The average price, net of royalties, received for oil was $67.38 per barrel ($423.80 per cubic meter) during first quarter of 2011 and $61.37 per barrel ($386.04 per cubic meter) during first quarter 2010.

Production
During the year ended December 31, 2010, the Company produced 7,069 barrels (1,124 cubic meters) of oil from its West Kingsford properties. During the year ended December 31, 2009, the Company produced 7,997 barrels (1,271 cubic meters) of oil from West Kingsford

The average price, net of royalties, received for oil was $61.04 per barrel ($383.90 per cubic meter) during 2010 and $51.96 per barrel ($326.95 per cubic meter) during 2009.

Results of Operations
Oil revenues, net of royalties and taxes, for the year ended December 31, 2010 increased from $415,555 during the year ended December 31, 2009 to $431,500 during the year ended December 31, 2009 due to an increase in the selling price paid for production

The Company's interest income decreased from $13,323 during the year ended December 31st, 2009 to $3,618 for the year ended December 31st, 2010. Most of this is due to a timing difference in the renewal of the security..

Expenses for the year ended December 31st, 2010 decreased to $532,642 from $683,844 during the year ended December 31st, 2009. Much of the decrease can be attributed to lower depletion during the year and to the fact that no stock based compensation was issued..

Administrative expenses are in large measure made up of management fees, professional fees and office rent. They have decreased slightly from $287,433 in 2009 to $2276,408 in 2010. .

Production
During the year ended December 31, 2009, the Company produced 7,997 barrels (1,271 cubic meters) of oil from its West Kingsford properties. During the year ended December 31, 2008, the Company produced 8,703 barrels (1,384 cubic meters) of oil from West Kingsford

The average price, net of royalties, received for oil was $51.96 per barrel ($326.95 per cubic meter) during 2009 and $83.50 per barrel ($525.09 per cubic meter) during 2008.

Results of Operations
Oil revenues, net of royalties and taxes, for the year ended December 31, 2009 decreased from $726,727 during the year ended December 31, 2008 to $415,555 during the year ended December 31, 2009 due to an decrease in the selling price paid for production, and a decline in production.

The Company's interest income decreased from $22,556 during the year ended December 31st, 2008 to $13,323 for the year ended December 31st, 2009. During the 2009 recession, banks dramatically reduced interest paid on funds on deposit.

Expenses for the year ended December 31st, 2009 increased to $683,844 from $512,257 during the year ended December 31st, 2008. The increase can be attributed mainly to one time minor workover costs on three wells.

Administrative expenses are in large measure made up of management fees, professional fees and office rent. They have increased from $215,118 in 2008 to $287,433 in 2009. This is mainly due to:the implementation of Director's fees, and costs related to the implementation of IFRS.

Production
During the year ended December 31, 2008, the Company produced 8,703 barrels (1,384 cubic meters) of oil from its West Kingsford properties. During the year ended December 31, 2007, the Company produced 10,695 barrels (1,700 cubic meters) of oil from West Kingsford

The average price, net of royalties, received for oil was $83.50 per barrel ($525.09 per cubic meter) during 2008 and $51.84 per barrel ($326.13 per cubic meter) during 2007.

Results of Operations
Oil revenues, net of royalties and taxes, for the year ended December 31, 2008 increased from $548,469 during the year ended December 31, 2007 to $726,726 during the year ended December 31, 2008 due to an increase in the selling price paid for production, offsetting the decline in production.

The Company's interest income increased from $5,945 during the year ended December 31st, 2007 to $22,556 for the year ended December 31st, 2008. Increase in revenue on investment is the result of management investing surplus cash in a bank GIC.

Expenses for the year ended December 31st, 2008 decreased to $512,257 from $594,185 during the year ended December 31st, 2007. The decrease can be attributed mainly to lower production volumes, which resulted in a decrease in depletion costs.

Administrative expenses are in large measure made up of management fees, professional fees and office rent. They have increased from $174,522 in 2007 to $215,118 in 2008. This is mainly due to: an increase in office rent, the payment of Director's fees, purchase of O&M insurance, an increase in the audit accrual and the accrual of an amount for the preparation of taxes.

Production
During the year ended December 31, 2007, the Company produced 10,695 barrels (1,700 cubic meters) of oil from its West Kingsford properties. During the year ended December 31, 2006, the Company produced 13,410 barrels (2,132 cubic meters) of oil from West Kingsford

The average price, net of royalties, received for oil was $51.84 per barrel ($326.13 per cubic meter) during 2007 and $46.41 per barrel ($291.92 per cubic meter) during 2006.

Results of Operations
Oil revenues, net of royalties and taxes, for the year ended December 31, 2007 decreased from $622,354 during the year ended December 31, 2006 to $548,469 during the year ended December 31, 2007 due to an increase in sales volume. The decreased sales volume was a result of the Company’s divesture of a well to its joint venture partner the previous year. The Company’s interest income decreased from $7,424 during the year ended December 31, 2006 to $5,945 for the year ended December 31, 2007 as a result of lower average cash balances..

Expenses for the year ended December 31, 2007 decreased to $594,185 from $655,126 during the year ended December 31, 2006. The decrease can be attributed mainly to lower production volumes that resulted in a decrease in operating expenses, as well as lower general and administrative expenses. A significant part of the Operating Expenses is comprised of: royalties and haulage, which is heavily impacted by the constant increases in fuel. Administrative expenses are in large measure made up of management fees, professional fees and office rent.

Production
During the year ended December 31, 2006, the Company produced 13,410 barrels (2,132 cubic meters) of oil from its West Kingsford properties. During the year ended December 31, 2005, the Company produced 8,650 barrels (1,375.1 cubic meters) of oil from West Kingsford

In the spring of 2006 the Company transfered its 21% rights in one well at Kingsford, to an operating partner, in lieu of a cash payment for drilling costs.

The average price, net of royalties, received for oil was $46.41 per barrel ($291.92 per cubic meter) during 2006 and $40.59 per barrel ($255.31 per cubic meter) during 2005.

Results of Operations
Oil revenues, net of royalties and taxes, for the year ended December 31, 2006 increased from $351,087 during the year ended December 31, 2005 to $622,354 during the year ended December 31, 2006 due to an increase in sales volume. The increased sales volume was a result of the Company’s previous acquisitions and of its joint venture partner interest in three horizontal wells. The Company’s interest income increased from $1,803 during the year ended December 31, 2005 to $7,424 for the year ended December 31, 2006 as a result of higher average cash balances.

In November the Company participated in the drilling of a horizontal well on adjacent lands. The Company has a 13% net revenue (20% working) interest in this well. During the year ended December 31, 2005, the Company produced 8,650 barrels (1,375.1 cubic meters) of oil from its West Kingsford properties.