A plunger-lift production system is currently being installed to handle the liquids. Estimated net daily production to Emerald Bay is projected to be 15boepd.

At Gilby, Alberta, the company completed pipeline construction and tied-in Gilby 8-33-40-1 W5. To maximize production, Emerald Bay will commingle the Lower and Upper Jurassic zones with the Viking.

Production lifting equipment is being planned to handle the condensate. It is anticipated that the operations will be completed by the end of June 2010. Estimated, net daily production to Emerald Bay is projected to be 32boepd.

At Twining, Alberta, the company plans to to commingle the Pekisko and Ostracod zones at 16-18-31-23 W4 during the month of June. Estimated net daily production to Emerald Bay is projected to be 40boepd.

At Joffre, Alberta, notwithstanding poor weather conditions, pipeline operations continue at two locations. 16-8-39-24 W4 and 16-21-39-25 W4 are expected to be completed this summer. Estimated net daily production to Emerald Bay is projected to be 7boepd.

At Lacombe, Alberta, transportation and processing negotiations are being finalized on three wells. Completion operations are expected to begin in June 2010. Estimated, net daily production to Emerald Bay is projected to be 11boepd.

At Alliance, Alberta, a fracture-stimulation program is scheduled for June 2010. This is a Viking oil well. Positive production results could lead to additional drilling locations in the third quarter and the fourth quarter of this year. Estimated net daily production to Emerald Bay is projected to be 4boepd.