First registered as a private company in 1995, the Company's prime objective was to pursue oil and gas exploration opportunities in the northern Appalachians of Western Newfoundland, Canada. This followed a promising discovery by Hunt Oil Canada in 1994 on the Port au Port Peninsula in the first modern well drilled in a basin with a long history of oil and gas surface seeps and minor production from shallow wells.

The Company, which is now publicly traded on the TSX Venture and Frankfurt Stock Exchanges, has continued to advance the play concept initiated by Hunt Oil, which targets structural closures in middle Ordovician carbonate reservoirs, in the frontal fold and thrust zone of the Appalachians. To-date, the Company has drilled or participated in 4 wells with mixed results. While it has built a considerable body of knowledge and operating experience, it has not yet established economic production in this complex, high impact and expensive play.

While the Company remains bullish on the Ordovician carbonate play, it has recently changed its focus to an unconventional shale play in Western Newfoundland which emerged from results of a recently drilled well in which the Company participated. These results showed that a dominantly shale horizon, the Green Point Formation, would produce hydrocarbons into the well bore when drilled at a high angle. This horizon is well documented and had previously been regarded as a regional high quality source rock. Initial comparative work with productive shales elsewhere shows that the Green Point compares well. An initial estimate suggests a potential resource of between 1 and 2 billion boe in place on lands where the Company has a 22.5% interest. There is no indication at this point of how much, if any, of this potential can be produced economically.

The company is also pursuing a shallow natural gas play in south Alberta where exploration risks and costs are much less than Western Newfoundland although the economic impact of individual wells are much smaller.

In summary, the Company has exposure to a variety of plays in two different operating areas in Canada, an area with low political risk and ready market access. There is an experienced Board of Directors and Management Team in place and the stock is among the most actively traded on the TSX-V. The Company has an excellent land position comprising 84,346 acres in Western Newfoundland and 48,000 acres (net) in Alberta.

To build a profitable, independent and diversified petroleum company where innovation, knowledge and intelligent use of technology are harnessed within a supportive, ethical and agile business culture to provide outstanding value to our shareholders, employees and community.

• To Identify, pursue and develop petroleum-related opportunities that meet corporate profitability and risk criteria.
  
• To Broaden, and diversify our business base to produce a balanced portfolio of exploration and production projects.
  
• To Focus on opportunities where the company has identifiable competitive advantages.
  
• To Develop operating alliances to complement our strengths and extend our goals.