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At the December 15, 2004 Crown Land Sale, Exall and partners were successful in acquiring four sections of undeveloped lands. This acreage is prospective for natural gas in several formations but will require additional seismic data to confirm specific drilling locations.
On January 27, 2005 Exall and partners drilled and cased an exploratory well on the Aitken Creek natural gas prospect near Fort St. John in northeast British Columbia. Exall participated for a 12.5% share of costs in the well (7.5% after pay-out) which was drilled to the Debolt formation at approximately 2100 metres and cased for natural gas potential in several target horizons. The well was completed in the Halfway and Baldonnel zones with results from these formations indicating natural gas flow rates with associated water production. After stimulation, both zones demonstrated good reservoir and production characteristics but higher water saturations than anticipated. As a result, the well was suspended in these zones and will be completed in a shallower formation, when commodity prices improve. This area is generally accessible on a year-round basis.
During 2006 Exall acquired the interest in the Aitken Creek project held by Watt Energy, one of the original partners, increasing Exall's interest in the project to 22.5% after pay-out.
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