Alberta, Canada

Crossfield Area

In August 2008, Unitech entered into a farm-in agreement for lands located in the Crossfield, Alberta area to tie in an existing gas well located at 10-29-030-03W5. The pipeline tie-in project was completed in early April 2009 and the well commenced production on April 9, 2009.  Unitech has a 35% working interest in the well, subject to a 12.5% lessor's royalty. Production from this well represents the majority of the Unitech’s production.  Unitech's 35% working interest in such well includes all rights from the base of the Cardium zone to the base of the Manville zone, including the petroleum and natural gas rights in the Viking zone.  Unitech proposed the drilling and completion of a horizontal well into the Viking zone to its 65% working interest partner, which proposal was accepted on April 28, 2011. Unitech has also entered into a farmout agreement with another industry partner to participate in Unitech's 35% working interest on the Crossfield Lands. Under the terms of such farmout agreement, the farmee will pay 100% of Unitech's capital obligations to drill and complete the well, and in exchange will earn 60% of Unitech's 35% working interest. Any future wells to be drilled on the applicable section of the Crossfield Lands will be split between Unitech and the farmee equally.

Wapiti Area

In November 2006, Unitech entered into a farm-in arrangement for interests located in the Wapiti area to drill a Dunvegan test well (01-22-065-08W6) which was completed and placed on stream. Unitech participated in the drilling of the well and earned a 9.75% working interest therein. In 2008, Unitech acquired a further 6.5% working interest through its acquisition of Pendor V Joint Venture Ltd., one of Unitech's wholly owned subsidiaries.