Letter+to+the+Shareholders

To: Executives and Shareholders From: March 10th Subject:

The meeting on March 6th the agreement of the drilling supervisor was to not continue to “drill dry”, Instead to put casing down the well to try to regain circulation of the mud. Then on March 8th one of our wells unfortunately suffered a blow out. Late last night well number three began to malfunction and then minutes later it was stopped working completely. The lost of circulation and high flow rates caused the ground under the surface casing to explode. In result it lead toward Well three, creating shoots up and oil turning into flames of fire. We have built dykes and pits to contain the spill due to the fact that the cold weather, the blowing gas, and the mixing of snow. Safety is a huge issue here as we do not want anyone to get hurt so we need to get this oil cleaned up as fast as we can. We have begun this cleaning process by reaching out to a clean-up company. We have arranged for trucks to arrive daily to transport the spilled oil. Again because safety is something that we are keeping in mind for these trucks to come help us clean this oil spill. This will raise the rate to 15,000 barrels per day to the market. ERCB took over and has drilled two relief wells. We have the situation under control in regards to the spilled oil and are taken care of this matter as quick as we can. The most important thing is that no one suffered any injuries. We are assuring you that we are monitoring this matter extremely closely and have this matter resolved in timely fashion.

Thank you,