World Standing
Underneath the wide open plains and foothills of Western Canada lies one of the richest deposits of oil and natural gas. Canada is one of the world’s top five oil and gas producers and is positioning itself to be in the top three with it’s vast northern oil sands development. Covering 580,000 square miles, the Western Canadian Sedimentary Basin extends across four western provinces and includes part of the Northwest and Yukon Territories. In 2002, a new gas field, Greater Sierra, was discovered in Northeast British Columbia and is estimated to contain five trillion cubic feet (tcf) of natural gas.

Reserves and Potential Resources The Western Canadian Sedimentary Basin currently contains:
Conventional reserves:	Booked Remaining
		54 trillion cubic feet of natural gas
		6 billion barrels of oil
	Undeveloped
		88 trillion cubic feet of natural gas
		11 billion barrels of oil
Unconventional Reserves:	Undeveloped
		Greater than 100 trillion cubic feet  (Coalbed Methane & Tight Gas)
		175 billion barrels of oil (Oil Sands)
(Source: Geological Survey of Canada, the Canadian Gas Potential Committee and Canadian Energy Research Institute.)

As these reserves are developed, Canada will become an increasingly important supplier of energy to the burgeoning North American economy.

Drive to the North
Due to the Alaska Highway and Mackenzie Valley pipelines combined with new technology and strong prices for oil and natural gas, the development of Canada’s northern untapped reserves provides aggressive investors with unprecedented opportunities to enhance wealth.

(The Alaska & Mackenzie pipelines are the largest projects in the history of free enterprise, collectively 20 billion dollar in capital costs)

Flow of Acquisitions
Due to a surge of acquisitions 1999-2001, Oil and Gas companies are now rationalizing their Canadian portfolios providing investors with a steady flow of stable production and exploitation acquisitions. The estimated $2.8 billion in value of assets and companies publicly announced for sale in the first quarter of 2003 reached the largest quarterly value in the last three years. This is over four times higher than the previous quarter of $0.7 billion. (Source: Nickle’s Daily Oil Bulletin, May 28, 2003)

Security of Investment
In a worldwide “corruption index,” created by a European non-governmental organization, Canada is ranked the 3rd least corrupt country in the world to do business, only to be surpassed by Finland and Sweden.

Further, in the Canadian oil and gas industry, the land tenure system, security of confidential data, access to and quality of data is unsurpassed on an international scale.

Underlying Strength
Worldwide, the fastest growing energy source over the next two decades is expected to be natural gas, which is forecast to increase 2.8% a year and nearly double to 176 trillion cubic feet annually by 2025. During the same period, the demand for oil is forecast to increase 50%.

Continentally, North American gas production is in decline while consumption is forecast to increase by 50% to 30 trillion cubic feet by 2010.

The logical extension of this voracious demand for oil and natural gas is strong prices as is currently evident.