ATTRIBUTES OF THE TERRAWEST PROPERTY FINANCIAL INCENTIVES ARRANGEMENT:

1) preferential pipeline access over conventional gas;
2) a price subsidy of approximately US$1.00 per thousand cubic feet (mcf) for
gas sold; and 3) a value added tax rate reduction and rebate on production as
well as a corporate tax exemption for a certain period. The Chinese Government
has deregulated CBM natural gas such that producers have the right to
negotiate their own contracts and sell produced gas directly to end users.




TERRAWEST RESULTS TO DATE:

Of Note:
Prior to the acquisition of TerraWest, I believe the number of pilot wells drilled by Norwest Corp. through 2006 and 2007 stood at four.

Below is what Petromin has released since the take-over

http://www.enviro-energy.com.hk/sites/al/uploads/1274835410167.pdf                May 26, 2010
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=61   Feb 11, 2009
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=63   May 20, 2009
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=67  July  08, 2009
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=75  Jan   08, 2010
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=77  Jan   18, 2010



TERRAWEST SHALE GAS COMPARITIVE ANALYSIS TO DATE:

    Location               Formation               Average Thickness

Comparable Gas Basin TOC data:

    -------------------------------------------------------------------------
    Natural Gas                             Total Organic             Quartz
    Producing Basin                  Age    Content (TOC)%              (Si)%
    -------------------------------------------------------------------------
    Barnett . Fort Worth   Mississippian          1.0-4.5    greater than 50
    -------------------------------------------------------------------------
    Ohio - Appalachian          Devonian          0.5-2.0              40-50
    -------------------------------------------------------------------------
    Marcellus -
    Appalachian                 Devonian         3.0-10.0    greater than 40
    -------------------------------------------------------------------------
    Lewis . San Juan          Cretaceous          0.5-2.5    greater than 40
    -------------------------------------------------------------------------
    Fayetteville -
    Arkoma                 Mississippian          4.0-9.5    greater than 40
    -------------------------------------------------------------------------
    Antrim - Michigan           Devonian         0.5-20.0              40-50
    -------------------------------------------------------------------------
    Utica - Appalachian       Ordovician          1.0-3.1    greater than 40
    -------------------------------------------------------------------------
    Badaowan - Junggar          Jurassic         1.0-11.0              40-50
    -------------------------------------------------------------------------
    Canaccord Adams Inc., 2008; Canadian Society for Unconventional Gas,
    2009; AJM consultants 2009; Energy Resources Conservation Board/Alberta
    Geological Survey 2009.


Comparable Gas Basin Thickness   

Location               Formation               Average Thickness

United States          Barnett Shale           100 meters*

United States          Marcellus Shale         15-75 metres**

Junggar Basin, China   Badaowan J1B            750 meters***

British Columbia       Doig, Doig Phosphate,   300-500 meter*
                           Montney
   

*  Data is obtained from "An Overview of Shale Gas Potential in
         Northeastern British Columbia", Levson, V. M., Walsh, W., Adams, C.,
         Ferri, F., Hayes, M., Canadian Society of Petroleum Geologists, 2009
         (CSPG)

    ** Data obtained from Talisman Energy 2008.

    ***Information obtained from Barnett Shale Energy Education Council
         2009 based on 1.4 trillion cubic feet annual total production
         in 2008.

    -   This is the indicated true thickness from geological survey of
        surface outcrops conducted by Norwest.

    -   Other than the data with regards to the Badowan J1B formation, the
        sources of the data in the above table are independent of Petromin.
        The information obtained from the Canadian Society of Petroleum
        Geologists and the Barnett Shale Energy Council was prepared by
        industry groups.

This updated comparison May 26/2010 -------------------------------------------------------------------------

Typical  Typical    Annual
Typical     Well     Gas       Basin
Net Coal  Spacing  Content   Production
Basin  Formations Description    (m)     (Acres)  (scf/t)    (2006)
-------------------------------------------------------------------------
San Juan  Fruitland  Bituminous    20-25    320      430        1 Tcf
USA                   Coal
-------------------------------------------------------------------------
Black    Pottsville Bituminous     8-10     80      350       127 Bcf
Warrior                 Coal
USA
-------------------------------------------------------------------------
Piceance   Williams   Bituminous    20-25   60-80     750        4 Bcf
USA       Fork        Coal
-------------------------------------------------------------------------
Raton     Raton,    Bituminous      10     160      350       105 Bcf
USA     Vermejo       Coal
-------------------------------------------------------------------------
Western  Horseshoe  Sub-bit/low   10-15     80       60     323 Bcf*
Canadian    Canyon    Vol Bit C
Sedimen-
tary
-------------------------------------------------------------------------
Surat    Walloon   Bituminous       20     160    125-350 Not available
Australia               Coal
-------------------------------------------------------------------------
Kutai    Pranget      Sub-          20     tbd      50+      Not in
Indonesia            bituminous                      (est)   commercial
Coal                                 production
-------------------------------------------------------------------------
TWE Liuhuanggou Project under the PSC
-------------------------------------------------------------------------
Junggar  Xishanyao Sub-bit/low     25.74   80-160  30-269
Xinjiang   (J2X)     Vol Bit C           (Potential)
-------------------------------------------------------------------------
Badaowan  Sub-bit/low     19.15   80-160  50-350
(J1B)     Vol Bit C           (Potential)
-------------------------------------------------------------------------
TOTAL
J2X+J1B                    44.9   80-160  30-350
-------------------------------------------------------------------------

Sources: US GRI, 2004; Stevens, S. "Indonesia Coalbed Methane Indicators and Basin Evaluation", 2004; Robert W. Day, Coal seam gas booms in eastern Australia, June 2009
http://www.eia.doe.gov/oil_gas/rpd/cbmusa2.pdf

INFRASTRUCTURE IN PLACE:


Pictured above is Don Downing on the left and Ross Gorrell on the right, standing beside the second transnational West East pipeline.

The pipeline is the key transportation vehicle in moving gas from the resource rich west to the densely populated and industrlized East. Spanning over 10 Chinese provinces, the annual gas transmission capacity is estimated by PetroChina at 420 Bcf.
It runs through the area covered by the PSC, and the Chinese
Government favors and encourages the production of CBM gas by giving unconventional natural gas producers preferential pipeline access over conventional gas

The PSC property borders the city limits of Urumqi, which boast's a population of up to 7 million people.
The city of Urumqi has recently completed its gas pipeline infrastructure
for residential use of natural gas and has indicated to TWE that it does not
have enough gas to fill its needs and would welcome any opportunity to secure
any long term supply when available.




MASSIVE GOVERNMENT PROVIDED INFRASTRUCTURE TO BE IN PLACE BY 2013:

Xinjiang Energy Shares Rise as China Pledges Spending

Tuesday, 25 May 2010

By Bloomberg News

 May 24 (Bloomberg) -- Energy and chemical makers based in
 Xinjiang rose in Shanghai on a report saying China plans to
 spend 50 billion yuan ($7.3 billion) to expedite coal, power and
 pipeline projects in the province three times the size of France.
 Xinjiang Tianfu Thermoelectric Co. surged by the daily
 limit of 10 percent to 11.75 yuan while oil and gas supplier
 Xinjiang Guanghui Industry Co. advanced 5.2 percent to 28.66
 yuan at 11:29 a.m. local time. Xinjiang Urban Construction Co.,
 a builder of roads, bridges and water facilities, jumped 10
 percent. The benchmark Shanghai Composite Index rose 3.1 percent.
 The government in Beijing plans to increase energy
 investment in Xinjiang over the next three years, China National
 Radio reported May 22, citing Wu Yin, a deputy director at the
 National Energy Administration. The province, roiled by ethnic
 violence last year, will also move to taxing resources by price
 than by volume to boost government revenue and spur development.
 “It’s a very sensitive region politically and the
 government wants to make Xinjiang richer and more stable,” said
 Wang Aochao, head of China energy research at UOB-Kay Hian Ltd.
 in Shanghai. “There’s a question mark over whether all
 companies operating there will benefit. Oil and gas companies
 could be affected by the resources tax, but infrastructure
 companies will probably benefit from this investment.”
 Social stability in landlocked Xinjiang has been a priority
 since the provincial capital of Urumqi suffered China’s
 deadliest rioting in decades in July 2009 when clashes between
 ethnic Uighurs and Han Chinese left at least 197 people dead.
 The country’s President Hu Jintao pledged last week to raise per
 capita gross domestic product in the region to the national
 average by 2015.
 
 Rich in Resources
 
 In Shenzhen trading, Xinjiang Goldwind Science & Technology
 Co. rose 3.4 percent to 23.42 yuan. Xinjiang Zhongtai Chemical
 Co. gained 4.6 percent to 23.06 yuan in the southern city, while
 Xinjiang Zhundong Petroleum Technology Co. advanced 3.6 percent
 to 26.89 yuan.
 Xinjiang holds 15 percent of China’s oil reserves of 2.89
 billion tons, according to the latest figures available from the
 National Bureau of Statistics. The province has the biggest
 reserve of natural gas, accounting for 22 percent of total
 reserves of 3.4 trillion cubic meters. It also has the fifth-
 largest reserves of coal.
 China has discovered 360 million metric tons of heavy-oil
 deposits in Kelamayi in Xinjiang, the official Xinhua News
 Agency said today, citing a unit of PetroChina Co., the nation’s
 biggest oil producer.
 PetroChina gained 2.1 percent to 11.07 yuan in Shanghai
 trading, while its smaller rival China Petroleum & Chemical Corp.
 rose 2.4 percent. China Shenhua Energy Co. advanced 3 percent.
 
 For Related News and Information:
 China Energy Stories: {TNI CHINA NRG BN}
 
 --Wang Ying in Beijing. With assistance from John Duce in Hong
 Kong. Editors: Ryan Woo, Alex Devine.



PETROMIN CEO COMMENTS ON GOVERNMENT INFRASTRUCTURE ANNOUNCEMENT:

http://www.stockhouse.com/tools/?page=%2FFinancialTools%2Fsn%5Fnewsreleases%2Easp%3Fsymbol%3DV%2EPTR%26newsid%3D7754143



RECENT SIGNIFICANT DEVOPMENTS:

Cheung Kong Infrastructure To Buy Up To 8.2% Stake in Enviro Energy International Holding Ltd.
http://www.tradesignalonline.com/Markets/Story.aspx?id=602294&cat=3

ABOUT CHEUNG KONG INFRASTRUCTURE:
http://www.cki.com.hk/english/about_CKI/home/index.htm

PARENT COMPANY: CHEUNG KONG HOLDINGS:
Combined Market Capitalization of $100 Billion USD
http://www.ckh.com.hk/eng/about/about_chairman.htm

Canadian Energy Ties: Li Ka-shing (Significant shareholder of Husky Energy)
http://www.hutchison-whampoa.com/eng/energy/overview.htm

Of note, Husky is no stranger to Shale Gas, this from their first quarter financial relaease:

Husky continues to build its gas resource play portfolio and now has 946,000 acres. In the first quarter, Husky acquired 22 sections of additional land in the Komie area of the Horn River shale gas play located in northeast British Columbia, adjacent to 24 sections of existing land. Husky acquired seven sections in the South Bivouac area which increases Husky's holdings in the Jean Marie/Kakisa plays to 629,700 acres. In the first quarter, seven wells were drilled by Husky in the Bivouac area and two wells were drilled in the Ansell area.

 http://www.huskyenergy.com/news/2010/husky-energy-reports-2010-first-quarter-results.asp

Another point I find of particular interest is Husky has announced their intention to split their stock and list half on the Hong Kong exchange and stay half listed on the Toronto stock exchange.

Here is news to that effect:

http://www.businessweek.com/news/2010-03-30/husky-hopes-to-list-asian-assets-this-year-fok-says-update1-.html

 


OWNERSHIP DIVISION OF TERRAWEST PROPERTY:

Petromin now hold a 34% interest in the production sharing contract with PetroChina:
Which consists of a 53% to PetroChina and 47% interest to Enviro and PTR, so EE has a 66% interest of the 47% and PTR has a 34% interest in the 47% share.

Enviro has also bought 5 million shares of Petromin for .55 cents
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=6


SIDE NOTE:
Now I am not 100% on this, but the way I read it PTR gets up to 10% of any project Enviro is involved in ?
his one is a little grey to me.

Enviro Energy International Holdings Ltd: is a publicly traded company listed on the Growth Enterprise Market of the Hong Kong Stock Exchange.  The Company is principally focused on coalbed methane, enhanced oil recovered, coal mine methane mitigation, greenhouse gas emissions reduction, clean development mechanism projects, and landfill gas projects. In October 2007, Petromin signed a Master Techncial Service Agreement with Enviro Energy. Pursuant to the Agreement, the Company will provide its services through the provision of its personnel, expertise, technology and research services towards the development of Enviro Energy's oil and gas business. In return, Petromin will be granted an interest in the underlying project to which the work pertains, whether as a working or carried interest, or as a royalty interest, of up to ten percent of Enviro Energy's interest in such project. Visit Enviro Energy's website: http://www.enviro-energy.com.hk/

ENHANCED COALBED METHANE MULTI-WELL TEST PILOT PROJECT IN THE QUINSHI BASIN:

Petromin is jointly spearheading CO2 Sequestration in China with the Alberta Research Council, they announced the launching of the world's first Mutli-Well Test Pilot Project to take place in the Quinshi Basin in Shanxi Province, which is regarded as one of the most prolific coalbed methane basins in China
http://www.marketwire.com/press-release/Petromin-Resources-Coordinates-First-Ever-Multi-Well-Pilot-CO2-Injection-Enhanced-Coal-TSX-VENTURE-PTR-751408.htm
This project came about as a result of ARC's single-well test pilot project (injecting CO2 into a single coalbed methane well) in 1998.
http://www.cslforum.org/publications/documents/FinalReportCCBMproject.pdf

China had planned a number of single-well test pilots originally, but when the data came in showing that they could take CBM production from average 35% up to 80%,  Gov't. officials were apparently so impressed they squashed any further sinlge-well pilots and wanted to move right to a mutli-well, which is the pre-requisite to taking the process commercial right across China.

FINANCING OF THE TEST PILOT:
A compelling factor of the Multi-Well Test Pilot Project is that Petromin financial obligation to the project has been picked up by Canadian Federal Government giving recognition to the stature and global importance ECBM & EOR through the technological innovation's of  CO2 Sequestration on the world stage.
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=74

So don't be too surprised once the data starts flowing from this project, if after 3 years they say, we've seen enough and let's go commercial now and roll-out projects across other Provinces and implementation of other projects like this one that is comprehensive.
http://www.marketwire.com/press-release/Petromin-Shanxi-Energy-Inc-Coal-Energy-Agreement-TSX-VENTURE-PTR-642207.htm
or
http://www.marketwire.com/press-release/Petromin-Resources-Ltd-Letter-of-Intent-with-Heilongjiang-Coal-Geological-Bureau-TSX-VENTURE-PTR-600632.htm


KUWAIT PROJECTS:

When looking through Petromins news releases you might notice a L.O.I signed with a Kuwait Group called  U.O.P.
United Oil Projects to engage on CO2 projects in Kuwait for enhanced oil recovery.
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=27
A patially owned susiduary called Allied Resources was also named in the L.O.I.  has since been 100% acquired by Enviro Energy which also added an interest in the Qian An Oilfield.
 Enviro operates a 50% joint venture partnership with PetroChina Company Limited (PetroChina) on the Qian An Oilfields. The block located in Jilin Province covers an area of 15 square kilometers with 21.7 million barrels (Mmbbl) original oil in place (OIP). which has been earmarked for potential EOR with CO2 sequestration.
http://www.enviro-energy.com.hk/sites/al/files/announcements_en/2008/GLN20080220020.pdf

So as it stands now, the Letter of Intent with U.O.P. has been finalized into a formal agreement,  and is still binding.
http://www.petromin.ca/?p2=/customcode/petromin/viewcomments.jsp&bid=48
Although the Kuwait Government has been slow to green light these proposed projects to the bidding stage as yet, Petromin has been advanced tot the pre-approved list of applicants that may submit bids.

So , when these tenders are eventually made available for bidding on,  I would imagine our group would have a leg up over other International players, what with Petromin been partnered with a Kuwait Company, one would think they might receive preferential consideration...so stay tuned...something could still spring to action on this, perhaps someday in the near future or not.

For disclosure I own large positions in both PTR & EE and am obviously very bullish on their future.
That is the extent of my relationship to the company, and yes while I have become very well acquainted with management I am not an employee or paid consultant to the company.

The strategy for Canadain Junior Resource Companies penetrating lucrative foreign markets has been proven to be a winning venture by many, and I conclude that Petromin & Enviro will be just 2 more examples.
From an investor standpoint, it is my believe that Petromin win end up being the better play because they only have 58 million shares outstanding and Enviro has over 2 Billion.
Do the math and always do your own DD, and never buy any stock simply because of the words of someone on a bullboard.

Cheers and Best Of Luck In Finding the Good Ones Early
Shaker13

Canadian companies deploying their North American expertise are enjoying considerable success exploring internationally, and shareholders have also experienced significant returns.		The Canadian-based international junior oil and gas universe is experiencing significant growth. Through ongoing exploration success, internationally focused companies have drastically outpaced their counterparts.