iradesso quarterlyiq.iradesso.ca/iq/iq-mag-q1-2011-web.pdfq1 2011 released july 2011 / volume 23...

Q1 2011

RELEASED juLy 2011 / VOLuME 23ISSN 1718-9799 PM41045505

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I R A D E S S OQ U A R T E R LY

CANADIAN OIL & GAS COMPARISON

financial and operating reSultSfor 57 Juniors and 28 Intermediates

featuring fact SHeetSfrom Juniors, Intermediates and Internationals

Tides

The Tides that BindThe forces that influence the performance of Western Canada’s conventional oil and natural gas producers are as irresistible as the ocean’s tides. From the ebb and flow of share prices to the shift from natural gas exploration to oil production, commodity prices push almost every public player in the same direction at the same time.

Share prices are the most obvious way to illustrate the extent to which oil and natural gas companies are bound together by unwavering tides. When the spot price of West Texas Intermediate (WTI) oil increased from $89 on January 1, 2011 to $110 on April 1, 2011, two thirds of the oil and natural gas companies that trade on the TSX and TSX Venture Exchange watched their share rise prices rise. When the spot price of WTI slipped back to $95 by June 30, 2011, two thirds of the pack watched their share prices fall.

While the degree to which oil and gas companies are connected is most evident in the movement of share prices, the links are also visible in long-term trends such as increasing oil production. The natural gas weighting for the median junior oil and gas company has trended down from 76 percent in the first quarter of 2009 to 71 percent in the first quarter of 2010 and 53 percent in the latest quarter. Given the number of steps that have to occur to transition from producing natural gas to finding and producing oil, this is a significant shift. Over the same period, the natural gas weighting for the median intermediate oil and gas company has declined from 67 percent in the first quarter of 2009 to 66 percent in the first quarter of 2010 and 63 percent in the latest quarter. With the price of oil still valued at more than three times natural gas based on energy equivalency at the burner tip, there is no end in sight to this trend.

It would be simplistic to say commodity prices carry the tides. In fact, it’s the factors that influence commodity prices, such as supply and demand, that cause investors and oil and gas companies to make similar decisions that drive noteworthy trends.

It’s true that not every public company goes with the flow. Some companies rise when others fall while others fall when others rise. This separation from the pack, whether on the upside or downside, can be traced back to the reputation of the management team, the degree of leverage and the quality of the asset base. The challenge for investors is to identify companies that are most likely to outperform. This iQ Report can be a helpful means to that end.

Bryan Mills Iradesso’s iQ Report is one of many ways in which we help our public oil and gas clients communicate with investors. This report draws attention to the oil and gas industry in general and our clients in particular by providing investors with an unbiased comparison of emerging, junior and intermediate oil and gas companies. We trust the information in this report will help you make wise investment decisions as you ride the tides.

Editors, iQ Report

Geoffrey Vanderburg Peter Knapp Senior Vice President President Bryan Mills Iradesso Bryan Mills Iradesso

MES

SAG

E fR

OM

th

E ED

ItO

RS

Q u a r t e r l Y r e p o r t : Q 1 2 0 1 1 1

Suite 2240, 140 - 4th avenue SWcalgary, aB t2p 3n3

telephone: 403.503.0144toll-free: 1.866.415.1070email: [email protected]

july 2011 / VOl. 23.

eDitorS geoffrey Vanderburg peter Knapp

reSearcHerS & contriButorS laura Bechtel, tamara Bowlby, Jory Debenham, Dave fearman, angela iori Kelsey Mullen and geoffrey Vanderburg

Data provided by canoils Database limited and BMir researchers

proDuction coorDinator leanne Hauge

DeSignerS candace evans thomas Magee

proDuction artiSt robert Bourassa

printer rhino print Solutions

Please email us at [email protected] or fill out the subscription form at iq.bmir.com to ensure you receive your free copy of the iQ Report.

R E l E A S E S C H E D u l E

Q2 2011 iQ release:

Week of September 5, 2011

Currents & Tides

During Q1 2011, investors got a positive return on 79 percent of intermediates and 60 percent of juniors. The median return was 8.1 percent and 5.4 percent for intermediates and juniors respectively.

In the following three months of April through June, 75 percent of intermediates had a negative return for investors, while 79 percent of juniors had a negative return. These investment losses were for a median 11.7 percent for intermediates and 13.1 percent for juniors.

These returns are calculated using opening and closing share prices combined with dividends paid during the period.

The number of intermediates with Q1 2011 production of more than 10,000 boe/d and less than 100,000 boe/d increased to 28 companies. This represents a 22 percent increase over the recent low of 23 intermediates less than a year ago in Q2 2010.

Of the 28 intermediates this quarter, the vast majority, 82 percent, have production of less than 50,000 boe/d and no companies report production of between 80,000 boe/d and 100,000 boe/d.

Overall, the population of juniors has remained relatively steady for the past year.

It makes sense for juniors to try to move up to becoming intermediate companies. The median intermediate was trading at an 18 percent premium to our simplified net asset value calculation, which is based on the net present value of proved plus probable reserves plus a land value estimate minus net debt. Conversely, the median junior trades at a 12 percent discount to our simplified net asset value calculation.

Overall, this means that intermediates can get cheaper capital than juniors by issuing new shares. Add this on top of the higher liquidity that normally goes with larger market capitalizations, and intermediates are in a much better position to make the public markets work in their favour.

12 of the 28 intermediates and three of 57 juniors pay a monthly dividend to their shareholders. All but one of these companies are former income trusts.

After many quarters of junior companies talking about focusing on oil and liquids production, the results are finally showing. The median natural gas weighting for juniors dropped to 53 percent of production volumes. This is significant given that the median natural gas weighting for juniors has been stuck between 76 percent and 65 percent for the past four years, and was 71 percent only one year ago.

These numbers are proof that on average, juniors truly have stopped targeting natural gas in their drilling, production enhancement and acquisition programs.

Intermediates had a median natural gas weighting of 63 percent for Q1 average production. This production mix is more in line with previous quarters.

MoSt SHipS MoVe WitH tHe t iDe

riS ing interMeDiate population

interMeDiate preMiuM

paYing DiViDenDS

Junior gaS f inallY DropScommunication matters

Information for investors

iq.bmir.com

c o n t e n t S

B R Y A N M I L L S I R A D E S S O • i Q . B M i r . c o M2

1 Q1 currentS & tiDeS

4 Junior & interMeDiate WHeeling anD Dealin g

5 Junior coMpariSon cHartS 6 Q1 production (boe/d)

7 Q1 production Mix - natural gas Weighting (%)

8 change in production - Q4 2010 to Q1 2011 (%)

9 enterprise Value Versus Q1 production ($ per boe/d)

10 Q1 cash flow netback ($/boe)

11 Q1 operating and transportation expenses ($/boe)

12 Q1 general and administrative cash expenses ($/boe)

13 Q1 Depletion, Depreciation and accretion expenses ($/boe)

14 annualized Q1 cash flow Multiples

15 Q1 net Debt to annualized cash flow

16 reserve life indices (Years)

17 enterprise Value (less land Value) Versus reserves ($/boe)

18 trading premium to Simplified net asset Value estimate (%)

19 Year end undeveloped land (net acres)

20 investment returns – capital gains and Distributions or Dividends (%)

21 Juniors listing – Data table

34 interMeDiate coMpariSon cHartS 35 Q1 production (boe/d)

36 Q1 production Mix - natural gas Weighting (%)

36 change in production - Q4 2010 to Q1 2011 (%)

37 enterprise Value Versus Q1 production ($ per boe/d)

37 Q1 cash flow netback ($/boe)

38 Q1 operating and transportation expenses ($/boe)

38 Q1 general and administrative cash expenses ($/boe)

39 Q1 Depletion, Depreciation and accretion expenses ($/boe)

39 annualized Q1 cash flow Multiples

40 Q1 net Debt to annualized cash flow

40 reserve life indices (Years)

41 enterprise Value (less land Value) Versus reserves ($/boe)

41 trading premium to Simplified net asset Value estimate (%)

42 Year end 2010 undeveloped land (net acres)

42 Q1 total return – capital gains and Distributions (%)

43 intermediates listing – Data table

50 canaDian coMpanieS operating aBroaD

55 eMerging conVentional coMpanieS WatcH liSt

56 eMerging oil SanDS coMpanieS

i n t H i S i S S u e JulY 2011


REtuRN uNDELIVERABLE CANADIAN ADDRESSES tO:

BrYan MillS iraDeSSo

2240, 140 4th avenue SW, calgary, aB, t2p 3n3

aBBreViationS

bbls • barrels of oil

boe • barrels of oil equivalent

boe/d • barrels of oil equivalent per day

mcf • thousand cubic feet

mmcf • million cubic feet

NGLs • natural gas liquids

aSSuMptionS

• Barrels of oil equivalent calculated using 6 mcf = 1 boe.

• Net debt has been calculated by including bank debt, debentures, preferred convertible shares and working capital.

• For companies with A/B share structures, B shares have been converted to a shares using end-of-period share prices.

D I S C l A I M E R

the information used to compile this report is publicly available.

Bryan Mills iradesso provides the comparison to shine the

spotlight on these segments of the energy industry, and to

communicate the achievements and growth potential of the oil

and gas companies and trusts. the iQ report does not constitute

a solicitation or recommendation for the purchase or sale of any

security; it is provided for information only and is not intended

to serve as investment advice. Bryan Mills iradesso cannot be

held responsible for accuracy and all readers are encouraged

to conduct their own research. this report is provided by Bryan

Mills iradesso as a service to the reader without responsibility for

accuracy. Bryan Mills iradesso must be credited with developing

the iQ report if any part of it is reproduced. the companies that

have provided a corporate profile for this report have paid Bryan

Mills iradesso a fee.

45 crescent point energy

46 galleon energy

47 nal oil and gas trust

48 perpetual energy

49 petroBakken energy

52 Bengal energy

53 petrominerales

i n t e r M e D i at e S n a p S H ot S

i n t e r n at i o n a l S n a p S H ot S

22 argosy energy

23 arsenal energy

24 Delphi energy

25 Equal Energy

26 exall energy

27 ironhorse oil & gas

28 novus energy

29 Second Wave petroleum

30 Strategic energy

31 Surge energy

32 tamarack Valley energy

33 Yoho resources

J u n i o r S n a p S H ot S

junior & intermediate wheeling & dealing


Ju

nio

r &

inte

rMeD

iate

Dea

lS

CAtEGORy ChANGES

• Bellatrix moved to Intermediate from Junior

• Bowood moved to Emerging from Junior

• Pinecrest moved to Junior from Emerging

• International Sovereign moved to Junior from Emerging

• Reliable moved to Junior from Emerging

• Strategic moved to Junior from Emerging

• Zargon moved to Junior from Intermediate

DONE DEALS

The following deals have closed since our previous iQ Report, which means that in the case of an acquisition, the companies concerned are no longer included in the comparison charts of this report.

• Baytex Energy Trust converted to a corporation

• Bonavista Energy Trust converted to a corporation

• Caltex Energy acquired by Crew Energy

• Cinch Energy acquired by Tourmaline Oil Corp.

• Culane Energy acquired by Killam Acquisition Company

• Ember taken private by ERI

• NuLoch sold to Magnum Hunter

• Orion Oil & Gas acquired by Westfire Energy

• Pengrowth Energy Trust converted to a corporation

• Petro Uno acquired by Renegade Petroleum

• Peyto Energy Trust converted to a corporation

• Prospex acquired by Paramount

• RMP conducted reverse takeover of Orleans

• Spartan sold to senior company

• Zargon Energy Trust converted to a corporation

DEALS ANNOuNCED, But NOt CLOSED

• Orion Oil & Gas to be acquired by WestFire (expected close July 2011)

• Torque Energy to be acquired by Dundee Energy (expected close July 2011)

Please note that this summary is not exhaustive and is focused on corporate acquisitions relating to conventional juniors and intermediate producers meeting the criteria for our comparison charts.


junior oil & gas companies

c o M pa r i S o n

INCLuSION CRItERIA

• Primary business must be oil and gas exploration, development and production

• Q1 2011 production must fall between 500 and 10,000 barrels of oil equivalent per day (boe/d)

• Majority of production must be from Western Canada

• Must be publicly traded on the TSX or TSX Venture Exchange

506

509

630

632

633

713

736

753

789

790

807

835

845

863

1,031

1,045

1,090

1,200

1,266

1,286

1,423

1,544

1,636

1,771

2,002

2,177

2,274

2,325

2,444

2,472

2,551

2,602

2,639

2,740

2,773

2,795

2,937

3,017

3,487

3,496

3,577

3,693

4,027

4,160

5,076

5,292

6,092

6,350

6,456

7,489

7,608

7,726

8,185

8,259

8,489

8,649

9,546

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Int'lSovereign

Solara

Twoco

Reliable

Hyperion

DeeThree

Argosy

Pinecrest

Tamarack

Strategic

Petro-Reef

Ironhorse

Culane

Yangarra

WranglerWest

Exall

Compass

Palliser

Sure

TriOil

SecondWave

Novus

SkyWest

Renegade

Arsenal

Artek

Crocotta

Seaview

Waldron

Yoho

Arcan

RMP

Bellamont

Sonde

WestFire

Cinch

Whitecap

Midway

Rock

WildStream

Insignia

OpenRange

PaintedPony

Skope

Surge

Orion

Emerge

Bonterra

Terra

Freehold

TwinButte

Anderson

Cequence

Delphi

Vero

Equal

Zargon

a tall list of small companiesFor this report, “junior” oil and gas companies are defined as companies with production from 500 barrels of oil equivalent per day (boe/d) to 9,999 boe/d. Other parameters are included on the previous page.

“Intermediate” and “emerging” domestic companies are featured in sections beginning on page 34 and 55 respectively. A section on Canadian-based international companies is found starting on page 50.

This is a tall list of small companies in that two thirds of the companies have production of less than 3,000 boe/d. The list of junior companies with production at higher levels is comparatively short.

Q1 proDuction (Boe/D)Median = 2,444 boe/d


Jun

ior

co

Mpa

riSo

n

0

0

3

4

5

5

6

12

18

25

25

25

28

29

33

33

34

35

38

38

39

40

43

43

44

49

50

50

53

55

56

57

60

62

63

73

73

74

74

75

75

76

77

77

77

77

80

80

82

85

87

88

88

88

92

92

100

0 10 20 30 40 50 60 70 80 90 100

Reliable

Pinecrest

Emerge

Palliser

Renegade

WildStream

Arcan

Exall

Arsenal

Rock

Culane

Compass

Bonterra

Strategic

Novus

Midway

Solara

Freehold

Whitecap

Zargon

Surge

WestFire

SecondWave

Equal

TwinButte

Orion

Sure

PaintedPony

TriOil

Bellamont

Hyperion

Yangarra

SkyWest

Artek

Petro-Reef

Ironhorse

Anderson

Delphi

Crocotta

Vero

Sonde

WranglerWest

Yoho

Insignia

Waldron

Int'lSovereign

RMP

Argosy

Terra

Tamarack

Cequence

DeeThree

Twoco

Seaview

OpenRange

Cinch

Skope

a seismic shiftAfter a few years of talking about shifting production from natural gas to oil, this transition happened in a big way for the juniors in Q1 2011. The median natural gas weighting fell to 53% in Q1 2011 compared with 71% in the same quarter of Q1. If the gap in the price between the two commodities doesn’t close soon, it won’t be long before more companies will be producing oil than natural gas.

Oil has been financially more attractive than natural gas for a long time, but natural gas has continued to be a commodity of choice for some, in part because it’s easier to find.

To calculate our weighting, we include natural gas liquids (NGLs) with oil production. Produced liquids get prices that are similar to oil, with much stronger margins than natural gas.

As is standard, we convert natural gas into oil equivalence by using a ratio of six thousand cubic feet (mcf) of natural gas to one barrel of oil equivalent (boe). This ratio comes from an energy equivalence at the burner tip.

forMulaavg. natural gas production per day (boe/d)

avg. total production

Q1 proDuction Mix — natural gaS WeigHting (%)Median = 53.3%


Jun

ior

co

Mpa

riSo

n

(23.5)

(17.2)

(12.0)

(11.2)

(8.9)

(8.8)

(8.7)

(8.3)

(7.8)

(6.9)

(6.1)

(6.1)

(6.1)

(5.7)

(5.2)

(5.1)

(4.4)

(3.3)

(2.8)

(2.4)

(1.9)

(1.7)

(1.7)

(1.5)

(1.4)

(1.3)

(1.1)

0.2

0.4

0.4

1.3

1.5

1.8

2.5

4.0

4.4

4.6

4.7

6.2

8.8

9.3

10.8

12.4

16.4

16.7

17.0

21.4

21.8

26.7

26.9

29.2

45.8

53.0

141.1

148.1

295.7

(50.0) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0

RMP

TriOil

Seaview

Sonde

Arcan

Waldron

Terra

Skope

Tamarack

Twoco

Anderson

Arsenal

Freehold

Petro-Reef

Ironhorse

SecondWave

Argosy

Delphi

OpenRange

Sure

Cinch

Novus

Culane

Orion

Crocotta

Yoho

WestFire

Equal

Emerge

Rock

Midway

Int'lSovereign

Vero

Zargon

WranglerWest

Bonterra

Exall

Bellamont

TwinButte

Insignia

Cequence

Solara

DeeThree

Yangarra

Renegade

PaintedPony

Artek

Compass

Surge

WildStream

Palliser

Whitecap

Reliable

SkyWest

Strategic

Pinecrest

boosting productionAbout half of the juniors found ways to increase their overall production from Q4 2010 to Q1 2011. Increasing production rates quarter-over-quarter is not easy to do because production from most wells in Western Canada declines at a relatively high rate. These declines need to be replaced before additions can be made.

Companies at the bottom of this chart may have sold some of production recently while companies at the top either acquired production or drilled successful wells.

forMulacurrent period avg. production – previous period avg. production

previous period avg. production

Note: Gas production converted to boe at 6 mcf: 1 boe.

cHange in proDuction — Q4 2010 to Q1 2011 (%)Median = 0.4%


Jun

ior

co

Mpa

riSo

n

20,030

25,257

25,596

29,419

30,203

30,762

36,843

37,724

38,499

41,354

42,346

42,633

43,415

45,913

47,329

49,309

49,852

49,854

52,306

52,342

53,300

55,357

57,091

57,512

58,531

58,939

62,469

65,164

65,513

70,058

71,296

72,537

74,925

75,204

77,931

81,911

90,817

93,766

97,637

98,477

101,055

102,052

105,882

110,344

113,699

122,624

123,686

142,542

148,122

154,278

156,521

160,023

162,780

183,503

189,490

216,014

540,410

0 100,000 200,000 300,000 400,000 500,000 600,000

WranglerWest

Insignia

Skope

Int'lSovereign

Ironhorse

Terra

Anderson

Petro-Reef

Equal

Hyperion

Bellamont

Emerge

Delphi

Waldron

Palliser

Vero

Artek

Seaview

TwinButte

Rock

Twoco

Orion

Arsenal

TriOil

Yoho

Cequence

Tamarack

Sonde

RMP

SkyWest

Sure

Compass

Zargon

Yangarra

Solara

Cinch

Argosy

OpenRange

Culane

Crocotta

Exall

WestFire

Novus

Renegade

Whitecap

Midway

Surge

PaintedPony

WildStream

DeeThree

Reliable

Freehold

Strategic

SecondWave

Bonterra

Arcan

Pinecrest

production valuationThis chart shows each company’s enterprise value (market capitalization plus net debt) in relation to its average Q1 production levels. The chart does not take into account the value of land and seismic data or the quality and life expectancy of oil and gas reserves.

Companies that are high on this chart may be there because investors deem them to have strong growth prospects, quality long-life reserves, high field netbacks, high dividend or distribution yields, or exceptional management teams.

Companies that are low on this chart may be good value investments with excellent upside potential for investors who do their homework.

forMulamarket capitalization + net debt

avg. production in boe

Notes: Market capitalization = June 30 share price x Q1 weighted average basic shares outstanding.

Net debt = bank debt + debentures – working capital.

For A/B share structure companies, the separate market price of B shares is factored into the market capitalization.

enterpriSe Value VerSuS Q1 proDuction ($ per Boe/D)Median = $65,513 per boe/d


Jun

ior

co

Mpa

riSo

n

(18.20)

(12.98)

0.85

1.44

3.23

7.17

7.78

8.46

9.16

9.84

10.69

11.57

11.94

12.42

13.28

13.28

13.30

14.09

14.19

14.36

14.88

14.90

15.35

15.63

16.00

16.37

17.23

17.32

18.47

18.78

19.77

20.89

21.01

21.62

21.79

21.90

22.51

23.00

23.09

24.27

26.29

26.67

26.77

29.56

31.35

32.63

33.38

33.42

33.98

38.59

38.60

40.61

41.75

44.42

45.30

47.80

53.01

(30.00) (20.00) (10.00) 0.00 10.00 20.00 30.00 40.00 50.00 60.00

Strategic

DeeThree

Twoco

Palliser

Int'lSovereign

Terra

Argosy

Sonde

Tamarack

Crocotta

Ironhorse

Cinch

WranglerWest

Culane

Waldron

Cequence

TriOil

Seaview

Rock

Hyperion

Equal

RMP

Yoho

Anderson

Insignia

Skope

Emerge

SecondWave

Zargon

TwinButte

Artek

Delphi

Bellamont

Vero

Surge

SkyWest

Petro-Reef

Solara

Novus

Arsenal

Orion

Compass

WestFire

Sure

Whitecap

Yangarra

PaintedPony

Midway

Renegade

Arcan

WildStream

Freehold

Bonterra

Exall

OpenRange

Reliable

Pinecrest

oil prices deliver healthy marginsCompanies near the top of this chart are seeing the most economic benefit from existing production. Meanwhile, those near the bottom have costs that are reducing their margins.

To put this number in perspective, the median cash flow netback for Q1 2011 of $18.47 per boe is almost the same as the median of $18.87 per boe reported in Q1 2010, but well above the median of $10.24 reported in Q1 2009. The strong netback is largely a reflection of the increase in oil prices.

Cash flow is the result of adding back non-cash expenses such as depreciation and future taxes to net earnings. Cash flow takes into account the hard costs of operating as well as general and administrative costs.

forMulacash flow from operations

total production in the period

Note: Total production in the period = average daily production x 90 days in the period.

Q1 caSH floW netBacK ($/Boe)Median = $18.47/boe


Jun

ior

co

Mpa

riSo

n

0.53

3.44

5.64

7.60

7.69

8.14

8.26

9.37

9.42

9.54

9.62

9.63

9.75

9.79

10.29

10.45

10.65

10.93

10.96

11.56

11.58

11.63

11.65

11.93

12.07

12.26

12.34

13.00

13.53

14.03

14.04

14.53

14.57

14.78

15.24

15.30

15.38

15.79

16.08

16.60

17.10

17.42

18.04

18.56

18.65

18.99

19.27

19.46

19.98

20.87

21.79

26.04

26.71

26.90

30.74

46.49

48.52

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 55.00

Reliable

Freehold

OpenRange

Ironhorse

Exall

Cinch

Yangarra

Hyperion

Vero

Tamarack

Argosy

Int'lSovereign

Delphi

Seaview

Yoho

PaintedPony

RMP

Crocotta

Anderson

Waldron

DeeThree

Cequence

Petro-Reef

Equal

Midway

Sure

Twoco

Insignia

Artek

SkyWest

Bellamont

Orion

Bonterra

Whitecap

Terra

WildStream

WranglerWest

Zargon

Sonde

TwinButte

Arsenal

Skope

Pinecrest

WestFire

Renegade

Solara

Surge

Arcan

TriOil

Novus

Rock

Culane

SecondWave

Emerge

Palliser

Compass

Strategic

controlling costsCompanies that do a good job of controlling operating and transportation costs earn more money from their production. The ability to be an efficient operator relates to the productivity of wells, the proximity of producing areas, economies of scale, control over facilities and a company’s production methods. Some companies with high operating costs this quarter may be incurring expenses in an operating area that will not increase when production increases for the area, showing the potential for improving economies of scale.

forMulaoperating expenses including transportation costs



Q1 operating anD tranSportation expenSeS ($/Boe)Median = $13.53/boe


Jun

ior

co

Mpa

riSo

n

1.43

1.57

1.63

1.91

2.33

2.37

2.40

2.43

2.64

2.67

2.82

2.90

3.17

3.21

3.31

3.46

3.54

3.67

3.74

3.80

3.94

3.97

4.01

4.02

4.08

4.12

4.13

4.15

4.16

4.47

4.48

4.53

4.76

4.82

4.97

5.21

5.41

5.47

5.88

5.96

6.39

6.90

7.16

7.45

7.48

8.12

8.30

8.60

9.10

9.64

10.06

10.29

11.16

13.55

15.39

16.50

28.66

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

Arcan

Vero

Delphi

WildStream

TwinButte

PaintedPony

Seaview

Cequence

Yoho

Whitecap

Petro-Reef

Insignia

Waldron

Bonterra

WranglerWest

Terra

Yangarra

Emerge

Exall

Anderson

Bellamont

Skope

RMP

Artek

Rock

Zargon

WestFire

Ironhorse

Midway

Twoco

Orion

OpenRange

Surge

Compass

Cinch

Freehold

Culane

Equal

Arsenal

SecondWave

SkyWest

Palliser

Solara

Pinecrest

TriOil

Crocotta

Renegade

Sure

Sonde

Int'lSovereign

Novus

Tamarack

Hyperion

Reliable

Argosy

Strategic

DeeThree

the cost of doing businessGeneral and administrative expenses (G&A) pay for the engineering, geology, accounting, business development and other office-related expenses of oil and gas companies. G&A should be lower per boe for larger companies because many of these costs are fixed and do not increase with the amount of production. A lower amount of G&A per boe is good as long as it isn’t at the cost of growth or of meeting the regulatory and legal requirements of being a public company.

Savvy investors should take the time to understand what is happening that causes expenses to be higher than peers and whether or not it will translate into growth that will reward shareholders.

Non-cash compensation expenses, mostly stock options and other share or unit-based incentives, often make up a significant portion of compensation packages at junior oil and gas companies. These are not included in this chart.

forMulageneral & administrative expenses



Q1 general anD aDMiniStratiVe caSH expenSeS ($/Boe)Median = $4.16/boe


Jun

ior

co

Mpa

riSo

n

1.48

9.84

10.28

11.34

11.62

11.68

11.78

12.40

12.53

12.92

13.31

13.57

13.73

14.26

14.57

14.87

15.27

15.31

15.44

15.47

15.80

15.81

16.09

16.19

16.26

16.36

17.11

17.34

17.38

17.74

18.18

18.34

18.85

18.88

19.20

19.29

19.87

20.03

20.06

20.08

21.96

22.06

22.09

22.56

23.54

23.78

23.87

23.98

24.28

24.72

24.80

25.45

28.52

32.74

35.86

36.07

44.81

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00

Crocotta

Ironhorse

Terra

Bonterra

Int'lSovereign

Argosy

Waldron

Cequence

Orion

TwinButte

Sonde

DeeThree

Equal

Delphi

Palliser

Zargon

Vero

Cinch

Twoco

Arsenal

SkyWest

Bellamont

WranglerWest

Midway

Yangarra

Exall

OpenRange

Insignia

Rock

Anderson

Surge

Freehold

Hyperion

Emerge

TriOil

Sure

Culane

Solara

WestFire

Yoho

Whitecap

PaintedPony

Arcan

Petro-Reef

Seaview

Tamarack

WildStream

Novus

RMP

Strategic

Compass

Pinecrest

SecondWave

Reliable

Renegade

Skope

Artek

the cost of finding reservesDepletion, depreciation and accretion expenses (DD&A) may be considered an approximation of finding, development and acquisition costs for oil and gas reserves. DD&A expenses are an ongoing writedown of assets as they are used up. Increasing amounts may mean reserves were more expensive to acquire in the first place and as a result are losing value on the company’s books at a faster pace.

forMuladepletion, depreciation & accretion expenses



Q1 Depletion, Depreciation anD accretion expenSeS ($/Boe)Median = $17.38/boe


Jun

ior

co

Mpa

riSo

n

9.4

9.6

10.1

10.2

10.2

10.4

10.6

10.6

10.7

11.3

11.9

11.9

12.0

12.2

12.3

12.6

12.7

15.0

15.8

18.9

19.7

21.4

21.8

25.3

27.8

28.3

29.4

32.4

91.0

R li blSolara

WaldronWhitecap

MidwayRock

FreeholdWestFire

YohoWildStream

ZargonPaintedPony

TerraTriOilRMP

CequenceBonterra

NovusArcanSurge

TamarackCinch

SondeCulane

Int'lSovereignCrocottaPinecrest

SecondWaveArgosyPalliser

DeeThreeStrategic

Twoco

4.3

4.4

4.7

4.7

5.6

5.8

5.8

5.8

6.3

6.3

6.4

6.5

6.5

6.7

6.9

7.0

7.2

7.7

7.7

7.9

8.0

8.9

9.0

9.0

9.1

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

SkopeInsignia

Petro-ReefWranglerWest

BellamontOpenRange

DelphiOrionExallVero

YangarraArsenal

AndersonSure

EmergeArtekEqual

CompassTwinButteIronhorseHyperionSkyWestSeaview

RenegadeReliable

the value of cash flowThe dark bars on this chart show each company’s enterprise value as it relates to annualized cash flow. The lighter bars indicate the market capitalization to annualized cash flow. The difference between the two bars is each company’s net debt. Therefore, a quick glance at this chart doesn’t only show where a company trades in relation to its cash flow, but also shows debt positions.

This calculation of annualized cash flow multiples uses the closing market price on June 30, 2010 combined with Q1 2011 weighted average shares outstanding, net debt and cash flow. The values shown on the chart relate to the enterprise value multiples of annualized cash flow denoted by the dark bars.

forMulaenterprise value

(cash flow for period x 4)

Note: Enterprise value = (weighted average basic shares x June 30, 2011 share price) + net debt.

For A/B share structure companies, the separate market price of B shares is also factored into the market capitalization.

Market Capitalization to Annualized Cash Flow

Enterprise Value to Annualized Cash Flow

annualizeD Q1 caSH floW MultipleSenterprise Value to annualized cash flow Median = 9.6 Market capitalization to annualized cash flow Median = 7.9

These three companies had Q1 cash flow that was negative or negligible in comparison to enterprise values and market capitalizations.


Jun

ior

co

Mpa

riSo

n

(4.0)

(2.5)

(2.0)

(1.1)

(0.5)

(0.4)

(0.2)

0.0

0.5

0.6

0.6

0.7

0.8

0.8

0.8

0.8

0.9

1.0

1.1

1.1

1.2

1.2

1.4

1.4

1.6

1.7

1.8

1.8

1.8

1.9

1.9

1.9

2.0

2.0

2.1

2.1

2.2

2.2

2.3

2.3

2.6

2.7

2.8

2.9

3.3

3.4

3.6

4.7

5.1

5.4

6.0

6.6

8.9

13.8

(6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

TamarackHyperion

SondePaintedPonyWildStream

PinecrestTriOil

WestFireArsenal

ExallFreehold

NovusRenegade

SureReliable

OpenRangeCompass

OrionYangarraBonterra

CequenceSkyWest

YohoRMP

TwinButteWranglerWest

EmergeBellamont

InsigniaDelphi

Petro-ReefCrocotta

ArcanSurge

WaldronZargon

WhitecapSkope

MidwayVero

SolaraRock

ArtekCinchEqual

AndersonSeaview

IronhorseSecondWave

CulaneTerra

ArgosyInt'lSovereign

PalliserStrategic

DeeThreeTwoco

measuring debtThis measurement compares, in years, how long it would take to become debt free if cash flow remained steady year after year and it was 100 percent dedicated to paying down the debt based on the end of Q1. In times where equity markets aren’t providing capital at a reasonable value, it can be advantageous for companies to be able to utilize debt to finance growth. Assuming they are creditworthy, companies with less debt may be in the fortunate position of having more options open to take advantage of asset-buying opportunities. Companies with higher debt may not have as many desirable options.

Companies with negative values on the chart have a positive working capital position that they will be able to use to fund growth.

forMulanet debt

cash flow for period x 4

Note: Net debt = bank debt + debentures – working capital

Convertible debentures make up a portion of the debt load for Anderson, Arcan, Equal, Painted Pony, Reliable, Solara, Strategic and Twoco

Q1 net DeBt to annualizeD caSH floWMedian = 1.8

Note: These three companies had negligible or negative cash flow for the period, although both Strategic and DeeThree had positive cash positions with no net debt.

The seven companies at the

bottom of this graph have positive cash

positions rather than net debt.


Jun

ior

co

Mpa

riSo

n

5.4

5.8

5.9

6.1

6.1

6.6

6.7

6.9

7.0

7.5

8.5

8.6

9.3

9.5

9.7

9.8

10.1

10.2

10.2

10.5

10.6

11.2

11.2

11.3

11.4

11.4

11.5

12.0

12.3

12.3

12.5

12.6

12.8

12.8

13.2

13.5

13.9

14.1

14.3

14.3

14.6

15.1

15.2

15.6

15.9

16.0

16.4

16.4

16.4

17.0

17.6

18.4

19.4

22.0

22.1

22.7

23.4

0.0 5.0 10.0 15.0 20.0 25.0

Petro-ReefWranglerWest

ReliableEmerge

DeeThreePinecrest

Int'lSovereignPalliser

HyperionSkope

ExallFreehold

ZargonEqualSure

YohoSolaraTwocoSonde

TamarackVero

InsigniaAnderson

SecondWaveDelphiSurge

CompassBellamont

WildStreamIronhorse

RockRenegadeWhitecap

OrionTerra

TwinButteSeaview

WestFireCinch

ArsenalWaldron

OpenRangeMidwayArgosyCulane

YangarraCequence

NovusStrategicBonterra

RMPSkyWestCrocotta

TriOilPaintedPony

ArcanArtek

production in reservesThe reserve life index is a measurement of the number of years it would take to produce all of a given company’s proven plus probable reserves at current daily production rates. For this calculation, annualized Q1 production rates are used along with year-end reserves. For some juniors, reserves volumes may already have changed significantly through acquisitions or discoveries since the 2010 year end.

forMulaproved plus probable reserves volumes

average daily production x 365

reSerVe life inDiceS (YearS)Median = 12.3 years


Jun

ior

co

Mpa

riSo

n

3.65

3.75

4.41

5.30

5.67

6.16

6.88

7.09

7.80

7.88

8.33

8.37

8.43

8.74

9.17

9.24

9.52

9.80

10.03

10.16

10.45

11.01

11.34

11.50

11.56

12.46

12.52

12.70

13.45

13.67

14.46

15.32

15.32

15.85

16.40

16.50

16.92

17.15

17.62

18.83

18.96

19.49

19.70

20.77

20.91

21.89

24.19

25.37

25.47

29.82

31.01

31.78

38.86

41.90

49.84

51.04

197.95

0.00 50.00 100.00 150.00 200.00 250.00

Sonde Terra

Insignia TriOil Artek

Ironhorse Seaview Waldron

Anderson Skope

Int'lSovereign Bellamont

WranglerWest SkyWest

RMP Delphi

Cequence Rock

TwinButte Equal

Arsenal Yangarra

Vero Orion

Twoco Compass

Argosy Crocotta

Yoho Cinch

Palliser Novus Culane

Hyperion OpenRange

Tamarack PaintedPony

Petro-Reef Emerge

WestFire Midway

Sure Zargon

Strategic Whitecap

Solara Arcan Surge

Renegade Bonterra

Exall WildStream

DeeThree SecondWave

Reliable Freehold Pinecrest

placing a value on reservesThis measurement is found by adding market capitalization and debt capitalization (including debentures), less an estimated value for undeveloped land at $125 per acre, divided by the amount of proved and probable reserves at year end. The result is a wide range of values per boe of reserves.

Companies at the top of this chart may be there because investors believe they have strong growth prospects and high quality reserves that will supply higher total returns than their peers in years to come. The juniors at the bottom of this chart may be there because investors have not yet recognized their value, and may represent a buying opportunity. Other juniors may be at the bottom of this chart because their reserves are of relatively low quality and may be difficult or expensive to produce or transport.


- net acres of undeveloped land X $125/acre

proved plus probable reserves volumes

Note: Market capitalization = June 30, 2011 share price x Dec. 31, 2010 basic shares outstanding

Net debt = December 31, 2010 bank debt + debentures - working capital

enterpriSe Value (leSS lanD Value) VerSuS reSerVeS ($/Boe)Median = $13.45/boe


Jun

ior

co

Mpa

riSo

n

-77

-66

-55

-55

-52

-48

-47

-42

-40

-39

-38

-35

-35

-33

-31

-31

-30

-29

-26

-26

-25

-24

-22

-19

-18

-15

-13

-13

-12

-8

-8

-7

-6

-5

-1

3

4

5

10

13

13

15

17

18

29

30

34

42

43

56

56

60

64

73

90

253

(100) (50) 0 50 100 150 200 250 300

IronhorseTerra

WranglerWestArtek

InsigniaArsenal

TriOilSeaview

BellamontOrion

Int'lSovereignWaldron

PalliserYangarra

TwinButteSonde

Petro-ReefTwocoCulane

RockDelphi

SkyWestRMP

EmergeVero

AndersonEqual

NovusCequence

SkopeMidway

HyperionYoho

WestFireExall

RenegadeSure

CompassArcan

CrocottaZargonArgosy

TamarackWhitecap

WildStreamSurge

ReliableCinch

StrategicPaintedPony

DeeThreeSolara

OpenRangeBonterraFreehold

SecondWave

trading at a discountThis chart compares June 30, 2011 share prices to a simplified estimate of each junior’s December 31, 2010 net asset value (net of debentures). All undeveloped land has been valued equally at $125 per acre and no value has been assigned to seismic data, joint venture agreements or prospects. Although this measurement generally provides a good overall snapshot, investors are cautioned to put the numbers in perspective.

Some investors may look for juniors that appear to be trading at a bargain based on their net asset value while others may find it attractive to invest in juniors that trade at a premium due to factors such as the quality of the management team or growth prospects. It’s easier for some companies that trade at a premium to make accretive acquisitions or raise capital by issuing new shares.

forMulaJune 30, 2011 market cap –

(net present value of P+P reserves – net debt + net acres of undeveloped land x $125/acre)


traDing preMiuM to SiMplifieD net aSSet Value eStiMate (%)Median = -12.4%


Jun

ior

co

Mpa

riSo

n

1,280

4,366

6,247

13,187

14,110

14,509

19,883

26,034

27,478

30,721

30,817

35,287

39,984

40,309

41,120

45,452

46,228

47,291

47,300

48,228

49,480

50,283

52,269

54,058

54,562

60,881

64,141

71,079

71,620

74,295

87,845

87,948

89,328

91,517

111,656

112,804

115,449

119,858

122,856

133,839

136,909

146,571

162,000

165,458

172,665

188,389

197,426

209,370

223,579

240,217

244,475

250,468

293,760

435,413

521,000

656,841

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000

OrionSolara

FreeholdExall

IronhorsePetro-Reef

WranglerWestHyperion

Int'lSovereignSeaview

BonterraSkyWest

EmergePinecrest

PalliserCulane

WhitecapTwoco

AndersonYangarra

ArgosyTamarack

SureBellamont

RMPOpenRange

ArsenalCinchArtek

RenegadeMidway

CompassWaldron

RockNovusTriOilArcan

StrategicSecondWave

VeroWildStream

SkopeCrocotta

YohoPaintedPony

InsigniaReliable

WestFireDeeThree

EqualDelphi

TwinButteCequence

SurgeZargon

Terra

location, location, locationOwning the mineral rights for undeveloped land that can be explored in future drilling programs can make a company successful, particularly if the land is highly prospective and is close to infrastructure. However, some companies prefer to keep a small, focused undeveloped land position, emphasizing quality over quantity.

The number of undeveloped acres on this graph does not take into account acres that are accessible by a company through farm-in arrangements.

FORMULA

gross acres of undeveloped land x percentage working interest

Year enD unDeVelopeD lanD (net acreS)Median = 71,620 net acres


Jun

ior

co

Mpa

riSo

n

-50.0

-46.7

-42.7

-42.4

-37.1

-35.2

-33.3

-31.3

-29.8

-29.0

-28.7

-24.0

-23.8

-21.8

-17.1

-17.1

-16.8

-16.3

-15.3

-15.3

-15.3

-15.2

-14.0

-13.2

-12.2

-8.6

-7.3

-6.9

-5.3

-5.2

-5.0

-5.0

-4.9

-4.0

-1.8

-1.0

-0.9

-0.7

0.0

2.0

5.9

6.0

7.1

11.8

12.8

15.9

18.7

19.1

23.4

28.0

33.8

38.2

45.5

65.3

65.6

69.9

151.6

(100.0) (50.0) 0.0 50.0 100.0 150.0 200.0

Int'lSovereign

TriOil

Emerge

Solara

Twoco

Arsenal

Tamarack

Hyperion

WranglerWest

SkyWest

Exall

Renegade

Anderson

Terra

Novus

Yangarra

Seaview

DeeThree

Orion

Bellamont

Strategic

Rock

Sonde

Pinecrest

Palliser

Petro-Reef

RMP

Sure

Ironhorse

Midway

Insignia

Skope

Vero

Arcan

Delphi

Zargon

Whitecap

WestFire

Freehold

SecondWave

Equal

Compass

Yoho

Reliable

Bonterra

Waldron

WildStream

TwinButte

Argosy

PaintedPony

Surge

Culane

Artek

Crocotta

Cinch

Cequence

OpenRange

timing is everythingKnowing when to hold them and when to fold them is key to success for oil and gas investors. Investors who exited the median junior after the first three months of the year would have achieved a 5.4% total return while those who held on for the first six months of the year would have lost 5.3%.

While there’s no formula to know exactly when share prices will rise and fall, the tide that causes most oil and gas companies to ebb and flow in sync also creates opportunities for savvy investors to identify potentially lucrative buying and selling opportunities.

forMulacapital gain + total distributions in that period per share or unit

market price at end of the previous period

Note: Capital gain in period = market price at end of period – market price at end of previous period

Share price change plus distributions from January through June 2011

Share price change plus distributions from January through March 2011

inVeStMent returnS - capital gainS anD DiStriButionS or DiViDenDS (%)January through March Median = 5.4% January through June Median = -5.3%


Jun

ior

co

Mpa

riSo

n

Shortenedcompanyname

Chiefexecutive

Stocksymbol& exchange(T=TSX, V=Venture)

Share priceJune 30/11

($)

Q1/11 total dividends

paid($/share)

Dec 31/10 proved plus

probable (2P) reserves

(forecast price, gross)

(mboe)

Dec 31/1010% NPV of2P reserves

(forecast price)($000)

Dec 31/10 undeveloped

land(net acres)

Simplifiedyear-end

NAV per unit using

10% NPV 2P reserves plus

$125/acre undev.

land less net debt

($/unit)

Q1/11 average daily

production(boe/d)

Mar 31/11basic shares

outstanding not including

exchangeable shares(000)

Mar 31/11net debt

including debentures

($000)

Mar 31/11 debentures

outstanding($000)

Q1/11cash flow

($000)

Ent. value using Jun 30 share

price and weighted Q1/11

shares and debt

($000)Anderson Brian Dau AXL-T 0.80 - 31,688 271,469 47,300 0.94 7,726 172,545 146,650 43,679 10,868 284,653Arcan Ed Gilmet ARN-V 5.45 - 21,096 467,900 115,449 4.97 2,551 88,100 71,131 71,982 8,862 551,123Argosy Peter Salamon GSY-T 2.90 - 4,189 46,601 49,480 2.53 736 20,043 13,663 0 515 66,796Arsenal Tony van Winkoop AEI-T 0.70 - 10,466 201,441 64,141 1.35 2,002 163,314 7,983 0 4,374 114,315Artek Darryl Metcalfe RTK-T 1.92 - 18,615 181,753 71,620 4.22 2,177 39,583 42,910 0 3,873 108,511Bellamont Steve Moran BMX.A-V 0.50 - 11,520 151,418 54,058 0.89 2,639 140,788 36,514 0 4,990 111,765Bonterra George Fink BNE-T 56.78 0.72 39,397 713,600 30,817 32.78 6,350 19,322 109,297 0 23,861 1,203,233Cequence Paul Wanklyn CQE-T 3.33 - 48,863 525,635 293,760 3.80 8,185 144,248 45,629 0 9,780 482,395Cinch Sid Dykstra CNH-T 2.02 - 14,540 140,600 71,079 1.42 2,795 96,855 33,318 0 2,910 228,915Compass Yook Mah CPO-V 1.59 - 4,569 54,561 87,948 1.52 1,090 52,584 9,445 0 2,616 79,078Crocotta Robert Zakresky CTA-T 2.91 - 16,105 182,690 162,000 2.57 2,274 80,874 15,540 0 2,014 223,887Culane Donald Staus CLN-V 2.28 - 4,896 97,320 45,452 3.10 845 27,190 20,494 0 944 82,487DeeThree Martin Cheyne DTX-T 3.60 - 1,599 19,435 223,579 2.30 713 62,752 (20,659) 0 (833) 110,000Delphi David Reid DEE-T 2.13 - 34,409 399,454 244,475 2.85 8,259 117,121 116,879 0 15,524 358,559Emerge Thomas Greschner EME-T 2.07 - 13,600 283,640 39,984 2.55 6,092 92,348 68,589 0 9,447 259,727Equal Don Klapko EQU-T 6.48 - 30,039 332,300 240,217 7.46 8,649 27,733 153,307 80,336 11,580 332,956Exall Roger Dueck EE-T 1.64 - 3,253 101,492 13,187 1.65 1,045 61,739 9,806 0 4,178 105,619Freehold William Ingram FRU-T 19.64 0.42 23,629 656,232 6,247 9.89 7,489 59,536 65,236 0 27,375 1,198,466Hyperion Trevor Spagrud HYX-V 1.10 - 1,627 28,272 26,034 1.18 633 32,190 (8,208) 0 818 26,156Insignia Jeffrey Newcommon ISN-T 1.71 - 14,650 121,588 188,389 3.57 3,577 30,660 37,903 0 5,149 90,332Int'lSovereign Sharad Mistry ISR-T 0.60 - 1,242 16,186 27,478 0.96 506 16,096 5,233 0 147 14,891Ironhorse Larry Parks IOG-V 0.36 - 3,752 55,973 14,110 1.54 835 27,876 15,179 0 803 25,214Midway Scott Ratushny MEL-T 4.19 - 16,707 341,072 87,845 4.55 3,017 69,084 82,415 0 9,073 369,916Novus Hugh Ross NVS-V 0.92 - 9,238 164,202 111,656 1.06 1,544 169,719 8,658 0 3,208 163,446OpenRange Scott Dawson ONR-T 4.78 - 20,338 219,419 60,881 2.91 3,693 67,996 50,760 0 15,053 346,231Orion Gary Guidry OIP-T 0.83 - 24,822 439,300 1,280 1.36 5,292 290,672 51,709 0 12,522 292,967PaintedPony Patrick Ward PPY.A-V 11.19 - 32,539 353,740 172,665 7.33 4,027 59,186 (53,384) 10,716 12,098 574,018Palliser Kevin Gibson PXL-V 1.29 - 3,004 67,028 41,120 1.97 1,200 43,004 8,601 0 156 56,786Petro-Reef Theodore Donhuysen PER-V 0.32 - 1,580 34,741 14,509 0.46 807 56,261 12,459 0 1,634 30,430Pinecrest Wade Becker PRY-V 2.43 - 1,806 55,947 40,309 0.65 753 170,001 (5,895) 0 3,593 407,019Reliable Murray Swanson REL-V 0.38 - 1,352 44,586 197,426 0.28 632 236,338 9,128 1,247 2,719 98,921Renegade Michael Erickson RPL-V 3.08 - 8,136 202,269 74,295 2.99 1,771 64,732 17,331 0 5,414 195,364RMP John Ferguson RMP-T 2.30 - 16,684 195,942 54,562 2.95 2,602 65,787 19,132 0 3,489 170,443Rock Allen Bey RE-T 4.12 - 15,909 203,576 91,517 5.58 3,487 32,774 47,549 0 4,452 182,518Seaview Michael Wuetherick CVU.A-V 0.99 - 11,823 143,088 30,721 1.93 2,325 65,553 42,811 9,568 2,947 115,894SecondWave Colin Witwer SCS-T 2.60 - 5,855 90,865 122,856 0.74 1,423 82,923 45,507 0 2,218 261,095Skope Henry Cohen SKL-T 9.50 - 11,385 94,440 146,571 10.35 4,160 5,578 54,887 0 6,129 106,488SkyWest Lawrence Urichuk SKW-V 0.49 - 10,963 126,233 35,287 0.64 1,636 202,424 15,541 0 3,225 114,645Solara Donald Holding SAA.A-V 0.38 - 1,870 30,212 4,366 0.24 509 76,431 11,088 2,731 1,053 39,659Sonde Jack Schank SOQ-T 3.13 - 10,194 124,148 987,060 4.53 2,740 62,300 (16,461) 0 2,086 178,538Strategic Arn Schoch SOG-V 1.00 - 4,733 56,439 119,858 0.70 790 138,555 (9,905) 3,425 (1,295) 128,650Sure Jeffrey Boyce SHR-T 1.63 - 4,470 84,090 52,269 1.57 1,266 48,529 11,214 0 3,369 90,285Surge Dan O'Neil SGY-V 9.74 - 21,213 411,858 435,413 7.49 5,076 56,097 81,446 0 9,953 627,809Tamarack Brian Schmidt TVE-V 0.40 - 3,031 42,131 50,283 0.34 789 184,889 (10,441) 0 651 49,298Terra Cas Morel TT-T 0.97 - 31,043 304,783 656,841 2.82 6,456 101,904 99,713 0 4,167 198,601TriOil Russell Tripp TOL-V 2.40 - 10,312 121,999 112,804 4.55 1,286 31,318 (1,212) 0 1,539 73,951TwinButte Jim Saunders TBE-T 2.43 - 37,459 517,075 250,468 3.53 7,608 132,023 80,677 0 12,857 397,926Twoco Wayne Malinowski TWO-V 0.22 - 2,343 32,243 47,291 0.31 630 58,625 20,690 3,166 48 33,588Vero Douglas Bartole VRO-T 5.45 - 32,941 433,050 133,839 6.66 8,489 48,976 151,827 0 16,521 418,599Waldron Ernie Sapieha WDN-T 2.85 - 13,056 138,662 89,328 4.37 2,444 31,679 23,946 0 2,920 112,205WestFire Lowell Jackson WFE-T 6.85 - 14,239 281,411 209,370 7.18 2,773 44,811 1,198 0 6,681 282,940Whitecap Grant Fagerheim WCP-T 6.27 - 13,676 245,443 46,228 5.30 2,937 41,828 71,680 0 8,286 333,935WildStream Neil Roszell WSX-V 11.45 - 15,706 388,875 136,909 8.86 3,496 54,550 (22,502) 0 12,146 517,833WranglerWest Steven Johnson WX-V 2.00 - 2,186 33,967 19,883 4.40 1,031 6,466 7,719 0 1,108 20,651Yangarra James Evaskevich YGR-V 0.63 - 5,054 80,670 48,228 0.94 863 103,795 10,754 0 2,535 64,926Yoho Brian McLachlan YO-V 3.30 - 8,852 126,271 165,458 3.49 2,472 39,940 18,506 0 3,416 144,698Zargon Craig Hansen ZAR-T 21.40 0.42 32,390 570,681 521,000 18.91 9,546 27,281 135,131 0 15,871 715,264TOTAL 810,650 11,850,017 7,487,199 616,479,31 058,622611,860,2 537,671 AVERAGE 14,222 207,895 131,354 961,542 499,5 089,3382,63 101,3

For A/B share structures, B shares are not shown above, but are included in the calculations for some of our charts. When we calculate market capitalization, we use the A shares outstanding times the A share price, plus the B shares outstanding times the B share price.

Eastern Canada-focused Juniors, coalbed methane-focused Junior companies, and oil sands-focused Junior companies are not included in this comparison.

Data provided by CanOils database and BMIR researchers.


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iQ SnapSHotArgosy

Energy Inc.

This company snapshot has been assembled by BMIR using publicly available information. The snapshot is not endorsed by the company profiled.

Focus of Operations

IDEALLY POSITIONED FOR OIL DRILLINGListing: TSXV: GSY

Shares outstanding: 20.0 million at March 31, 2011

Share price: $2.90 at June 30, 2011

Market capitalization: $58 million

Net debt: $13.7 million at March 31, 2011

Enterprise value (market cap. + net debt): $71.7 million

Q1 2011 average daily production:

Crude oil and NGLs 146 bbls/d 80%

Natural gas 3.54 mmcf/d 20%

Total 736 boe/d 100%

Cash fl ow netback:

Oil

Gas

$0 $50GSY $7.78

Peer Median$18.47

Recent News:July 12, 2011Argosy Energy Closes $6.7 Million Bought Deal Financing

April 29, 2011Argosy Energy Announces Acceleration of Warrants

February 11, 2011Argosy Energy Closes $12.55 Million Bought Deal Financing

January 20, 2011Argosy Energy Announces $12.55 Million Bought Deal Financing

Contact:2100, 500 – 4 Avenue SWCalgary, Alberta T2P 2T5

tel 403.269.8846

[email protected]

Analyst Coverage:N/A

Offi cers:Peter Salamon - President & CEO

Ray Dobek - Executive VP, Exploration

Tom Dalton - VP, Finance & CFO

Rick Campbell - VP, Engineering & Business Development

Norm George - VP, Production & Operations

Directors:Brian Mellum - Lead Director

John Poetker

Kenneth Faircloth

Jake Roorda

Peter Salamon

Ray Dobek

Ante Creek

Pearce

Edson

Claresholm

Strategies:• Low share capital and high working interest exposure to the Alberta Bakken

and Duvernay prospects

• Proven management

• Low fi nding, development and operating costs

• Large drilling inventory of drilling locations focusing on light oil or liquids rich natural gas

• 100% working interest in the majority of prospects to reduce partner risk

— from Argosy June 2011 investor presentation


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Focus of Operations

OIL FOCUSED INVENTORY Listing: TSX-AEI



Market capitalization: $114.3 million

Net debt: $8 million at March 31, 2011

Enterprise value (market cap. + net debt): 122.3 million


Crude oil and NGLs 1,648 bbls/d 82%


Total 2,002 boe/d 100%

Cash fl ow netback:

Oil

Gas

$0 $50AEI $24.27

Peer Median$18.47

Recent News:July 4, 2011Arsenal Energy Provides North Dakota Operational Update

June 16, 2011Arsenal Energy Announces Normal Course Issuer Bid

June 14, 2011Arsenal Energy Releases Q1 Results

Strategies:• 80% Oil weighting by Production, 89% oil weighting by Reserves

• High operating margins – $29.28/boe in Q4 2010 and estimated >$35/boe in 2011

• 50% estimated production growth in 2011

• Multi-year, low risk, drilling inventory

• Currently trading below its peer group • Based on Enterprise Value ~0.50 x NAVPS, ~$63,784 boe/d; ~$11.23/P+P boe

— from Arsenal June 2011 corporate presentation

Contact:1900, 639-5th Avenue SWCalgary, Alberta T2P 0M9

tel 403.262.4854

[email protected]

Analyst Coverage:Clarus Securities

Desjardins Securities

Wellington West Capital Markets

Offi cers:Tony van Winkoop - President & CEO

J. Paul Lawrence - VP, Finance & CFO

Ron Forth - VP, Engineering

Gjoa Taylor - VP, Land

Leo Nolte - VP, Drilling

Directors:William Hews

Harley Kempthorne

Neil MacKay - Chairman

Bill Powers

Tony van Winkoop

Evi

Central Alberta

North Dakota

Southeast Alberta


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Focus of Operations

REAL ASSETS WITH REAL GROWTHListing: TSX-DEE










Cash fl ow netback:

Oil

Gas

$0 $50DEE $20.89

Peer Median$18.47

Recent News:June 20, 2011Delphi Energy Kicks Off Second Half 2011 Drilling Program

May 26, 2011Delphi Energy Reports Financial and Operational Results for the First Quarter 2011

May 18, 2011Delphi Energy Announces Increased Credit Facilities

Strategies:Delphi Energy is well-positioned for organic growth with a large inventory of development opportunities complemented by a high-impact exploration program:

• Disciplined fi eld capital program internally generated and protected through active commodity hedging program

• Operatorship and ownership of infrastructure, production, capital and lands

• Complementary conventional multi-zone deep basin asset base

• Focused on growth through the drill bit complemented with strategic acquisitions within core areas

— from Delphi website

Contact:300, 500 – 4 Avenue S.W.Calgary, Alberta T2P 2V6

tel 403.265.6171

[email protected]

Analyst Coverage:Acumen Capital Partners

Canaccord Genuity

Clarus Securities

GMP Securities

Jennings Capital

Macquarie Capital

Maison Placements Canada

National Bank Financial

Peters & Co.

RBC Capital Markets

Salman Partners

Scotia Capital

Stifel Nicolaus Canada


Offi cers:David Reid - President & CEO

Tony Angelidis - Sr. VP, Exploration

Brian Kohlhammer - VP, Finance & CFO

Hugo Batteke - VP, Operations

Michael Galvin - VP, Land

Rod Hume - VP, Engineering

Directors:Tony Angelidis

Harry Campbell

Robert Lehodey

Stephen Mulherin

Andrew Osis

David Reid

David Sandmeyer

Lamont Tolley

North West Alberta Region

North East British Columbia Region


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Focus of Operations

SOLID PORTFOLIO OF OIL & GAS ASSETSListing: TSX-EQU, NYSE-EQU




Net debt: $153 million (includes $80 million debentures) at March 31, 2011

Enterprise value (market cap. + net debt): $333 million





Cash fl ow netback:

Oil

Gas

$0 $50EQU $14.88

Peer Median$18.47

Recent News:June 1, 2011Equal Energy Announces Closing of Hunton Acquisition and Provides Operational Update

May 19, 2011Equal Energy Announces its Results for the First Quarter Ended March 31, 2011

May 19, 2011Equal Energy Completes $50.3 million Common Share Financing

Strategies:Equal Energy is a value oriented exploration and production oil and gas company. The Company’s portfolio of oil and gas properties is geographically diversifi ed with producing properties located principally in Oklahoma, Alberta, British Columbia and Saskatchewan. Production is comprised of approximately 51% crude oil and natural gas liquids and 49% natural gas.

Equal Energy’s near term strategies are to:

• Grow NAV/share on current cash fl ow by >15%, year over year

• Increase netback/boe by focusing on high return oil resource plays in Alliance Viking, Lochend Cardium

• Balance oil drilling with extensive liquids rich, natural gas portfolio on the Hunton play

• Maintain operational and fi nancial discipline

— from Equal Energy Q1 2011 and June 2011 investor presentation

Contact:2700, 500 - 4th Avenue S.W.Calgary, Alberta T2P 2V6

tel 403.263.0262toll free 877.263.0262

[email protected]

Analyst Coverage:Jennings Capital


Offi cers:Don Klapko - President & CEO

Dell Champman - Sr VP, & CFO

John Reader - Sr VP, & COO

John Chimahusky - Sr VP, & COO,

U.S. Operations

Terry Fullerton - Sr VP, Exploration

Mark Rupert - VP, U.S. Operations

Richard Dixon - VP, Land,

U.S. Operations

Peter Letizia - VP, Production

for Canada

Directors:Daniel Botterill

Peter Carpenter - Chairman

Michael Doyle

Victor Dusik

Roger Giovanetto

Don Klapko

Robert Wilkinson

Viking Trend

Pekisko Trend

Hunton Trend

CardiumTrends

Northest British Columbia

Saskatchewan Trend


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Focus of Operations

CRUDE OIL FOCUS AT MITSUE, MARTEN MOUNTAIN, ABListing: TSX-EE










Cash fl ow netback:

Oil

Gas

$0 $50EE $44.42

Peer Median$18.47

Recent News:June 02, 2011Exall Energy Re-Establishes Production in the Slave Lake Area

May 26, 2011Exall Energy Re-Establishes Partial Production in the Wake of the Slave Lake Fires

May 20, 2011Exall Energy Updates Impact of Slave Lake Fires

Strategies:ACQUIRE THE RIGHT ASSETS AT THE RIGHT TIME• Continuously acquire and develop core land holdings with a base of

high netback production in resource oil areas• Focus on oil which has a more stable outlook with high netbacks and

favorable recycle ratios

EMPLOY AND REFINE TECHNOLOGY TO OPTIMIZE VALUE• Learn from peers• Execute EOR’s to maximize ultimate reserve recovery• Apply new technology to old areas

MAINTAIN BALANCE SHEET FLEXIBILITYEXPLOIT ASSETS SUFFICIENTLY TO ACHIEVE MAXIMUM SHAREHOLDER VALUE• Three to fi ve year business cycle• Exit at the optimal time — from Exall Energy Road Show June 2011

Contact:400, 715 - 5th Avenue S.W.Calgary, Alberta T2P 2X6

tel 403.237.7820

www.exall.com

Analyst Coverage:Dundee Securities Research

Jennings Capital Power Plays

Offi cers:Stephen Roman - Executive Chairman

Roger Dueck - President & CEO

Warren Coles - VP, Finance & CFO

Glen Kerr - VP, Operations & COO

Janet MacKenzie - VP, Exploration

Directors:Roger Dueck

Wayne Egan

Bernard Lang

Allan Menzies

Roderick Phipps

Frank Rebeyka

Stephen Roman

Mitsue

Aitken Creek

Bow Island

Jayar

Harris County


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Focus of Operations

PUSHING FORWARD - 100% OIL WEIGHTED PRODUCTION BASEListing: TSX-V: IOGShares outstanding: 27.9 million at March 31, 2011









Cash fl ow netback:

Oil

Gas

$0 $50IOG $10.69

Peer Median$18.47

Recent News:June 23, 2011Ironhorse Oil & Gas Announces First Quarter 2011 Financial and Operating Results

June 10, 2011 Ironhorse Oil & Gas Announces Results of Annual General Meeting

April 13, 2011Ironhorse Oil & Gas Announces 2010 Financial and Operating Results

Strategies:• Sell assets to strengthen the balance sheet

• Pursue low risk, repeatable oil resource plays

• Place Pembina oil wells on production

— from Ironhorse June 2011 corporate presentation

Contact:1000, 324 – 8th Avenue SWCalgary, Alberta T2P 2Z2

tel 403.355.3620

[email protected]

Analyst Coverage:N/A

Offi cers:Larry J. Parks - President & CEO

Rob Solinger - VP, Finance & CFO

Timothy Veenstra - COO

Al Williams - VP, Exploration

Directors:Wayne Chow

Rob Desbarats

Larry J. Parks

Gerry Quinn

Michael J. Royan

Jedney

Pembina

Dawson

Hamilton Lake

Leon Lake


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Focus of Operations

VIKING FOCUS, BUILDING THROUGH TRANSACTIONSListing: TSXV-NVS



Market capitalization: $156.1million







Cash fl ow netback:

Oil

Gas

$0 $50NVS $23.09

Peer Median$18.47

Recent News:June 24, 2011Novus Energy Announces Results of Annual General and Special Meeting and Offi cer Appointment

June 15, 2011Novus Energy Announces First Quarter 2011 Results and a Signifi cant Acquisition of Land in its Core Area of Southwest Saskatchewan

May 24, 2011Novus Energy Announces Commencement of Drilling Program on its Viking Lands in Dodsland Saskatchewan

Strategies:Novus Energy’s strategy is to target high-impact growth through acquisitions in high netback properties, combined with organic growth through the drill bit. Under a new management team, the company’s name was changed to Novus Energy in mid 2009, and a new growth strategy was put in place targeting:

• Light oil resource plays with signifi cant original oil-in-place

• Application of horizontal multi-stage fracture technology to exponentially increase oil recovery

• Focus on well delineated, low geological risk reserves

• Lands to possess large aerial extent to support large-scale, repeatable drilling programs

— from Novus Energy website

Contact:5200, 150 - 6th Avenue S.W.Calgary, Alberta T2P 3Y7

tel 403.263.4310

[email protected] www.novusenergy.ca

Analyst Coverage:CIBC World Markets Inc.

Clarus Securities

Canaccord Genuity

Cormark Securities


Haywood Securities

GMP Securities

Jacob Securities

Jennings Capital

Paradigm Capital

Raymond James

Stifel Nicolaus

Offi cers:Hugh Ross - President & CEO

Ketan Panchmatia - VP, Finance & CFO

Greg Groten - VP, Exploration

Julian Din - VP, Business Development

Jack Lane - VP, Operations

Directors:Michael Halvorson

Harry Knutson

Al Kroontje

Bruce Macdonald

Larry Mah

Hugh Ross

Dodsland (Viking) Roncott

Wembley

Wapiti

Rocanville

Garrington


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Focus of Operations

LARGE OIL PLAYS, JUDY CREEK FOCUSListing: TSXV-SCS










Cash fl ow netback:

Oil

Gas

$0 $50SCS $17.32

Peer Median$18.47

Recent News:June 15, 2011Second Wave Petroleum Announces Filing of 2011 First Quarter Financial Results

May 18, 2011Second Wave Petroleum Announces Results of Judy Creek Pekisko Resource Assessment

April 21, 2011Second Wave Petroleum Announces Successful Beaverhill Lake Well in Judy Creek

Strategies:• Fast growth through the drill bit• Utilize resource play potential of Judy Creek properties• High working interests and operatorship in core areas• Exploit multi-zone potential on signifi cant land base

Strengths:• Experienced management team with specialties in property areas

and horizontal drilling• Stable oil-weighted base• Large drilling inventory of both high impact exploration wells and

lower risk development wells• Year round access with facilities and services available

— from Second Wave website

Contact:1700, 520 - 5th Avenue S.W.Calgary, Alberta T2P 3R7

tel 403.451.0165

[email protected]

Analyst Coverage:Clarus Securities Inc.


GMP Securities L.P.

RBC Capital Markets

Wellington West Capital Markets Inc.


Scotia Capital Inc.

Offi cers:Colin Witwer - President & CEO

Randy Denecky - VP, Finance & CFO

Douglas Hibbs - VP, Exploration

Randy Bergmann - VP, Land

Devery Neumann - VP, Operations

Directors:Brian Baker

Neil Bokenfohr

Donald Foulkes

Robert Goods

Jim Reid

Alan Steele

Colin Witwer

Battle Creek

Judy Creek

Tableland


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Focus of Operations

EXPANDING LIGHT OIL RESOURCE OPPORTUNITIESListing: TSXV-SOG




Net surplus: $9.9 million at March 31, 2011






Cash fl ow netback:

Strategic Oil & Gas’s cash fl ow netback for Q1 2011 were -$18.20/boe. The company reported that low netbacks were mainly due to increases in operating costs and royalties primarily related to the Steen River properties. Signifi cant components of the operating costs in the fi rst quarter are non-recurring.

Oil

Gas

Recent News:June 6, 2011 Strategic Oil & Gas Announces a 48% Increase to Capital Spending Budget

June 3, 2011Strategic Oil & Gas Announces 2011 First Quarter Results Refl ecting a 150% Increase in Production

June 2, 2011Strategic Oil & Gas Acquires Signifi cant Land Position at June 1, 2011 Crown Land Sale and Provides Update on Steen River Operations

Strategies:Exploit

• Develop the 500+ MMbbl light oil resource at Maxhamish

• Develop Keg River light oil potential at Steen River

Explore

• Explore the multi-zone oil fairway for light oil opportunities at Steen River

• Light oil opportunities in Western Canada using extensive datasets

Enhance

• Increase recovery using waterfl ood and other EOR techniques

— from Strategic website

Contact:1800, 510 - 5th Street S.W.Calgary, Alberta T2P 3S2

tel 403.718.0183

[email protected]

Analyst Coverage:Clarus Securities Inc.

Macquarie Equities Research

P1 Financial

Raymond James

Offi cers:Arn Schoch - President & CEO

Jim Screaton - VP, Finance & CFO

Sean Hayes - COO

Gurpreet Sawhney - VP, Business Development

Kirk Boote - VP, Operations

Directors:Arn Schoch

Colin McNeil

D. Richard Skeith

John W. Harkins

Steen RiverMaxhamish

Ferrier

Taber/ConradHarmattan


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Focus of Operations

UNIQUELY POSITIONED TO DELIVER TOP TIER PERFORMANCEListing: TSXV-SGY










Cash fl ow netback:

Oil

Gas

$0 $50SGY $21.79

Peer Median$18.47

Recent News:June 16, 2011 Surge Energy Inc. Announces First Quarter 2011 Results and Reiterates 2011 Guidance

May 16, 2011Surge Energy Announces Operations Update at Valhalla South, the Closing of the Previously Announced Light Oil Asset Acquisition in North Dakota and Increase in Bank Line

April 27, 2011Surge Energy Announces Signifi cant Upward Revision to 2011 Guidance, 2010 Year-End Results and Files Annual Information Form

Strategies:Evolve into a top tier intermediate oil and gas producer with a focus on oil

Continually position Surge in early stage oil resource plays that include the following key criteria: Signifi cant oil in place per section and low recovery factor to date Vertical well control for predicting Hz multi-frac production performance Signifi cant undeveloped land Available infrastructure Operatorship and all-season access Compelling full-cycle economics

Focus on decreasing operating costs and maximizing fi nancial effi ciencies

Apply our proven expertise in horizontal drilling, completions and secondary recovery to optimize net present value for shareholders

— from June 2011 corporate presentation

Contact:2100, 635 - 8th Avenue S.W.Calgary, Alberta T2P 3M3

tel 403.930.1010

[email protected]

Analyst Coverage:AltaCorp. Capital

BMO Capital Markets

CIBC World Markets Inc.

Cormark Securities

Desjardins Securities Inc

Dundee Securities Corporation

FirstEnergy Capital Corporation

GMP Securities

Macquarie Equities Research


Peters & Co. Limited

Scotia Capital Inc.

Offi cers:Dan O’Neil - President & CEO

Max Lof - CFO

Dan Brown - COO

Malcolm Adams - VP, Corporate Development

Margaret Elekes - VP, Land

Kevin Angus - VP, Exploration

Tee Ong - VP Engineering

Directors:Peter BannisterPaul Colborne - ChairmanColin DaviesRobert Leach

Keith MacdonaldDan O’NeilJames PasiekaMurray Smith

Southeastern Alberta

Western Alberta

Manitoba & North Dakota


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Focus of Operations

TARGETED ASSETS, SUSTAINABLE CORPORATE GROWTH Listing: TSXV-TVE





Enterprise value (market cap. + net debt): 63.5 million





Cash fl ow netback:

Oil

Gas

$0 $50TVE $9.16

Peer Median$18.47

Recent News:June 22, 2011Tamarack Valley Energy Reports Material Drilling Results in Lochend and Buck Lake and Announces New Core Area

May 24, 2011Tamarack Valley Energy files Q1 2011 Financial Statements and MD&A and Provides Positive Operational update

March 24, 2011Tamarack Valley Energy Provides Operational Update and Increases 2010 Proved Reserves by 31%

Strategies:Tamarack Valley Energy is focused on the identifi cation, evaluation and operation of resource plays in the western Canadian sedimentary basin. The Company uses a rigorous, proven modelling process to carefully manage risk and identify growth opportunities. This strategic play model targets:

• Resource plays with high original gas in place and original oil in place• Long life reserves• Horizons that are repeatable and have large scope• Focus on risk minimization

— from Tamarack Corporate Presentation April 2011

Contact:1800, 407 - 2nd Street S.W.Calgary, Alberta T2P 2Y3

tel 403.263.4440

[email protected] www.tamarackvalley.ca


Alta Corp Capital

Dundee Capital Markets

Mackie Research Capital

Paradigm Capital


Offi cers:Brian Schmidt - President & CEO

Ron Hozjan - VP, Finance & CFO

Niels Gundesen - VP, Engineering

Ken Cruikshank - VP, Land

Directors:Floyd Price - Chairman

Anthony Lambert

Dean Setoguchi

David Mackenzie

John Gunn

Brian Schmitdt

Wilder

Ansell

Hanlan

Garrington

Lochend

Quaich

Buck Lake

Sask Heavy Oil


Jun

ior

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Jun

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iQ SnapSHot


Focus of Operations

EXPLORATION FOCUSED, STRONG BOE FINANCIAL RESULTSListing: TSX-YOShares outstanding: 39.9 million at March 31, 2011





Average daily production for the quarter ended March 31, 2011:




Cash fl ow netback:

Oil

Gas

$0 $50YO $15.35

Peer Median$18.47

Recent News:June 20, 2011Yoho Resources Announces Results from Umbach Montney Unconventional Drilling

May 25, 2011 Yoho Resources Updates Unconventional Activity and Announces Financial and Operating Results for the Second 2011 Fiscal Quarter

April 19, 2011Yoho Resources Provides Update on Duvernay Drilling and Completion Operations

Strategies:Yoho Resources is primarily an exploration company with the following strategy:

• Develop unconventional exploration projects• Increase focus on oil and high liquids natural gas plays • Pursue smaller property acquisitions• Pursue smaller corporate opportunities• Continue to maximize per-barrel of oil equivalent fi nancial results

—From Yoho Resources website

Contact:750, 736 - 6 Avenue SWCalgary, AB T2P 3T7

tel 403.537.1771

[email protected]


Mackie Research

Paradigm Capital

Peters & Co.

Offi cers:Brian McLachlan - President and CEO

Barry Stobo - VP, Engineering and COO

Wendy Woolsey - VP, Finance and CFO

Clark Drader - VP, Land

Directors:Bruce Allford

John A. Brussa

Peter Kurceba

Brian McLachlan

Kevin Olson

Gary Perron

Terry Svarich, Chairman

Northeast British Columbia

Peace River Arch

West Central Alberta


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intermediate oil & gas companies

c o M pa r i S o n

INCLuSION CRItERIA

• Primary business must be oil and gas exploration, development and production

• Q1 2011 production must fall between 10,000 and 100,000 barrels of oil equivalent per day (boe/d)

• Majority of production must be from Western Canada

• Must be publicly traded on the TSX or TSX Venture Exchange


44 356

46,902

66,178

73,634

73,880

75,483

75,574

ProgressBaytex

BonavistaPengrowth

ARCEnerplus

CrescentPoint

26,078

27,253

28,024

31,531

39,257

41,562

44,356

NuVistaPerpetual

NALPeyto

DaylightPetroBakken

Progress

14,646

15,605

15,608

17,742

23,308

24,775

25,362

ChinookCelticCrew

BirchcliffTourmalineAdvantage

Trilogy

12 730

12,854

13,048

13,097

14,141

14,322

14,507

,

AngleLegacy

GalleonParamount

PaceFairborneCompton

10,084

12,730

0 25,000 50,000 75,000 100,000

BellatrixAngle

fewer peers for bigger companiesThis iQ Report defines “intermediate” oil and gas companies as those with production from 10,000 boe/d to 100,000 boe/d. In order to produce a relevant peer group, we restrict the intermediate category to companies with conventional oil and gas development and production as their primary business, with the majority of their production in Western Canada, and with their shares or units traded on the TSX. “Junior” and “emerging” companies are featured in sections beginning on pages 5 and 55 respectively. “Senior” producers, with production in excess of 100,000 boe/d, are not included in this report.

As companies get larger, they typically have fewer comparable peers. Of the 28 intermediate companies, only five have production greater than 50,000 boe/d.

See our “wheeling and dealing” section on page 4 for a list of recent transactions.

Q1 2011 proDuction (Boe/D)Median = 25,069 boe/d


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76

83

88

88

90

94

CelticComptonProgress

PeytoTourmaline

Perpetual

68

69

74

74

75

75

76

GalleonNuVista

FairborneTrilogy

ParamountAdvantage

Birchcliff

56

59

61

61

62

62

64

CrewPace

BonavistaAngle

BellatrixDaylightChinook

13

18

19

50

53

56

56

56

P t B kkBaytex Legacy

PengrowthNAL

EnerplusARC

Crew

10

13

0 10 20 30 40 50 60 70 80 90 100

CrescentPointPetroBakken

8 0

8.0

8.3

8.3

9.6

11.8

17.7

LegacyPace

CrescentPointBirchcliff

AnglePeyto

Trilogy

0.8

1.5

1.9

3.9

4.2

6.5

8.0

P B kkBellatrix

TourmalineAdvantage

ProgressBaytex

CrewLegacy

(3.4)

(3.2)

(3.1)

(2.7)

(2.3)

(1.8)

0.6

PerpetualDaylight

BonavistaParamount

ComptonPengrowth

PetroBakken

(10.2)

(9.6)

(7.4)

(5.8)

(5.5)

(4.6)

(3.7)

FairborneCeltic

NuVistaEnerplus

NALChinookGalleon

(12.8)

(10.2)

(15.0) (10.0) (5.0) 0.0 5.0 10.0 15.0 20.0

ARCFairborne

Q1 proDuction Mix — natural gaS WeigHting (%)Median = 62.7%

cHange in proDuction — Q4 2010 to Q1 2011 (%)Median = -1%

fighting declinesIf no effort were made by a conventional oil and gas company to stabilize or increase production, its production would typically decline at rates varying from 20 percent to 30 percent per year depending on its commodity mix, depth of wells and age of assets.

Some companies were able to add production between the fourth quarter of 2010 and the first quarter of 2011, others had declining production, possibly due to asset divestitures or declining wells. Astute investors focus on longer-term production changes per share. As the number of weighted average shares outstanding aren’t reported by many companies for the fourth quarter period, we cannot show per share production changes in our Q1 comparison.

While the fastest way to increase production is by making an acquisition, companies can also maintain or increase production by drilling wells and conducting field optimization.

forMulacurrent period avg. production – previous period avg. production

previous period avg. production

Note: Gas production converted to boe at 6 mcf: 1 boe

oil vs gasThe median natural gas weighting of Western Canada’s intermediate oil and gas players was 63% in the first quarter of 2011 compared with 66% in the first quarter of the previous year. The four intermediate companies towards the bottom of this chart have truly focused their production on oil, whereas all the others are either a mix of oil and natural gas or primarily natural gas.

Oil and natural gas are made comparable by converting natural gas from thousands of cubic feet (mcf) to barrels of oil equivalent (boe) at a ratio of 6:1.


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124 115

133,868

142,110

142,782

169,098

174,352

196,076

TrilogyCeltic

LegacyBaytex

ParamountCrescentPoint

Tourmaline

85,383

86,722

102,437

105,131

106,366

111,930

124,115

iEnerplus

CrewPetroBakken

PeytoARC

BirchcliffTrilogy

66,639

69,154

69,834

71,979

77,021

77,919

83,461

DaylightAngle

PengrowthAdvantage

NALProgress

Bonavista

32 738

34,200

36,985

37,169

45,184

51,005

56,934

GalleonPerpetual

PaceChinookNuVista

FairborneBellatrix

31,105

32,738

0 50,000 100,000 150,000 200,000 250,000

ComptonGalleon

27.64

28.06

29.88

36.88

43.54

46.37

DaylightBaytex

ARCLegacy

CrescentPointPetroBakken

23.15

23.25

23.48

23.73

24.67

24.83

25.94

FairborneCeltic

BonavistaEnerplus

PengrowthPeyto

NALy g

19.33

20.06

20.24

20.29

20.82

21.76

22.86

PaceAngle

BirchcliffTrilogy

AdvantageTourmaline

Galleon

8.42

9.38

14.19

16.02

16.04

17.09

18.76

PerpetualParamount

NuVistaProgressChinook

CrewBellatrix

5.99

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00

Comptonp

making money flowCash flow netbacks are equivalent to sales margins. They indicate how much cash flow a company generates from each barrel of oil equivalent (boe) of production. Companies with higher netbacks may have a better chance of thriving during periods of lower commodity prices when higher cost production may be uneconomical.

The five intermediate companies with the highest cash flow netbacks are also the five companies with the highest oil weighting. This is indicative of the comparably higher price of oil versus natural gas.

forMulacash flow from operations


Notes: Total production in the period = Average daily production x 90 days in the period.

value per barrelThis graph shows each intermediate company’s enterprise value per flowing barrel of oil equivalent per day (boe/d) of Q1 production. Enterprise value is calculated by multiplying the share price on June 30, 2011 by the weighted average number of shares outstanding during Q1 before adding debt and debentures outstanding net of working capital at the end of the quarter.

A high number means the markets are placing more value on the production of a particular company, perhaps for reasons such as longer life reserves, high field netbacks, or perceived strong production growth prospects.

The Q1 2011 median value of $80,241 per boe/d for the intermediates is the highest it has been since Q1 of 2008 when the median was $81,943. In between these periods, the median enterprise value versus production dipped as low as $51,279 per boe/d in Q2 2009.


average production in barrels of oil equivalent

Note: Market capitalization = June 30 share price x Q1 weighted average basic shares outstanding.

Net debt = bank debt + debentures – working capital.

enterpriSe Value VerSuS Q1 proDuction ($ per Boe/D)Median = $80,690 per boe/d

Q1 caSH floW netBacK ($/Boe)Median = $22.31/boe


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15.13

15.18

15.19

16.47

16.67

26.45

ChinookPace

PengrowthLegacy

ParamountBaytex

11.22

11.37

12.33

12.38

13.73

13.82

14.49

ARCNAL

NuVistaGalleonBellatrix

CrewCrescentPoint

9.76

9.93

10.08

10.08

10.33

10.48

10.93

PerpetualComptonBonavista

AdvantageDaylight

FairbornePetroBakken

7.16

7.64

7.67

8.51

9.05

9.18

9.49

AngleCeltic

TourmalineProgress

TrilogyEnerplusBirchcliff

3.08

0.00 5.00 10.00 15.00 20.00 25.00 30.00

Peyto

2 77

2.95

3.09

3.11

3.27

3.56

3.68

AdvantageNAL

LegacyPace

EnerplusParamount

Compton

2.64

2.65

2.67

2.69

2.70

2.70

2.77

B ll iBaytex

PerpetualPengrowth

GalleonBirchcliff

FairborneAdvantage

2.09

2.15

2.22

2.36

2.38

2.49

2.50

NuVistaDaylightChinook

PetroBakkenARC

AngleBellatrix

0.93

0.97

0.97

1.05

1.27

1.39

1.98

CelticProgress

BonavistaCrescentPoint

TourmalineTrilogy

Crew

0.57

0.93

0.00 1.00 2.00 3.00 4.00 5.00

PeytoCeltic

office costsThe general and administrative (G&A) cash expenses per boe represent office-related costs per barrel of oil equivalent produced. This number indicates how efficiently oil and gas companies manage their offices.

Factors that affect G&A include the number of staff, their salaries and benefits, contractors, service agreements, management fees, lease terms, processes and systems. The size of G&A can also be affected by the method a company uses in accounting for expenses, such as whether or not they are capitalized.

Wherever possible we have only included cash G&A expenses and management fees, excluding non-cash items such as share-based compensation, which can also have a significant impact on an investment.

forMulageneral & administrative expenses


Notes: Total production in the period = Average daily production x 90 days in the period.

field costsTypically heavier oil has higher operating and transportation costs than light oil. Thankfully, natural gas often comes with even lower operating costs, which is important considering the selling price for natural gas is relatively low.

Other factors that can influence operating and transportation costs include proximity to pipelines, volumes being produced per well and the cost of secondary and tertiary methods being used to stimulate production.

forMulaoperating expenses (including transportation costs)


Note: Total production in the period = Average daily production x 90 days in the period.

Q1 operating anD tranSportation expenSeS ($/Boe)Median = $10.71/boe

Q1 general anD aDMiniStratiVe caSH expenSeS ($/Boe)Median = $2.49/boe


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10.15

10.31

10.45

11.42

11.72

12.69

12.83

13.42

14.01

14.45

14.53

14.60

14.71

14.92

15.16

15.75

16.97

17.84

18.31

18.36

19.41

20.08

22.99

25.46

26.74

30.14

34.64

BonavistaPeyto

ARCComptonPerpetual

AnglePace

Baytex Trilogy

TourmalineAdvantage

ProgressEnerplus

CrewBellatrix

PengrowthNuVistaChinook

FairborneGalleon

NALDaylight

CelticParamount

PetroBakkenLegacy

CrescentPoint

10.06

10.15

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00

BirchcliffBonavista

5.3

6.1

6.1

6.4

6.7

7.9

8.2

8.4

8.8

8.8

9.6

9.6

9.9

10.0

10.7

11.1

11.3

11.8

13.5

14.1

14.1

14.4

15.4

16.0

17.0

25.0

50.1

PaceFairborne

PetroBakkenChinookDaylight

PengrowthNAL

BellatrixBonavista

NuVistaAngle

AdvantageARC

EnerplusLegacy

CrescentPointPerpetual

PeytoProgress

CrewBaytex

ComptonBirchcliff

CelticTrilogy

TourmalineParamount

4.0

5.3

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Galleon

a range of multiplesAs can be seen by this chart, there are a large spread of cash flow multiples in the intermediate group. Where it would theoretically take some companies only around half a decade to produce as much cash flow per share as their share price and net debt per share combined, others would take well over a decade to do the same. These multiples may be a good barometer of current market sentiment towards each of the companies.

The cash flow multiples in this report are calculated using the closing market price on June 30, 2011 and the Q1 2011 weighted average number of shares outstanding. The numbers on the chart correspond to the dark bars that show multiples of enterprise value to annualized cash flow. The lighter bars simply reflect the market capitalization as a multiple of annualized cash flow without taking debt into account.

forMulaenterprise value


Note: Enterprise value = Q1 weighted average basic shares or units x June 30, 2011 share price + net debt.

Market Capitalization to Annualized Cash Flow

Enterprise Value to Annualized Cash Flow

reserves come at a costDepletion, depreciation and accretion expenses indicate the finding and development costs for oil and gas reserves. These costs relate mainly to accounting for the production of oil and gas reserves, and the depletion of value from the balance sheet as reserves are produced. Higher amounts mean the value of a company’s reserves is being decreased more rapidly than companies with lower amounts. This could be because the valuation was high in the first place or the reserves are being produced at a faster pace.

forMuladepletion, depreciation & accretion expenses


Note: Total production in the period = Average daily production x 90 days in the period

Q1 Depletion, Depreciation anD accretion expenSeS ($/Boe)Median = $14.82/boe

annualizeD Q1 caSH floW MultipleSMarket capitalization to annualized cash flow Median = 7.4 enterprise Value to annualized cash flow Median = 9.9


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16.618.0

18.622.6

26.931.1

CLegacy

ARCTourmaline

PeytoAdvantage

Birchcliff

13.113.413.5

13.814.0

15.615.8

CrewBaytex Galleon

CrescentPointFairborneProgress

Compton

11 711.811.9

12.112.812.913.0

CelticPengrowth

NuVistaDaylight

AngleBonavista

Pace

8 48.4

10.210.9

11.211.511.711.7

P tTrilogy

NALEnerplus

PetroBakkenBellatrixChinook

Celtic

8.18.4

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

PerpetualParamount

1.0

1.0

1.1

1.3

1.4

1.5

1.6

1.6

1.6

1.7

1.7

1.7

1.7

1.8

1.9

1.9

2.0

2.0

2.2

2.2

2.6

2.6

2.7

2.8

3.1

5.7

13.4

TourmalineCrescentPoint

CelticCrew

Baytex Enerplus

LegacyGalleon

PeytoDaylight

AngleProgress

PacePengrowth

BonavistaBellatrix

NALFairborne

ChinookTrilogy

PetroBakkenNuVista

BirchcliffAdvantageParamount

PerpetualCompton

0.9

1.0

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

ARCTourmaline

years of debtWe calculate net debt as bank debt plus debentures net of working capital. Companies with lower debt to cash flow ratios are in a safer position when it comes to having room to manoeuvre with their balance sheets. As debt levels get higher, returns for shareholders get leveraged, but risk also increases and companies can become constrained in their ability to invest in growth.

forMulanet debt


Note: Net debt = bank debt + debentures – working capital.

Convertible debentures make up a portion of the debt load for Advantage, Angle, Bellatrix, Daylight, Fairborne, NAL, Perpetual, PetroBakken and Progress.

Q1 net DeBt to annualizeD caSH floWMedian = 1.8

years of reservesReserve life is a hypothetical measurement of the number of years it would take to produce all of a given company’s proven plus probable reserves based on current daily production rates. For this calculation, annualized Q1 production rates are used along with year-end reserves. For some intermediates, reserves volumes may already have changed significantly through acquisitions or discoveries since the December 31, 2010 year end.

forMulaproved plus probable reserves volumes

average daily production x 365

reSerVe life inDiceS (YearS)Median = 12.9 years


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5.246.886.99

8.219.49

10.1410.62

11.9012.42

13.3414.2814.44

15.6416.28

17.0717.55

19.6720.80

21.7221.86

27.3127.94

30.8233.34

38.4148.77

GalleonPace

AdvantagePerpetualBirchcliffNuVista

FairborneBellatrix

PeytoProgress

AngleDaylight

PengrowthARC

BonavistaCrewNAL

EnerplusLegacy

PetroBakkenTourmaline

Baytex Celtic

CrescentPointTrilogy

Paramount

4.155.05

0.00 10.00 20.00 30.00 40.00 50.00 60.00

ChinookCompton

58.9 73.0

140.0 170.1

193.5 206.8

Baytex Progress

CelticTourmaline

TrilogyParamount

20.4 20.7

27.9 29.1

36.1 37.6

41.4

DaylightBonavista

ARCNAL

EnerplusCrew

CrescentPoint

(24 2)(15.8)

5.6 9.1

15.6 16.6 18.4

NuVistaPetroBakken

BellatrixPengrowth

PeytoAngle

Legacyy g

( )(69.2)

(48.4)(39.3)(36.3)(36.2)

(28.8)(24.2)

h kGalleon

PaceAdvantage

FairbornePerpetualBirchcliffNuVista

(91.2)(71.9)

(150) (100) (50) 0 50 100 150 200 250

ComptonChinook

trading higher than NAV (of 6 months prior)This chart compares the June 30, 2011 share prices to a simplified estimate of each intermediate’s December 31, 2010 net asset value (NAV). Although this measurement provides a good overall snapshot, readers are cautioned that the results can be misleading. All undeveloped land has been valued equally at $125 per acre and no value has been assigned to seismic data, joint venture agreements or prospects.

Some investors may look for intermediates that appear to be trading at a bargain, while others may find it attractive to invest in intermediates even though they trade higher than their NAV due to factors such as the quality of the management team or growth prospects. It is also easier for intermediates that trade at a premium to make accretive acquisitions or raise capital by issuing new shares or units. In this way, success can build on success

forMula

June 30, 2011 market cap – (net present value of P+P reserves – net debt + net acres of undeveloped land x $125/acre)


market valuation of reservesThis measurement is found by adding market capitalization and debt capitalization, less an estimated value for undeveloped land at $125 per acre, divided by the amount of proved and probable reserves at year end. The result is a wide range of values per boe of reserves.

Investors will hope that intermediates at the top of this chart are there for a reason. They may have strong growth prospects and high quality reserves that will supply stable distributions or dividends or capital appreciation for investors in years to come.

forMula

market capitalization + net debt including debentures - net acres of undeveloped land X $125/acre

proved plus probable reserves volumes

Note: Market capitalization = June 30, 2011 share price x basic shares outstanding

enterpriSe Value (leSS lanD Value) VerSuS reSerVeS ($/Boe)Median = $15.04/boe

traDing preMiuM to SiMplifieD net aSSet Value eStiMate (%)Median = 17.5%


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175 619211,893

264,524 305,724

340,000 409,982

456,952 472,242

538,223 564,064 566,089

600,658 612,003 621,199

708,683 792,883

847,261 859,709

904,398 1,097,000

1,197,989 1,204,400

1,277,000 1,522,867

1,876,409 2,184,965

A lBellatrix

FairborneAdvantage

PaceTrilogy

BirchcliffCompton

LegacyNAL

GalleonDaylight

CrewCeltic

ARCBaytex

TourmalineNuVista

PengrowthEnerplus

ParamountPetroBakken

ProgressBonavistaPerpetual

Chinook

164,265 175,619

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

PeytoAngle

(36 8)(26.5)

(24.7)(21.5)(21.0)

(16.2)(12.7)(11.5)(10.6)

(6.6)(5.4)

(1.6)(1.6)

0.8 1.7 2.8 4.0

8.1 12.6 13.0

15.7 18.2

20.4 20.8

36.5 47.0

95.6

PetroBakkenGalleonLegacy

CrewChinook

PerpetualParamount

NALPace

DaylightBellatrix

PengrowthNuVista

ARCBonavista

EnerplusCrescentPoint

ProgressFairborne

AdvantageBaytex

PeytoCelticAngle

BirchcliffTourmaline

Trilogy

(72.7)(36.8)

(100.0) (80.0) (60.0) (40.0) (20.0) 0.0 20.0 40.0 60.0 80.0 100.0 120.0

ComptonPetroBakken

acres of growth or moose pasture?Owning the mineral rights for undeveloped land that can be utilized in future drilling programs can be an important factor for generating future growth. Of course, all undeveloped land isn’t created equal; some land may be more valuable that other land due to the nature of oil and gas formations and trends and proximity to infrastructure.

The number of undeveloped acres on this graph does not take into account acres for which a company has access to through a farm-in arrangement, because the land is yet to be earned.

Some companies maintain that it is better to keep a smaller focused undeveloped land position and only buy land they know they will use, while others like to buy as much land as possible, even if they might not be active on it for years.

forMulagross acres of undeveloped land x percentage interest

changing tidesIn the first quarter of 2011, 79 percent of the intermediate companies had a positive return for investors. Conversely, in the subsequent three months the majority proportion of 75 percent had a negative return for investors. Although some companies manage to buck the trend, or accentuate it, we can clearly see that a rising or lowering tide in this industry has an impact on all ships.

While the six month period is shown by the dark blue bars, the first quarter alone is shown by the lighter bars, a period in which the median return was a strong 8.1 percent.

forMulacapital gain in period + total dividends per share payable

in period

market price at end of previous period

Note: Capital gain in period = market price at end of period – market price at end of previous period

Share price change plus dividends from January through June 2011

Share price change plus distributions from January through March 2011

Year enD 2010 unDeVelopeD lanD (net acreS)Median = 616,601 net acres

total return – capital gainS anD DiViDenDS (%)January through March Median = 8.1% January through June Median = -0.4%


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Shortenedcompanyname

Chiefexecutive

Stocksymbol& exchange(T=TSX, V=Venture)

Share priceJun 30/11

($)

Q1/11total

dividends paid

($/share)

Dec 31/10 proved plus

probable (2P) reserves

(forecast price, gross)

(mboe)

Dec 31/1010% NPV of 2P

reserves (forecast price)

($000)

Dec 31/10 undeveloped

land(net acres)

Simplifiedyear-end

NAV per share using

10% NPV 2P reserves plus

$125/acre undev.

land less net debt

($/unit)

Q1/11 average daily

production(boe/d)

Mar 31/11basic shares

outstanding not including

exchangeable shares(000)

Mar 31/11net debt

including debentures

($000)

Q1/11cash flow

($000)

Ent. value using Jun 30

share price and weighted Q1/11

shares and debt

($000) Advantage Andy Mah AAV-T 7.64 0.00 243,656 2,515,972 305,724 12.59 24,775 164,556 526,608 46,419 1,783,301Angle Gregg Fischbuch NGL-T 10.03 0.00 59,696 749,296 175,619 8.60 12,730 72,478 157,694 22,986 880,293ARC John Dielwart ARX-T 25.01 0.30 485,121 6,350,000 708,683 19.56 73,880 285,414 733,200 198,700 7,858,274Baytex Anthony Marino BTE-T 52.72 0.60 229,025 4,174,948 792,883 33.17 46,902 115,177 665,125 118,426 6,696,767Bellatrix Raymond Smith BXE-T 4.54 0.00 42,442 481,539 211,893 4.30 10,084 97,463 131,724 17,027 574,138Birchcliff Jeffery Tonken BIR-T 13.02 0.00 201,137 2,568,100 456,952 18.28 17,742 126,127 352,804 32,313 1,985,833Bonavista Keith MacPhail BNP-T 28.57 0.36 310,749 4,537,316 1,522,867 23.68 66,178 135,543 1,068,847 139,818 5,523,284Celtic David Wilson CLT-T 21.33 0.00 66,888 930,750 621,199 8.89 15,605 96,449 139,450 32,659 2,089,012Chinook Matthew Brister CKE-T 1.69 0.00 62,459 1,185,600 2,184,965 6.01 14,646 214,188 182,414 21,140 544,392Compton Tim Granger CMT-T 0.12 0.00 83,678 751,382 472,242 1.37 14,507 263,579 419,601 7,815 451,230CrescentPoint Scott Saxberg CPG-T 44.57 0.69 379,540 9,170,538 2,807,702 31.51 75,574 270,468 1,216,165 296,121 13,176,482Crew Dale Shwed CR-T 15.00 0.00 74,560 979,144 612,003 10.90 15,608 85,963 120,226 24,010 1,353,541Daylight Anthony Lambert DAY-T 9.35 0.15 173,860 2,178,000 600,658 7.77 39,257 211,882 647,154 97,663 2,616,016Enerplus Gordon Kerr ERF-T 30.45 0.54 299,657 4,790,000 1,097,000 22.37 75,483 179,278 999,527 161,224 6,444,961Fairborne Steven VanSickle FEL-T 4.75 0.00 72,969 1,052,982 264,524 7.46 14,322 102,531 243,561 29,833 730,474Galleon Glenn Carley GO-T 3.02 0.00 64,105 905,000 566,089 9.80 13,048 83,980 173,540 26,842 427,160Legacy Trent Yanko LEG-T 11.71 0.00 77,791 1,457,884 538,223 9.89 12,854 142,852 265,766 42,666 1,826,616NAL Andrew Wiswell NAE-T 11.04 0.21 103,946 1,678,000 564,064 8.55 28,024 147,781 529,676 65,434 2,158,451NuVista Jonathan Wright NVA-T 9.10 0.00 112,822 1,402,278 859,709 12.01 26,078 99,372 344,345 33,299 1,178,324Pace Fred Woods PCE-T 7.37 0.00 67,008 790,139 340,000 14.28 14,141 47,616 172,085 24,599 523,013Paramount Clay Riddell POU-T 27.66 0.00 40,087 556,000 1,197,989 9.01 13,097 75,166 135,753 11,052 2,214,651Pengrowth Derek Evans PGF-T 12.15 0.21 317,514 4,636,000 904,398 11.14 73,634 327,070 1,176,713 163,518 5,142,144Perpetual Susan Riddell Rose PMT-T 3.13 0.09 80,907 928,000 1,876,409 4.91 27,253 148,309 467,896 20,656 932,054PetroBakken John Wright PBN-T 13.24 0.24 169,817 4,141,555 1,204,400 15.73 41,562 187,193 1,779,374 173,438 4,257,507Peyto Darren Gee PEY-T 21.50 0.18 259,678 2,842,748 164,265 18.60 31,531 133,061 461,027 70,473 3,314,874Progress Michael Culbert PRQ-T 13.73 0.00 252,896 2,127,812 1,277,000 7.94 44,356 229,851 444,689 63,956 3,456,147Tourmaline Michael Rose TOU-T 32.04 0.00 158,180 1,572,488 847,261 11.86 23,308 138,124 184,650 45,643 4,570,065Trilogy James Riddell TET-T 23.85 0.11 78,196 1,194,900 409,982 8.13 25,362 114,925 409,663 46,323 3,147,837TOTAL 4,568,384 66,648,371 23,584,703 891,540 14,149,277 2,034,053 85,856,842AVERAGE 16.37 0.13 163,157 2,380,299 842,311 12.80 31,841 153,443 505,331 72,645 3,066,316MEDIAN 12.59 0.00 108,384 1,515,186 616,601 10.39 25,069 136,834 414,632 44,155 2,123,732

Data provided by CanOils Database and BMIR researchers.

interMeDiate Data taBle


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© 2011 Evaluate Energy Ltd. www.canoils.com

CANOILS®

CANOILS®

CanOils what’s new:•ProductionEstimates:CanOils

now includes next year’s production estimates as reported by the independent reserve engineers in a company’s AIF.

•CompanyPresentations:Access the latest and archived company presentations from within CanOils.

•TransitiontoIFRS:As companies change over to IFRS, CanOils is restating 2010 comparative figures under IFRS.

•M&ADealsbyRegion,AreaandPlay:Deals are further broken down within these categories enabling you to focus your research and analysis on a particular area of interest.

FinancialandOperatingAnalysis ofCanadianOil&GasCompanies

CanOils®NowTracksCompanyGuidance

A quick analysis shows that Surge Energy Inc. will increase their production more than their peer group over the next 2 years.

201220112010� Actual � Guidance � Concensus

Surge Energy Inc.

Pro

du

ctio

n (2

010

Act

ual

= 1

00)

0

50

100

150

200

250

300

201220112010� Actual � Guidance � Concensus

Peer Group

Pro

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n (2

010

Act

ual

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00)

0

50

100

150

200

250

300

Updateddailyandeasilycomparabletoactualresultsandconsensusforecasts,guidancedataitemsinclude:• AverageandExitRateProduction

• CapitalSpendingBudgets

• DrillingPlans

• ProjectedCashFlowandNetDebt

• EstimatedOperatingCosts Source:CanOils.AverageDailyProductionforSurgeEnergyInc.

2010 Actual = 100. Consensus estimates provided by FactSet. As at June 6, 2011.

ForecastsprovidedbyFactSetResearchSystemsInc.areupdatedweeklyandprovideConsensus,High,LowandMedianfiguresforthenext2yearsfor arangeofkeyindicatorsincluding:• Production

• CapitalExpenditures

• NetIncome,DebtandCashFlow

• Reserves

• TargetpriceandRecommendations Source:CanOils.AverageDailyProductionforagroupof10companieswith

productionbetween2,000and5,000boe/din2010.Total2010actualproductionforthe peer group = 100. Consensus estimates provided by FactSet. As at June 6, 2011.

iQ SnapSHot


Focus of Operations

ACQUIRE, DEVELOP, EXPLOIT Listing: TSX-CPG


Share price: 44.57 at June 30, 2011

Market capitalization: $12,033 million

Net debt: $1,200 million at March 31, 2011

Enterprise value (market cap. + net debt): $13,233 million



Natural gas 45 mmcf/d 10%

Total 75,574 boe/d 100%

Cash fl ow netback:

Oil

Gas

$0 $50CPG $43.54

Peer Median$22.31

Recent News:May 30, 2011Crescent Point Energy’s annual general meeting (“AGM”) was held Monday, May 30 at 10 a.m. MT (12 p.m. ET) in the ballroom of the Metropolitan Conference Centre of Calgary

May 12, 2011Crescent Point Energy Announces First Quarter 2011 Results

April 14, 2011Crescent Point Energy Announces Closing of a Private Placement of Notes

Strategies:Since inception, Crescent Point Energy has successfully implemented a three-part business strategy to drive shareholder growth in reserves, production and cash fl ow.

Develop And Exploit:• Increase recovery factors through infi ll drilling, water fl ood optimization and

improved technology.

Acquire:• Focus on high-quality, large resource-in-place pools with production and reserves upside

Manage Risk:• Maintain strong balance sheet, signifi cant unutilized bank line capacity and 3 ½-year

hedging program — from Crescent Point Energy website

SW Saskatchewan

Worsley John Lake

Sounding Lake

SE SaskatchewanSE Alberta

Contact:2800, 111 - 5th Avenue S.W.Calgary, Alberta T2P 3Y6

tel 403.693.0020toll-free 888.693.0020

[email protected]

Investor Relationstoll-free 877.403.1678

[email protected]

Analyst Coverage:AltaCorp Capital

BMO Nesbitt Burns

Canaccord Genuity

CIBC Wood Gundy

Cormark Securities

Credit Suisse

Dundee Securities

First Energy Capital

GMP Securities

Haywood Securities

Macquarie Capital Markets Canada


Peters & Co. Limited

Raymond James Ltd.

Royal Bank of Canada

Salman Partners Inc.

Scotia Capital

Stifel Nicolaus Canada Inc.

TD Newcrest

UBS Securities

Offi cers:Scott Saxberg - President & CEOGreg Tisdale - CFONeil Smith - VP, Engineering & Business

Development Dave Balutis - VP, Exploration Brad Borggard - VP, Corporate PlanningDerek Christie - VP, Geosciences

Trent Stangl - VP, Marketing & Investor

RelationsSteven Toews - VP, Engineering WestTamara MacDonald - VP, LandKen Lamont - VP, Finance and TreasurerMark Eade - Corporate SecretaryRyan Gritzfeldt - VP, Engineering East

Directors:Peter Bannister - ChairmanPaul ColborneKen Cugnet

Hugh GillardGerald RomanzinScott SaxbergGregory Turnbull


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Focus of Operations

UNLOCKING SIGNIFICANT POTENTIAL FROM RESOURCE PLAYSListing: TSX-GO



Market capitalization: $253.4million






Total 13,048 boe/d 100%

Cash fl ow netback:

Oil

Gas

$0 $50GO $22.86

Peer Median$22.31

Recent News:June 7, 2011Galleon Energy Announces Mailing of Meeting Materials for Annual and Special Meeting of Shareholders and Voting Procedures in Case of Postal Disruption and Mailing of Q1 2011 Financial Statements

May 27, 2011Galleon Energy Announces Renewal of Bank Credit Facilities

May 25, 2011Galleon Energy Reports Q1 Results

Strategies:• Allocate capital to oil projects to increase cash fl ow

• Maintain fi nancial fl exibility

• Use farmouts to reduce risk and improve capital effi ciencies

• Target accretive oil and gas acquisitions

— from Galleon Energy website

Contact:Livingston Place, West Tower400, 250 – 2nd Street S.W.Calgary, Alberta T2P 0C1

tel 403.261.6012

[email protected]

Analyst Coverage:Cormark Securities


GMP Securities

Schachter Asset Management

Scotia Capital

Stifel Nicolaus

Offi cers:Glenn Carley - Executive Chairman

& Director

Shivon Crabtree - VP, Finance & CFO

Jim Iverson - VP, Exploration

Dale Orton - VP, Engineering &

Corporate Development

Devin Sundstrom - VP, Production

Chris Tibbles - VP, Land

Bill Wee - VP, Operations

Directors:John Brussa

Glenn Carley

William Cooke

Lawrence Fenwick

Daryl Gilbert

Brad Munro

Peace River Arch


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Focus of Operations

PRUDENT AND STABLE ACQUISITIONSListing: TSX-NAE




Net debt: $330 million + $199 million debentures at March 31, 2011





Total 28,024 boe/d 100%

Cash fl ow netback:

Oil

Gas

$0 $50NAL $25.94

Peer Median$22.31

Recent News:June 27, 201NAL Energy Announces the Resignation of Marlon McDougall as Vice President Operations

June 20, 2011NAL Energy Announces At-The-Market Program

May 19, 2011NAL Energy to Present at RBC Capital Markets Global Energy and Power Conference

Strategies:NAL Energy’s focus is to provide shareholders a competitive total return from a combination of yield and modest growth. NAL Energy remains competitively positioned in the Cardium oil resource play in central Alberta and has added signifi cant acreage in its emerging Mississippian light oil resource near Hoffer in SE Saskatchewan in 2010. These two light oil areas constitute the core of NAL Energy’s development program in 2011. The Corporation will also continue to actively high grade its asset base through selective acquisition and divestiture activities in 2011.

NAL Energy’s 2011 plans target a dividend payout ratio of 40 – 50 percent of current year cash fl ow. This objective balances an extensive inventory of light oil opportunities, maintains a competitive dividend, and prudently manages the balance sheet. Financial fl exibility remains paramount for NAL Energy and will allow the Corporation to take advantage of value adding acquisition opportunities in the future. — from NAL Energy website

Contact:1000, 550 - 6th Avenue S.W.Calgary, Alberta T2P 0S2

tel 403.294.3600toll-free 866.614.8933

[email protected]

Analyst Coverage:BMO Capital Markets

CanaccordAdams

CIBC World Markets

Dundee Capital Markets


GMP Securities

Macquarie Capital

Peters & Co.

Raymond James

RBC Capital Markets

Salman Partners

Scotia Capital

Stifel Nicolaus

TD Securities

Offi cers:Andrew Wiswell - President & CEO

Keith Steeves - VP, Finance & CFO

John Koyanagi - VP, Business Development

Directors:William Eeuwes

Donald Ingram

Kelvin Johnston

Irvine Koop - Chairman

Gordon Lackenbauer

Barry Stewart

Andrew Wiswell

Mississippian Oil

Tight Gas

Cardium Tight Gas


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Focus of Operations

SUSTAINABLE BASE ASSETS FUEL GROWTHListing: TSX-PMT







Crude oil and NGLs 1,620 bbls/d- 6%

Natural gas 153.8 mmcf/d* 94%

Total 23,253 boe/d 100%* Includes deemed production. See company documents for details.

Cash fl ow netback:

Oil

Gas

$0 $50PMT $9.42

Peer Median$22.31

Recent News:June 16, 2011Perpetual Energy Confi rms June 2011 Dividend, Updates Hedging and Credit Facility

May 17, 2011Perpetual Energy Releases First Quarter 2011 Financial Operating Results, Announces Undeveloped Land Disposition and Expanded 2011 Capital Program, and Establishes May 2011 Dividend

May 16, 2011Perpetual Energy Releases Independent Assessment Of Bitumen Resource At Panny

Strategies:• Base Assets - solid performing sustainable conventional shallow gas in eastern

Alberta and resource-style, liquids-rich gas in west central Alberta’s deep basin

• Game Changers - exploration in both oil and gas resource plays and new ventures with high impact potential

• Option Value - harnessing opportunities within our assets where emerging and advanced technologies will create value well into the future

— from Perpetual Energy website

Contact:3200, 605 - 5th Avenue S.W.Calgary, Alberta T2P 3H5

tel 403.269.4400toll free 800.811.5522

[email protected]

Analyst Coverage:BMO Nesbitt Burns

Canaccord Adams

CIBC World Markets

Cormark Securities

Dundee Securities


Peters & Co.

Raymond James

RBC Capital Markets

Scotia Capital

TD Newcrest

Offi cers:Clayton Riddell - Executive ChairmanSusan Riddell Rose - President & CEOCameron Sebastian - VP, Finance and CFOJeff Green - VP, Production Operations

& AdministrationGary Jackson - VP, Land, Operation

& Acquisitions

Kevin Marjoram - VP, Warwick Gas StorageMarcello Rapini - VP, MarketingBill Thorton - VP, Heavy OilRick Warters - VP, Geoscience

& New Ventures

Directors:Clayton Riddell - Executive Chairman BoardSusan Riddell RoseKaren GenowayRandall Johnson

Robert MaitlandGeoffrey MerrittDonald Nelson

Howard Ward

West Central District Eastern District


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Focus of Operations

TECHNICAL EXCELLENCE, HIGH NETBACKSListing: TSX-PBN

Shares outstanding (A+B): 187.2 million at March 31, 2011



Net debt: $ 728 million + $593 million debentures at March 31, 2011





Total 41,562 boe/d 100%

Cash fl ow netback:

Oil

Gas

$0 $50PBN $46.37

Peer Median$22.31

Recent News:

June 13, 2011PetroBakken Announces Participation in CAPP Oil & Gas Symposium and Updated Corporate Presentation

May 24, 2011PetroBakken Announces Management Realignment

May 10, 2011PetroBakken Announces First Quarter 2011 Results with Production of 41,600 and an Operating Netback of $52.42 per boe

Strategies:PetroBakken is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash fl ows and production growth. PetroBakken is applying leading edge technology to a multiyear inventory of Bakken and Cardium light oil development locations, along with a signifi cant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield. — from PetroBakken 2011 AIF

Contact:2800, 525 – 8th Avenue S.W.Calgary, Alberta T2P 1G1

tel 403.268-7800

[email protected]

Analyst CoverageBank of America

BMO Nesbitt Burns

Canaccord Genuity

CIBC World Markets

Cormark Securities

Credit Suisse Securities


First Energy Capital

GMP Securities

Haywood Securities

Macquarie Financial


Peters & Co

Raymond James

RBC Capital Markets

Scotia Capital

Stifel Nicolaus Canada Inc.

TD Securities

Offi cers:John Wright - President & CEO

Gregg Smith - COO

Mary Bulmer - VP, Corporate Services

Lawrence Fisher - VP, Land and A&D

Andrea Hatzinikolas - Corporate Secretary

Peter Hawkes - VP, Exploration

William Kanters - VP, Capital Markets

Rene LaPrade - Sr VP, Operations

Doreen Scheidt - Controller

Peter Scott - Sr VP & CFO

Directors:Ian Brown

Martin Hislop

Craig Lothian

Kenneth McKinnon

Corey Ruttan

Dan Themig

John Wright - Chairman

Cardium

Horn River

Monias

SE Saskatchewan


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TURKEYExileTransAtlantic

NIGERIAExileMart

TUNISIACandaxChinookColumbusCYGAMDualexLundinSondeWinstar

FRANCEGallic EnergyLundin PetroleumVermilion EnergySterling Resources

UKRAINEEast WestTransEuro

SPAINEurogasSerica

TANZANIAHeritageOrca

YEMENCalvalleyEast WestTransGlobe

PAKISTANHeritageJuraNiko

PAPUA NEW GUINEAEaglewoodLNG EnergyVangold

UNITED KINGDOMAntrim EnergyCanadian OverseasIthaca EnergyLundin PetroleumSerica EnergySterling ResourcesXcite Energy

HUNGARYDualexFalconWinstar

ITALYBRS ResourcesColumbusCYGAMOrcaSaxon Oil

ROMANIAEast WestSterlingTransAtlanticWinstar

INDIABengalCanoroNiko

NAMIBIAEnergulf

SOMALIAAfrica Oil

CONGOEnergulfHeritageLundin

ETHIOPIAAfrica OilEpsilon

THAILANDCoastalPan Orient

MADAGASCARCandaxNiko

MALIAfrica OilHeritage

MALTAHeritage

BRAZILCanacolPetro Vista

UNITED STATESArsenal EnergyAurora Oil & GasBlackbirdBNK PetroleumBridge ResourcesBrownstoneBRS ResourcesBucking HorseCaza Oil & GasCurlew LakeDejour EnergyDerek Oil & GasDiaz ResourcesDoxa EnergyEagle EnergyEnerplus Enhanced OilEnterprise Equal EnergyExall EnergyGale ForceHIllcrestLNG EnergyLynden EnergyMontana ExplorationMountainviewNextraction EnergyNiMin EnergyOpal EnergyOSE Corp.Paramax ResourcesParamount Petra PetroleumPrimary PetroleumRenegade PetroleumSaxon OilThunderbird EnergyTyner ResourcesUnited Hunter Warrior EnergyWestbridge EnergyWind River EnergyZargon Oil & GasZodiac ExplorationZone Resources

COLOMBIAAlange EnergyAzabache Bolivar EnergyCanacol EnergyC&C EnergiaGran TierraLoon EnergyPacific RubialesParex PetroAmericaPetrodoradoPetromineralesPetronovaPetro VistaQuetzal EnergySagres EnergySuroco Energy

GUYANACanacolCGX EnergyGroundstarSagres

ARGENTINAAmericas PetrogasArPetrolAzabache EnergyCrown PointGran TierraMadalena

PERUGran TierraLoon EnergyPacific RubialesPetrodoradoPetromineralesVeraz Petroleum

TRINIDAD & TOBAGONiko ResourcesSonde ResourcesParex ResourcesPrimera EnergyTouchstone Resources

ALBANIABankersPetromanasStream

ARMENIATransEuroVangold KAZAKHSTAN

CaspianTethys

RUSSIAEast WestHeritageLundinPetroKamchatka

TAJIKISTANTethys

NEW ZEALANDTAG Oil

CHINAChina CoalIvanhoeNikoPetrominPrimeline

AUSTRALIABengalFalconGallicRodiniaTexaltaPetroFrontierVermilion

INDONESIACBM AsiaLundinNikoOil OptimizationPan OrientSerica

SYRIAGroundstar

EGYPTEast WestGroundstarSea DragonStrategicTransGlobe

IRAQGroundstarHeritageNikoShaMaranSonoroVastWesternZagros

ECUADORIvanhoe

GUATEMALA Quetzal

UZBEKISTANTethys

RWANDAVangoldVanoil

MONGOLIAIvanhoe

MOROCCOLongreachSericaTransAtlantic

PARAGUAYPetrodorado

KUWAITEast West

LIBYASonde

LIBERIASimba

ISRAELAdira

KENYAAfrica OilVangoldVanoil

POLANDBNK PetroleumLNG EnergyRealm

GERMANYBNK PetroleumRealm

NETHERLANDSLundinSterlingVermilion

ZAMBIAExile

SOUTH AFRICAFalcon

JAMAICASagres Energy

PORTUGALPorto

NORWAYLundin

AZERBAIJANGreenfield

VIETNAMLundin


This map shows the footprint of activities for TSX and TSX Venture listed oil and gas companies with a market capitalization of more than $5 million and less than 100,000 boe/d of production in the first quarter of 2011. If you know a company that meets this criteria that has been left out, please email us at [email protected].

Canadian companies operating abroad


NIGERIAExileMart




SPAINEurogasSerica










NAMIBIAEnergulf

SOMALIAAfrica Oil






MALTAHeritage










CaspianTethys


TAJIKISTANTethys

NEW ZEALANDTAG Oil




SYRIAGroundstar



ECUADORIvanhoe

GUATEMALA Quetzal

UZBEKISTANTethys

RWANDAVangoldVanoil

MONGOLIAIvanhoe


PARAGUAYPetrodorado

KUWAITEast West

LIBYASonde

LIBERIASimba

ISRAELAdira





ZAMBIAExile

SOUTH AFRICAFalcon


PORTUGALPorto

NORWAYLundin


VIETNAMLundin


NIGERIAExileMart




SPAINEurogasSerica










NAMIBIAEnergulf

SOMALIAAfrica Oil






MALTAHeritage










CaspianTethys


TAJIKISTANTethys

NEW ZEALANDTAG Oil




SYRIAGroundstar



ECUADORIvanhoe

GUATEMALA Quetzal

UZBEKISTANTethys

RWANDAVangoldVanoil

MONGOLIAIvanhoe


PARAGUAYPetrodorado

KUWAITEast West

LIBYASonde

LIBERIASimba

ISRAELAdira





ZAMBIAExile

SOUTH AFRICAFalcon


PORTUGALPorto

NORWAYLundin


VIETNAMLundin


iQ SnapSHot

HIGH IMPACT EXPLORATION AND DRILLING IN STABLE COUNTRIESListing: TSX-BNG

Shares outstanding: 37.8 million at March 31, 2011*


Market capitalization: $43.47 million*

Net surplus: $14.1 million at March 31, 2011*

Enterprise value (market cap. + net debt): $29.37 million*

Average daily production for quarter ended March 31, 2011:




* Bengal announced on April 14, 2011 that it had closed a $25.5 million bought-deal fi nancing and issued 14,166,800 common shares.These amounts are not refl ected in this snapshot.

Oil

Gas

Recent News:June 15, 2011Bengal Energy Confi rms 100% Cuisinier Drilling Success Rate and Gives Status Update on Production and Completions

June 14, 2011 Bengal Energy Announces Results for the Year Ended March 31, 2011 - Company Accelerates Growth Through Onshore Drilling and Offshore Upside

April 14, 2010Bengal Energy Announces Closing of $25.5 Million Bought Deal Financing Including Over-Allotment Option

Strategies:The Bengal Energy edge includes a veteran team with international experience, world-class resource plays in stable countries, and a balance of exploration and exploitation.

Bengal Energy’s growth strategy is as follows:

• Develop a portfolio of high-impact opportunities

• Conduct rigorous geo-science evaluation of large exploration blocks in international bid rounds to gain low-cost exposure to signifi cant value adding opportunities

• Manage technical risk and capital exposure through targeted farmouts to majors and national oil companies

• Purchase/develop/exploit producing assets to underpin value

— from Bengal Energy website and April 2011 corporate presentation


Focus of Operations

AUSTRALIA

INDIA

Cauvery Basin

Cooper Basin

Timor Sea

Contact:1000, 736 - 6th Avenue S.W. Calgary, Alberta T2P 3T7

tel 403.205.2526

[email protected]

Analyst Coverage:Wellington West

Offi cers:Chayan Chakrabarty - President, CEO

Bryan Goudie - CFO

James Mott - VP, Exploration

Directors:Richard Bonnycastle

Chayan Chakrabarty

Richard Edgar

Peter Gaffney

James Howe

Robert Steele

Ian Towers - Chairman


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FINDING OPPORTUNITY, ANSWERS, ENERGYListing: TSX-PMG





Enterprise value (market cap. + net debt): $2,368.9 million




Total 40,802 boe/d 100%

Oil

Gas

Recent News:July 4, 2011Petrominerales Provides Exploration Update

June 30, 2011Petrominerales Announces Automatic Share Re-Purchase Plan

June 21, 2011Petrominerales Announces Strategic Acquisition of Interest in Colombia’s Ocensa Pipeline

Strategies:Petrominerales is now one of the larger oil and gas companies in Colombia. The Company’s business strategy is to aggressively explore its lands using leading techniques and convert exploration successes into cash fl ows in a timely and economical manner. In executing the business plan, Petrominerales has developed a solid production base that exceeded 40,000 bbl/d in February 2011. Cash fl ows from this production base provide the Company with signifi cant fi nancial resources to execute its exploration focused capital programs.

— From Petrominerales’ 2010 Annual Information Circular

Contact:1900, 111 – 5th Avenue S.W.Calgary, Alberta T2P 3Y6

tel 403.750.4400

[email protected]

Analyst Coverage:BMO Nesbitt Burns

Canaccord Genuity

Clarus Securities

Cormark Securities

Dundee Capital Markets Securities

FirstEnergy CapitalCorporation

Fraser MacKenzie

Genuity Capital

GMP Securities

Haywood Securities

Interbolsa

Jennings Capital

Macquarie Capital

Peters & Co.

Raymond James

RBC Capital Markets

Scotia Capital

TD Newcrest

Thomas Weisel Partners Group

UBS Securities

Neiva

Block 141

Offi cers:Corey Ruttan - President & CEO

John Scott - COO

Kelly Sledz - CFO

Erik Lyngberg - Sr VP, Exploration

Allen Knight - VP, New Ventures

Andrea Hatzinikolas - General Council

& Corporate Secretary

Tannya Morales - VP, Finance

Ruben Cano - VP, Services and Logistics

Jeff Chant - VP, Organizational Performance

John Wright - Chairman of the Board &

Strategic Advisor

Jaimie Valenzuela - VP, Project Management

& Planning, & Director of Operations

Directors:John Wright - Chairman

Jerald Oaks

Alastair MacDonald

Kenneth McKinnon

Ernesto Sarpi

Enrique Umaña-Valenzuela

Geir Ytreland

Block 131

Block 161Block 126

Block 114

Antorcha

Jaguar, JoropoCastor, Casanare Este, Mapache

Chiguiro Este, Chiquiro Oeste

Casimena

Rio Ariari


Focus of Operations

COLOMBIA

Orito, Las Aguilas

Blocks 59, 15, 25 & 31Corcel & Guatiquia


inte

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ion

al

Sna

pSH

otS

eVoLVinG researcH For an eVoLVinG

inDustrY

We’re proud to have been publishing the iQ Report since 2003. The report has become the go-to source for comparisons of the Canadian oil and gas sector.

Now we’re taking another step in the evolution of the report. We’re printing the report in full colour and we’ve changed the way we highlight companies. Instead of asking companies to submit two-page corporate profiles, our researchers are creating single-page snapshots. The snapshots make it easy for readers to compare and gain an understanding of each company.

We believe some of the smartest companies in the industry have a snapshot in this report. They are included either because they are ongoing clients who believe in the value of communicating effectively or they have paid a fee to have their snapshot in the report. They understand the value of getting their stories in the hands of the right readers.

If a company you know should be profiled in the iQ Report, give us a call. We’d love to hear from you.

You can reach us at 403.503.0144 ext 203.

403.503.0144 www.iq.bmir.com

2003

2011

evitucexE feihCrekciTynapmoC

Q1 2011 Production

(boe/d)

June 30, 2011share price

($)

Abenteuer Resources Corp. ABU-V Lewis Dillman 20 0.220

Alpetro Resources Ltd. ALF-V Nazrul Islam 90 0.200

Anglo Canadian Oil Corp. ACG-V Todd Montgomery 10 0.155

522.0572gnaF gnaGV-A.EA.cnI ygrenE arretnA

013.0171kcaJ nalAV-GVAdtL ygrenE ratavA

032.0741kuhcueF sinneDV-GOB.dtL saG & liO esaB

590.08gnaT nalAV-HSB.proC muelorteP erohsyaB

Blackdog Resources Ltd. DOG-V David Corcoran 152 0.400

Blackhawk Resource Corp. BLR-V Dave Antony 133 0.080

Blacksteel Energy Inc. BEY-V Jacques Soroka 9 0.350

580.09xocliB yrogerGV-A.XNB.cnI secruoseR PNB

003.004yelbmiK ylleKV-ROBmuelorteP redroB

Bowood Energy Inc. BWD-V Robert Mercier 490 0.435

064.0a/nnalliMcM dahCV-CJCshtraE eraR adanaC

Canadian Energy Exploration XPL-V Lawrence Buzan 10 0.115

Canadian Phoenix Resources Corp CXP-V Michael Atkinson 14 1.320

Century Energy Ltd. CEY-V Brian McBeath 4 0.045

092.0a/nsnavE naDV-VBCnoitaroproC erutneV arboC

Cumberland Oil and Gas Ltd. COG-V Daniel Allan 69 0.145

Dejour Enterprises Ltd. DEJ-T Robert Hodgkinson 408 0.330

Desmarais Energy Corp. DES-V James Long 35 0.145

Detector Exploration Ltd. DEX-V Ronald Alexander 85 0.065

060.0114dnomaL treboRT-RZD.dtL secruoseR zaiD

Edge Resources Inc. EDE-V Brad Nichol 21 0.300

Elkwater Resources Ltd. ELW-V Don Brown 138 0.225

Emerald Bay Energy Inc. EBY-V Shelby Beattie 86 0.040

Fairwest Energy Corp. FEC-V Vern Fauth 332 0.115

Goldnev Resources Inc. GNZ-V Marc Dame 33 0.045

Great Pacific International Inc. GPI-V Thalbinder Poonian 5 0.050

Guardian Exploration Inc. GX-V Graydon Kowal 30 0.080

Hawk Exploration Ltd. HWK.A-V Steve Fitzmaurice 413 0.720

Hemisphere Energy Corp. HME-V Don Simmons 35 0.500

Hermes Financial Inc. HFI-V David Wehrhahn 32 0.040

090.04htimS nalAV-IEHnoitarolpxE notgnitnuH

Invicta Energy Corp VCA-V Gordon Reese 110 0.220

Kallisto Energy Corp. KEC-V Robyn Lore 230 0.250

Magnum Energy Inc. MEN-V Richard Nemeth 183 0.265

Manitok Energy Inc. MEI-V Massimo Geremia 223 1.600

Marksmen Energy Ltd. MAH-V Erich Boechler 0 0.350

Mount Dakota Energy Corp. MMO-V Gary Claytens n/a 0.050

Nordic Oil & Gas Ltd. NOG-V Donald Benson 51 0.085

053.0012renbaD evetSV-LNOcnI ygrenE enilnO

580.092doeLcM nhoJV-IP.cnI ygrenE siraP

Pennant Energy Inc. PEN-V Thomas Yingling 13 0.175

Pennine Petroleum Corporation PNN-V Desmond Smith 8 0.040

PetroSands Resources Canada Inc. PCA-V Greg Busby 276 0.240

522.00efacS ecurBV-PEPnoitaroproC muelorteP ratsorteP

Pine Cliff Energy Ltd. PNE-V George Fink 111 0.180

Poplar Creek Resources Inc. PCK-V John Carruthers 18 0.090

042.0namttoH divaDV-ODP.dtL secruoseR latroP

Primary Petroleum Corporation PIE-V Michele Marrandino 7 0.480

Redwater Energy Corp RED-V Gary Waters 76 0.480

Relentless Resources Ltd. RRL-V Daniel Wilson 46 0.480

Ria Resources Corp. RIA-V John MacMillan 63 0.115

Riata Resources Corp. RTR-V James Breimayer 14 0.165

080.0902llaB yrreJV-H.PIR.cnI saG dna liO reppiR

001.06eniW yraGV-IGS.cnI ygrenE sergaS

061.0353seivaD miKv-RET.cnI ygrenE xerreT

594.0821yelyaB nairBV-EQT.cnI ygrenE euqroT

Touchstone Exploration Ltd. TAB.U-V Paul Baay 308 n/a

503.0214elgO ylleKV-A.AFT.dtL ygrenE anifarT

Traverse Energy Ltd. TVL-V Laurie Smith 187 0.820

Tudor Corporation Ltd. TDR.H-V Lionel Conn 39 0.100

Tuscany Energy Ltd. TUS-V Robert Lamond 192 0.170

542.0651dnalraFcM miJV-ELV.cnI ygrenE aruelaV

Vecta Energy Corporation VER-V Thomas Coffman 69 0.075

West Isle Energy Inc. WEI-C Robert McLeay 36 0.150

Western Plains Petroleum Ltd. WPP-V David Forrest 122 0.220


Emerging conventional companies This list of emerging public companies serves as our reference point for tracking companies that may soon fit the criteria for inclusion in our iQ Report. This list is always changing and is not exhaustive. If you know of other emerging oil and gas companies that belong on this list, please let us know at [email protected].


PeaceRiver

Athabasca

ColdLake

FortMcMurray

Edmonton

Grande Prairie

Calgary

ALBERTA SASKATCHEWAN

Lloydminster

Saskatoon

Regina

Canadian oil sands focused companiescomparison of companies focused on developing canadian oil sands assets

The huge potential of the Canadian oil sands has created a group of publicly traded companies focused on tapping into the world’s second largest oil reserve. The exploitation of oil sands generally involves far more time and capital than conventional oil and gas development, and a number of these companies are now producing or are close to that stage, with pilot plants and/or regulatory applications in the works. Because of their need for large quantities of capital to develop their assets, many of these companies are publicly listed to facilitate access to capital. The challenge for investors is to identify the companies that will produce from the oil sands most efficiently over time and to have the patience to see results.

There are a number of senior producers, integrateds and several high-profile, private companies in the oil sands space, but for the purposes of this comparison, we have focused on junior or smaller intermediate oil sands players (less than 30,000 bopd of production), listed on either the TSX or the TSX Venture Exchanges. In most cases their primary focus is on oil sands development in Canada and for all companies in this list with production, this was initiated no earlier than 2007.

A GUIDE TO THERMAL IN SITU RECOVERY METHODSSteam-assisted gravity drainage (SAGD)A method of producing heavy oil which involves two horizontal wellbores, one above the other; steam is injected into the upper wellbore and softened bitumen is recovered from the lower wellbore.

Cyclic steam stimulation (CSS)A method of producing heavy oil which involves injecting steam, allowing time for the steam to heat and soften the heavy oil and producing the oil from the same wellbore used to inject the steam.

Toe-to-Heel Air Injection (THAI®)A method of producing heavy oil which involves initiating combustion by injecting air in the upper region of a reservoir through a vertical well located at the toe of a horizontal production well; a combustion front then develops and sweeps the oil from the toe to the heel of the horizontal producing well.

Company Chief executive

Stock symbol & exchange (t=tSX, V=Venture)

Share price june 30, 2010

($)

Market cap june 30/11 share price

& March 31/11 shares o/s ($000) Area of focus (see map) Stage of development Recovery method

alberta oilsands Shabir premji V-aoS $ 0.25 $ 34,737 athabasca Delineation drilling SagD anticipated

athabasca oil Sands Sveinung Svarte t-atH $ 15.20 $ 6,064,920 athabasca Delineation drilling in situ recovery

Blackpearl resources John festival t-pxx $ 6.81 $ 1,929,814 aB & SK Heavy oil Heavy oil productionconventional, SagD, aSp

flood

connacher oil and gas richard gusella t-cll $ 1.05 $ 470,250 athabasca producing from Q4/07, new pod

completedSagD

Habanero resources Jason gigliotti V-Hao $ 0.11 $ 10,006 athabasca Delineation drilling SagD anticipated

Meg energy William Mccaffrey t-Meg $ 50.32 $ 9,626,418 athabasca on production SagD

opti canada christopher Slubicki t-opc $ 0.11 $ 30,992 athabasca production from Q3 2008 SagD, upgrader

petrobank energy John Wright t-pBg $ 14.16 $ 1,504,594 athabasca/peace river/SK pilots, limited production tHai®

poplar creek resources inc.

John carruthers V-pcK $ 0.09 $ 3,491 athabasca Delineation drilling in situ recovery

SilverBirch energy Howard lutley V-SBe $ 7.43 $ 371,544 athabasca pre-production Mining and in situ

Southern pacific resource

Byron lutes t-Stp $ 1.55 $ 524,375 athabasca, SK Heavy oil project under construction;

heavy oil productionSagD anticipated

noteS:1. oilsands Quest is traded on the amex exchange (BQi) and patch international is traded on the otc Bulletin Board (ptcH) and several german exchanges2. e-t energy, grizzly oil Sands, Harvest operations, laricina energy, JacoS, oSuM, Sunshine oil Sands and Value creation are private oil sands players3. Southern pacific’s fiscal year end is June 30. Shares outstanding as at the end of Q3, March 31

Source: The Centre for Energy.

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