Nova Scotia – “The Next Play” APPEX 2008 Kim Doane Manager, Petroleum Resources March 6, 2008 Nova Scotia Dept. of Energy Suite 400 - Bank of Montreal Bldg. 5151 George Street P.O. Box 2664 Halifax, N.S.,B3J 3P7 phone: (902) 424-7146 e-mail: doaneka@gov.ns.ca Website: www.gov.ns.ca/energy

Rebuilding for 2008 and beyond Offshore - Agenda #1 Geoscience Opportunities - Put new geological ideas in front of both current and potential investors #2 Policy Initiatives - Implement new upstream policies that harness the industry’s drive to secure a competitive advantage #3 Regulatory Improvements - Aggressively pursue regulatory efficiency #4 Promotion - Continue to aggressively promote our potential to new investors

Geoscience Opportunities Projects Gap Analysis Report - New geological ideas Government Data - Information available for the Call Data Management Center (www.cnsopbdmc.ca) - Digital Data, core storage, scanned reports

Policy Initiatives Projects Access to Infrastructure - Encourage Code of Practice Rights Issuance - Information on new flexibility available for current Call NS07-1 Digital Data Availability - Seismic, wells, etc.

Regulatory Improvements Projects Deep Panuke Approval 9 month approval vs. 30 months on previous project FORRI (Frontier Canada) goal-oriented regulations Flexibility for testing - First wildcat wells – no requirement to test

Promotion Projects Economic Model Available - Ideal for small field development economics World Oil Publication Available at the booth Call NS07-1 - Closes June 30, 2008

Building Momentum Onshore - Agenda #1 Current Activity - Conventional, coalbed methane and shale gas #2 Coalbed Methane Project - Phased development #3 Regulatory Improvements - New drilling & production regs. #4 Conventional Call - Call NS08-1 closed March 3, 2008

Current Activity Status Conventional & Coalbed Methane Agreements - 6 Conventional agreements and 3 CBM agreements Shale Gas - New focus Farm In activity - New players with different ideas

Coalbed Methane Stealth Ventures Commercial viability - De-watering and testing Phased Production Agreement - 10 years (3/3/4) Community Involvement - Multi-stakeholder Advisory Committee

Policy Initiatives DRAFT Plans Updating old legislation Energy Act, New Regs – P&C Regs. Industry involvement in new legislative changes Streamlining processes - Call process, authorizations, new guidelines, letters to operator’s Better Regulatory Initiative - Reducing regulatory burden

Conventional Call NS08-1 Acreage opportunities Closed March 3, 2008 Watch website for upcoming calls www.gov.ns.ca/energy Data Availability contact Department Large Block Size - 188,937 ha

Come see us to discuss these opportunities Thank you Come see us to discuss these opportunities Visit us at Booth #35