West Central Alberta

In 2009, ProspEx took advantage of a depressed market in Alberta to acquire 12,000 net undeveloped acres of mineral rights in the Brazeau River and Pembina areas in West Central Alberta.

ProspEx has identified a number of opportunities in Mannville channels under these lands that it believes are geologically analogous to the East Kakwa property. At Brazeau River, ProspEx has 3D seismic over its lands, which will be used in conjunction with geological mapping to select drilling locations. In both Brazeau River and Pembina, horizontal wells have been successfully drilled by other industry players, thereby helping to de-risk ProspEx’s land.

ProspEx believes that the Brazeau River and Pembina will provide reserves and production growth opportunities utilizing horizontal drilling with multi-stage fracturing technology and will be working to prove up these plays in 2010.

ProspEx also owns mineral rights at Ricinus and Harmattan in West Central Alberta. Activity in these areas has historically focused on the development of liquids rich gas reservoirs with vertical wells. The Company has an inventory of infill drilling and trend extension opportunities to pursue in these areas.