OVERVIEW

Twin Butte holds high working interests, mainly 50%-100%, in a number of producing natural gas and oil wells in the Bow Island and Oyen areas of southern Alberta.   Recent production net to the Company from these operated properties is approximately 400 boe/d, consisting of approximately 68 bbl/d of light oil and natural gas liquids and approximately 2.0 MMcf/d of natural gas. 

In the Bow Island area, Twin Butte holds high working interests, mainly 50%-100%, in a number of producing natural gas and oil wells at Smith Coulee, Cherry, Fincastle and Bow Island.  Recent production net to Twin Butte from this area has averaged approximately 530 Mcf/d of natural gas and approximately eight barrels of oil per day, or approximately 96 boe/d.  The Company operates most of its wells in the Bow Island area.   

In the Oyen area, Twin Butte holds high working interests, mainly 100%, in a number of producing oil and natural gas wells at Sibbald, Highland, Hudson, Antelope, Esther and Anatole.  Recent production net to the Company from this area has averaged approximately 1.4-1.5 MMcf/d of natural gas and 60 barrels of oil per day, or approximately 305 boe/d.  There is potential to significantly increase the Company’s oil production from the Oyen area through developing a Viking oil property which the Company holds a 100% interest in with horizontal wells.  Twin Butte operates all of its wells in the Oyen area.

Please note that the current production values for the Oyen area properties have been updated from the values in the marketing information.  Current production volumes for all wells at Oyen to March 13, 2010 are approximately 1.0 MMcf/d and 47 barrels of oil and natural gas liquids per day.

There are no production changes to the Bow Island area properties.  

The total production of the offering is 308 boe/d, consisting of 55 bbl/d of light oil and natural gas liquids and approximately 1.5 MMcf/d of natural gas.