2009-08-11-2007-09-01-2007-09-01

Production; acreage

Privately held, Calgary-based Piper Resources Ltd. has acquired two private Alberta-based oil and gas companies for C$60 million. The assets include 36,355 net undeveloped acres in the Peace River Arch area. Production is approximately 1,300 barrels of oil equivalent per day (96% gas) with an additional 200 barrels equivalent per day waiting alternate pipeline routing. Proved and probable reserves are 3.8 million barrels equivalent. The deal also includes a farm-in opportunity to earn 50% working interest in an additional 10,240 acres. Piper is committed to spending C$12.5 million by July 31, 2008, on the farm-in. Piper funded the deal with existing cash, a new credit facility with a Canada-based bank and a C$45-million acquisition loan facility with Matco Capital Ltd.