Letter+to+Executives

To All Shareholders and Executives:

On March 8, Well No. 3 blew out after days of troubleshooting to avoid this disaster. Engineering advisors convinced the drilling supervisors to continue to drill without drilling fluid determining that it was perfectly safe. As a result of the blowout, oil began to flow at up to 15,000 barrels daily.. We are dealing with an environmental disaster at this point due to the cold weather, blowing gas and oil mixing with snow. After unsuccessful attempts to diffuse the situation, it was decided to have transport trucks continue to drain the oil and ship to market. The Alberta Energy Resources and Conservation Board (AERCB) is currently in control of the well and has engaged another oil company to drill relief wells. Expectations are that the situation should be under control soon. We are relieved to report that no lives were lost as a result of this disaster. Management is currently meeting to discuss the events that led to this situation and what protocols should be put into place to avoid similar disasters. A follow up report will be presented within two days.

Eileen Garcia Bonnie Amadon Kathy Hall Dulce Espinal