Chestnut

• Working interest – 15.125%
• Stand-alone development, one producer and one injector
• Produced to Sevan 300 Floating Production Storage and Offload Vessel via lease arrangement, with production capability of 30,000 bbls/d and storage capacity of 300,000 bbls
• Plan to drill another well in 2H 2008 to capture further upside
• Current expectations are for development costs of C$9.00/bbl and operating costs of C$11.00/bbl
• First production expected Q2 2008