2009-08-12-2007-07-01-2007-07-01

Production: 260 Mcf

Costa Energy Inc., Calgary, (Toronto Venture: COE) has sold its Boundary Lake property in British Columbia to an undisclosed independent for C$670,000. The assets consist of a 33.3% interest in two sections of land and three producing wells in northeastern British Columbia. Net production is 260,000 cubic feet of gas and three barrels of gas liquids per day. Net proved and probable reserves at year-end 2006 were approximately 226.4 million cubic feet of gas and 2,900 barrels of gas liquids. Costa will use net proceeds to reduce bank debt. Net production for the company is now approximately 400,000 cubic feet of gas and 25 barrels of oil and gas liquids per day.