Torquay

Petrobank is evaluating the potential of the Torquay formation, another siltstone play similar to the Bakken, however, it is found in deeper Devonian-aged rocks. To date, Petrobank has tested the play with 10 vertical wells (100 percent working interest), which yielded high initial rates of production but with steep declines. reservoir parameters suggest large amounts of original oil-in-place and we are currently evaluating optimal drilling and completion techniques to obtain maximum recovery rates. Further evaluation is likely to be undertaken with horizontal wells, however, with Petrobank’s ongoing success in the Bakken play, that will remain the business unit’s main focus of activity in 2007.