Columbia/Harlech

The Columbia/Harlech property is located in the outer foothills trend of west central Alberta. The property is characterized by numerous stacked reservoir horizons located at depths ranging from 2,500 to 3,500 metres. The sedimentary section in this trend is commonly overpressured and contains condensate rich natural gas reservoired in numerous stratigraphic and structural traps. Additionally, the shallower part of the section is made up of thick fluvial sandstone deposits at depths between 1,300 and 2,000 metres that contain both light oil and sweet natural gas
accumulations.

Fairborne acquired the Columbia/Harlech undeveloped land base (approximately 37,000 gross acres) in 2004 through an asset sale from BP Canada. A comprehensive exploration and development program implemented by Fairborne over the past 3 years has grown the property from less than 100 Boe/d at the time of acquisition, to Third Quarter average daily production of 2,872 Boe/d including 11,943 Mcf/d and 882 Bbls/d in associated NGLs.

Over the past year Fairborne expanded its pipeline infrastructure in the area by constructing a significant pipeline crossing under the Brazeau River. This crossing allowed for the tie in and gathering of natural gas and associated condensates from new hydrocarbon pools discovered by Fairborne in 2007. In addition, Fairborne expanded its centralized compression facilities located at 16-36-44-14W5 from 18 MMcf/d to 25 MMcf/d throughput to handle increased production rates from these new pools.

Fairborne's extensive 3D seismic coverage and proprietary reservoir knowledge in the area has allowed it to progressively move from an exploratory phase of drilling to a lower risked development program of pool delineation and field development. Fairborne plans to drill 12 (8 net) wells in 2008 which will target a combination of Belly River oil bearing reservoirs and condensate rich natural gas accumulations in Cardium, Viking, Mannville and Jurassic Group