Area Drilling

April 28, 2008

Newfoundland

NWest Energy Inc., St. John’s, let a contract to Geophysical Service Inc., Calgary, to shoot industry’s first 3D seismic survey off western Newfoundland in the 2008 third quarter.

NWest, which holds four licenses in the Gulf of St. Lawrence between Corner Brook and Port au Choix, did not identify the location of the 900 sq km survey precisely.

The survey targets several stacked targets of the 11 highgraded oil targets the company has identified on 2D seismic data and other geological data. Drilling is planned in 2009.

Arkansas

Bonanza Creek Energy Co., Bakersfield, identified more than $50 million in investment opportunities the next 3 to 4 years on properties in Union, Lafayette, and Columbia counties it has acquired from Macquarie Oil & Gas Holdings Inc. for an undisclosed sum.

The properties in the Cotton Valley Trend have 93 wells on 12,237 net acres producing 1,200 boed, 70% oil and NGL, from 9 million boe of proved plus 4 million boe of probable and possible reserves.

Development and exploration upside exists in the Cotton Valley, Travis Peak, Rodessa, James lime, and Lower Smackover formations.

Included in the acquisition is a 15 MMscfd plant with 225 miles of gathering lines that processes gas from the properties and other producers. Bonanza Creek opened an office in Houston.