A&D Drill Bits. July Land Sale Postings, Southern Alberta More Oil Shales? July 08, 2011

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1 July 08, 20 July Land Sale Postings, Southern Alberta More Oil Shales? Wendy Smith Low, B.Sc. Director (403) Joyce Kennedy, B. Sc. (403) Steve Kehoe, M.E. Sc., P. Eng. (403) Copyright 20 BMO Capital Markets. All Rights Reserved.

2 July Land Sale Map 5 RW R9 R8 R7 R6 R5 W4 Two land sales this summer July 3 and July 27 have posted more than 400,000 acres in a fairway that stretches south from to the Alberta/Montana border Current speculation is that the postings are targeting two oil shale plays the Second White Specked Shale (2WS) and the Alberta Bakken Petroleum System 2WS drilled to date are the red stars on the map and the Alberta Bakken wells are the yellow stars The first land sale on July 3 is indicated in blue on the map and has sections posted in 88 parcels for either 2 or 5 year terms T T The July 27 land sale, indicated on the map in green, includes 83 sections in 70 parcels, again for either a 2 or 5 year term 2WS or Cone wells AB Bakken wells July 3 postings July 27 postings 2

3 Data As Of: (AB) WellCount: 25/26 Second White Specs Oil Production Second White Speckled Shale (2WS) Petroleum Rights July Land Sale Map Largest 2WS Producer From: 96-2 To: RW R9 R8 R7 R6 R5W All Second White Specs (2WS) oil production Canada only Rate: 225 bbl/d from 6 wells W5/2 (Legacy op ed).8 Mbbl oil, 35 MMcf gas IP 34 bbl/d 2003 Within Turner Valley Field, thrusted 2WS Prd-Day Avg OIL Cal-Day Avg OIL Ratio: GAS/OIL 78 MScf/Bbl Time (years) Cum GAS Cum OIL Cum WTR 3,059, ,236, ,846, T CTD 2.2 MMbbl T Mcf Bbl Bbl Prd-Day Avg WTR Well Count M count The 2WS is also sometimes referred to as the Cone - has produced from the Turner Valley area south into Montana Production from these wells is significant having produced a more than 2.2 MMbbl (Alberta wells only). In particular the W4 has produced in excess of.4 MMbbl On the right is a well log from the well showing the 2WS to be ~0m thick There will be areas proximal to the deformed belt where the 2WS will be faulted creating the opportunity for repeat sections. This is the case with the Legacy well at Turner Valley W5 All the lands posted in green include the rights for the 2WS Note that to date no horizontal 2WS wells have been drilled in Alberta W4 Second White Specs,44 Mbbl oil, 2.52 Bcf gas 2 events IP 399 bbl/d 968 Rate 24 bbl/d April 20 2WS or Cone oil 2WS Petroleum Rights 3

4 5 T Alberta Bakken Petroleum Rights July Land Sale Map 3 RW AB Bakken oil ABBK Pet rights on July postings Within Fairway Outside of Fairway R9 R8 R7 R6 R5W4 T W4 Big Valley 245 MBbloil, 74MMcf gas IP 337 bbl/d 979 Rate5 bbl/d April 20 Largest CTD AB Bakken Producer All AB Bakken oil production Canada only Data As Of: (AB) WellCount: 6/ Time (years) Prd-Day Avg OIL Cal-Day Avg OIL Ratio: GAS/OIL Scf/Bbl Alberta Bakken Oil Production From: 977- To: Cum GAS 32,643.5 Mcf Cum OIL 32,427.8 Bbl Cum WTR 2,02.8 Bbl Prd-Day Avg WTR Well Count count The map on the left shows the Alberta Bakken Fairway and the July land sale postings indicated in either yellow or green. Note that only a small portion of the lands (green) are in the fairway A number of horizontal wells have been drilled into the play with more licensed and waiting to be drilled. Most of these wells remain confidential so production performance is limited to calendar day rates (assumes full hours of production each month) which can mask the true production from the wells The area around the green lands has seen development by companies such as Argosy, Nexen, Timberock, Candian Coastal (Broker) and Crescent Point. Note that Crescent Point has licensed a number wells targeting the Barons (a 2WS equivalent) on the green lands 4

5 Ian van Staalduinen, B.A.Sc., P.Eng. Managing Director (403) Engineering Wendy Smith Low, B.Sc. Director (403) Ryan Twa, M.Eng., P.Eng. (403) Steve Kehoe, M.E.Sc., P.Eng. (403) Geology About BMO Capital Markets BMO Capital Markets is a leading, full-service North American financial services provider, with over 2,000 employees operating in 4 North American offices and 26 worldwide, offering corporate, institutional and government clients access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE, TSX: BMO), one of the largest diversified financial services providers in North America with US$437 billion total assets and more than 38,000 employees as at April 30, Copyright 20 BMO Capital Markets. All Rights Reserved. These materials are confidential and proprietary to, and may not be reproduced, disseminated or referred to, in whole or in part without the prior consent of BMO Capital Markets ( BMO ). These materials have been prepared exclusively for the BMO client or potential client to which such materials are delivered and may not be used for any purpose other than as authorized in writing by BMO. BMO assumes no responsibility for verification of the information in these materials, and no representation or warranty is made as to the accuracy or completeness of such information. BMO assumes no obligation to correct or update these materials. These materials do not contain all information that may be required to evaluate, and do not constitute a recommendation with respect to, any transaction or matter. Any recipient of these materials should conduct its own independent analysis of the matters referred to herein. BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A. and Bank of Montreal Ireland p.l.c., and the institutional broker dealer businesses of BMO Capital Markets Corp., BMO Nesbitt Burns Trading Corp. S.A., BMO Nesbitt Burns Securities Limited and BMO Capital Markets GKST Inc. in the U.S., BMO Nesbitt Burns Inc. in Canada, Europe and Asia, BMO Nesbitt Burns Ltée/Ltd. in Canada, BMO Capital Markets Limited in Europe, Asia and Australia and BMO Advisors Private Limited in India. Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. Joyce Kennedy, B.Sc. (403) joyce.kennedy@bmo.com Kathleen Dixon, B.Sc., M.B.A., P.Geol. (403) kathleen.dixon@bmo.com Commercial Mandy Edwards, B.A. Coordinator (403) mandy.edwards@bmo.com Jennifer McQueen, B.F.A. Desktop Specialist (403) jennifer.mcqueen@bmo.com Lesley Steinhauer, B.Sc. (403) lesley.steinhauer@bmo.com Gemma Hobb Senior Admin. Assistant (403) gemma.hobb@bmo.com