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ALTON BLOCK

• 514,000 acres
• Forent has 100 percent working interest and a three-year exploration license from 2011 to 2014; with total tenure to April 8, 2020
• Two nearby refineries with 400,000 bbl per day capacity
• Maritimes and North East natural gas pipeline runs through the Alton Block and has spare capacity
• 10 percent flat royalty after initial two-year production royalty holiday

Hydrocarbon Potential

• Numerous oil and gas shows have been detected throughout the Block
• Forent has identified 15 Gays River reef drilling targets, each with Pmean resource size of approximately 26 mmbbls Original Oil In Place.

Development Plan

• Forent completed a US$1.6 million gravity gradiometry survey of its Alton Block in Nova Scotia in 2010.
• Based on the structural highs identified from the gravity survey, Forent completed a 2D seismic program in July 2011.
• The 2D Seismic data will be processed and interpreted with the goal of identifying a number of drilling targets, of which three will be drilled in Q4 2011.

HISTORY

In 2010 Forent Energy conducted an airborne geophysical survey which led the Company to believe that there is significant oil and gas potential on the Alton Block, which could provide the opportunity for significant growth of the industry in the province.

During July 2011, Forent conducted a 65 km two dimensional (“2D”) seismic program (very similar to previous seismic programs conducted in the Alton area) to further assess the potential for oil or gas in the area. This 2D seismic survey helped provide a clearer understanding of the geology of the Alton Block. Based on the results of the 2D seismic survey, we are planning on drilling three exploration wells in late 2011 and early 2012. LXL Consulting coordinated the seismic operations and the company’s Field Project Manager, Bob Morgan, a native of Port Hawkesbury, was onsite and available to answer any questions residents had. LXL has extensive experience with similar projects in Nova Scotia and the rest of Atlantic Canada.

To help us complete the seismic survey, Forent utilized the services of LXL Consulting who coordinated the seismic operations. LXL has extensive experience with similar projects in Nova Scotia and the rest of Atlantic Canada since 1999. Bob Morgan, LXL’s Field Project Manager and a native of Port Hawksbury was onsite and available to answer questions from residents.

IMPACT ON NOVA SCOTIA

This project will have an immediate positive impact on the economy of the Stewiacke area, and of the province of Nova Scotia.

In total, we intend to spend upwards of $6 million on this exploration program, of which approximately 60% will accrue to Nova Scotia, through the use of services and personnel. We are optimistic about the long-term potential benefits to Nova Scotia should hydrocarbons be discovered. They include:

• Royalty revenues for the province.
• Taxes – both corporate and HST.
• Domestic oil for Atlantic Canada.
• Jobs in Nova Scotia, specifically in the Alton and Stewiacke areas.
• Contracts for supply and service providers.

In recent months, in other areas of Canada, some have raised concerns about oil and gas development onshore, specifically associated with hydraulic fracturing and shale gas development. Forent is not exploring or developing shale gas on the Alton Block and will not be using the process known as hydraulic fracturing. While we plan to drill on the Alton Block, our wells will be drilled into highly porous and permeable reef structures – not shale rock – as such, these structures do not need to be fractured in order to produce any oil or gas. Forent will be using conventional vertical drilling techniques similar to wells previously drilled in the Alton area.

Forent has safely and successfully conducted two 2D seismic programs and drilled three exploration wells on the Alton Block over the past four years.

PROJECT STATUS

We are pleased to be able to update you on Forent Energy’s activities in the province. We recently announced that Forent had received approval from both the Nova Scotia Department of Energy and the Department of Environment to drill three wells on the Alton Block. We have also secured a drilling rig, and have started site preparation.

We anticipate that we will spud (initiate drilling) the first well in late December or early January and complete the three-well program before the end of February 2012. As you may know, Forent met with members of the public at two open houses and we have also met with other stakeholders in the area to gain their inputs and thoughts on the project. As previously indicated, we are not exploring for shale gas on the Alton Block and will not be using the process known as hydraulic fracturing. We are currently working with our Stewiacke Valley Community Liaison Committee to discuss various aspects of the project.

OUR APPROACH TO EXPLORATION

For over a decade, Forent Energy has been working successfully in the field of oil and gas exploration. Forent technical staff have more than 120 years of combined experience with petroleum operations and as a result we have significant experience and understanding of the processes required, who is impacted and why it’s important to communicate with everyone involved from the onset. In keeping with this, we have developed an approach that is open, transparent, and designed to foster a relationship of working together for success. Here are the activities we are committed to participating in with you.

OPEN HOUSE AND PROVIDING INFORMATION

We want to be sure that residents in the local communities understand what we are doing in their areas. It is very common for people to have a lot of questions about our activities now and in the future and we are happy to answer these questions. We have conducted two open houses in 2011 which gave us the opportunity to introduce Forent Energy to residents and explain our operations. Following this, as we get underway with our exploration, we will provide updates in a variety of forms including: our website, direct mail and follow up meetings as required. In order to foster good two way communication we established the Stewiacke Valley Community Liaison Committee (“SVCLC”) that is comprised primarily of local stakeholders. Its mandate will be to provide feedback to us on our activities and to alert us to any concerns of the local residents and other stakeholders.

CONDUCTING EXPLORATION DRILLING OPERATIONS

Forent Energy will initiate a three well exploration drilling program in late 2011 following our successful 65 kilometer 2D seismic program which was completed in July 2011.

Our exploration drilling is designed to investigate if the reef structures identified from our 2D seismic program contain oil and/or natural gas. These wells will use convention vertical drilling techniques similar to wells previously drilled in the Alton area by Forent Energy in 2007. Initially a drilling pad will be constructed by leveling the ground in an area of approximately 100 metres by 100 metres. This may also include an upgrade to an existing road or the building of a new access road. The drilling rig will then be moved to the drilling pad and assembled (a drilling rig is fairly tall and consists of approximately 20 truckloads). Each well will be drilled to a depth of approximately 900 meters. The drilling rig is equipped with a number of safety features that are designed to ensure that there is no escape of hydrocarbons and the safety of the workers us protected. There will be about a dozen skilled workers on the drilling site at any given time. Drilling operations will occur 24 hours/day and it is expected that it will take less than two weeks to complete each well. During this period, there will be an increase in local truck traffic as supplies and services are delivered to the drill site. Our plan is to temporarily halt drilling operations through the Holiday season in late December. Testing of the wells to establish productive capacity will occur after the drilling operation is completed and if hydrocarbons are discovered. We expect that this may occur in the first quarter of 2012.

SAFETY AND THE ENVIRONMENT

At Forent, we are committed to the development of oil and gas for future generations, the safety of our employees and the communities in which we operate, as well as ensuring the environment is not harmed in the course of our operations.

Provincial government approvals are required for all operational activities. We are highly experienced operators and will meet or exceed all of the necessary regulatory requirements.