2008 Highlights
- Completed farm-in obligations by drilling an exploratory earning well located northeast of the main producing area.
- Participated in the drilling, completion and tie-in of four additional appraisal and development wells, all successful, as well as the tie-in of wells drilled and/or completed during 2007, which
proved up the play trend.
- Participated in the construction of a production facility with processing capacity of 10 mmcf/d and water disposal capability.
- Constructed a 41-kilometre natural gas trunk line from the Square Creek production facility to the main Clear Prairie processing facility (owned and operated by a midstreamer), achieving the
Company’s target on-stream date of April 1, 2008. The trunk line was constructed on time and on budget and later sold to the midstreamer as part of a construction and operating agreement.
- Achieved production reliability with gross volumes ranging from 5,400 mcf/d to 8,000 mcf/d following plant start-up, depending on capacity available at the Clear Prairie facility. Production
averaged just over 4,000 mcf/d gross in 2008 due to the April 1 facility start-up date.
- Acquired an additional 4,480 net acres of land through Crown land sales at very attractive prices as compared to average bids across western Canada in 2008.
- Increased proved plus probable reserves at year-end 2008 by 11 percent year-over-year as a result of successful 2008 drilling activity, bringing total net reserves at December 31, 2008 to 7.5
bcf, as estimated by the Company’s independent reserve evaluator.
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