Oil production increased 18% from 83 BBLS/D during the first six months of 2017 to 98 BBLS/D during the first six months of 2018. The associated natural gas production increased 34% from 146 MCF/D in 2017 to 195 MCF/D in 2018. Oil and NGL production as a percentage of total production was 75%.

A 29% increase in the realized price for crude oil from $49.44 per BBL during the first six months of 2017 to $64.07 per BBL for the same period of 2018 resulted in a 53% increase in oil and NGL revenues. The 26% decrease in natural gas revenues occurred largely as a result of a decrease in the realized price per MCF. The realized price for an MCF of natural gas was $1.98 in the first six months of 2017. The realized price for an MCF of natural gas for the same period in 2018 was $1.09.

WTI crude traded up 31% from an average price of $49.95 (US$/BBL) during 2017 to an average price of $65.36 ($US/BBL) during 2018. WCS crude traded up 9% from an average price of $49.85 ($CDN/BBL) during 2017 to an average price of $54.32 ($CDN/BBL) during 2018. The average realized price for AECO natural gas decreased 61% from $2.70/MCF during 2017 to $1.10/MCF during 2018.

Operating netbacks per BOE increased 45% from $14.36/BOE in 2017 to $20.90/BOE in 2018 largely due to the 22% increase for the price received per BOE of oil and natural gas.

At September 30, 2018, the Company has convertible loans owing to unrelated parties in the amount of $767,830, including accrued interest.