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2008 Operations & Production Guidance
The Company has achieved an exit production rate of over 12,100 barrels of oil equivalent per day during the last week of December 2007. This achievement represents an increase of 55% over the year end exit rate of 2006 and is the result of a focused and committed strategy to create one of North America's premier heavy oil companies, taking advantage of a much overlooked opportunity in the oil and gas industry. The Company will continue to aggressively grow and upgrade its heavy oil resources, carving out a unique, innovative and highly attractive position for itself in the oil and gas sector.
The Company has also received board approval for a 2008 capital budget of $61 million. The Company's intention is to focus a significant portion of this budget on resource conversion activities, including the continued work on the steam pilots in San Miguel, Texas, Onion Lake, Saskatchewan and the Blackrod project in the Athabasca region of Alberta. The Company will also be initiating studies to examine options for upgrading and/or refining technologies on its core properties to increase per barrel netback economics. In addition, in order to dedicate more capital and intellectual resources to core properties, the Company has determined that it will investigate the rationalization of certain non-core assets situated in Saskatchewan and Southern Alberta. Upon completion of the rationalization efforts, the Company will provide production guidance for 2008.
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