--  Incurred operating costs of only $2.69 per boe of production, a decline
    of 27 percent from the first quarter of 2011 and 17 percent from the
    fourth quarter of 2011; 
--  Incurred all-in cash costs (operating, transportation, G&A and interest)
    of only $1.06 per mcfe of production, a decline of 31 percent from the
    first quarter of 2011 and 12 percent from the fourth quarter of 2011; 
--  Generated funds from continuing operations of $7.57 million ($0.10 per
    share), an increase of 39 percent from the first quarter of 2011 despite
    weakening natural gas prices; 
--  Had average production of 6,575 boe per day, an increase of 76 percent
    from the first quarter of 2011 and 26 percent from the fourth quarter of
    2011. Of this amount, crude oil and natural gas liquids production more
    than doubled quarter-over-quarter to 577 bbls per day; 
--  Drilled, completed and tested the 100 percent working interest 13-24-63-
    23-W5M Montney horizontal light oil well at Waskahigan, and completed
    associated facilities, bringing the well on-stream in late March; and 
--  Completed construction of its 20 mmcf per day capacity deep cut
    processing facility at the Company's core Ansell/Sundance Deep Basin
    property, bringing the new facility on-stream in early March.

--  Generated IP30 of 475 bbls per day plus 0.8 mmcf per day of solution gas
    on the 13-24 Montney light oil well, for an all-in first-month rate of
    608 boe per day; 
--  Received confirmation of the renewal of its $75 million credit
    facilities with a syndicate of banks.