Letter+to+Employees

To: All Employees From: Management Date: March 9, 2013 Subject: Status of Well No. 3 Blow Out

On March 6, the drilling fluids that were being pumped to the surface in Well No. 3 were not functioning properly. At that time, a meeting was held and engineering advisers assured the drilling supervisor that it was safe to continue drilling, which drill continued and caused Well No. 3 blow. Since this is not a common result of our practice, we assure you that we practice all safety matters as usual, and by doing so no lives were lost yesterday.

All staff are asked to return to their active positions as normal on Monday; since the Alberta Energy Resources and Conservation Board (AERCB) has taken control of the situation in the next few days. Rest assured all safety regulations will remain a major factor to our company to which will provide save environment to all the employees.

Please feel free to contact Human Resource Department with any questions about any concerns.

Eileen Garcia Bonnie Amadon Kathy Hall Dulce Espinal