Leaf & Stone Joint-Venture, Saskatchewan
Pursuant to a joint venture agreement dated June 16, 2008, the Company signed its agreement with its
joint venture partner on leases that are located in the Bakken Oil Play, in SE Saskatchewan. The
Company became the operator and provides up to $250,000 in drilling funds, which matches the technical
and mineral rights acquisition costs provided by its joint venture partner. All future costs will be shares on
an equal 50/50 basis. The program calls for an initial 3 well program.
The first well (A3) has been drilled to a TD of 838 meters. The Bakken Sandstone came in at 718.5
meters (Top) and is developed to 737.5 meters. The zone produced oil shows with substantial reservoir
pressure of approximately 1,200 psi, which was able to overcome the drilling mud liquid pressure. A
service rig is expected to be on location to perforate the zone from 719-733 meters with maximum shot
density and deep penetration charges. The results will be monitored to see if a frac program should be
required as part of the completion process.
The second well (A5) encountered 20+m of pay in a sand formation with excellent porosity (15-30%) and
good permeability. This sand zone is in the Mississippian Group of Sands. Petrostar will test the A5, and
upon successful testing, proceed with production over the next few weeks.
The A3 well logs have been further analyzed and there are now 2 significant shows of oil. There is a
14+m pay zone that corresponds to the A5 well's zone, and another shallower zone with 10+m of pay that
may be lighter oil. We are now evaluating the testing and production of these 2 zones in the A3 well.
FYI.