ON GROWING WILRICH GAS PLAY

) is pleased to announce that it has

entered into an agreement to purchase a significant land position with producing assets and facilities (the

“Assets”) in the Company’s core Marlboro/Pine Creek area. The acquisition will have an effective date of

July 1, 2010 and is expected to close on or about September 9, 2010 for a cash purchase price, at closing, of

approximately $71.5 million, subject to closing adjustments. The completion of the transaction is subject to

customary regulatory approvals and other conditions. The acquisition will be funded through Fairborne’s

existing credit facility.

167 gross sections (91.4 net sections) of land, which includes 71.8 net sections of undeveloped

Wilrich rights;

Significant development opportunities on the Assets with an identified inventory of more than 200

potential Wilrich horizontal locations on the acquired lands;

Over 30 potential gross Notikewin/Falher horizontal locations;

Significant number of vertical locations with multi zone potential;

More than 100 workover locations in various reservoirs identified in existing well bores;

Strategic infrastructure including over 150 km of operated pipelines and a 55.1% working interest in

a 14 MMcf/d (licensed to 42 MMcf/d) gas plant;

Reserves estimated by GLJ Petroleum Consultants Ltd., effective as of June 30, 2010, of 2.7 MMboe

total proved and 5.1 MMboe total proved plus probable; and

Current production of approximately 980 boe/d of mature, shallow decline production (83% gas).