Mr. Pinnell: Anterra is actually a new company effective May 1 of this year, 2007, and is the surviving entity from a merger of two oil and gas companies, one called Anterra Corporation and one called Resolve Energy. The reason that the two companies were consolidated was they had complementary asset bases. Resolve had cash and Anterra had debt so the transaction improved the financial strength of the surviving entity. We brought together two technical teams so we have a much stronger and more experienced management and Board of Directors as well. With a stronger balance sheet, we have greater acquisition capabilities, so we are better position for growth. Today, Anterra Energy, Inc., is a junior oil and gas company, as I said, and the surviving entity from the merger of Anterra and Resolve. It has high working interests in a portfolio of high impact exploration projects with, of course, the expertise to exploit them. It also has several oil and gas producing properties, which are also being exploited. The company's current production is around 350 barrels a day and it's still small. The company has proven and proper reserves of just over 1 million barrels and over 20,000 gross acres of land. The 2007 capital budget is 10 million, so fairly significant for a small company. In summary, the company has near-term high impact exploration projects, low risk development projects with strong production potential. It has solid cash flow from its producing properties and a highly experienced management team with exploration and operational success, and management and Directors are very large shareholders as well, holding over 40% of the outstanding shares.
TWST: What's the agenda? What are priorities for the next 12 to 24 months? What
would make that time frame a success?
Mr. Pinnell: The company has, as I mentioned earlier, a 10 million cap ex
budget for 2007 and that cap ex budget is focused in two areas. One, there is a
series of development projects that the company is working on. The Breton
property is the company's largest producing property and the company is drilling
four low risk wells on that property this year. Of the two that have already
been drilled, one of them is on stream and the second one is just been tied in.
The company has a second low risk exploitation project on one of its producing
properties in an area called Frontier in Saskatchewan. There will be several new
wells drilled and at least one redrill on that property during 2007. Those two
projects, Breton and Frontier in Saskatchewan, focus on delivering low risk
production barrels to the company and, combined with that, the company has two
high risk Devonian Reef exploration projects. The first one is in an area call
Judy Creek, where the company has just under 5,000 acres of 100% working
interest lands and there are four exploration wells planned. These wells are
about 10,000 feet, so with four exploration wells to be drilled on that
property, two wells drilled are planned for 2007, and based on success the other
two wells will be drilled probably in 2008. We are looking at as much as 3
million barrels of reserve net to Anterra from that project. The company ran a
one million dollar 3D seismic program to define the locations. The second high
impact exploration project that the company is involved in is at McLeod River in
Alberta. Anterra is the operator and has a 52.5% working interest in this 1,280
acre prospect. The analogue gas pools in the area within 4 or 5 miles of this
prospect have produced up to 160 BCF of gas reserves per pool. This is an
exciting high impact project for a company like Anterra. What Anterra is doing
is re-entering an existing well and deepening it from about 6,000 feet to 9,000
feet to test its theory on the project. We have 3D seismic over the prospect and
we have a high level of confidence that project will be proceeding probably
sometime in the third quarter of 2007. The company is also working on some
additional Devonian reef projects that will progress more in 2008. They will not
be drilled this year. They are at a much earlier stage.
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