Caroline

The Caroline property is located approximately 70 miles northwest of Calgary, Alberta. Insignia holds an average 67% working interest in 20,835 acres of land of which 4,065 net acres are developed and 9,799 net acres are undeveloped.

The area is characterized by natural gas production at drill depths between 2,500 and 3,200 metres. Insignia has identified several potential target zones including the Cardium, Viking, upper Mannville, lower Mannville and Jurassic formations. The area has year-round access for drilling and operational activities except for spring breakup (April and May). In late 2009, one well (16-13-34-7W5) was drilled and completed as a lower Mannville gas well. The well was placed on production in January 2010. Two additional wells (sections 12 and 14, Twp 34, Rge 7W5) were drilled, completed and place on production in June. Additional drilling is planned during 2011.

At December 31, 2010, Insignia had interests in 15 (5.8 net) producing wells and 2 (1.4 net) non-producing wells on the Caroline property.

Natural gas produced from this property is processed on a fee basis through the TAQA Caroline gas plant.

December 2010 working interest production to Insignia from this property was approximately 698 BOE/d. The GLJ Report has assigned reserves of 1,470 MBOE Proved and 2,807 MBOE total Proved plus Probable to the Caroline property.