The new bank facility will be governed by a semi-annually redetermined borrowing base value assigned to the Company's proved crude oil and natural gas reserves. An initial borrowing base of $25 million has been established. Based on values assigned to crude oil and natural gas properties which may be either acquired or discovered over time, the Company's borrowing base may be increased up to a maximum of $150 million commitment level.

All other terms and conditions are those usual and customary for this type of commercial bank borrowing facility. The applicable interest rate margin for this new bank facility will range from LIBOR plus 2.50% to LIBOR plus 3.50% depending on the actual level of outstanding borrowings. The final agreement which includes the specific terms and covenants governing the Company's new bank facility will be filed with the Securities and Exchange Commission at closing.

BMO will act as Lead Arranger, Book Runner and Administrative Agent for the Company's new bank facility. It is anticipated that the final closing of this new bank facility will occur by November 15, 2009.

Management Comments

Mr. Ronald D. Ormand, Executive Vice President and Chief Financial Officer of the Company, commented, "As part of our strategy to position the Company for future growth, we are pleased to have received this new $150 million revolving credit facility. We appreciate the work performed by the senior credit officers at the Bank of Montreal to put this new lending facility into place during a difficult period in the overall financial markets. Having one of the premier lenders to the North American energy industry approving a $150 million facility is a testament to senior management's track record with the banking industry, as well as our relationship with BMO in particular. The new credit facility will allow the Company to make accretive oil and gas property acquisitions to enhance shareholder value.