Canada

Our Canadian conventional producing assets include natural gas near Calgary and in southern Alberta and Saskatchewan. Our coalbed methane (CBM) assets in the upper Mannville and Horseshoe Canyon coals are located in Alberta with commercial production at our Fort Assiniboine development. We operate most of our producing properties and hold significant undeveloped acreage across Western Canada.

These assets provide predictable production volumes and cash flow.

Natural Gas

Approximately two-thirds of our Canadian conventional production is natural gas extracted primarily from shallow sweet reservoirs in southern Alberta and Saskatchewan. Generally, shallow gas targets are cheaper to drill and produce but have relatively smaller reserves and lower productivity per well.

In southern Alberta and Saskatchewan, Colorado shale gas re-completions have the potential to add production on our existing acreage.

Coalbed Methane

Approximately one-third of our Canadian conventional production is from our CBM developments at Corbett, Doris and Thunder in the Fort Assiniboine area of central Alberta. We began commercial operations in the Upper Mannville coals in 2005, progressively developing opportunities on our land base. We are applying horizontal well technology to increase gas production rates and reduce de-watering time from water-saturated coal. Upper Mannville coals are generally deeper than the Horseshoe Canyon “dry coal” play, which is also being commercially developed in Alberta. We have limited activity planned here currently as a result of lower natural gas prices.