Pembina

The Pembina property is located approximately 60 miles southwest of Edmonton, Alberta. Insignia holds and average 73% working interest in 5,760 acres of land of which 714 net acres are developed and 3,472 net acres are undeveloped.

The main target for exploration and development on this property is the Cardium formation. The area is generally accessible year round for drilling and operational activities except for spring breakup period (April and May). In 2010 Insignia participated in drilling 4 (1.92 net) horizontal Cardium oil wells. Two 21% working interest wells and one 50% working interest well were placed on production in October. One 100% working interest well was placed on production in December.

At December 31, 2010, Insignia had interests in 7 (3.7 net) producing wells and 3 (1.0 net) non-producing wells. The wells produce into single well batteries at the wellsites. Crude oil is trucked to a pipeline terminal, either the Anterra Breton terminal or the Pembina Pipeline Buck Creek terminal. Solution gas gathered is delivered into the Minnehik Buck Lake gas processing facility.

December 2010 working interest production to Insignia from this property was approximately 381 BOE/d. The GLJ Report assigned reserves of 840 MBOE Proved and 1,342 MBOE total Proved plus Probable to the Pembina property.