Kirkpatrick Lake/Youngstown, Alberta
 
The Company owns various working interests in approximately 32,014 acres (22,286 net) of land located north of Youngstown, Alberta. Production is subject to Alberta Crown Royalties and in some cases Freehold and Gross Overriding Royalties. Total proved plus probable reserves valued at $0.83 million have been estimated for this property. The property produced 278,860 Mcf of gas and 2,868 barrels of oil and natural gas liquids for a total of 49,345 barrels of oil equivalent during 2011, representing 42.7% of the Company’s total production. Future capital expenditures of $281,935 are included in the Sproule Report, $55,000 of which is planned during 2012.
Provost/Neutral Hills, Alberta
 
Provost/Neutral Hills is located north of Veteran, Alberta. FairWest’s Provost area covers 31,628 gross acres (12,585 net) of land and includes properties at Ribstone, Neutral Hills and various properties in the Provost Field. Total proved plus probable reserves of $5.1 million have been estimated for this area. Approximately $3.5 million of this value is attributed to the Neutral Hills property. Production from this area totaled 65,426 Mcf of gas and 14,317 barrels of oil and natural gas liquids for a total of 25,211 barrels of oil equivalent in 2011, representing 21.8% of total production. Future capital expenditures of $4,033,000 are included in the Sproule Report, all of which is planned during 2012.
Berry Creek, Alberta
Berry Creek is located near the town of Cessford, Alberta. The Company owns various working interests in 10,400 gross acres (3,849 net) of land in this area, which contains several producing oil and gas wells and a number of identified drilling locations. The Company owns a 60% working interest in the Berry Creek gas plant with processing capacity of 8.5 MMscf/day of natural gas. The plant process includes refrigeration and the Company extracts approximately 18 barrels of NGLs per million cubic feet of natural gas throughput. Ownership of this gas plant provides for third party processing fee revenue. Total proved plus probable reserves valued at $5.8 million have been estimated for this area. Production from this area totaled 42,419 Mcf of gas and 3,185 barrels of oil and natural gas liquids for a total of 10,255 barrels of oil equivalent in 2011, representing 8.9% of total production. Future capital expenditures of $4,423,500 are included in the Sproule Report, $4,346,400 of which is planned during 2012.