SUTTON, SASKATCHEWAN

In the third quarter of 2007, we expanded our oil sands acreage into Saskatchewan where we will be assessing the potential for applying our THAI™ technology. We acquired a 23,040 acre oil sands license at Sutton, Saskatchewan with a primary term of five years. The lands are located in an oil sands fairway that is in the early stages of development. Initial resource delineation of this license is expected to commence in 2008 with a 2D seismic program.