Tight gas refers to natural gas in underground reservoirs with low permeability. A generally accepted industry definition is reservoirs that do not produce economic volumes of natural gas without assistance from massive stimulation treatments or special recovery processes and technologies, such as horizontal wells. Low permeability is primarily due to the fine-grained nature of the sediments, compaction, or infilling of pore spaces by carbonate or silicate cements. Our tight gas resource play features a variety of properties in northern British Columbia and the foothills of Alberta and B.C. where these reservoirs are typically found.

Tommy Lakes is our key asset in our growing tight gas resource play. Tommy Lakes is a tight natural gas property producing from the Halfway Sandstone formation located 130 kms south of Fort Nelson, British Columbia. It provides a large, operated tight gas play to complement our tight gas presence which has been predominantly non-operated. Tommy Lakes is an operated winter access property with more than 35 expected future drilling locations representing at least 3 years of anticipated development opportunities. This property currently has top quartile operating metrics, including low operating costs, excellent capital efficiencies and repeatable capital programs. We acquired this resource play as a part of the Focus Energy Trust acquisition which closed February 13, 2008.

Key Statistics:

• 14% of proved plus probable reserves
• 17% of 2009 year to date daily production
• Reserve Life Index of 10.5 years
• 2009 development capital program of $84 million (focused at Tommy Lakes where we completed our 14 week winter program including the first successful horizontal well on our lands as well as additional tight gas growth opportunities)
  *as of September 30, 2009

For further information on all of our resource plays, click here.

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