Foam Lake

The Foam Lake property is approximately twenty townships (709 sections) in area and is situated in east central Saskatchewan approximately 60 miles north of Yorkton. This area is mainly farm and pasture land that is serviced by main highways, a railroad and has year round accessibility. A number of wells were drilled in the early 1950'sand a few yielded gas from the shallow horizons. The Foam Lake block is some 25 to 30 miles south of Bertwell. where gas was tested and produced in the 1930's and some 25 to 30 miles north west of Kamsack where gas and oil was drilled and produced until the 1970’s.

Three other players have acquired Exploration Permits to the north of Foam Lake and are currently conducting drilling, seismic and geochemical activities. Two large Exploration Permit Blocks were acquired in 2006 to the north of PanTerra’s lands and a 21 township block adjacent to PanTerra’s Foam Lake lands was acquired in August, 2007.

PanTerra began drilling at Foam Lake in 2006 and had drilled and cased 17 wells by the end of July 2007. Twenty-two cores were cut and sent to a specialty lab in the USA for analyses. Preliminary results indicate high methane contents (in excess of 96%).

To date the Company has fracture stimulated three wells and is currently evaluating the results. The Company used two different fracture techniques; Nitrogen and Gelled Propane. During flow back the methane content steadily rose as the nitrogen and propane volumes declined. The Company plans to continue testing and fracture stimulating multiple zones in more wells on this property.