Peace River Arch Profile

Pemberton Energy’s 1,600 acres in the Peach River Arch area (“the Arch”) of northwest Alberta, Canada, are surrounded by such active oil and gas companies as Tusk Energy Corp. (TSX: TSK), Canadian Natural Resources Limited (TSX:CNQ, NYSE: CNQ), Duvernay Oil Corp (TSX: DDV), Devon Energy Corp (TSX: DVN, NYSE: DVN), and Hunt Oil Company.

The area’s productive, multi-zone natural gas and light oil pools produced 4,300 barrels of oil equivalent (BOE) in 2004, and hold proved plus probable reserves of 15 million BOE*. The Arch’s well-established industry infrastructure also eases tie-ins and on-stream production.

Current Exploration Activity

Interpretation of a recent 2D seismic shoot determined the presence of numerous leads over multiple horizons from surface to basement on the Company’s property. The zones with the greatest hydrocarbon potential are sandstones ranging from 600m to 1200m in depth, including the Granite Wash formation, which the report specifically suggests as a target. Triassic sediments (1100m to 1400m) on the property also hold hydrocarbon potential.

On the strength of the 2D interpretation, and to minimize risk while maximizing potential return, Pemberton Energy has retained Integrated Geophysical Consultants Ltd. to perform a 3D seismic survey.

Funds have been advanced for permitting, landowner permitting fees, and the 3D survey. Meanwhile, a drilling rig has been secured through JMAC Drilling Ltd. (www.jmacdrilling.com), seeing as Management expects to commence drilling upon completion of the survey and selection of multiple drilling targets.

Nearby Discoveries & Production

Galleon Energy Inc. (TSX: GO.A) recently announced a gas discovery to the southeast of the Company’s property. With 2 meters of porous clastic sand and a potential of 2.7 mmcfpd gas production, the Galleon discovery supports the suggested Granite Wash Zone target mentioned above. 

Galleon also recently drilled another deep well in the Beaverhill Lake sand formation with 10m of pay (2500 bopd) at approximately 3000m. Meanwhile, Hunt Oil has an adjacent well in the same zone, which is producing at the same rate.  The gas sand has a potential of 1.0 to 2.7 mmcfpd.

*Source: As referred to in 11/10/05 news release, prepared in accordance to the COGE handbook standards