLRQUDWHV $28.0 $30,000 Based on $7.25 per (approx) $24.0 mcf forecast average x /RZ\HDU) 'FRVWV ERH $20.0 x Higher production levels are resulting in improved operating metrics $16.0 $18,414 $12.0 $16,804 $14,121 GROWTH (2004 - 2007) $8.0 x PERHUHVHUYHV 33 LQFUHDVH $4.0 $4,886 x 5HVHUYHYDOXHPP 33 LQFUHDVH $0.0 x 1HWDVVHWYDOXHPPLQFUHDVH 2004 2005 2006 2007 2008F JUNIOR PROFILES

44 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 2008 CAPITAL EXPENDITURE PROGRAM (PRELIMINARY)

00 ,QIUDVWUXFWXUH±6XQULVH3LSHOLQH±1RUWKDQG6RXWK 00 'ULOOLQJFRPSOHWLRQVVHLVPLFDQGODQGGLUHFWHG DW)RUW6W-RKQFRUHDUHD JURVVZHOOV 00 )XQGHGHQWLUHO\IURP&RPSDQ\¶VFDVKIORZIURP RSHUDWLRQV

2008 GUIDANCE x 'HYHORSPHQWDQGH[SORLWDWLRQGULOOLQJ JURVVZHOOV x &RPSOHWH6XQULVH3LSHOLQH±1RUWKDQG6RXWK x )RUHFDVWSURGXFWLRQH[LWUDWHRIERHG 35(/,0,1$5<

MARKET DATA 76;9HQWXUH([FKDQJH 775 6KDUHV2XWVWDQGLQJ DW0DUFK x %DVLF x )XOO\'LOXWHG

MANAGEMENT TEAM Over 170 years of diversified experience Expertise in all key disciplines &DV+0RUHO3UHVLGHQW &(2 %XG./RYH93)LQDQFH &)2 -RKQ0%HKU93([SORUDWLRQ 7LP$%HDWW\93&DSLWDO3URMHFWV 7LPRWK\$%ODLU93/DQG *UDKDP&ROOLQV0DQDJHU3URGXFWLRQ2SHUDWLRQV *RUG2OLYHU0DQDJHU([SORLWDWLRQ -RKQ+U\F\N0DQDJHU)DFLOLWLHV'HVLJQ -DPHV&KRQJ&RQWUROOHU

BOARD OF DIRECTORS Independent with governance expertise Extensive industry background 7HG6$QGHUVRQ 5DOSK*(YDQV &ROLQ30DF'RQDOG &DV+0RUHO 5REHUW'3HQQHU 7RQ\6DEHOOL Member, Audit Committee JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 45 SPRING 2008 /-8\Ê/ÊÊÊÊÊÊUÊÊÊÊÊÊ - +\Ê/ Middle East/North Investing in Africa (“MENA”) TransGlobe Explorer and Proven Track Record in Middle East Shareholder Value Developer t 1BSUJDJQBUFEBOEESPWFTFWFSBM t 'PDVTFEPOTJHOJmDBOUQSJ[FJOmFMETJ[F FYQMPSBUJPOEJTDPWFSJFTJO:FNFO BOEQFSXFMMQSPEVDUJWJUZBOESFTFSWFT 1. Growth-oriented Exploration Play XJUIXFMMLOPXOQBSUOFST t 4JHOJmDBOUQSPEVDUJPOBOESFTFSWF t 'PDVTFE.JEEMF&BTUBDSFBHFQPTJUJPO t 0QFSBUJOH&HZQUFYQMPSBUJPO CBTF XJUINVMUJQMFJEFOUJmFE t .VMUJZFBSQSPTQFDUJOWFOUPSZJO BOEEFWFMPQNFOUQSPHSBN FYQMPSBUJPOBOEEFWFMPQNFOUMPDBUJPOT QSPMJmDCBTJOT t &YUFOTJWFVTFPG%TFJTNJD t )JTUPSZPGQFSTIBSFHSPXUI t -PXSJTLEFWFMPQNFOUBOE UPGPDVTFYQMPSBUJPO t 'JOBODJBMMZQSVEFOUCBMBODFTIFFU QSPEVDUJPOHSPXUI t $BMHBSZIFBEPċDF$BJSP TUSFOHUI t )JHIJNQBDUFYQMPSBUJPOVQTJEF PQFSBUJPOTPċDF t $BQJUBMCVEHFUGVMMZGVOEFEGSPN DBTInPX t %JWFSTJUZPGBTTFUTBOEESJMMJOH International Experience PQQPSUVOJUJFT Leverage to High Oil Prices t 4FOJPSUFBNIBTEFDBEFTPG 2. Exciting Growth Projects FYQFSJFODFJOUIF.&/"SFHJPO t "WFSBHFOFUCBDLJO2PG t 'PDVTFEPO&HZQUBOE:FNFO BOEPUIFSJOUFSOBUJPOBMBSFBT BGUFSUBY t $PNCJOFETFWFOJOUFSOBUJPOBMCMPDLT t %SJMMFE FYQMPSBUJPOBOE Attractive Relative Valuation XJUINJMMJPOBDSFT EFWFMPQNFOUXFMMTJO3FQVCMJD t 1SPTQFDUTJ[FNJMMJPOCBSSFMT PG:FNFOTJODF t -PX1$'NVMUJQMFT 3. 2008 Plans Market Reach t $BQJUBMCVEHFUNJMMJPO t 5SBEFTPO5PSPOUP4UPDL&YDIBOHF t FYQMPSBUJPOXFMMT BOE/"4%"2 t EFWFMPQNFOUXFMMT t -BSHF%TFJTNJDBDRVJTJUJPOQSPHSBNT "MMEPMMBSWBMVFTFYQSFTTFEJO64VOMFTTPUIFSXJTFTUBUFE

Production and Reserves Growth Growing Cash Flow

20 0.30 70 1.13 1.15 8,000 0.12 0.13 0.27 69 7,400 0.86 0.09 16.4 0.77 0.08 0.08 0.19 5,651 0.63 52 0.07 0.17 47 4,991 5,093 0.15 11.7 0.05 10.4 10.5 38 3,865 0.13

Cash Flow ($MM) 0.31

P+P Reserves (MMboe) 7.0 2,635 0.17

P+P Reserves (boe) per share 17 Production (boe) per thousand shares Cash Flow per Share ($ share)

Average Daily Production (boe/d) Average 9 0 0 0 0 0 0 2003 2004 2005 2006 2007 2008F 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2008F

(NI-51-101 Working Interest Reserves at December 31)

Contacts: Listed on TSX: TGL Q1 2008 Trading Range ...... CDN$4.31-$5.65 Anne-Marie Buchmuller Average Daily Volume (March 2007- March 2008) ...... 69,390 Manager, Investor Relations 5 - +\Ê/ $ 2007 Trading Range ...... US$4.20-$5.80 & JOWFTUPSSFMBUJPOT!USBOTHMPCFDPN Average daily volume (since listing) ...... 180,889 8 XXXUSBOTHMPCFDPN Shares outstanding Basic ...... 60 million Fully diluted ...... 62 million Held by management/other insiders ...... 10% Market capitalization (May 2008) ...... $300 million JUNIOR PROFILES

46 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 /-8\Ê/ÊÊÊÊUÊÊÊÊ - +\Ê/

Cautionary Statement Egypt to Investors:

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PG1 1SFTFSWFT BLOCK 32 5SBOT(MPCFTFYQFDUBUJPOTBTSFnFDUFE JOTVDIGPSXBSEMPPLJOHTUBUFNFOUTBTB t OFXFYQMPSBUJPOCMPDLT BLOCK 84 SFTVMUPGWBSJPVTGBDUPST NBOZPGXIJDI BSFCFZPOEUIFDPOUSPMPGUIF$PNQBOZ t $VSSFOUQSPEVDUJPOBQQSPY BLOCK 72 BLOCK S-1 & 75 ɨFTFGBDUPSTJODMVEF CVUBSFOPUMJNJUFE #PQE UP VOGPSFTFFODIBOHFTJOUIFSBUFPG t ¡"1*PJM QSPEVDUJPOGSPN5SBOT(MPCFTPJMBOE INDIAN OCEAN HBTQSPQFSUJFT DIBOHFTJOQSJDFPGDSVEF t 2OFUCBDL#CM BGUFSUBY PJMBOEOBUVSBMHBT BEWFSTFUFDIOJDBM 0 100 200 300 GBDUPSTBTTPDJBUFEXJUIFYQMPSBUJPO KILOMETRES t 4JHOJmDBOUFYQMPSBUJPOQPUFOUJBM NASDAQ: TGA TSX: TGL EFWFMPQNFOU QSPEVDUJPOPSUSBOTQPSUBUJPO PG5SBOT(MPCFTDSVEFPJMBOEOBUVSBMHBT SFTFSWFT DIBOHFTPSEJTSVQUJPOTJOUIF Supplementary Information QPMJUJDBMPSmTDBMSFHJNFTJO5SBOT(MPCFT (US$000s, except per share amounts) Year ended December 31, BSFBTPGBDUJWJUZ DIBOHFTJOUBY FOFSHZ PSPUIFSMBXTPSSFHVMBUJPOT DIBOHFTJO Financial Q1 2008 2007 2006 TJHOJmDBOUDBQJUBMFYQFOEJUVSFT EFMBZTPS EJTSVQUJPOTJOQSPEVDUJPOEVFUPTIPSUBHFT Oil and gas revenues 60,419 136,709 109,190 PGTLJMMFENBOQPXFS FRVJQNFOUPS Oil and gas revenues, net of royalties and other 35,915 87,911 70,097 NBUFSJBMT FDPOPNJDnVDUVBUJPOT BOEPUIFS Operating expense 5,780 15,268 11,107 GBDUPSTCFZPOEUIF$PNQBOZTDPOUSPM General and administrative expense 2,272 6,743 4,674 5SBOT(MPCFEPFTOPUBTTVNFBOZPCMJHBUJPO Depletion, depreciation & accretion expense 10,713 31,172 18,941 UPVQEBUFGPSXBSEMPPLJOHTUBUFNFOUTJG Cash ﬂow from operations* 17,873 52,141 46,763 DJSDVNTUBODFTPSNBOBHFNFOUTCFMJFGT Basic per share 0.30 0.87 0.80 FYQFDUBUJPOTPSPQJOJPOTTIPVMEDIBOHF Diluted per share 0.30 0.86 0.77 BOEJOWFTUPSTTIPVMEOPUBUUSJCVUFVOEVF Net income 4,458 12,802 26,195 DFSUBJOUZUP PSQMBDFVOEVFSFMJBODFPO Basic per share 0.07 0.21 0.45 BOZGPSXBSEMPPLJOHTUBUFNFOUT1MFBTF Diluted per share 0.07 0.21 0.43 DPOTVMU5SBOT(MPCFTQVCMJDmMJOHTBUXXX Capital expenditures and acquisitions 51,623 105,016 51,555 TFEBSDPNBOEXXXTFDHPWFEHBSTIUNM Long-term debt (end of period) 47,601 51,958 – GPSGVSUIFS NPSFEFUBJMFEJOGPSNBUJPO DPODFSOJOHUIFTFNBUUFST Production and Sales Volumes ɨFDBMDVMBUJPOTPGCBSSFMTPGPJMFRVJWBMFOU i#0&w BSFCBTFEPOBDPOWFSTJPOSBUFPG Total production (boe/d)(6:1) 7,845** 5,651 5,093 TJYUIPVTBOEDVCJDGFFU i.DGw PGOBUVSBM Average oil and liquids price ($ per Bbl) 90.32 71.30 62.37 HBTUPPOFCBSSFM i#CMw PGDSVEFPJM#0&T Average gas price ($ per Mcf) 8.46 6.64 6.18 NBZCFNJTMFBEJOH QBSUJDVMBSMZJGVTFEJO Operating expense ($ per boe) 8.10 7.35 5.99 JTPMBUJPO"#0&DPOWFSTJPOSBUJPPG.DG *Cash ﬂow from operations is a non-GAAP measure that represents cash generated from operating activities before changes #CMJTCBTFEPOBOFOFSHZFRVJWBMFODZ in non-cash working capital. DPOWFSTJPONFUIPEQSJNBSJMZBQQMJDBCMF ** Includes production from Canadian assets, which sold April 30, 2008. BUUIFCVSOFSUJQBOEEPFTOPUSFQSFTFOUB WBMVFFRVJWBMFODZBUUIFXFMMIFBE JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 47 CORPORATE FACT SHEET MAY 2008 TSX:UP

Upper Lake Oil and Gas Ltd.

ABOUT UPPER LAKE OIL AND GAS LTD. STRATEGY

• Focus on per share value growth. • Ensure a strategic balance between development, exploration and acquisition. e • Be prudent ﬁnancially. rtiesrrttieiees • Pursue high working and operated interests.

y HISTORY

s • On August 13, 2007, Diamond Tree Energy Ltd. and Crocotta Energy o Inc. announced a business combination, and the creation of Upper UpperUppppeer Lake.LLake. Lake Oil and Gas Ltd. as a new entity.

FIRST QUARTER HIGHLIGHTS

•Inthe first quarter of 2008 Upper Lake achieved cash flow of $2.6 million. • The Company reached average daily production of 967 boe/d, an increase of 32 percent over the 80-day period ending December 31, 2007 of 731 boe/d. • The Company drilled one (1.0 net) well and completed or re-completed six wells, including two wells in the Tupper, British Columbia area. • Upper Lake spent $7.6 million on its capital program, highlighted by the $3.4 million acquisition of five standing cased wells and 11,666 acres (3,867 net) of undeveloped land in the Greater Tupper area of NE British Columbia. Upper Lake’s undeveloped land now totals 23,000 acres. The Company’s capital budget for the remainder of 2008 will be driven by cash flow.

UPPER LAKE TODAY UPPER LAKE OIL AND GAS (UP-T) as of 12-May-08 Shares outstanding (millions)

• Basic 25.3 0.900 • Fully diluted 27.8 Market capitalization (basic) 0.800 @ May 30, 2008 $0.84/share $21.3 million 0.700 CURRENT STATUS CANADIAN DOLLARS 0.600 Q1 2008 production (70% gas) 967 boe/d

Proved plus probable reserves 1,316 Mboe 0.500 (Dec. 31, 2007 using forecast prices and costs) Undeveloped land 23,000 acres 400 March 31, 2008 net debt $6.8 million 200 0

Credit facility $8 million (000) VOLUME Jan 08 Feb Mar Apr May JUNIOR PROFILES

48 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 CORPORATE FACT SHEET MAY 2008 TSX:UP

OPERATIONS: CORE AREAS UPPER LAKE MANAGEMENT

Kelly J. Ogle President & CEO Don D. Copeland, P.Eng. Executive Chairman David A. Cheesman, B.Sc. Geol. VP Exploration TUPPER David R. Keenan, P.Eng. Grand Prairie VP Engineering Whitford/Hairy Hill Gary Taylor, CGA b-66-J 5

J I 31 32 Edmonton Controller

30 29

19 20 110 1 FERRYBANK 91 100 91 18 17

c-77-H Montney completion 7 8 UPPER LAKE DIRECTORS Option a-74-H Lands Halfway completion 6 5 Calgary

G H b-45-G 31 32 Paddy production b-42-H Kelly J. Ogle 30 29

110 1 19 20 President & CEO of Upper Lake

91 100 91 Mannville Ellerslie Don D. Copeland, P.Eng. Glauconite Belly River Executive Chairman of Upper Lake Thomas M. Alford, B.Comm. President & CEO TUPPER FERRYBANK WHITFORD/HAIRY HILL of IROC Systems Corporation • Multi-zone area • 90% operated W.I. • Current production is all gas Charles W. Berard, P.Eng., LLL, LLB • Adjacent lands are part of • Approximately 750 boepd • High working interest operated Partner, Macleod Dixon law ﬁrm developing Montney • Owned infrastructure • Substantial underdeveloped Howard W. Dixon, B.Comm. resource play land position • New pool gas well, Independent businessman • First Triassic test drilled and November 2007 Robert J. Zakresky, CA tested in Halfway • Currently drilling the ﬁrst of at President & CEO of Crocotta Energy • Re-entry well tested with least three wells promising results • Acquired area acreage for third quarter drills

DISCLAIMER

All statements, other than statements of historical fact, set forth in this Fact Sheet, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward- looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management’s control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Note: BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

1000, 500 - 4 Avenue SW Calgary, Alberta T2P 2V6 phone 403.237.9141 fax 403.237.9140 www.upperlake.ca JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 49 Corporate Proﬁ le May 2008

)',+#'&( )"',*&") * )',+#'&'

!"" * )- *( )"',*&") *

'"')'0$ Yoho Resources Inc. is a growth-oriented junior oil and natural gas producer, with activities concentrated in the Peace River Arch of northwest Alberta, northeast British Columbia and west central Alberta. Yoho’s experienced management team is committed to the pursuit of *"$'.&*)# sustainable per share growth through exploration and development of our existing undeveloped land base, the acquisition and subsequent ,&* )'%( )+#'&* exploitation of new properties, and by a selective high impact *)# exploration program.

,! + Yoho is budgeting capital expenditures during fi scal 2008 of up to $20 million. This represents a $5 million increase from the previously '!%$" #$& "!% % announced $15 million capital program. The Company expects to fund ""%$ a substantial portion the budget increase with funds from operations. The 2008 capital program includes drilling at total of 19 (11.7 net) to 21 (13.0 net) wells, with nine wells in the Peace River Arch, eight wells in British Columbia and two wells in West Central Alberta. Yoho is estimating to exit fi scal 2008 (September, 2008) with production of 2,300 to 2,400 boe per day, comprised of 89% natural gas production. )'.+"#*$ ) *"$'.( )")

(#+$#/+#'& Shares June 2008

Basic 18.2 MM Voting 16.3 MM Non-voting 1.9 MM Diluted 21.3 MM Management and Directors

Basic 22.8% Diluted 29.5% !"" Management Basic 6.9% Diluted 12.9% JUNIOR PROFILES

50 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Corporate Proﬁ le May 2008 !

" &! % &+ Brian McLachlan 3UHVLGHQWDQG&(2 Clark Drader 9LFH3UHVLGHQW/DQG Barry Stobo 9LFH3UHVLGHQW(QJLQHHULQJDQG&22 Wendy Woolsey 9LFH3UHVLGHQW)LQDQFHDQG&)2

) * ) * ) * ')' #) +')* !* % Bruce Allford $ # * ' # ) John Brussa "&( ! Peter Kurceba Brian McLachlan

Kevin Olson

Gary Perron Undeveloped Land: 119,000 net acres (140,000 net acres with Vision 2000 Exploration acquisition) Terry Svarich, Chairman Seismic: 2,370 km of 2D data and 290 km2 of 3D data

'&++& ')%+#'& Suite 750, 736 6th Ave SW Calgary, Alberta T2P 3T7 Cash Flow

Fiscal 2007 $9.7 MM Phone: (403) 537-1771 Q2 Fiscal 2008 (1,840 BOEPD with $7.96 per Mcf Cdn. Gas Price) $4.7 MM Fax: (403) 537-1775 [email protected] Total Debt - March 31, 2008 www.yohoresources.ca Bank Debt ($27 MM Line of Credit) $13.2 MM Work Capital Defi ciency 6.8 MM Bridge Loan 5.0 MM $26.4 MM Debt to Cash Flow 1.33x JUNIOR PROFILES

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 51 Intermediate Oil & Gas Producers

COMPARISON

INCLUSION CRITERIA • Q1 production must fall between 10,000 and 100,000 barrels of oil equivalent per day (boe/d) • Primary business must be conventional oil and gas development and production • Majority of production must be from Western Canada • Shares or units must be publicly traded on the TSX or TSX Venture Exchange

53 Q1 Production (boe/d)

54 Q1 Production Mix – Natural Gas Weighting (%) Change in Production – Q4 2007 to Q1 2008 (%)

55 Enterprise Value Versus Q1 Production ($ per boe/d) Q1 Cash Flow Netback ($/boe)

56 Q1 Operating Expenses ($/boe) Q1 General and Administrative Cash Expenses ($/boe)

57 Q1 Depletion, Depreciation and Accretion Expenses ($/boe) Q1 Net Debt to Annualized Cash Flow

58 Reserve Life Indices (Years) Enterprise Value (Less Land Value) Versus Reserves ($/boe)

59 Trading Premium to Simpliﬁed Net Asset Value Estimate (%) Q1 Total Return - Capital Gains and Distributions (%)

60 Year End Undeveloped Land Annualized Q1 Cash Flow Multiples

61 Intermediate Data Table

62 Intermediate Corporate Proﬁles INTERMEDIATE COMPARISON INTERMEDIATE

52 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Q1 2008 PRODUCTION (BOE/D)

Enerplus 89,150 Pengrowth 82,710 ARC 66,970 Bonavista 54,361 Baytex 38,164 CrescentPoint 35,832 Paramount Eng 33,967 Compton 33,342 Advantage 33,133 Progress 25,516 Duvernay 24,085 NAL 23,601 Trilogy 20,469 Peyto 20,341 Daylight 19,804 TriStar 19,432 NuVista 19,340 Highpine 19,331 Galleon 17,005 Paramount Res 14,778 True 13,582 Fairborne 12,479 Enterra 10,894 Iteration 10,890 Crew 10,614 ProEx 10,494 Pearl 10,491

0 25,000 50,000 75,000 100,000

size matters BMIR’s iQ Report deﬁnes intermediate oil and gas companies as those with production from 10,000 boe/d to 100,000 boe/d with conventional oil and gas development and production as their primary business. As well, the majority of their production must be from Western Canada and their shares or units must be publicly traded on the TSX or TSX Venture Exchange. Larger companies are in a “senior” class not included in this comparison. Junior companies, deﬁned as those with production from 500 boe/d to 10,000 boe/d, are included in the junior oil and gas company comparison section of this report, beginning on page 4.

In the oil and gas world there are advantages to being big and advantages to being small. Large companies may have more stability, better market recognition and access to capital, while small companies have the ability to act quickly and grow production without needing to replace more sizeable production declines. Larger oil and gas trusts may have the ability to add significant assets without violating the limits on the issuance of new trust units and convertible debt that constitute “normal growth” according to Canadian government specified income flow-through (SIFT) tax regulations, which apply from October 31, 2006 through December 31, 2010. The normal growth limits are calculated as a percentage of a trust’s market capitalization on October 31, 2006 and are 20 percent for each of 2008, 2009 and 2010. Unused portions may be carried forward until December 31, 2010. Smaller trusts can grow at the same percentage rate as the large trusts, but are more constrained on an absolute dollar growth basis.

Canadian Oil Sands Trust, with Q1 production of 99,200 barrels per day, has not been included because oil sands production is not comparable to conventional production. Provident Energy Trust and Harvest Energy Trust, with Q1 production of 52,300 boe/d and 58,067 boe/d respectively, are excluded due to their diverse business units. Vermilion Energy Trust, with Q1 production of 33,072 boe/d, is also not included because less than half of its production comes from Western Canada. As well, Petrobank Energy and Resources reported total Q1 production of 22,524 boe/d, but a substantial proportion of this comes from its Latin American interests and the company also has signiﬁcant oil sands interests. INTERMEDIATE COMPARISON INTERMEDIATE

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 53 Q1 PRODUCTION MIX — NATURAL GAS WEIGHTING (%) Median = 63%

Paramount Eng 100 ProEx 92 Duvernay 90 Compton 85 Progress 83 Peyto 83 Crew 81 Trilogy 77 oil or gas? Fairborne 76 As is evident from this chart, some intermediates Paramount Res 74 concentrate on developing production in one NuVista 74 commodity, while others like to have a balance of both. Oil and natural gas volumes are made Iteration 73 comparable by converting natural gas from thousands True 64 of cubic feet to barrels of oil equivalent (boe) at a ratio of 6:1. In the current market, oil is priced at Enterra 63 about 1¾ times the comparable price of natural gas (based on average May prices, WTI at $122.15 per Advantage 63 bbl and Henry Hub at $11.65 per mcf). This suggests Enerplus 58 an oil price of about $70 per bbl for parity at current gas prices. Daylight 57 In the ﬁrst quarter of 2008, the intermediates Bonavista 55 weighted towards oil generally performed better Galleon 52 than gas-weighted intermediates. The median gas weighting of 63 percent for intermediates is lower ARC 51 than the median of 71 percent for the junior oil and Pengrowth 49 gas sector. NAL 47

TriStar 30 FORMULA Highpine 30 avg. natural gas production per day (boe) Baytex 22 avg. total production per day Pearl 17 CrescentPoint 13 Note: Gas production converted to boe at 6 mcf:1boe

0 25 50 75 100 CHANGE IN PRODUCTION — Q4 2007 TO Q1 2008 (%) Median = 3%

Iteration 36 NuVista 36 TriStar 32 Galleon 16 Pearl 10 Enerplus 10 Crew 10 Duvernay 9 ProEx 8 CrescentPoint 7 Paramount Eng 7 Progress 5 ARC 5 maintaining momentum Bonavista 3 By drilling wells, conducting ﬁeld optimization activities or by Compton 2 acquiring new assets, intermediates can maintain stable production or NAL 1 even grow. Many of the intermediates in this list at one time had only a fraction of the production they have now. Pengrowth (2) Highpine (2) If no effort were made by a conventional oil and gas company to stabilize or increase production, its production would naturally decline Trilogy (3) at rates varying from 20 percent to 30 percent per year depending Baytex (3) largely on its commodity mix, depth of wells and age of assets. Anomalous events can occasionally spell even higher declines. Advantage (3) Peyto (4) FORMULA Daylight (4) current period avg. production – previous period avg. production Fairborne (4) previous period avg. production True (9) Note: Gas production converted to boe at 6:1 Enterra (11)

INTERMEDIATE COMPARISON INTERMEDIATE Paramount Res (11)

(20) (10) 0 10 20 30 40

54 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 ENTERPRISE VALUE VERSUS Q1 PRODUCTION ($ PER BOE/D) Median = $81,943/boe

CrescentPoint 143,752

Iteration 136,432

Peyto 123,600

TriStar 119,971

ProEx 116,801

ARC 103,651

Enerplus 101,789

NuVista 96,958

Crew 94,697

Galleon 85,615 Fairborne 84,825 valuation of production Paramount Res 83,414 This measurement shows each company’s enterprise value per Bonavista 81,943 ﬂowing barrel of oil equivalent per day (boe/d) of Q1 production. Enterprise value is calculated by multiplying the share or unit price Advantage 79,076 on May 30, 2008 by the weighted average number of shares or units Pengrowth 78,832 outstanding during Q1 and adding debt and debentures outstanding net of working capital at the end of the quarter. Baytex 76,392

Trilogy 73,797 A high number means the markets are placing more value on the production of a particular company, perhaps for reasons such as NAL 73,602 long life reserves, high netbacks, or perceived strong production growth prospects. Progress 72,855

Compton 71,998 FORMULA Daylight 62,675 market capitalization + net debt Highpine 52,780 average production in barrels of oil equivalent Pearl 48,525

Enterra 44,178 Note: Market capitalization = May 30 stock price x weighted average basic units outstanding True 42,487 Net debt = bank debt + debentures - working capital Paramount Eng 37,049

0 50,000 100,000 150,000 Q1 CASH FLOW NETBACK ($/BOE) Median = $30.36/boe

CrescentPoint 47.74 Highpine 42.20 TriStar 41.57 ARC 37.31 Fairborne 37.07 Peyto 36.44 Enerplus 36.34 NAL 36.31 Galleon 35.83 Duvernay 33.38 Daylight 32.55 making margins Advantage 31.38 Cash flow netbacks are similar to cash flow margins in other Bonavista 31.36 industries. They indicate how much cash flow a company generates NuVista 30.36 from each barrel of oil equivalent (boe) of production. Companies with higher netbacks may have better chances of surviving and even Crew 29.72 thriving during periods of lower commodity prices when higher cost Progress 29.34 production may be uneconomical.

Baytex 29.25 The price received for oil and gas production is one of the biggest Pengrowth 29.05 factors in determining netbacks. Prices received are in turn inﬂuenced by various factors including the world supply and demand Iteration 28.86 for oil and natural gas, international politics and cartels, as well as Trilogy 28.73 company hedging programs and production quality. ProEx 27.30 FORMULA Enterra 24.47 cash ﬂow from operations Compton 23.16 total production in the period Pearl 20.81 Note: True 19.61 Total production in the period = Avg. daily production x # days in period Paramount Res 17.98

Paramount Eng 17.20 COMPARISON INTERMEDIATE

0.00 10.00 20.00 30.00 40.00 50.00 60.00

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 55 Q1 OPERATING EXPENSES ($/BOE) Median = $10.29/boe

Pearl 19.78 Paramount Res 18.54 Enterra 14.03 True 13.75 Advantage 13.36 Pengrowth 13.22 Daylight 12.08 Galleon 11.28 Highpine 11.19 Baytex 10.87 HIÀFLHQF\RIRSHUDWLRQV Paramount Eng 10.69 The biggest cash cost of producing oil and gas is often the operating Trilogy 10.66 expenses, so this is also one of the most important types of cost to TriStar 10.51 control. Iteration 10.29 Most intermediates include a separate line in their ﬁnancial statements for transportation costs associated with moving the oil NAL 9.91 and gas to a market point. For intermediates that have indicated their ARC 9.55 transportation costs separately, we have not included these costs in this graph of operating expenses. For intermediates that include their Compton 9.51 transportation costs within their operating expenses, these costs are Bonavista 8.97 reﬂected in the graph. Enerplus 8.88 FORMULA CrescentPoint 8.39 Fairborne 8.31 operating expenses (excluding transportation costs) NuVista 7.62 total production in the period

Crew 6.91 Note: Progress 5.89 Total production in the period = Avg. daily production x # days in period ProEx 5.58 Duvernay 5.47 Peyto 2.68

0.00 5.00 10.00 15.00 20.00 25.00 Q1 GENERAL AND ADMINISTRATIVE CASH EXPENSES ($/BOE) Median = $2.03/boe

Enterra 6.10 Paramount Res 6.06 Fairborne 4.28 Trilogy 3.81 ARC 3.48 Daylight 3.31 Pearl 3.17 True 3.05 Compton 2.94 Paramount Eng 2.60 Advantage 2.40 Iteration 2.30 HIÀFLHQF\RIRIÀFHV Baytex 2.06 General and administrative (G&A) cash expenses per boe indicate the efficiency of office-related costs per barrel of oil equivalent Pengrowth 2.03 produced. Enerplus 2.03 Factors that affect G&A include the number of staff, their salaries NAL 1.74 and benefits, contractors, service agreements, management fees, Highpine 1.61 lease terms, communication materials, processes and systems. The size of G&A can also be affected by the method a company uses in Galleon 1.53 accounting for expenses, such as whether or not they are capitalized. TriStar 1.53 Wherever possible we have only included cash G&A expenses and Progress 1.36 management fees, excluding non-cash items such as share-based or unit-based compensation. ProEx 1.29

NuVista 1.25 FORMULA Peyto 1.19 general & administrative expenses CrescentPoint 1.12 total production in the period Crew 1.08 Notes: Duvernay 0.82 Total production in the period = Avg. daily production x # days in period

INTERMEDIATE COMPARISON INTERMEDIATE Bonavista 0.71

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00

56 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Q1 DEPLETION, DEPRECIATION AND ACCRETION EXPENSES ($/BOE) Median = $21.25/boe

TriStar 32.61 Highpine 32.35 True 29.37 Pearl 26.23 Advantage 25.50 Enterra 25.07 CrescentPoint 23.75 Crew 23.44 NAL 23.12 Pengrowth 22.10 Galleon 22.09 Fairborne 21.98 DUHÁHFWLRQRIÀQGLQJFRVWV Iteration 21.75 Depletion, depreciation and accretion expenses can be considered Duvernay 21.25 an approximation of ﬁnding and development costs for oil and gas Paramount Res 20.95 reserves. These costs relate mainly to accounting for the production of oil and gas reserves, and the necessary removal of value from the Daylight 19.52 balance sheet. Higher amounts mean that reserves values are being NuVista 18.58 decreased more rapidly. This could be because the valuation was too high in the ﬁrst place, or they are losing value at a fast pace for any Paramount Eng 18.18 number of reasons. Enerplus 17.23 Accounting styles vary in that some intermediates show accretion Progress 16.82 as a separate line item, while others include it with depletion and ARC 15.92 depreciation. Either way, we add the accretion in for this calculation. Trilogy 15.53 FORMULA ProEx 15.12 Baytex 14.53 depletion, depreciation & accretion expenses Compton 14.05 total production in the period Bonavista 13.21 Note: Total production in the period = Avg. daily production x # days in period Peyto 10.42

0.00 10.00 20.00 30.00 40.00 Q1 NET DEBT TO ANNUALIZED CASH FLOW Median = 1.4

Compton 3.3 True 2.5 Enterra 2.4 Advantage 2.1 Iteration 2.0 NuVista 1.9 Duvernay 1.9 Daylight 1.8 Peyto 1.7 Pengrowth 1.7 Trilogy 1.7 Progress 1.6 Bonavista 1.5 ProEx 1.4 capital structure Fairborne 1.2 For intermediates, it may often be considered cheaper to access Crew 1.2 capital by incurring debt at low interest rates, rather than by Galleon 1.2 issuing new shares or units that the company may consider to be undervalued, or that may have a higher cost in terms of future NAL 1.1 dividends or distributions. Paramount Eng 1.1 We have calculated net debt as bank debt and debentures net of TriStar 1.1 working capital. While no company in the group has working capital Enerplus 1.1 exceeding its debt, there is a wide range from those that have little net debt to those with high debt leverage. Baytex 1.1 CrescentPoint 1.0 FORMULA

ARC 0.8 net debt Paramount Res 0.8 cash ﬂow for period x 4 Highpine 0.4 Note: Net debt = bank debt + debentures - working capital

Pearl 0.4 COMPARISON INTERMEDIATE

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 57 RESERVE LIFE INDICES (YEARS) Median = 9.2 years

Compton 22.3 Peyto 22.2 Duvernay 16.9 ProEx 13.7 Enerplus 13.5 Pearl 13.4 CrescentPoint 12.8 Advantage 12.5 Baytex 12.1 ARC 11.6 Fairborne 11.1 Pengrowth 10.5 Galleon 9.6 True 9.2 Progress 9.2 how long will the reserves last? Trilogy 9.0 Bonavista 9.0 Reserve life is a hypothetical measurement of the number of years it would take to produce all of a given company’s December 31, 2007 Daylight 8.9 proven plus probable reserves based on annualized Q1 2008 daily Crew 8.6 production rates. NAL 7.9 Note that for some intermediates, reserves volumes may already have changed signiﬁcantly through acquisitions or discoveries since the Paramount Res 7.7 December 31, 2007. Enterra 7.6 TriStar 7.2 FORMULA Paramount Eng 6.8 proved plus probable reserves volumes Highpine 6.3 average daily production x 365 NuVista 5.6 Iteration 4.8

0.0 5.0 10.0 15.0 20.0 25.0 ENTERPRISE VALUE (LESS LAND VALUE) VERSUS RESERVES ($/BOE) Median = $20.82/boe

Iteration 30.21 Crew 28.38 CrescentPoint 28.07 NuVista 27.37 TriStar 26.91 Duvernay 25.64 NAL 24.65 ARC 23.99 Paramount Res 23.70 Highpine 23.14 market valuation of reserves Trilogy 21.28 This measurement is found by adding market capitalization ProEx 21.20 and debt capitalization, less an estimated value for Progress 20.88 undeveloped land at $125 per acre, divided by the amount of proved and probable reserves at year end. The result is a Galleon 20.82 wide range of values per boe of reserves. Fairborne 19.92 The intermediates at the top of this chart are likely there Pengrowth 19.85 for a reason. They may have strong growth prospects and Bonavista 19.10 high quality reserves that will supply stable distributions or dividends or capital appreciation for investors in years Daylight 18.44 to come. Baytex 16.63 Conversely, any of the intermediates at the bottom of this Enterra 16.01 chart that are not there for a good reason may represent a buying opportunity. Enerplus 15.83 Paramount Eng 15.65 FORMULA Peyto 15.12 Advantage 12.91 market capitalization + net debt including debentures - net acres of undeveloped land X $125/acre True 11.47 proved plus probable reserves volumes Pearl 8.88 Note: Market capitalization = May 30 share price x basic shares outstanding

INTERMEDIATE COMPARISON INTERMEDIATE Compton 8.20

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

58 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 TRADING PREMIUM TO SIMPLIFIED NET ASSET VALUE ESTIMATE (%) Median = 23%

Duvernay 118 NuVista 76 Crew 75 Iteration 74 ProEx 73 ARC 54 Progress 46 NAL 43 TriStar 42 Paramount Res 35 VLPSOLÀHG\HWUHYHDOLQJ CrescentPoint 34 This chart compares the May 30, 2008 share or unit prices to a Trilogy 32 simpliﬁed estimate of each intermediate’s December 31, 2007 net Fairborne 31 asset value. Although this measurement provides a good overall snapshot, investors are cautioned that the results can be misleading. Daylight 23 All undeveloped land has been valued equally at $125 per acre and Enerplus 23 no value has been assigned to seismic data, joint venture agreements or prospects. Pengrowth 21 Baytex 14 Some investors may look for intermediates that appear to be trading at a bargain, while others may ﬁnd it attractive to invest in Paramount Eng 13 intermediates even though they trade at a premium due to factors Galleon 13 such as the quality of the management team or growth prospects. It is also easier for intermediates that trade at a premium to make Bonavista 10 accretive acquisitions or raise capital by issuing new shares or units. Pearl 8 In this way, success can build on success. Peyto 7 FORMULA Highpine 2 market cap – (net present value of P+P reserves Enterra (1) – net debt + net acres of undeveloped land x $125/acre) True (18) market cap Advantage (22) Compton (32)

(40) (20) 0 20 40 60 80 100 120 140 Q1 TOTAL RETURN - CAPITAL GAINS AND DISTRIBUTIONS (%) January through March Median: 20.6% January through May Median: 45.9%

Enterra 258.3 Crew 123.4 Duvernay 94.5 Trilogy 80.4 ProEx 68.9 Iteration 60.0 Baytex 57.4 Advantage 55.6 Fairborne 54.4 positive returns Paramount Eng 54.0 During the first quarter of 2008, the average intermediate experienced a significant increase in its share or unit price. When Daylight 53.1 dividends or distributions are added into the mix, the growth is even CrescentPoint 49.7 greater, with the median intermediate increasing 20.6% in the first ARC 47.8 quarter and 45.9% in the first five months of 2008. TriStar 45.9 Distribution paying trusts and dividend-paying corporations may show higher total returns, particularly during periods when share NuVista 42.0 prices are generally declining in the sector. However, companies that Progress 37.3 reinvest their cash flow in their operations, rather than paying it out NAL 34.3 as dividends or distributions, should see greater capital appreciation, 32.8 which over the long term should largely offset the cash returns that True investors in their dividend and distribution paying peers receive. Highpine 30.9 Paramount Res 24.5 FORMULA Compton 23.8 capital gain + total distributions in that period per unit 21.9 Enerplus market price at end of the previous period 21.8 Pengrowth Note: Bonavista 20.0 Capital gain in period = market price at end of current period – market price at end of previous period Peyto 18.9 Shared price change plus distributions from Jan. through May 2008 Galleon 12.7 Shared price change plus distributions from Jan. through March 2008

Pearl (3.1) COMPARISON INTERMEDIATE

(50) 0 50 100 150 200 250 300

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 59 YEAR END 2007 UNDEVELOPED LAND (NET ACRES) Median = 536,232 net acres

Paramount Eng 2,000,768 Paramount Res 1,287,000 Bonavista 1,070,100 Pengrowth 966,828 Compton 893,462 TriStar 756,863 Enerplus 711,600 Advantage 685,584 Baytex 649,216 NuVista 609,265 Galleon 558,569 LURQVLQWKHÀUH Progress 545,000 Owning the mineral rights for undeveloped land that can be utilized True 537,879 in future drilling programs can be an important factor for generating future growth. Of course, all undeveloped land isn’t created equal; ARC 536,232 some land may be more valuable that other land due to the nature of CrescentPoint 478,422 oil and gas formations and trends and proximity to infrastructure. Pearl 443,748 The number of undeveloped acres on this graph does not take into account acres for which a company has access to through a farm-in ProEx 433,000 arrangement, because the land is yet to be earned. Enterra 419,643 Some companies maintain that it is better to keep a smaller focused Trilogy 413,254 undeveloped land position, while others like to have as much land Highpine 309,201 as possible. NAL 304,479 FORMULA Daylight 290,000 gross acres of undeveloped land x percentage interest Iteration 267,350 Duvernay 250,456 Crew 235,524 Fairborne 229,933 Peyto 123,008

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 ANNUALIZED Q1 CASH FLOW MULTIPLES Enterprise Value to Annualized Cash Flow Median = 7.1 Share Price to Annualized Cash Flow Median = 5.7

Duvernay 13.3 Paramount Res 12.7 ProEx 11.6 Peyto 9.3 Crew 8.7 Compton 8.5 CrescentPoint 8.1 Iteration 8.0 ARC 7.6 Multiple upside Pengrowth 7.4 With solid share or unit price appreciation for most intermediates during the past several months, cash flow multiples have moved up. TriStar 7.2 But of interest is the differentiation between the intermediates and NuVista 7.2 the juniors, with the intermediates recently trading more than one full cash flow multiple ahead of their junior colleagues. Bonavista 7.2 The calculation of annualized cash flow multiples uses the closing Baytex 7.1 market price on May 30, 2008, combined with the third quarter Trilogy 7.0 2008 weighted average shares outstanding, net debt and cash flow. The values shown on the chart relate to the enterprise value multiples Enerplus 6.9 of annualized cash flow denoted by the dark bars. The lighter grey Advantage 6.9 bars do not take debt into account as they are simply a reflection of Progress 6.8 market capitalization as a multiple of annualized cash flow. Galleon 6.5 FORMULA Pearl 6.4 enterprise value Fairborne 6.3 (cash flow for period x 4) True 6.0 Note: Paramount Eng 5.9 Enterprise value = Q1 weighted average basic shares x May 30, 2008 share price + net debt NAL 5.5 Daylight 5.3 Enterprise Value to Annualized Cash Flow Market Capitalization to Annualized Cash Flow Enterra 5.0

INTERMEDIATE COMPARISON INTERMEDIATE Highpine 3.4

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

60 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 intermediate DATA TABLE ($/unit) reserves plus

10% NPV P+P Despite having signiﬁcant production in Western Canada, $125/acre undev. land less net debt NAV per unit using

Simplified year end we have not included certain intermediate producers in our comparison, including the following: Q108 ($000)

cash flow Harvest: integrated businesses Petrobank: international operations and oil sands interests Q108

($000) Provident: integrated businesses cash flow Vermillion: international operations

on statement of Canadian Oil Sands: oil sands focus distributions paid ($) unit Q108 declared per distributions ($000) and debt Ent. value using May 30 Mar. 31 units unit price and ($000) net debt including debentures Mar. 31/08 (000) shares including Mar 31/08 basic units outstanding exchangeable daily (boe/d) production Q108 average land (net acres) Dec. 31/07 undeveloped ($000) net debt including 343,452 536,232 20,341 358,037 Dec 31/07 debentures 11,028,130 16,006,384 770,773 12,516,191 (000) shares including Dec 31/07 Basic units outstanding exchangeable ($000) Dec 31/07 10% NPV of P+P reserves (forecast price) (mboe) Dec 31/07 proved plus price, gross) probable (P+P) reserves (forecast ($) May 2.52 51,330 421,246 189,242 34,152 443,748 10,491 189,242 32,177 509,066 0.000 0 19,869 2.34 30/08 56.49 148,13317.47 2,006,266 59,473 58,482 1,112,000 525,400 63,811 250,456 193,55718.29 24,085 558,569 51,092 59,672 17,005 1,007,000 551,916 3,922,787 68,422 68,462 260,558 0.000 217,398 1,455,883 756,863 0.000 0 19,432 73,152 110,110 0 317,315 55,445 25.86 2,331,227 0.000 15.49 0 73,500 12.92 Unit price T T T V Stock symbol (all listed on TSX) AVN.UN 12.98 151,009 2,462,610ERF.UN 138,269 46.45HPX-T 240,290ITX-T 440,234 13.06 5,857,000 685,584PMT.UN 7.60 33,133 9.20 44,184 129,813PEY.UN 1,029,318 19,041 1,005,591 139,273 19.39 84,193 345,021 711,600 812,290 1,201,000 67,886 2,620,052 164,759 89,150 174,295 71,030 2,361,369 109,557 0.360 68,731 559,806 168,004 309,201 105,712 1,270,742 2,000,768 40,302 9,074,520 19,331 457,428 267,350 94,618 33,967 10,890 123,008 1.300 67,932 110,760 133,073 20,341 165,020 192,358 16.69 1,020,265 239,453 294,854 231,588 1,258,443 105,920 1,485,743 0.000 460,405 0.300 2,514,198 37.87 0.000 28,652 0 0.420 53,167 74,240 0 44,798 28,604 67,459 12.81 8.14 4.36 18.16 e r r r g y Gordon Ker Wayne Chorney TUI.UN 4.25 45,406 596,120 79,216 251,163 537,879 13,582 79,230 240,318 577,047 0.120 9,507 24,233 5.20 Jonathan Lexie James KinnearDon Gra PGF.UN 20.34 318,367 5,456,000 246,846 1,419,145 966,828 82,710 247,934 1,477,230 6,520,206 0.675 166,782 218,625 16.84 Kelly Drade John DielwartRaymond ChanKeith MacPhail AET.UN BTE.UNErnie Sapieha BNP.UNScott Saxberg 29.12 28.95 CMT-TDale Shwed 32.70Anthony Lambert CPG.UN DAY.UNMichael Rose CR-T 11.35 283,550 36.13 168,076Keith Conrad DDV- 178,575 10.57 4,651,000Steven VanSickle 2,494,267 FEL-TSteve Sugianto 3,153,772 16.15 ENT.UN 270,819 167,476 GO.A- Brian Illin 63,982 2,919,000 210,232 3,658,901 10.11Andrew Wiswell 4.12 84,540Alex Verge 85,757 1,027,000 33,363 NAE.UN 748,700Susan Riddell Ros 428,589 129,098Clay Riddell 113,761 740,292 14.78 577,247 50,710Keith Hill 30,260 NVA-T 866,962 536,232 77,657 650,088 POU-T 649,216 1,070,100 808,744 486,000David Johnson 18.60 395,222 PXX- 68,212 53,577 66,970Michael Culbert 893,462 17.05 PXE-T 478,422 38,164 54,361Jim Riddell PGX.UN 1,282,400Brett Herman 110,984 84,282 61,436 290,000 39,621 33,342 211,931 14.40 35,832 TET.UN 19.98 TOG- 107,982 41,268 85,777 186,788 283,904 770,100 235,524 90,494 19,804 660,745 923,474 12.05 129,339 432,190 6,941,531 679,500 124,784 85,237 381,935 52,629 4,454,485 229,933 419,643 2,915,434 10,614 932,597 642,444 77,914 1,337,000 52,704 67,278 2,400,595 670,000 0.600 5,150,893 12,479 67,681 304,479 10,894 417,657 0.900 0.560 180,322 1,154,700 53,676 1,241,208 97,479 (15,000) 101,300 0.000 23,601 138,233 0.600 52,994 84,337 61,436 227,400 77,428 609,265 37,280 444,223 1,005,100 1,287,000 94,609 155,132 110,986 0.300 205,866 101,570 228,170 93,519 73,625 19,340 343,452 1,058,513 14,778 545,000 481,286 155,664 0.000 0 354,851 433,000 18.88 23,308 1,737,062 70,262 413,254 29.70 25,516 0.000 78,679 58,667 25.39 67,693 10,494 0.000 411,735 20,469 26.97 0.480 78,499 0 1,875,164 98,016 1,232,665 53,951 16.76 28,709 447,531 8.60 0 95,642 147,742 36,376 0 0.000 1,858,955 42,101 1,225,676 0.000 358,037 77,974 24,256 1,510,522 9.25 0.300 0.000 0 7.72 0.210 10.37 0 4.14 29,311 53,434 24,175 68,115 12,676 0 53,509 26,069 10.56 12.64 9.86 9.12 11.57 e L INTERMEDIATE COMPARISON INTERMEDIATE Enerplus Highpin True TOTA MEDIAN Pengrowth Peyto Advantage Shortened company name Chief executive Baytex Bonavista Compton CrescentPoint Crew Daylight Duvernay Fairborne Galleon NuVista Paramount Eng Pearl Progress Trilogy TriStar ARC Enterra Iteration NAL Paramount Res ProEx

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 61 PROVEN STRATEGY CORPORATE PROFILE • June 2008 TSX : CPG.UN TSX : CPG.UN

RECENT HIGHLIGHTS • May 9, 2008 - Crescent Point announced its operating and ﬁ nancial results for the ﬁ rst quarter ended March 31, 2008. The Trust grew production by 7 percent over Q4 2007 to an average of more than 35,800 boe/d, of which 87 percent was oil. The Trust increased its netback to $52.68 per boe, from $37.14 in Q1 2007 as a result of higher benchmark prices, improved crude quality, lower operating costs and royalties. Operating costs dropped by 11 percent from the same period in 2007 through operating cost discipline and increasing Bakken production.

• March 26, 2008 - Crescent Point completed its previously announced investment in Shelter Bay, Production Growth a private Bakken light oil growth company and closed the acquisition of the non Bakken assets of (boe/d) Landex Petroleum Corp. The Landex assets are located in the Trust’s core southeast Saskatchewan area and produce approximately 1,500 boe/d of high netback light oil. The investment in Shelter Bay was increased to $120 million, representing a 19 percent interest in the company.

• March 12, 2008 - Crescent Point announced its operating and financial results for the fourth quarter and year ended December 31, 2007. The Trust increased proved plus probable reserves by 85

percent and Net Asset Value per unit by 86 percent. Production for the fourth quarter averaged 33,351 boe/d. QUARTERLY HIGHLIGHTS

(000s, except where indicated) Q1 2008 Q4 2007 Q3 2007 Total revenue 275,979 214,748 164,368 Cash ﬂ ow 155,664 112,572 92,215 Per unit, diluted ($) 1.28 0.99 0.89 Net income (loss) (41,464) (90,348) 18,410 1) Estimate Per unit, diluted ($) (0.34) (0.80) 0.18

Development capital expenditures 116,895 95,385 57,792 Reserves Growth Net debt 565,475 650,088 208,554 (mmboe) Production Oil & liquids (bbl/d) 31,111 28,601 23,846 Natural gas (mcf/d) 28,325 28,500 22,357

Equivalent (boe/d) 35,832 33,351 27,572

Per quarterly ﬁ nancial statements available at www.crescentpointenergy.com.

KEY STATISTICS STRONG RESERVE BASE Trading Symbol: TSX - CPG.UN • Strategically focused 7RWDO3URYHG 7RWDO3URYHG3OXV3UREDEOH

Units Outstanding (March ‘08): 123 mm • Low risk, predictable production and reserve base 1) Includes year to date acquisitions of Pilot and non-Bakken Landex Current Monthly Distribution: $0.20 per unit • Large drilling inventory with nearly 1,400 Cash Flow Growth Projected 2008 payout ratio: 51% locations, representing 13 years of drilling ($mm)

Bank Line $1,000 mm • Potential to more than double reserves over time

Projected Average Net Debt 2008: $610 mm • Signiﬁ cant resource base Projected 2008 Debt/Cash • Original oil in place (OOIP) of over 6 billion barrels 1.0 times Flow ratio: • Less than 5% recovered to date

• Approximately 87% light oil, 13% natural gas Production (2008 Forecast) production weighting Oil & Liquids (bbls/d) 30,125 • 85% operated Gas (mcf/d) 26,250

• High working interests averaging 80% Total (boe/d) 34,500

Reserve Life Index Proved Plus Probable 14.0 years

(1) Estimate US $102.50 WTI/bbl; $8.50/mcf AECO and $1.00 US Exchange Rate INTERMEDIATE PROFILES INTERMEDIATE

62 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 CORPORATE PROFILE • June 2008

SIGNIFICANT RESOURCE BASE Crescent Point focuses on pools of reserves with large amounts of original oil in place (OOIP). With the most recently announced acquisition, the Trust’s reserves include OOIP of over 6 billion barrels, of which less than 5 percent has been recovered to date. Crescent Point continues to apply its disciplined strategy of acquiring, exploiting and developing high quality, long life oil and gas properties. The Trust maintains an aggressive hedge program and strong balance sheet with a forecast 12 month debt to cash ﬂ ow of less than 1.0 times.

OFFICERS Scott Saxberg, BSc, PEng - President & CEO Greg Tisdale, BComm, CA - CFO Neil Smith, BASc, PEng - VP Engineering & Business Development Dave Balutis, BSc - VP Geosciences Tamara MacDonald, BComm - VP Land Ken Lamont, BComm, CA - Controller and Treasurer

DIRECTORS Peter Bannister - Chairman Paul Colborne Ken Cugnet HIGH QUALITY HEDGING STRATEGY RESERVE BASE Hugh Gillard • Provide greater stability to distributions Gerald Romanzin • Hedge up to 65% of after-Crown royalty Scott Saxberg volumes Gregory Turnbull • Hedge up to 3.5 years PROVEN MANAGEMENT PARTNERS BANKER OIL HEDGES EXCELLENT Scotiabank, Calgary, AB BALANCE AUDITOR 20000 SHEET PricewaterhouseCoopers LLP, Calgary, AB 16000 LEGAL COUNSEL McCarthy Tetrault, Calgary, AB 12000 EVALUATION ENGINEERS GLJ Petroleum Consultants Ltd., Calgary, AB boe/d 8000 Sproule Associates Ltd., Calgary, AB 4000 REGISTRAR AGENT Olympia Trust Company, Calgary, AB 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 08 08 09 09 09 09 10 10 10 10 11 11 11 ANALYST COVERAGE Swaps Collars Puts BMO Nesbitt Burns Canaccord Capital CIBC Wood Gundy AVERAGE HEDGE PRICE Cormark Securities

$110.00 First Energy Capital $105.00 GMP Securities $100.00 $95.00 Haywood Securities $90.00 National Bank Financial $85.00 Royal Bank of Canada $80.00

C$/boe $75.00 Scotia Capital $70.00 Tristone Capital $65.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 TD Newcrest 08 08 09 09 09 09 10 10 10 10 11 11 11 UBS Securities Canada Market Hedge Price Floor Hedge Price

CONTACT INFORMATION 2800, 111 - 5th Avenue SW Calgary, AB T2P 3Y6 tel 403.693.0020 fax 403.693.0070 toll-free 888.693.0020

[email protected] www.crescentpointenergy.com PROFILES INTERMEDIATE

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 63 Corporate profile www.galleonenergy.com | TSX: GO.A

Galleon Energy Inc. is part of an exclusive group of teams in the sector. Galleon’s size gives the company mid-sized oil and natural gas explorers and producers the power of a senior producer with the flexibility of a operating in Western Canada. Galleon has the largest junior explorer as it seeks to build premium oil and gas contiguous land block ever assembled on Alberta’s assets with sustainable growth. Galleon Energy trades prolific Peace River Arch and one of the best technical on the TSX under the symbols GO.A and GO.B.

Building a Premium Company on the Peace River Arch

Eaglesham Oil & Gas Fairway

ALBERTA

Peace River Arch

Grande Prairie

Edmonton

Montney Oil & Gas Fairway

050

miles Beaverhill Lake Light Oil Fairway Galleon lands ExAlta lands Adamant lands

Corporate Strategy Investment Opportunity

Q Galleon seeks to build premium oil and gas assets with Q Talented Team sustainable growth in the Peace River Arch Proven track record of growth through the drill bit and strategic acquisitions Q Focused and dominant land position with access to more than

one million gross acres Q Premium Assets

Q Long-term upside includes more than 775 locations Strong land access with over one million gross acres and more than 775 drilling locations Q Control own destiny by owning extensive infrastructure — more than 150 MMcf/d gas plant capacity plus 35,000 BOE/d oil Q Significant Size battery capacity All the power of a senior producer with the flexibility of a junior. Galleon is leveraging its valuation growth through Q Technical expertise and knowledge translates into outstanding exposure to significant oil pools and large gas pools. drilling success of over 80% to date INTERMEDIATE PROFILES INTERMEDIATE

64 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Cash Flow 2008 Catalysts

$MM Q Significant cash flow growth from existing core areas 250 Q 2008 capital program will be funded from internal cash flow

200 Cash flow potential Q Immediate upside by exploiting undercapitalized assets from new acquisitions 150 Q Large option value from high impact projects like Montney resource gas, horizontal well on tight gas, Eaglesham and 100 Puskwa light oil projects

0 Share Profile 2007 2008 2008 (at $75 WTI, (at $95 WTI, “A” shares outstanding 72.6 million $7 AECO) $8.50 AECO) “B” shares (convertible “A” shares) 0.9 million Reserves Growth Stock options 6.5 million “A” shares Drilling and acquisitions deliver sustainable growth Trading symbols TSX GO.A, GO.B

Reserves (MMBOE) Total Proved Proved + Probable GO.A 52-week range $20.15 – $11.49 70 GO.B 52-week range $9.99 – $8.50 60 * Commitment Officers & directors own ~8% diluted 50

40 > 75% CAGR 30 Management Team Board of Directors 20 Steve Sugianto Steve Sugianto President and CEO 10 Glenn Carley Glenn R. Carley 0 2003 2004 2005 2006 2007 Q2 2008 Executive Chairman John Brussa (Includes ExAlta & *CAGR: compound annual growth rate Adamant) Shivon Crabtree C. Steven Cohen Vice President and CFO William Cooke Jim Iverson Brad Munro Production history and potential Vice President, Exploration East Sustainable year-over-year production growth Marc Houle Vice President, Exploration West Production (BOE/d) Q Oil + NGL QGas QRange Dale Orton 25,000 Vice President, Engineering

20,000 Devin Sundstrom Vice President, Production 15,000 Chris Tibbles Vice President, Land 10,000 Bill Wee 5,000 Vice President, Corporate Development 0 Forecast 2003 2004 2005 2006 2007 2008 Exit June 2008

HEAD OFFICE | 400, 250 Second Street SW | Calgary, Alberta T2P 0C1 | tel 403.261.6012 | fax 403.262.5561 PROFILES INTERMEDIATE

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 65 JUNE 08 CORPORATE FACT SHEET NAL OIL & GAS

438.!%5.

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

FINANCIAL AND OPERATING HIGHLIGHTS

CHANGE 1 OVER1 Q1 2008 HIGHLIGHTS 'ROSSREVENUE NETOFROYALTIESkS n 0RODUCTIONVOLUMESINCREASEDBYPERCENT &UNDSFROMOPERATIONS&&/ kS n &UNDSFROMOPERATIONSINCREASEDPERCENT &&/ n !CQUISITIONSOF4IBERIUS%XPLORATION )NCAND $ISTRIBUTIONSPERUNIT 3PEAR%XPLORATION )NCCOMPLETED 0AYOUTRATIOOF&&/ n $ISTRIBUTIONSPERUNITREMAINEDCONSISTENTAT #APITALEXPENDITURESkS n #APITALEXPENDITURESWEREMILLION $EBT NETOFWORKINGCAPITALkS COMPAREDTOMILLIONAYEAREARLIER #ONVERTIBLE$EBENTURESFACEVALUE kS 7EIGHTEDAVERAGEUNITSOUTSTANDING RECENT DEVELOPMENTS 0RODUCTION .!,/IL'AS4RUST!NNOUNCES*UNE #RUDEOILBBLSD $ISTRIBUTIONTO5NITHOLDERS .ATURALGASLIQUIDSBBLSD .ATURALGAS-CFD .!,/IL'AS4RUST 2EPORTS(IGHER &IRST /ILEQUIVALENTBOEDo 1UARTER0RODUCTIONAND#ASH&LOWAND &&/#ASHëOWFROMOPERATINGACTIVITIES ADDBACKCHANGESINNON CASHWORKINGCAPITAL !NNOUNCES )NCREASED#APITAL0ROGRAM .!,/IL'AS4RUST )NFORMATION!VAILABLE KEY STATISTICS 4HROUGH30-ARKET!CCESS0ROGRAM 438TRADINGSYMBOL .!%5. MAP OF CORE AREAS 5NITPRICE WEEKTRADINGRANGE #URRENTMONTHLYDISTRIBUTION PERUNIT #URRENTCASHYIELD

5NITSOUTSTANDING MILLION "2)4)3(#/,5-")! 0AYOUTRATIOBASEDONFUNDSFROMOPERATIONS1 .ETDEBTTOTRAILINGMONTHCASHëOW !,"%24! EXCLUDINGCONVERTIBLEDEBENTURESASDEBT 3!3+!4#(%7!. .ETDEBTTOTRAILINGMONTHCASHëOW INCLUDINGCONVERTIBLEDEBENTURESASDEBT %DMONTON

2008 GUIDANCE (1/05/08)

!VERAGEDAILYPRODUCTIONBOEDo o #ALGARY 2EGINA /PERATINGCOSTSBOEo o 'ENERALADMINBOEo o #APITALSPENDING-- o INTERMEDIATE PROFILES INTERMEDIATE

66 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Production (boe/d)

2008 Average Production Mix - Forecast

,AKE%RIE .', "# #RUDE/IL !LBERTA

3ASKATCHEWAN .ATURAL'AS

DIRECTORS LEGAL COUNSEL *#HARLES#ATY "ENNETT*ONES,,0 #HAIRMANOFTHE"OARD AUDITORS Capital Expenditures Chart )RVINE*+OOP +0-',,0 $ENNIS'&LANAGAN INDEPENDENT "ARRY$3TEWART ENGINEERS 'ORDON3,ACKENBAUER 7ARREN!4HOMSON -C$ANIELAND!SSOCIATES !NDREW"7ISWELL BANK OFFICERS "ANKOF-ONTREAL !NDREW"7ISWELL TRUSTEE & E 0RESIDENTAND#HIEF TRANSFER AGENT %XECUTIVE/FêCER #OMPUTERSHARE4RUST

(1) +EITH!3TEEVES Funds From Operations (FFO) ($ per unit) #OMPANYOF#ANADA 6ICE0RESIDENT 4ELEPHONE &INANCEAND o #HIEF&INANCIAL/FêCER 7EBSITE -ARLON*-C$OUGALL WWWCOMPUTERSHARECOM 6ICE0RESIDENT /PERATIONS

"EN,"URY 6ICE0RESIDENT -ARKETING *OHN(+OUSINOIRIS #ORPORATE3ECRETARY E (1) FFO = Cash flow from operating activities + add back changes in non-cash working capital items

HEAD OFFICE INVESTOR RELATIONS

TH!VENUE37 4OLL &REE4ELEPHONE )N#ALGARY o #ALGARY !LBERTA403 &ACSIMILE % MAILINVESTORRELATIONS NALCA 7EBSITEWWWNALCA

JUNE 08 CORPORATE FACT SHEET NAL OIL & GAS INTERMEDIATE PROFILES INTERMEDIATE

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 67 international oil & gas COMPARISON OF COMPANIES WITH GREATER THAN $10 MILLION MARKET CAPITALIZATION

Oil and gas companies with international interests can offer investors the potential Although these companies operate internationally, they choose to maintain their stock for big rewards. Companies that participate internationally may gain exposure to listings and most of their head office locations within Canada. Many of the countries longer term, higher impact projects; they may face less competition than often in which these companies operate do not have established marketplaces with firm seen in traditional producing basins in North America; and the potential to tap into government guidelines. The Canadian marketplace allows investors to participate new or undeveloped fields can spark tremendous growth and success. Depending in a fair and efficient market system with high standards for regulatory oversight where a company is operating, there may also be some challenges to face, such and corporate governance. These attributes greatly improve a company’s ability to as political instability, complex fiscal regimes, regulatory hurdles, immature legal access capital from worldwide sources, increase share liquidity, raise a company’s systems and limited infrastructure. These factors may cause delays or may derail profile and allow it to be easily evaluated so as to take advantage of merger and projects. Thorough due diligence prior to investing, and patience once invested, is acquisition opportunities. an absolute must for investors.

“Exchange/ Market capitalization symbol “ Recent quarter May 30 S/O Basic using May 30 price with Company (Reports in US$) Key Executive T = TSX Active countries avg. production Share Price (As at May 30/08) May 30 shares V = TSX (boe/d) “ outstanding ($) Venture” Admiral Bay Resources Steven Tedesco V-ADB United States 351 $0.39 73,736,586 $28,388,586 Africa Oil Corp Richard Schmitt V-AOI Somalia no production $5.80 17,584,912 $101,992,490 AltaCanada Energy Donald Foulkes V-ANG Canada, United States 533 $0.27 67,131,538 $18,125,515 Antrim Energy Stephen Greer T-AEN Argentina, UK 1,503 $3.53 117,695,165 $415,463,932 Arawak Energy Alastair McBain T-ABG Azerbaijan, Russia, Kazakhstan 11,948 $2.50 173,891,865 $434,729,663 Arsenal Energy Tony van Winkoop T-AEI Canada, United States 1,725 $0.91 89,181,542 $81,155,203 Ausam Energy Mark Avery V-AZE United States - $1.75 30,368,335 $53,144,586 Austin Developments Patrick Power V-AUL Canada, United States, Gabon 0 $0.10 140,909,978 $13,386,448 Austral Paciﬁc Energy Thompson Jewell V-APX New Zealand, Papua New Guinea 275 $0.58 44,916,142 $26,051,362 Avery Resources Bradley Johnson T-ARY Australia, India, Libya, Madagascar 134 $0.52 91,063,936 $47,353,247 Bankers Petroleum Richard Wadsworth T-BNK Albania, United States 5,452 $2.02 520,657,258 $1,051,727,661 Bow Valley Energy Robert Moffat T-BVX UK, United States 4,717 $5.64 86,135,061 $485,801,744 BrazAlta Resources David Mears V-BRX Brazil, Canada, Ireland 204 $0.72 90,084,661 $64,860,956 Bridge Resources Edward Davies V-BUK UK no production $1.41 100,148,269 $141,209,059 Bucking Horse Energy Gordon Neilsen T-BUC United States, Canada - $6.50 23,061,713 $149,901,135 Calvalley Petroleum Edmund Shimoon T-CVI.A Yemen 1,440 $4.57 101,470,000 $463,717,900 Canadian Superior Energy Greg Noval T-SNG Canada, Trinidad & Tobago 3,110 $4.10 148,741,880 $609,841,708 Candax Energy Michael Wood T-CAX Tunisia 413 $0.72 169,231,606 $121,846,756 Canoro Resources Les Kondratoff V-CNS India 287 $1.50 112,992,275 $169,488,413 Caspian Energy Charles Summers T-CEK Kazakhstan 502 $0.32 104,343,263 $32,868,128 Caza Oil & Gas William Michael Ford T-CAZ United States 159 $0.58 69,319,000 $40,205,020 CGX Energy Kerry Sully V-OYL.U Guyana no production $2.80 125,612,913 $351,716,156 Centric Energy Alec Robinson V-CTE Mali no production $0.19 54,718,106 $10,122,850 Challenger Energy Dan MacDonald V-CHQ Trinidad & Tobago, Canada no production $4.27 42,777,547 $182,660,126 Cirrus Energy David Taylor V-CYR Trinidad, Netherlands 112 $4.00 58,267,333 $233,069,332 Coastal Energy Randy Bartley V-CEN Thailand no production $4.70 93,615,722 $439,993,893 Crown Point Ventures Gordon Kettleson V-CWV Canada, Argentina - $0.60 18,270,459 $10,962,275 CYGAM Energy Dario Sodero V-CYG Canada, Italy, Tunisia 34 $0.69 85,614,204 $59,073,801 Diaz Resources Robert Lamond T-DZR Canada, United States 816 $0.24 67,233,360 $16,136,006 Portugal, Syria, Hungary, Tunisia, DualEx Energy Garry Hides V-DXE 19 $0.25 64,772,966 $16,193,242 Canada Energulf Resources Jeff Greenblum V-ENG Nigeria, Namibia, Congo no production $1.45 44,689,496 $64,799,769 Eurogas Jaffar Khan V-EUG Spain, Tunisia no production $1.35 124,574,763 $168,175,930 Exall Energy Frank Rebeyka T-EE Canada, United States 222 $0.65 37,664,255 $24,481,766 Falcon Oil & Gas Marc Bruner V-FO Hungary, Romania no production $1.09 566,572,913 $617,564,475 First Calgary Petroleums Shane O’Leary T-FCP Algeria no production $2.58 254,939,030 $657,742,697 GeoPetro Resources Stuart Doshi T-GEP.U Indonesia, United States, Canada 825 $2.60 31,950,970 $83,072,522 Gran Tierra Energy Dana Cofﬁeld T-GTE Argentina, Colombia, Peru 2,843 $5.70 91,631,405 $522,299,009 Groundstar Resources Kam Fard V-GSA Guyana, Egypt no production $0.93 53,477,361 $49,733,946 Uganda, Russia, Iraq, Congo, Oman, Heritage Oil Anthony Buckingham T-HOC - $7.74 4,431,120 $34,296,869 Malta, Pakistan, Tanzania, Mali International Frontier Pat Boswell V-IFR Canada, UK 46 $0.24 58,578,965 $13,766,057 Resources International Sovereign Lutfur Rahman Khan T-ISR Canada, Pakistan, Ecuador 816 $1.70 13,928,084 $23,677,743 InterOil Phil Mulacek T-IOL Papua New Guinea no production $25.43 33,770,180 $858,775,677 Ithaca Energy Lawrie Payne V-IAE UK no production $2.35 112,261,975 $263,815,641 INTERNATIONAL

68 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 International locator map on next page

“Exchange/ Market capitalization symbol “ Recent quarter May 30 S/O Basic using May 30 price with Company (Reports in US$) Key Executive T = TSX Active countries avg. production Share Price (As at May 30/08) May 30 shares V = TSX (boe/d) “ outstanding ($) Venture” Ivanhoe Energy Robert Friedland T-IE China, United States 1,907 $2.76 245,260,226 $676,918,224 Kodiak Energy William Tighe V-KDK United States no production $2.71 106,692,498 $289,136,670 Jura Energy Graham Garner T-JEC Pakistan 278 $0.41 117,753,084 $48,278,764 LNG Energy Ltd. David Afseth V-LNG Papua New Guinea no production $0.39 144,095,965 $56,197,426 Slovenia, Colombia, Brunei, Loon Energy Norman Holton V-LEY 143 $0.70 95,991,364 $67,193,955 Syria, Peru, Lynden Energy Richard Andrews V-LVL Canada, United States - $1.69 52,298,251 $88,384,044 Madalena Ventures Kenneth Broadhurst V-MVN Canada, Tunisia, Argentina 32 $0.65 111,743,702 $72,633,406 Mahalo Energy Duncan Chisholm T-CBM Canada, United States 3,403 $2.70 59,298,035 $160,104,695 March Resources David Antony V-MCF Chile, Canada no production $0.32 61,635,333 $19,723,307 Mart Resources David Halpin V-MMT Nigeria no production $0.62 297,191,951 $184,259,010 India, Bangladesh, Thailand, Niko Resources Edward Sampson T-NKO 12,847 $92.18 49,065,408 $4,522,849,309 Pakistan Norwood Resources Raymond Cahill V-NRS Nicaragua, United States no production $1.45 102,000,398 $147,900,577 Odyssey Petroleum Joe DeVries V-ODE United States 356 $0.11 187,088,733 $19,644,317 Oilexco Incorporated Arthur Millholland T-OIL UK 20,714 $15.71 221,281,827 $3,476,337,502 Orca Exploration Group Peter Clutterbuck V-ORC.A Tanzania & Uganda 4217 $14.00 29,614,000 $414,596,000 Pacific Energy Resources Darren Katic T-PFE United States 7,100 $1.45 204,053,000 $295,876,850 Pacific Rubiales Energy Jose Arata T-PEG Colombia, Peru 18,571 $11.27 202,340,473 $2,280,377,131 Pan Orient Energy Jeff Chisholm V-POE Thailand, Indonesia, Canada 4,604 $11.00 45,391,442 $499,305,862 Pearl Exploration & Keith Hill V-PXX Canada, United States 10,503 $2.52 189,241,716 $476,889,124 Production Pebercan Christophe Ranger T-PBC Cuba 7,157 $2.80 74,583,335 $208,833,338 Petro Andina Resources Wayne Foo T-PAR Argentina, Canada, Trinidad and Tobago 9,719 $12.00 42,725,157 $512,701,884 Petrobank Energy & John Wright T-PBG Colombia, Canada 22,524 $57.40 82,510,259 $4,736,088,867 Resources PetroFalcon William Gumma T-PFC Venezuela 1,630 $1.68 158,271,120 $265,895,482 Petroflow Energy John Melton V-PEF United States 2,159 $6.48 29,327,544 $190,042,485 PetroGlobe Jason James V-PGB Canada, United States 160 $0.36 46,018,354 $16,566,607 Petrolifera Petroleum Richard Gusella T-PDP Argentina, Peru, Colombia 7,900 $9.30 50,353,010 $468,282,993 Petromin Resources A. Ross Gorrell V-PTR Canada, China, Kuwait 300 $0.28 58,294,374 $16,322,425 Petrominerales John Wright T-PMG Colombia 8,635 $16.04 100,353,525 $1,609,670,541 Primeline Energy Holdings Ming Wang V-PEH China no production $0.90 47,020,623 $42,318,561 Pyramid Petroleum Ilyas Chaudhary V-PYR United States, Canada 1,382 $1.03 37,317,595 $38,437,123 Saxon Oil Richard Green V-SXN United States, Italy - $0.25 47,045,843 $11,526,232 UK, Indonesia, Norway, Spain, Serica Energy Paul Ellis V-SQZ no production $2.00 176,418,310 $352,836,620 Ireland, Vietnam Sharon Energy Kip Ferguson V-SHY United States 224 $0.22 75,402,564 $16,588,564 Shelton Canada Zenon Potoczny V-STO Ukraine 349 $0.48 43,421,515 $20,842,327 Solana Resources Scott Price V-SOR Colombia 1,715 $4.19 125,676,792 $526,585,758 Sterling Resources Stewart Gibson V-SLG UK, Romania no production $2.55 119,285,200 $304,177,260 Storm Cat Energy Keith Knapstad T-SME United States, Canada 1,645 $1.42 81,096,903 $115,157,602 Stratic Energy Kevin Watts V-SE Turkey, UK, Syria, Italy 232 $0.85 271,462,724 $230,743,315 Suroco Energy Jeffrey Scott V-SRN Colombia, Canada 6 $0.88 38,961,312 $34,285,955 TAG Oil Garth Johnson V-TAO New Zealand 129 $0.16 91,631,081 $14,660,973 Tanganyika Oil Gary Guidry V-TYK Syria 4,139 $24.10 61,986,196 $1,493,867,324 Tethys Petroleum David Robson T-TPL Kazakhstan, Tajikistan - $2.30 45,116,696 $103,768,401 Texalta Petroleum William Nixon V-TEX.A Canada, Australia 80 $0.37 34,050,365 $12,598,635 TG World Energy Clifford James V-TGE Niger, United States 0 $0.51 122,060,870 $62,251,044 TransAtlantic Petroleum Scott Larsen T-TNP Morocco, Turkey, Romania 2 $1.24 53,270,762 $66,055,745 Transeuro Energy Hal Hemmerich V-TSU Canada, Ukraine, Armenia 222 $0.38 207,898,242 $79,001,332 TransGlobe Energy Ross Clarkson T-TGL Yemen, Egypt 7,845 $5.14 59,766,539 $307,200,010 Turnkey E & P Bob Tessari T-TKY United States 173 $3.18 24,187,910 $76,917,554 Verenex Energy James McFarland T-VNX Libya, France 57 $8.91 44,267,891 $394,426,909 WesternZagros Resources Simon Hatfield V-WZR Iraq no production $2.71 207,464,320 $562,228,307 Winstar Resources Charles de Mestral T-WIX Canada, Tunisia, Hungary, Romania 1,640 $5.25 34,064,000 $178,836,000 Xcite Energy Richard Smith V-XEL UK no production $1.35 61,300,000 $82,755,000 XXL Energy Corp. Clifford Adams V-XL United States - $3.00 103,632,703 $310,898,109 INTERNATIONAL

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 69 UNITED STATES Admiral Bay AltaCanada Arsenal Ausam Austin Bankers Bow Valley Bucking Horse Caza Oil & Gas Diaz GeoPetro Ivanhoe Kodiak Energy Mahalo Norwood Odyssey Pacific Pearl Petroflow PetroGlobe Pyramid Saxon Sharon Storm Cat TG World Turnkey CUBA XXL Energy Pebercan TRINIDAD & TOBAGO Canadian Superior Challenger Cirrus Petro Andina NICARAGUA Norwood VENEZUELA Petrofalcon GUYANA COLOMBIA CGX ECUADOR Gran Tierra Groundstar International Loon Sovereign Pacific Rubiales Petrobank BRAZIL Petrolifera BrazAlta Petrominerales Solana Suroco PERU Gran Tierra Loon Pacific Canadian Companies Rubiales Petrolifera

CHILE March ARGENTINA Antrim Operating Abroad Crown Point Ventures Gran Tierra Madalena Petro Andina This map shows the footprint of activies for TSX and TSX Venture Petrolifera listed oil and gas companies with a market capitalization of more than $10 million and less than 15,000 boe/d of production in the third quarter. If you know a company that meets this criteria that has been left out please email us at [email protected]. INTERNATIONAL COMPARISON

70 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 UNITED KINGDOM Antrim Bow Valley HUNGARY Bridge Falcon International Frontier SLOVENIA Winstar Ithaca Loon DualEx Oilexco Serica ITALY Sterling CYGAM Stratic Saxon Xcite Energy Stratic NORWAY Serica RUSSIA Arawak Heritage ROMANIA Falcon Sterling AZERBAIJAN TransAtlantic Arawak IRELAND NETHERLANDS Winstar BrazAlta Cirrus Serica TUNISIA UKRAINE Candax Shelton ARMENIA KAZAKHSTAN Transeuro CYGAM FRANCE Transeuro Arawak DualEx Verenex Caspian Eurogas Tethys Madalena ALBANIA SPAIN Bankers Winstar Eurogas TAJIKISTAN Tethys CHINA Serica IRAQ TURKEY Heritage Ivanhoe BANGLADESH PORTUGAL Stratic WesternZagros Petromin MALTA TransAtlantic Heritage DualEx ALGERIA LIBYA Niko Primeline Oil First Calgary Avery Verenex KUWAIT INDIA MOROCCO Petromin Avery VIETNAM MALI Serica TransAtlantic SYRIA Canoro Centric NIGER OMAN Niko TG World Loon Heritage Oil Stratic BRUNEI Tanganyika PAPUA NEW GUINEA YEMEN THAILAND Loon DualEx Calvalley Austral Paciﬁc Coastal LNG Energy UGANDA TransGlobe PAKISTAN Heritage Niko InterOil NIGERIA Heritage OiI Pan Orient Energulf Orca International Mart SOMALIA Sovereign CONGO Africa Oil Corp. Jura GABON Energulf Niko INDONESIA Austin Heritage GeoPetro Pan Orient MADAGASCAR Avery AUSTRALIA NAMIBIA Avery Energulf TANZANIA Texalta Orca Group

EGYPT Groundstar TransGlobe

NEW ZEALAND Austral Paciﬁc TAG

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 71 Corporate Proﬁle May 2008 Bradley Johnson, CEO & Director Chayan Chakrabarty, President & Director

1140, 715 - 5th Avenue SW TSX: ARY Calgary, Alberta, T2P 2X6 Canada TSX-V:ARYTSX V:ARY T: 403.205.2526 F: 403.263.3168 E: [email protected]

Recent News • May 6, 2008: Avery announces Cusinier -1 cased and suspended as potential oil producer • April 22, 2008: Avery spuds ﬁrst well in Cooper Basin agreement with Santos • February 13, 2008: Avery announces corporate transaction and new senior management

CAPITALIZATION

Market capitalization: $49 million Shares outstanding: 91 million Share Range (12 month): $0.26 - $0.57 Debt: $0 Cash: $7.3 million Production: 250 boepd Proved plus probable reserves: 408 Mboe

AREAS OF OPERATION COOPER BASIN, AUSTRALIA • Cooper Basin partnerships with Australian companies: Santos, Magellan, Stuart, Innamincka,Victoria, Bow and Mosaic • Exposure to over 1.9 million acres • Newly available, highly prospective, under-explored land Browse Basin • 32.67% working interest in Toparoa-1, providing approximately 80+ bopd net to Avery at current ﬂow rates • Won operatorship of prospective gas block in highly com- petitive Gazettal round • Up to 11 wells planned for 2008/2009 Carnarvon Basin

KATANDRA, AUSTRALIA Cooper Basin • Partners are OMV Australia Ltd. and Nippon Oil & Gas • 10% interest in Katandra light oil discovery (Browse Basin) • Multiple follow-up prospects on 272 km2 license • 3D seismic completed Q3 2007 Perth Basin • One well 2009

OTHER TARGET AREAS • India, Libya, Madagascar • Approximately 70 boepd base production in Alberta, Canada and 100 boepd in Oak BC, Canada

*When converting natural gas to equivalent barrels of oil (“boe”), Avery uses the widely recognized standard of six thousand cubic feet (“Mcf”) of natural gas to one barrel (“bbl”) of oil. However, boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does net represent a value equivalency at the wellhead.

www.averyresources.com INTERNATIONAL

72 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Avery Resources Corporate Proﬁle May 2008

AUSTRALIA: PARTNERSHIPS AND PROJECTS Block Post-Earning Working Basin Estimated Drilling Timing Interest PEL 113-Murteree 35% Cooper Basin 1 well Q3-Q4/08 ATP 752P-Wompi 30% Cooper Basin 3 wells Q4/08 ATP 752P-Barta 25% Cooper Basin 2 wells Q2/08 AC/P24-Katandra 10% Vulcan Sub-Basin (offshore) 1 well Q2/09 ATP 732P 35% Cooper Basin 2 wells Q1-Q2/09 PEL 103-Turban, Aspen & South Candra 29% Cooper Basin 2 wells Q3-Q4/08 ATP 934P-Gazettal 50% Cooper Basin 1 well Q1-Q2/09

CANADA Fox Creek 37.5% - 50% Alberta Producing Oak British Columbia Producing

MANAGEMENT BOARD OF DIRECTORS

Bradley Johnson - CEO and Director - Previously CEO of Sequoia Oil and Gas Trust, Bradley Johnson - CEO and Director which saw growth in enterprise value from $30 million to $500 million during his tenure Chayan Chakrabarty, MBA, Ph.D. - President and Director Chayan Chakrabarty, MBA, Ph.D. - President and Director - Holds a doctorate in Richard N. Edgar, BSc, PGeol - Director - Professional geologist and engineering from the University of Alberta, and an MBA from the University of Calgary, executive in oil and gas since 1972, former founder and President of Previously was Vice President with Daylight Resouces Trust Energy North James Mott, Ph.D. -Vice President, Exploration - Obtained a Ph.D in geology from James Howe, CA - Director - Currently President of Bragg Creek Financial Queens University, and brings extensive international experience through work in Oman, Consultants Ltd. India, Madagascar and Peru R. Stephen Peacock - Director - 20+ years experience with corporate Paul Lipski, BSc, BA - Managing Director, Australia - 20+ years experience as geologist finance and investment banking; Managing Director and Partner, Mustang and manager in Australia and Canada, former Exploration Supervisor of Magellan Petroleum Capital Partners Bryan Goudie, CA - CFO - 20+ years experience as CA working with accounting firms Ian Towers, PEng - Director - 20+ years experience in the oil & gas industry, and most recently as CFO of a Calgary-based brokerage firm president and CEO of Dolomite Energy Inc. Judith Stripling, CA - Director - EVP and CFO of Midnight Oil Exploration Ltd.

Avery Resources Analyst Coverage 1140, 715 - 5th Avenue SW Paradigm Capital Inc. Wolverton Capital Markets Calgary, Alberta T2P 2X6 Canada www.paradigmcapinc.com www.wolverton.ca T: 403.205.2526 F: 403.263.3168 Report dated February 14, 2008 Report dated May 9, 2008 Certain information regarding Avery set forth in this document, including management’s assessment and Avery’s future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Avery’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise. Avery’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Avery will derive therefrom. www.averyresources.com INTERNATIONAL

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 73 '8$/(;(1(5*<,17(51$7,21$/,1& Suite 200, 521 - 3rd Avenue SW Calgary, Alberta T2P 3T3 Tel: +1 403-265-8011 Fax: +1 403-265-8022 [email protected]

'XDO([(QHUJ\,QWHUQDWLRQDO,QF ´'XDO([µ LVDSXEOLFO\WUDGHG 76;9´';(µ LQWHUQDWLRQDORLODQGJDVH[SORUDWLRQDQGSURGXFWLRQ FRPSDQ\KHDGTXDUWHUHGLQ&DOJDU\$OEHUWD&DQDGD )RUPHGLQ0D\'XDO([LVPDQDJHGE\DVHQLRUWHDPRIRLODQGJDV SURIHVVLRQDOVZLWKH[WHQVLYHH[SHULHQFHLQ:HVWHUQ&DQDGDWKH0LGGOH(DVW (XURSH6RXWK$PHULFDDQG1RUWK :HVW$IULFD 'XDO([LVIRFXVHGRQLQWHUQDWLRQDOSURMHFWVORFDWHGSUHGRPLQDQWO\LQWKH JUHDWHU0HGLWHUUDQHDQDUHDDQGFRQVLGHUVWKLVUHJLRQDVRQHRIIHULQJ FRQVLGHUDEOHRSSRUWXQLWLHVWRDFRPSDQ\DW'XDO([·VVWDJHRIGHYHORSPHQW

&$3,7$/6758&785(

Issued & Outstanding: 64,772,966 shares Warrants: 10,367,192 ($0.30/sh until February 28, 2009) Employee Stock Options: 1,740,000 Fully Diluted: 76,880,158 shares Working capital at March 31, 2008: approx. $4.5 million Current production (Western Canada): approx. 20 boe/d No current debt

'8$/(;,6)2&86(' 5(&(171(:6 21,17(51$7,21$/ Cash Á ow anticipated in mid-year 2008 from Peneszlek gas development in Hungary, in addition to that generated by legacy 352-(&76/2&$7(' assets in Alberta and Wyoming. 35('20,1$17/< Exploration well in Syria planned for Q4 2008. Bid approved for Bouhajla Exploration Block in Tunisia, pending ,17+(*5($7(5 PSC À nal approval and execution. 0(',7(55$1($1$5($

0$1$*(0(17',5(&7256$1'6(1,2567$)) Garry Hides, P. Land - President & CEO, Director Ken Tompson, P.Geol - Executive VP & COO, Director TSX-V:DXE David Rain, CA - Director Roy Hudson, LLB - Director John Nelson, P.Geol - Director &25325$7(352),/(-81( Lorne Morozoff, CA - VP Finance & CFO Bob Bain, P.Geol - Senior Geologist INTERNATIONAL

74 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 PROJECTS

"& !* *)

² NYIRSEG BLOCKS NORTH & SOUTH * ' )

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) & BLOCK XVII, SYRIAN ARAB REPUBLIC NYIRSEG/PENESZLEK, HUNGARY 1.25 million acres (onshore) 614,000 acres DXE 31.67% working interest DXE 37.5% working interest Palmyra region, where more than 5 tcf has been discovered to date First gas on-stream anticipated in late Q2/early Q3 2008 Several large prospects indentiÀ ed with new 2D seismic 3D seismic and follow-up drilling planned 1st well planned for Q4 2008

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LUSITANIAN BASIN, PORTUGAL 630,000 acres (onshore) DXE 10% working interest $*) Four wells currently planned ) '& *

! ' & # Two 3D seismic surveys underway

BOUHAJLA BLOCK, TUNISIA 103,000 acres (onshore) Offsetting signiÀ cant light oil production (immediately west of the This corporate proÀ le contains forward-looking statements and forward-looking information Sidi el Kilani À eld which has produced 47 million barrels to date) ZLWKLQWKHPHDQLQJRI DSSOLFDEOHVHFXULWLHVODZV7KHXVHRI DQ\RI WKHZRUGV´H[SHFWµ DXE bid has been accepted, pending approval and execution of ´DQWLFLSDWHµ´FRQWLQXHµ´HVWLPDWHµ´REMHFWLYHµ´RQJRLQJµ´PD\µ´ZLOOµ´SURMHFWµ´VKRXOGµ PSC ´EHOLHYHµ´SODQVµ´LQWHQGVµDQGVLPLODUH[SUHVVLRQVDUHLQWHQGHGWRLGHQWLI\IRUZDUGORRNLQJ information or statements. More particularly and without limitation, this corporate proÀ le DXE 100% working interest (post PSC signature) FRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVDQGLQIRUPDWLRQFRQFHUQLQJ'XDO([·VIXWXUHRSHUDWLRQV and prospects. The forward-looking statements and information are based on certain key expectations and assumptions made by DualEx, including expectations and assumptions FRQFHUQLQJHTXLSPHQWDQGFUHZDYDLODELOLW\DQGMRLQWYHQWXUHSDUWQHUÀ nancial capability. Although DualEx believe that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because DualEx can give no assurance that they ZLOOSURYHWREHFRUUHFW%\LWVQDWXUHVXFKIRUZDUGORRNLQJLQIRUPDWLRQLVVXEMHFWWRYDULRXV ULVNVDQGXQFHUWDLQWLHVZKLFKFRXOGFDXVH'XDO([·VDFWXDOUHVXOWVDQGH[SHULHQFHWRGLIIHU materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to reservoir performance, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, political and economic conditions. Additional information on these and other factors is available in continuous disclosure materials À led by DualEx with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this corporate proÀ le or otherwise, and to not use future-oriented information or À nancial outlooks for anything other than their intended purpose. DualEx undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. INTERNATIONAL

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 75 PETROLIFERA IS BUILDING ITSELF INTO A WORLD-CLASS SOUTH AMERICAN OIL AND NATURAL GAS PRODUCER.

CORPORATE PROFILE &25325$7( 352),/( &HUWDLQ LQIRUPDWLRQ FRQWDLQHG LQ WKLV FRUSRUDWH SURÀOH LQFOXGHV IRUZDUGORRNLQJ MAY 2008 LQIRUPDWLRQ ZKLFK LV VXEMHFW WR ULVNV XQFHUWDLQWLHV DQG DVVXPSWLRQV WKDW DUH GHVFULEHG LQ 3HWUROLIHUD·V DQQXDOUHSRUWDQG$QQXDO,QIRUPDWLRQ)RUPIRUWKH\HDUHQGHG'HFHPEHU TSX:PDP

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BOARD OF DIRECTORS Richard A. Gusella Executive Chairman, Petrolifera; President, Connacher Oil and Gas Limited Gary D. Wine President and Chief Operating OfÀ cer, Petrolifera Donald D. Barkwell Retired businessman PRODUCTION, LAND AND RESERVES Colin M. Evans $UJHQWLQDODQG Vice President Finance, Milestone Exploration Inc. 2ZQVDWRWDORIQHWDFUHVLQÀYHFRQFHVVLRQV3XHVWR0RUDOHV Gerrit T. Maureau 5LQFRQDGD3XHVWR0RUDOHV(VWH9DFD0DKXLGDDQG3XHVWR*XHYDUD President of MaurOil International Inc. LQ5LR1HJUR3URYLQFH*REHUQDGRU$\DOD,,LQ/D3DPSD3URYLQFHDOOLQ 1HXTXHQ%DVLQRQVKRUH Stewart D. McGregor President of Camun Consulting Corporation Peru landPLOOLRQDFUHV LQWHUHVWRSHUDWHGVXEMHFWWR &:,WKURXJKÀUVWZHOORQHDFKEORFN 0DUDQRQ%ORFNDQG8FD\DOL Christopher J. Smith, FCA (ICAEW) %ORFN Retired businessman Colombia2QHOLFHQVH 6LHUUD1HYDGD DQGWZR7($ 7XUSLDO 6LHUUD 1HYDGD,, PLOOLRQDFUHV RSHUDWHG MANAGEMENT $UJHQWLQHDQ3URYHG3OXV3UREDEOH5HVHUYHV 'HFHPEHU Richard A. Gusella PLOOLRQEDUUHOVRIOLJKWFUXGHRLO Executive Chairman ELOOLRQFXELFIHHWQDWXUDOJDV Gary D. Wine PLOOLRQEDUUHOVRIRLOHTXLYDOHQW President and Chief Operating OfÀ cer SHUFHQWSUHWD[SUHVHQWZRUWKPLOOLRQ (VWLPDWHVSUHSDUHGE\*/-3HWUROHXP&RQVXOWDQWV Kristen J. Bibby Vice President, Finance and Chief Financial OfÀ cer SURGXFWLRQERHG Carlos Mombru General Manager, Argentina Carlos Monges General Manager, Peru INTERNATIONAL

76 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 ARGENTINA

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TSX:PDP

Suite 900, 332 - 6 Avenue SW CORPORATE PROFILE Calgary, AB T2P 0B2 Canada T 403.539.8450 F 403.538.6225 MAY 2008 [email protected] www.petrolifera.ca INTERNATIONAL

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 77 CORPORATE PROFILE MAY 2008 TSX: WIX

TUNISIA ORDOVICIAN: SABRIA (TUNISIA) Winstar Resources SABRIA OIL FIELD (10 miles by 4 miles) OOIP: (P50) 346,000,000 bo is focused on (P90) 230,000,000 bo finding and Cumulative production = 2.90 mmboe or approximately5 km 1% of resource (1999-2007)45% working interest

P oss ib T producing crude le L Zinnia O 2 Suspended Wells WC 4 Producing Wells U oil and natural gas FA 25,695 in Tunisia. Winstar SB N 1 SB NW 1 gross acres also has large Sabria 11 SB N 2 SB W 1 ? Est ima ted Reser SB N 3 undeveloped land © voi r Er osi onal E holdings with high- dge UPSIDE:

T impact gas potential L 1. Target 10 to 15% recovery AU T F L U A in Hungary, large F factor or more, require 10 0 1 2 3 4 5km to 30 additional developmen undeveloped SABRIA OIL FIELD (10 miles by 4 miles) locations OOIP: (P50) 346,000,000 bo 2. Potential 500 net boepd Sabria land offsetting (P90) 230,000,000 bo Cumulative production = 2.9 mmboe or approximately 1% of resource (1999-2007) per well significant oil Sanrhar and gas fields in Romania and low decline crude oil Chouech Essaida and natural gas TRIASSIC/DEVONIAN/SILURIAN: CHOUECH 0 Ech Chouech producing assets 0 ESSAIDA & ECH CHOUECH (TUNISIA) in Alberta. Winstar Concessions • Triassic/Devonian: Five to eight development locations with HUNGARY ROMANIA potential of 250 to 1,000 boepd per well 100% working interest Max. 60% after earned working interest • Silurian: One to four high-impact exploration locations with potential of 1,000 to 3,000 boepd per well

SATU MARE 100% working interest

6" MULTIPHAS

HUNGARY

E ROMANIA EL BORMA RECEIVING FACILITY 0 CS-5 (Flowing) 80KM 250 miles Recompleted Dec '07 0 IP: 1000 bopd Current Prod: 65 bopd 0 250 km Cum Prod: 125 mbbls CS-3 (High Vol. Pump) CS-6 Current Prod: 180 bopd Cum Prod: 73 mbbls CS-8 EC-3 0 250 miles Current Prod: 260 bopd CS-31 Cum Prod: 10 mbbls CS-5 CS-8 0 ! 250 km CS-1’ CS-9 ! CS-44" Devonian Ouan Kasa MUL 568,520 728,710 CS-7’ Oil and Gas Shows CS-9 TIPHAS New Location CS-2

(Contingent) E net acres gross acres Spud Date Q2 2008 SATU MARE EC-2 CS-7 (High Vol. Pump) Current Prod: 125 bopd Cum Prod: 95 mbbls EC-1’ EC-4’ CS-1 (Flowing) Upper Zone: 320 bopd EC-1 (Shut In) Cum Prod: 125 mbbls Produced 164,000 bo Middle Zone: 3 mmbbls to date To Be Reactivated 200 bopd potential Lower Zone: Tested 400 boepd ECS-1 Triassic TAGI Sandstone Oil Field Devonian Ouan Kasa Sandstone Oil Field Tunisia - Algeria Border

Moftinu 950 – tested 178- 639 mcfd from Pliocene

Madaras 219 – tested Torokkoppany 320-816 mcfd from mining plot Sarmatian and 210 area net bopd from Badenian 77,000 acres

MARCALI TOROKKOPPANY 5.66 BCF REC.RES IP6.8 MMcf/d BADENIAN LST

INKEFIELD MEZOCSOKONYA FIELD IGALII Est. 97 Bcf EST. 154 Bcf + mmbo area net 491,520 acres PANNONIAN FAIRWAY

= SEDIMENT FLOW = LEADS 0 Santau 1 – tested 1,341 2D Seismic Leads 0 10 km mcfd and 42.4 bopd from Basement to Pannonian Silurian 2D seismic leads 0 0 10 km INTERNATIONAL

78 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 EXECUTIVE MANAGEMENT Net Asset Value Quarterly $ million (except per Highlights Q1 2007 2006 share values) as at Average Charles de Mestral December 31, (CDN $ thousands) 2008 2007 % Chg. %JKGH'ZGEWVKXG1HſEGT&KTGEVQT Proved developed $70.9 $47.1 Production, Sales and Prices David Monachello reserves Production (boep/d) 1,893 1,948 (3) 2TGUKFGPV+PVGTKO%JKGH(KPCPEKCN1HſEGT&KTGEVQT Proven undeveloped $41.5 $40.2 reserves Roger McMechan Sales Executive Vice President Probable reserves $170.0 $102.8 Natural gas sales (Mcf/d) 3,491 4,275 (18) Operations and Engineering, Director Total proved + probable $282.4 $190.1 1KNCPF0).UCNGU DQGRF 1,058 1,300 (19) Brad Giblin reserves (1) Vice President, Finance Sales (boepd) 1,640 2,013 (19) Average natural gas price ($/Mcf) 8.40 8.06 4 Mohamed Yaich Land (2) $9.2 $12.8 97.54 74.98 30 )GPGTCN/CPCIGT6WPKUKC Working capital $25.4 $7.4 #XGTCIGQKNCPF0).RTKEG DDN Financial ($) Gabor Tihanyi Long-term debt - - Oil and gas revenue 12,064 11,569 4 )GPGTCN/CPCIGT*WPICT[4QOCPKC Proceeds from options $7.6 $6.6 Funds from operations 7,292 6,959 5 NET ASSET VALUE $324.6 $216.8 Per share - basic 0.21 0.23 (7) NET ASSET VALUE PER - diluted 0.21 0.22 (7) BOARD OF DIRECTORS $8.95 $7.03 DILUTED SHARE (3) Net income 1,368 1,490 (8) (1) As evaluated by McDaniel (Canada) and RPS CHAIRMAN Per share - basic 0.04 0.05 (18) Bruce Libin Energy (Tunisia and Hungary). Discounted at - diluted 0.04 0.05 (18) Executive Chairman and CEO, 10%, before tax, using McDaniel forecast prices. Working capital at period end 22,223 25,391 (12) Destiny Resource Services Corp., Calgary (2) As independently evaluated by Seaton-Jordan Long term debt at period end --- INDEPENDENT DIRECTORS & Associates Ltd. (“Seaton-Jordan”). Value includes only Canadian undeveloped acreage. Shareholders’ equity at period end 95,430 91,803 4 Douglas Baker No value was attributed to non-producing acre- Common Shares (thousands) FQTOGT8KEG2TGUKFGPVCPF%JKGH(KPCPEKCN1HſEGT age in Tunisia, Hungary and Romania. Weighted average during the period Valiant Energy Inc., Calgary 34,022 30.294 12 - basic Bernard de Combret (3) Fully diluted shares: 36,262,666, representing - diluted 1KNCPF)CU%QPUWNVCPV all outstanding shares and options as at period 34,749 30.954 12 Former Deputy Chairman, end December 31, 2007 (2006: 30,831,273.) Outstanding at period end 34,064 33,984 0 Executive Committee of Total, Paris Russ Duncan FD&A 2005 - 2007 Vice President, Sky Hunter Exploration Ltd., Calgary *Capex ($000 Cdn) Reserves FD&A Bryan Lawrence P2PP2PP2P (QWPFGT)GPGTCN2CTVPGT Yorktown Partners LLC, New York Consolidated 2005 $37,864 $35,184 2,786 2,951 $13.59 $11.92 Robert Mitchell 2006 $24,328 $19,106 1,014 901 $23.99 $21.21 Former Executive Vice President, 2007 $42,419 $61,319 965 2,827 $43.97 $21.69 Talisman Energy Inc., Calgary 3 yr. average $104,611 $115,609 4,765 6,679 $21.96 $17.31 EXECUTIVE DIRECTORS * Includes change in future capital Charles de Mestral David Monachello Roger McMechan DAILY ANNUAL AVERAGE SALES (BOEPD) ANNUAL FUNDS FROM OPERATIONS ($ MILLION) CORPORATE SECRETARY James O’Connor 00 )GPGTCN%QWPUGNCPF%QTRQTCVG5GETGVCT[ 000 INVESTOR RELATIONS 2,013 be 100 1,555 David Monachello T : 1-403-513-4200 1 000 [email protected] 814 Charles de Mestral 00 T : Toll-free (Canada and USA) 1-800-875-1217 [email protected] 0 (Note: Mr. de Mestral is based in Europe, 00 00 00 in a time zone eight hours ahead of Calgary time)

THIRD PARTY ADVISORS Basic Diluted (1) Shares 34 million 36.3 million Engineers: Management 4% 9% McDaniel & Associates Consultants Ltd., ;QTMVQYP)TQWR 0; 47% 44% RPS - APA Petroleum Engineers Bankers: Widely distributed 49% 47% HSBC Bank Canada, ABN AMRO Market value @ $5.50/share $187 million $199 million Auditors: Enterprise value (2) 161 million $173 million PricewaterhouseCoopers LLP Lawyers: (1) No outstanding warrants or convertible debentures Stikeman Elliott LLP (2) Market value plus zero long-term debt minus $25.4 million (Dec. 31/07) working capital surplus

STOCK CHART phone +1-403-205-3722 fax +1-403-205-2722 e-mail [email protected] website www.winstar.ca

845, 401 – 9th Ave. SW Calgary, Alberta, Canada T2P 3C5

+PVGTPCVKQPCN1HſEGU4QVVGTFCO0GVJGTNCPFU)GPGXC Winstar Resources Ltd. trades on The Toronto Stock 5YKV\GTNCPF5\QNPQM*WPICT[6WPKU6WPKUKC Exchange under the symbol WIX. June 2007 June 2008 INTERNATIONAL

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 79 Emerging Oil Sands Companies COMPARISON OF COMPANIES DEVELOPING OIL SANDS ASSETS IN ALBERTA

Keen interest in the oil sands has led to the emergence of a number of publicly traded companies looking to tap into the world’s second largest oil reserve. The

ALBERTA SASKATCHEWAN exploitation of oil sands resources generally involves far more time and capital than conventional oil and gas development, and a number of these emerging companies are now close to or at the point of production, such as Connacher Oil and Gas and Athabasca Fort OPTI Canada. Although there are a number of senior producers, integrateds and Peace McMurray River several high-proﬁle, private companies in the oil sands space, for the purposes of this comparison, we have focused on emerging oil sands players, listed on Grande Prairie Cold either the TSX or the TSX Venture Exchanges. In most cases their primary focus Lake Edmonton is on oil sands development. Because of their high need for development capital, many of these companies are publicly listed to facilitate access to capital. With Lloydminster the potential for substantial production over many years, successful companies Saskatoon in this sector will deliver considerable value to their shareholders. The challenge Calgary for investors is to ﬁnd the companies that will succeed most expeditiously and to Regina have the patience to see results.

Stock Market Cap symbol & Share using May 30 exchange price share price & Area Chief (T=TSX, May 30/08 Mar 31 shares of focus Company executive V=Venture) ($) o/s ($milion) (see map) Stage of development Recovery method Alberta Oilsands Shabir Premji V-AOS$56 0.90 Athabasca Delineation drilling SAGD anticipated Bronco Energy Brian Alford T-BCF$ 17.10 556 Athabasca Delineation drilling Thermal in situ Connacher Oil and Gas Richard Gusella T-CLL$ 4.64 976 Athabasca Production from Q4 2007 SAGD Excelsior Energy David Winter V-ELE$54 0.50 Athabasca Delineation drilling SAGD anticipated Firesteel Resources Walter Wakula V-FTR$ 0.15 7 Peace River Land acquired early 2007 Thermal in situ Habanero Resources Jason Gigliotti V-HAO$7 0.14 Athabasca Delineation drilling SAGD anticipated North Peace Energy Louis Dufresne V-NPE$ 1.62 62 Peace River/Athabasca Pilot application approved CSS pilot OPTI Canada Sid Dykstra T-OPC$ 22.50 4,396Athabasc a SAGD steaming, upgrader under construction SAGD Petrobank Energy John Wright T-PBG$ 57.40 4,735 Athabasca/Peace River/SK 3 well pilot, licensing agreements THAI Rochester Energy Troy Mochoruk V-ROH$20 0.40 Athabasca Initial Core Drilling Thermal in situ Southern Paciﬁc Res David Antony V-STP$ 1.07 104 Athabasca Delineation drilling SAGD in area Synenco Energy Michael Supple T-SYN$ 8.97 453 Athabasca Delineation drilling Mining, upgrader UTS Energy William Roach T-UTS$ 5.98 2,824 Athabasca Development & planning Mining, upgrader

NOTES: 1. For Firesteel, January 31, 2008 shares outstanding are used instead of March 31, as they have a January 31 ﬁscal year end 2. Synenco Energy and Rochester Energy are currently subject to take over offers by Total E&P Canada and Southern Paciﬁc Resources respectively 3. Oilsands Quest is traded on the Amex Exchange (BQI) and Patch International is traded on the OTC Bulletin Board (PTCH) and several German exchanges 4. Athabasca Oil Sands, Grizzly Oil Sands, Laricina Energy, MEG Energy, OSUM, Sunshine Oil Sands and Value Creation are private oil sands players

A GUIDE TO THERMAL IN SITU RECOVERY METHODS Steam-assisted gravity drainage (SAGD) A method of producing heavy oil which involves two horizontal wellbores, one above the other; steam is injected into the upper wellbore and softened bitumen is recovered from the lower wellbore. Cyclic steam stimulation (CSS) A method of producing heavy oil which involves injecting steam, allowing time for the steam to heat and soften the heavy oil and producing the oil from the same wellbore used to inject the steam. Toe-to-Heel Air Injection (THAI) A method of producing heavy oil which involves injecting air through a vertical well at the top of the reservoir, near the toe of a horizontal well; a combustion front is then created which sweeps the oil from the toe to the heel of the horizontal producing well.

Source: The Centre for Energy.

80 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 communication DOORWAYS

Measuring Investor Relations Success Good communication can help a company hit a home run with investors

Written by: Kelsey Mullen, Bryan Mills Iradesso

A great relationship with investors is key to a public company’s and effective communication tools used to reach investors long-term success and a public company’s long-term success is include quarterly and annual reports, conference calls, road key for investors. Increased investor interest can make it easier show presentations and news releases. Quality of disclosure for a company to raise money, improve liquidity and achieve a and consistency in financial communication are key as investor share price that more accurately reflects a company’s underlying perceptions are formed based on these representations. The value. Given the potential power of communication, it is crucial final component is measuring effectiveness - arguably the for companies and investors to understand how to measure the most important part of the communication process. This is the success of a company’s investor relations initiatives. step where the investor relations team evaluates and responds “Research and market surveillance is a crucial component to to feedback regarding its communication efforts. This allows an investor relations officer’s ability to measure, monitor and the team to tailor a company’s financial communications to modify a company’s financial communication efforts,” says Jane successfully target the right audience with the right message. McNichol, Instructor, Investor Relations, at Mount Royal College Tools for measuring the success of financial communications in Calgary. “It helps you analyze trends and develop programs to efforts include looking for an increase or improvement in respond effectively.” the following: Competition for capital is not always won by the “better” • Price/earnings ratio in comparison to peers company. It is won by the company that is better known, • Conference call attendance better understood, and most notably, has a better relationship with its investors. • Quantity and quality of analyst coverage • Share price relative to fair market value An upsurge in investor faith and confidence is a byproduct of a • Requests for information steady and reliable flow of corporate communication. “Basically, to have an effective IR program you need a long-term focus on • Ability to raise equity capital building and maintaining relationships within both the financial • Institutional ownership and investment community,” says McNichol. “This is true • Trading volume regardless of the size or market capitalization of your company.” Because a company with an effective investor relations There’s little question that steady and reliable communication program can benefit from using these tools, the strongest will benefit a public company and its investors over the long public companies hire experienced and knowledgeable investor term, but it’s not enough simply to adopt a philosophy of relations firms to help them ensure these tools are being used openness. Communication practices must be continually consistently and effectively. monitored, evaluated and refined. To build a solid foundation for an investor relations program, a company needs to define Although these tools are good tactical measures of company’s a target audience, such as investors and analysts. Next, a financial communications initiatives, McNichol says a key company needs to define its story; what key messages do they measure of success is whether these initiatives strengthen a want these audiences to know? This can be developed by company’s reputation. identifying unique characteristics related to the management team, assets and performance that are likely to impact an “Above all, it’s about changing attitudes and perceptions investor’s perception of a company. Once the target audience and building long-term credibility with senior management, and key messages are developed, the best channels of the financial and business community and your investors,” communication need to be determined. The most common McNichol says.

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 81 emerging conventional companies WATCH LIST

This list of emerging public companies serves as our reference point for tracking companies’ growth and their potential inclusion in the iQ Report. With the pace of oil and gas operations in Canada, this list is always changing and is by no means exhaustive. If you know of any other oil and gas company that belongs on this list, please feel free to let us know.

Q1 2008 May 30/08 Company Name Ticker Chief Executive Production share price (boe/d) ($) Alpetro Resources ALF-V Nazrul Islam 110 0.150 Anterra Energy Inc. AE.A-V Owen Pinnell 246 0.300 Aspen Group Resources ASR-T Robert L. Calentine 208 0.080 Aztek Energy AZK-V Ray Hodgkinson n/a 0.030 Bellamont Exploration BMX.A-V Steve Moran 341 1.750 Blackdog Resources DOG-V David A. Corcoran 30 0.350 Blue Parrot Energy BPA-V William Elligson 231 0.025 Canadian Phoenix Reources Corp. CPH-V Robert Chenery 201 0.160 Churchill Energy CEI-V Kelly D. Cowan 479 0.310 Colonia Energy CLA-V Donald Campbell 154 0.240 Costa Energy COE-V Terry D. Brooker 57 0.060 Cruiser Oil & Gas COG-V Douglas L. Meiklejohn 110 0.080 Desmarais Energy DES-V James G. Long 59 0.150 Detector Exploration DEX-V Ronald Alexander 42 0.240 Drake Paciﬁc Enterprises DPE-V Roger J. Penner 89 0.340 Eagle Rock Exploration ERX-V Jim Silye 485 0.355 Elkwater Resources ELW-V Don Brown 46 0.100 Emerald Bay Energy EBY-V Shelby Beattie 120 0.170 EMM Energy M-V Brian Boulton 223 1.100 Exceed Energy EX.A-V Richard Wolﬂi 190 0.120 Fairmount Energy FMT-V Joseph Durante n/a 0.770 Firstland Energy Limited FLD-V David van der Ler 63 0.250 G2 Resources GRT-V Curtis Hartzler 154 0.130 Glamis Resources GLM.A-V Brent McKercher 306 1.300 Javelin Energy JAV-V Brian Fraser n/a 0.225 Kootenay Energy KTY-V Jack Marsh 375 0.360 LongBow Resources LBR-V Sean Kehoe 429 0.690 Madalena Ventures MVN-V Ken Broadhurst 32 0.650 Madison Energy MDC-V John A. Murdoch 143 0.135 Marksmen Resources MA-V Peter Malenica 98 0.100 New Range Resources RGE-V Hugh Thomson 89 0.130 Nexstar Energy NXE.A-V Peter A. Carwardine 58 0.095 Nordic Oil and Gas NOG-V Donald Benson 43 0.540

82 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Q1 2008 May 30/08 Company Name Ticker Chief Executive Production share price (boe/d) ($) Northern Sun Exploration NSE-V Christopher Cooper 54 0.150 NuLoch Resources Inc NLR.A-V Glen Dawson 412 1.880 Pacific Rodera Energy PRD-V Michael G. Greenwood 53 0.510 Panterra Resource PAN-V Fred P. Rumak 0 0.810 Paris Energy PI-V John McLeod 5 0.160 Pemberton Energy PBT-V Richard Saxon 0 0.240 Pennant Energy PEN-V Thomas Yingling n/a 0.730 Petrostar Petroleum PEP-V Robert A. Sim n/a 0.180 Pine Cliff Energy PNE-V George Fink 30 1.150 Regal Energy REG-V Doug McNichol 173 0.220 Ripper Oil and Gas RIP-V Jerry Ball 380 0.510 Sahara Energy SAH-V Peter Boswell n/a 0.055 Seaview Energy Inc. CVU-V Michael Wuetherick 246 2.650 Radius Resources RAX.V David Mears 162 0.550 Solara Exploration SAA.A-V Donald Holding 356 0.230 Spitfire Energy SEL-V Keith Chase 289 0.370 Stetson Oil & Gas SSN-V Bill Ward 31 0.260 Stonefire Energy SFE.A-V Richard Dahl 466 1.850 Strategic Oil & Gas SOG-V Arn Schoch 150 0.800 Sure Energy SHR-T Jeffrey Boyce 327 0.900 Tiger-Cat Energy TCE-V John Zang 37 0.080 TRAFINA Energy TFA.A-V Roland T. Valentine n/a 0.600 Tuscany Energy TUS-V Greg T. Busby 161 0.115 Vision 2000 Exploration VNN-V David Conklin 272 0.690 Western Canada Energy WCE-V Daniel O’Neill 96 0.120 Yangarra Resources YAN-V Jim Evaskavitch 462 0.355

BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 83 QUARTERLY EARNINGS: AN EASY READ MEANS BETTER ANALYSIS – AN UPDATE

By Melody Firth, Manager, Corporate Communications, CNW Group

I recently contacted the financial news wires for an update to this • Headline and sub-heading: Include a headline that explains the article which ran last summer, and to see if they had anything main topic and a sub-heading that expands on it. further to add on how well public companies are presenting their • Reporting currency: Keep in mind that information is circulated information. globally, and unless otherwise stated, the reporting currency John Moritsugu, Managing Editor, Dow Jones Canada Inc., told me automatically reverts to US Dollars. To avoid confusion, always that Dow Jones contacts all TSX-listed companies in the week or two include a reference at the top of the release indicating the before the earnings period begins to see if they will communicate reporting currency. (Example: “All amounts are in Canadian which day they expect to report quarterly earnings. John says many dollars unless otherwise stated.”) companies already give this information on their websites, so no • Highlights: Include all pertinent information in the first two contact is necessary. However, of the companies they contact, they paragraphs with historical information at the end. only have a success rate of 50-60%. It seems some companies either don’t get back to them or won’t give them a reporting date. • Bullet points make it easy for readers to scan your key information Moritsugu says, “Some companies seem to believe that telling us quickly. which day they will report is a violation of Regulation FD in the U.S., • Key Financial Information: It’s helpful if this information is readily which is absurd.” Some companies will give them a variation of available in the first paragraph: net income and per share figure, the following: “We will report our quarterly financial results within basic and diluted. the timeframe required by Canadian regulatory authorities.” As you can imagine, such a response is not especially helpful. Moritsugu • Provide a clear reason or reasons why the earnings are higher or continued, “It would be a tremendous help if Canadian companies lower than the year before. would tell us in advance which day they expect to report and what • Financial Tables and charts: Will often be cut and pasted into other time during the day. I don’t expect all companies to know this formats, so include the reporting currency at the beginning of each information before the reporting period begins (i.e. in the early part throughout the release. of April for the first quarter) but they can still tell us when they decide the date, even if the warning is only a few days.” • Aim for consistency in format and presentation of financial data, for example, the current period on the left compared to the same It is worth keeping in mind that staff at financial wire services, period last year on the right - format preferred by the market. have only seconds in which to read a company’s earnings release, (Example: Q3, 2007 versus Q3, 2006). prepare a quick summary of the main points, and release it across their terminals. • Topic: When including more than one topic in the earnings release, such as a stock split or other material information, make readers “We often have situations where we have to track down someone aware of this by referencing it in the sub-heading. at the company to confirm if they’re reporting in Canadian or U.S. dollars”, adds John Moritsugu. “This means a delay of several • Historical Data: Include towards the end of the release. minutes, when we actually have only seconds to summarize the main • Quotes and background: Gives context and reinforces key points of the release and get it out across the terminals. This holds information. up the process and sometimes we end up sending the information • Contact information: Ensure contacts mentioned in the earnings out, because we can’t get hold of the right person.” release will actually be available for comment. Moritsugu continues, “Approximately ninety-eight per cent of • Supply complete contact information, including business, cell companies include charts with the current period on the left and phone numbers and e-mail addresses. the same period last year on the right. However, 1 – 2% tend to flip this around and this can cause confusion in the marketplace, • Timing: Issuing the news release at 6:00 a.m. allows financial necessitating the need for a correction to be issued as soon journalists to analyze the figures and publish financial news for possible.” markets.

Confusion over the reporting currency can have adverse effects on Melody Firth is Manager, Corporate Communications at CNW Group, a a company’s stock price. This often results in the company involved global leader in news and information distribution services for professional fielding a flurry of phone calls from concerned investors and analysts communicators. Established in 1960, CNW is part of the International looking for clarification, a situation that can easily be avoided by PR Newswire network, reaching news outlets in 135 countries worldwide. following a clear and consistent format. CNW Group provides electronic news distribution, targeting, monitoring, translation, Webcast and disclosure services to corporate, government, associations, Below are some key points worth bearing in mind when drafting up labour, non-profit and other customers worldwide. CNW Group helps Canadian and your next quarterly earnings release: international organizations to connect with local and global audiences including the news media, the investment community and the general public. CNW Group is co- • Earnings Release Date: As soon as the date of your company’s owned by two news distribution powerhouses: PR Newswire, based in New York City, next earnings release is confirmed, post it on the investor relations USA and PA Group, based in London, UK. www.newswire.ca 1.877.CNW.7890 section of your website. The views, opinions and advice provided in this article reflect those of the author and do not necessarily represent the views or opinions or advice of Bryan Mills Iradesso.

84 BRYAN MILLS IRADESSO QUARTERLY REPORT - Q1 2008 Happy Auditors? Happy EVERYBODY.

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