BUSINESS STRATEGY

The Company’s strategy is to become a natural gas producer in 2008, to aggressively pursue the exploration and development of its existing projects, to continue the expansion of exploration and development opportunities on its current land base and the evaluation and potential acquisition of new opportunities.

The strategy is being implemented through its own active exploration program as well as three joint-venture exploration and development programs with experienced, successful and well-funded oil and gas producers.  These joint ventures bring partners’ outstanding technical knowledge, capital and active exploration and development programs into the portfolio of Company’s large-scale projects.  The Company has retained a significant working interest (35% to 50%) in its joint ventures to benefit from their future success.