The Company has consistently located its wells on ultra wide spacing patterns to minimize the year to year decline in deliverability and maximize the longevity of production. The Company delivers its gas to three main metering stations within Union Gas Limited’s transmission system from the natural field pressure of its wells, without the aid of compression equipment. One major reason for the Company's success in natural gas well completion and production is its custom casing and well stimulation procedures (hydro-fracturing). In the early 1960's the Company experimented with and developed superior formulae and techniques still being used today. The Company also maintains a substantial portfolio of undrilled development and exploratory lease holdings in appropriate proximity to existing production.

The company continues to maintain an extensive land portfolio of undrilled leases containing substantial “Proven Undeveloped” and “Probable” Natural Gas Reserves (“Silurian” formation), as currently updated at March 31, 2012, by Jim McIntosh Petroleum Engineering Ltd.

The Company’s Statement of Reserves Data and Other Oil and Gas Information (the "Statement") in the form of National Instrument 51-101 - Standard of Disclosure for Oil and Gas Activities F1 is effective as at March 31, 2012 and was prepared on May 28, 2012. The Statement is also available under the Company’s profile at www.SEDAR.com.

Although the company runs a highly efficient production operation, the present cost of leasing, licensing, surveying, drilling, casing, completing, fracturing, pipelining and maintenance is not ECONOMICALLLY VIABLE at prevailing NYMEX1 standard prices of $2 to $3 per Mmbtu. Consequently, the Company does not contemplate further gas development until there is a significant improvement in Natural Gas prices.




PICTURED ABOVE is nomenclature of a modern compliance wellsite in Ontario (#91).The company’s Project.