Oil and Gas Properties

Pine Cliff's only producing property is located in the Sundance area of West Central Alberta. The Company has a 13.7 percent average working interest in 4,960 acres (681 net acres) of Crown land in the area. There are currently ten gross (1.28 net) wells producing. The wells are producing liquid rich natural gas from multiple Cretaceous sands ranging from the Cadomin to the Belly River. Current production from the ten wells is exceeding 11 MMCF per day gross (1,600 MCF per day net to Pine Cliff). NGLs are produced in association with the natural gas.

There continues to be significant industry activity in the area and the operator for this area continues to monitor and evaluate the undeveloped lands for additional development. The lands have been approved for a holding which allows for the drilling of eight wells per section on approximately 60 percent of Pine Cliff’s lands. Pine Cliff participated in the drilling and completion of two wells in 2009 and two wells in the first quarter of 2010, all of which are on production as of April 1, 2010. Production from these new wells is exceeding 1,400 MCF per day net to Pine Cliff.

Facilities

Pine Cliff has a working interest in all well site facilities, field compression and pipelines that are required to produce its wells into third party owned and operated gathering systems and natural gas processing plants.

More detailed information may be found in the prospectus on the financial section of this website.