ANDERSON PROPERTY OVERVIEW

Principal Properties

Oil and Gas Properties. The following is a description of Anderson's principal oil and natural gas properties on production or under development. Reserves are stated, before deduction of royalties, at December 31, 2008, based on forecast price and cost assumptions as evaluated by independant reserves engineers. Unless otherwise specified, gross and net acres and well count information are stated as at December 31, 2008.

Central Alberta

The focus of Anderson's current Central Alberta operations runs from the Sylvan Lake area centered approximately 110 kilometres north of Calgary, Alberta to the Pembina area less than 100 kilometres southwest of Edmonton, Alberta. This area is a combination of several subsidiary operated fields including West Pembina, Bigoray, Buck Lake, Sylvan Lake, Prevo, Gilby, Willesden Green, Strachan and Markerville. A non operated field in the Ghost Pine area is located approximately 100 kilometres northeast of Calgary. The Central Alberta area consists of 86,347 gross (43,748 net) acres of undeveloped land.

The majority of Anderson's production in the Central Alberta area is natural gas that originates from multiple Edmonton Sands pools at depths of less than 1,000 metres. Other hydrocarbon producing zones include Horseshoe Canyon Coal, Belly River, Viking, Mannville, Pekisko and Leduc. Anderson has an interest in 820 gross (459 net) natural gas wells and 130 gross (49.2 net) oil wells in the Central Alberta area.

Anderson has ownership in gas plants at 04-18-032-22 W4, 05-10-033-26 W4, 14-32-037-03 W5, 11-35-037-09 W5, 01-21-038-02 W5, 05-14-039-05 W5 and 10-05-046-06 W5. Natural gas produced in the Central Alberta area is also processed in third party facilities and the most significant ones are located at 10-07-051-09 W5 and 11-22-049-12 W5. Anderson has working interests up to 100% in numerous well site and intermediate field booster compression facilities in Central Alberta from 60 to 1,000 horsepower. A working interest position of 100% is held in an oil battery at 08-10-039-02 W5 as well as a 44% interest is in an oil battery at 15-16-039-28W4 and a 20.9% working interest in the 16-14-039-01W5 oil battery.

As at December 31, 2008 in the Central Alberta area, Anderson's total proved reserves were 121 Bcf of natural gas, 1,814 Mstb of NGL and 349 Mstb of oil. Total proved plus probable reserves were 165 Bcf of natural gas, 2,423 Mstb of NGL and 543 Mstb of oil. In 2008, Anderson drilled 197 gross (133.7 net) natural gas wells in the area. Six gross (2.9 net) oil wells were drilled in the area in 2008.

Edmonton Sands Farm-In

In January 2009, Anderson announced a major farm-in arrangement (the "Farm-In") with a large international oil and gas company. During the commitment phase of the Farm-In, Anderson is committed to drill, complete and equip 200 wells to earn an interest is up to 120 sections. Anderson is obliged to complete the drilling of the wells on or before December 31, 2010. Based on the agreement, there is an option to continue the Farm-In until April 20, 2012 by committing to drill a minimum of 100 additional wells under similar terms as the commitment phase to earn a minimum of 50 sections of land.

Under the Farm-In, Anderson has access to 388 gross (205 net) sections of land in the middle of the Edmonton Sands fairway. As a result, Anderson more than doubles its land and prospect inventory within its core Central Alberta operations.

As of January 20, 2010, Anderson has drilled 123 gross Edmonton Sands wells under the Farm-In with an 85% success rate. Anderson's approximate capital working interest in the wells drilled in 75%.

Horizontal Multistage Frac Inventory

Cardium

Anderson has 80 gross (47 net) sections of land in the Cardium light oil fairway. Anderson's land position is west of the Pembina field, east of Pembina field, and in Garrington, Markerville and Willesden Green.

Based on industry activity, potential development drilling density could be two to four wells per section. On a three well per section drilling density, Anderson has a potential inventory of 240 gross (141 net) locations.

Anderson is expected to drill its first Cardium well in the first quarter of 2010.

Whitemud Sands

The Whitemud is an Edmonton Sands zone that is not being effectively drained through completions in vertical gas wells. The Whitemud Sands are at an average of 600 meters vertical depth and each horizontal well is expected to traverse 1,000 meters through the formation. Anderson has an approximate working interest of 60% in 200 sections of Whitemud Sands prospective lands.

Anderson expects to drill two 100% working interest Whitemud Sands horizontal wells in the first quarter of 2010.