Angle Energy Inc.

Harmattan

Located approximately 80 kilometres northwest of Calgary near the town of Sundre, Alberta, Harmattan is Angle’s foundation asset that began development in early 2005 through a strategic farm-in with ExxonMobil Canada, accessing 60 sections of land in return for a 12-well commitment. The area produces a mix of liquids-rich natural gas from prolific Elkton gas discoveries at 2,600 metres and liquids-rich natural gas and light, sweet crude oil from two extensive, slightly shallower Mannville Group pools, all discovered or extended by Angle.

Key Facts:

• Harmattan lands surrounded by massive historical natural gas pools that have yielded cumulative production of nearly 8 tcf over several decades.
• Possibility of further farm-ins to enhance land position and generate new exploration opportunities.
• Four distinct reservoir intervals capable of commercial production of liquids rich gas plus light oil.
• High-quality reservoirs with Deep Basin-like characteristics, including entrained NGLs (C2 through C5+), no producible water, predictable decline curve, resulting in long-life production at 200-1,000+ mcf/d per well, creating stable production base.
• Company owns 79 kms of extensive gas gathering systems.
• Current focus on development drilling with horizontal exploitation planned for 2010.

History:

• Key event was ExxonMobil Canada farm-in in early 2005, accessing 60 sections in return for 12-well commitment.
• First major success was in 2005 in the Ellerslie, resulting in delineation of a nearly township-sized pool extension using a bypassed pay concept based on historical well logs – was basis of Angle’s early production and cash flow.
• 30+ bcf Elkton discovery drilled at the end of 2005, currently producing at restricted rate to maintain low annual decline.
• Elkton, improve recovery factor by drilling in areas not being drained by vertical wells producing from dolomitized (high permeability) reservoir – current pool RF less than 50% of OGIP. OGIP is 10-30 BCF/section.
• Mannville ‘B’ pool discovered in March 2008, with delineation drilling proceeding throughout 2008. Large, township-sized pool producing mainly liquids-rich natural gas plus light, sweet crude oil. OGIP is 3-6 BCF/section.