“With 600 companies all looking for the same thing, in the same place, at the same time, we believe that the following unique process is a significant proprietary competitive advantage that Unitech can use to generate superior returns for its shareholders.”   Our prospecting process:   Step 1: Select a geographic area to scan – when we do this we consider variables such as seasonal access, pipeline and facilities availability, rig availability/site access, and recent land prices. A typical scan may cover ~100 townships (3,600 square miles) and may contain up to 25,000 well bores.   Step 2: We then conduct a simple production survey to determine the productive formations in the area and where the production is located geographically. We use a standard industry mapping package such as GeoCarta, Accumap or GeoScout to perform this function.   Step 3: We select a number of producing wells from a prospective formation – typically we want to observe the first year of production of these wells and compare the well log “pay signature” of big producers, medium producers, and poor producers. This allows us to determine the productivity range of each of lithology (rock type), porosity (holes in the rock), and fluids (what’s in the holes).     Step 4: We then generate a geological “time plane” in order to ensure that the scan stays within the correct geological time (the Step 3 parameters vary by geological time and formation depth). Once the appropriate time plane is generated, we can “hang” the scan from that time plane. For example, if we want to scan the top of the Manville formation, we may create a time plane of the Manville formation and scan the depth interval from 10 metres above the time plane to 55 meters below the time plane. This scan will follow the regional “dip” and stay in the correct geological time. Any well bore that does not have a Manville sub-sea formation top picked will have one “insinuated” by the system to ensure that all wells in the area are searched (often, only 50% of the wells in a large area will have the desired formation top picked and many have no tops at all picked so this part of the process is very important). The time plane in the following example sits at approximately 550 metres below the surface.       Step 5: Once we have determined the geographic area, the time plane and the desired “pay” signature, we input these into the LeadScan system. To get to this point form a standing start takes about 2 hours.     Once the parameters are put in, we start the scan …   Step 6: LeadScan generates the results and we review the file to grade the results. Depending on the size of the scan, the system may take up to a week to complete the run. The final output is a sortable EXCEL file.     Step 7: Put the results on the map.     Another example:     Step 8: Not all leads develop into prospects - at this point the leads are given to a geologist to determine which leads are true prospects. Only after this determination do we post land or attempt a farm-in – The lands outlined in GREEN were acquired at public auction in 2005.     This entire prospecting process is quite fast and, using LeadScan, we are able to scan far more areas and formations than any other company.   Again, with 600 companies all looking for the same thing, in the same place, at the same time, we believe that this unique ability is a significant competitive advantage.