Properties

Utah contains rich and accessible oil sand reserves and is an attractive target for initial development. We have developed extensive knowledge of the State’s total reserves that contain more than 32 billion barrels of oil sands oil, and we have reached formal agreements for the rights to an estimated 54 million barrels of mining-accessible reserves. In addition, we have reached verbal agreement with refineries in the State to sell all of the heavy oil that we can produce. The price at which we can sell the oil will be, at minimum, what is known as Bow River @ Hardisty pricing, which is the industry standard for heavy oil such as that produced in the Canadian oil sands fields. During 2010 the Bow River price for heavy, sour crude ranged from $59 CDN/bbl to $75CDN/bbl with an average price of $68 CDN. According to the Canadian Domestic Price forecast, the price of heavy oil at Hardisty (12 degree API) for 2011 and beyond is in excess of $68 CDN. We believe we will be able to achieve a higher price for the oil we produce because it will be of higher quality than this standard, i.e., closer to 20 degree API.