2009-06-12-2008-12-01-2008-12-01

Purchased 40 gross land sections in Elmworth, Peace River Arch areas of AB, gaining 550 BOE/d, 2 MMBOE 2P.

Daylight Resources Trust, Calgary, (Toronto: DAY-UN) has acquired assets in Alberta from Midnight Oil Exploration Ltd., Calgary, (Toronto: MOX) for C$2 million in cash and approximately C$29.6 million in stock in a total deal valued at C$27.9 million. The deal values production at C$50,700 per flowing barrel of oil equivalent per day and proved and probable reserves at C$13.95 per barrel equivalent, according to Daylight. The assets include more than 40 gross land sections in Daylight's core Elmworth and Peace River Arch area. The West Central property in the Peace River Arch has production of approximately 550 barrels of oil equivalent per day. Proved and proved reserves are 2 million barrels equivalent. The deal also includes a farm-in on the Elmworth property, where Daylight will pay 75% of the costs through completion to earn a 45% interest in three earning wells. This will increase Daylight's remaining drilling inventory at the Elmworth property to 54 gross (35.2 net) wells. Also, Daylight will farm into the Bilbo property, where Daylight will pay 50% of the costs through completion to earn a 30% interest in six earning wells. This will result in Daylight earning a 30% interest in 36 gross sections of prospective lands, and after completion could be as many as 66 gross (19.8 net) wells. There is a further option to earn a 30% interest in an additional six gross (1.8 net) sections of land by paying 50% of the capital cost of an additional earning farm-in well. Farm-in drilling was scheduled to begin during November.