The Company will increase its holdings from the current 10% to a total of 40% by funding the first phase of a work program specified to vertically fracture stimulate and subsequently flow test the existing drilled and cased a-79-A/94-P-4 gas well on its property. The Company has entered into a Farmout and Participation Agreement with its operator Cougar Energy Inc., a controlled subsidiary of Kodiak Energy Inc. The operator will be issuing an Authority for Expenditure and Cash Call with respect to the above mentioned operation, which AFE shall not exceed One Million Five Hundred Thousand Dollars. Trivello will fund 90% of such cash call (80% via Farmout, 10% by existing interest). In the event that Trivello is unable to fund such cash call, two Alberta properties owned by Trivello’s wholly owned subsidiary, DevExco Resources Ltd. and validated by a registerable General Security Agreement shall be assigned to Kodiak/Cougar by Trivello.

The pipeline tie-in for this wellbore has been previously scoped out. Based on a successful well stimulation, the Company believes the well can be tied in for production by the end of the 2009 summer work season. This vertical completion program could be one of the early Horn River Basin projects in this area to be put on commercial production and would begin to validate the overall reserves in the area. Based on the success of this work program and the overall timing, Trivello and partners will review the balance of the work program to determine what portions of the second phase can be advanced.

The next phase of the work program consists of drilling an approximate 800 to 1,000 meter (2,424 to 3,280 feet) horizontal leg in the Muskwa/Evie formation, starting from one of the previously drilled vertical wells on the mineral lease. The horizontal wellbore completion will include a large staged shale gas fracture stimulation program and a flow and buildup test to evaluate the post fracture deliverability.

The oil and gas industry continues to show dramatically increased interest in this shale gas play. Several comparisons have been made that the Muskwa shale gas potential is an analogue of the Barnett shale gas fields currently being developed in Texas. The Government of British Columbia recently released land sales proceeds for 2008 to be in excess of CDN$2.2 Billion, which is a record high for the province, with the majority of the sale results coming from shale gas prospects.