Brinco Oil & Gas Limited

Production and Marketing

As at December 31, 1983, Brinco Oil & Gas PRODUCTION

Limited’s ownership of producing wells stood at (average daily)

67 net wells, of which 34 were oil wells and 33 1983 1982 were natural gas producers. Oil production ; en ae averaged 370 barrels per day in 1983 compared Crude a (barrels) _ _ to 315 barrels per day in 1982. Gas production Natural Gas(mef) 19002130

was 1900 mcf per day, compared with 2130 mcf per day in the previous year. The bulk of oil and gas production is located in Alberta.

Low demand in the United States for Canadian natural gas, caused by recession, weather, domestic supply and price, continues to impede the natural gas industry’s performance. However, increases in government regulated prices contributed to an overall increase in oil and gas revenues of some 32.4 percent over 1982. Oil production levels have been maintained as a consequence of the company’s development drilling program, and growth of oil prices towards international levels has been largely responsible for the improvement in sales revenues.

OWNERSHIP IN PRODUCTIVE WELLS (as at December 31, 1983)

Gross Net Status Wells Wells Producing Capped

Crude Oil Wells

Alberta 134 28.1 97 37 British Columbia 2 5 1 1 Saskatchewan 3. 2.0 3 0 United States 21 2.9 21 0 Total Oil Wells 160 33.5 122 38 Natural Gas Wells Alberta 221 26.3 60 161 British Columbia 466.3 18 28 United States 7 5 7 0 Total Gas Wells 274 33.1 85 189

Total Wells 434 66.6 207 227