Operations (Natural & CBM Gas) - Joffre The Company owns an 85% working interest in certain interests in natural gas production, natural gas leases, associated equipment and natural gas pipelines located in or about the Joffre area of the Province of Alberta . The other 15% working interest is owned by Desoto. Donald Benson, the Chairman and Chief Executive Officer and a director of the Company is also the sole director and officer of Desoto. Desoto acts as operator of the Joffre Property pursuant to a joint operating agreement between the Company and Desoto. The Desoto Operating Agreement also provides for the joint purchase of Crown lands within an area of mutual interest by the Company and Desoto. The Joffre property is a mature property with potential additional oil and gas reserves in the Edmonton, Belly River and Viking zones where the Company has proven production and prospective lands containing proven Coal Bed Methane.  The Joffre Property totals 4,480 Gross acres and 3,808 Net acres. The Joffre Property is located approximately 20 miles east of the City of Red Deer, Alberta. The Joffre area has long been known for its production from the Belly River formation and in recent years, from coal seams in the Horseshoe Canyon formation at a depth of approximately 300 - 500 metres. The Joffre property includes an interest in 8 sections of land, which contain coal seams in the Horseshoe Canyon formation at a depth of approximately 300 - 500 metres. Drilling of an initial CBM well in Joffre, the Company's first test for Coal Bed Methane, was completed in October 2004. The Company’s CBM well, on section 5 - 20 - 38 - 24 W4, was drilled in May 2005 and was tied-in and placed on production. Three additional CBM wells were placed on production in August 2010 bringing to four the number of CBM wells on production. • Coal Bed Methane on Joffre lands • Joffre compressor Station At present, the Company has nine wells capable of production, including four CBM wells, plus one Viking well and one Belly River well awaiting tie-in, along with one “re-work” to be completed on the Joffre Property. The nine wells translate into approximately 80 BOEs/d  of production. Following is a list of the standing wells on the Joffre Property scheduled to come on production in the future subject to completion of the work noted hereunder: 5-18-38-24 W4               6-24-38-25 W4                   10-12-38-24 W4 New Belly River New Viking     Re-work  Install a pipeline in the second quarter of 2011 Frac the well and install a pipeline in Q2 2011 Re-perforate the well in the second quarter of 2011 Producing Properties • Lloydminster Property • Joffre Property Exploration Properties • Preeceville/Endeavour Property • Peace River Arch / Talbot Lake Property • Drumheller Property • Weyburn • Virden, Manitoba Production & Reserves   For daily information follow us on twitter.