Barrhead 7-30 pump jack
Desmarais has high working interests averaging more than 60%
in its lands and facilities and operates in its core areas of West
Central Alberta and South East Alberta. The Company's largest
land holdings are at Barrhead (West Central Alta) where a recent
acquisition has increased its control to nearly 40 sections
(25,580 acres) of prospective lands with infrastructure and
seismic data.

The new operated acquisition lands also include an inventory of
nine suspended gas wells, eight of which are fully equipped, as
well as an interest in more than 12 kilometers of pipeline. The
Company already owns a 100% interest in a regional 12.5
kilometers of pipeline and gathering system at Barrhead.

Desmarais has a balanced portfolio of shallow to medium-depth,
high impact gas prospects (pre-acquisition) on more than 4,286
net operated hectares (10,700 net acres) of undeveloped land
independently evaluated at $1.7 million. An operated six well
shallow gas drilling program is scheduled for the spring of 2010 in
the Medicine Hat area. Desmarais is prospect rich with drill-ready
opportunities.

Poised to realistically develop a production base of 500+ boe/d in
the near future with potential reserves of 900+ Mboe. Current
reserves are 488 Mboe (thousands of barrels of oil equivalent) of
Proved and Probable reserves. There are currently 23,490,900
shares issued and outstanding.