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Berens has built a large, diversified land and opportunity base encompassing three concentrated areas in Pembina, Lanfine and Deep Basin. Each area has its own unique risk and return characteristics, providing Berens with the ability to diversify its capital spending to optimize reserve and production additions while managing technical, economic, and regulatory risk.

During 2007, we continued to strategically high-grade our land through new land acquisitions and farm-ins in areas like Pembina and Lanfine while selling lower potential acreage in the Marten Hills area. We have expanded our inventory of drilling locations to 100 through extensive analyses and improved drilling results.

Berens Core Area Lands
Map

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At the end of 2007, Berens’ undeveloped land position stood at 100,000 net acres with 98 percent of the undeveloped land concentrated in these three core areas. This more focused, higher quality land base and location inventory has positioned us well for future success.

2007 drilling, production and reserves highlights:

•	86 percent overall drilling success rate for 2007, led by 100 percent success rate in the high growth areas of Pembina and Deep Basin.
•	11 percent year over year increase in production delivered from a drill bit-focused capital program that was close to cash flow from operations.
•	16 percent increase in proved plus probable reserves.We replaced over 200 percent of our production with new proven plus probable reserves. On a proved basis, we replaced 135 percent of production.
•	Increased reserve life index from 6.0 to 6.5 years as most of the reserve growth came from high quality, long life liquids rich natural gas wells in Pembina and Deep Basin.
•	Finding and development costs were $12.85/boe. Berens experienced continual quarter over quarter improvement in our finding and development efficiency during 2007 and have carried this momentum into a successful first quarter of 2008.
•	2007 average unit operating costs of $7.55/boe down 4% compared to 2006.
•	Up to 25 percent improvement in drilling, completion and equipping costs during 2007 as we focused on technology and execution, and experienced an easing in industry cost pressures.
•	Marten Hills assets sold in Q3 2007 for cash proceeds of $6.75 million. This concentrated our land and asset base on our remaining higher quality assets in Pembina, Deep Basin and Lanfine.