As stated in the reserves report, which was conducted in accordance with National Instrument

51-101 of the Canadian Securities Administrators, Contact’s reserves, which include the 100%

working interest Stoney Creek field and Stoughton wells are estimated to contain proved and

probable reserves of 1,316,000 barrels of oil and 7.149 billion cubic feet of natural gas. These

ultimate estimated reserves, when discounted at 10% using forecast pricing, give a net present

value of $54,041,000. The estimates are net values before tax and after royalties. The estimated

values disclosed do not represent fair market value.