Pouce Coupe

The Pouce Coupe property is located approximately 280 miles northwest of Edmonton, Alberta. Insignia holds an average 76% working interest in 20,640 acres of petroleum and natural gas rights of which 7,456 net acres are developed and 8,156 net acres are undeveloped.

The main target for exploration and development on this property is the Doig/Montney section of the Triassic age formations. Drilling targets are defined through both geologic and seismic mapping. Insignia owns a 136 square mile 3D seismic survey that covers the majority of the lands. The area is generally accessible year round for drilling and operational activities except for spring breakup period (April and May).

At December 31, 2010, Insignia had interests in 32 (21.7 net) producing wells and 6 (4.7 net) non-producing wells on the Pouce Coupe property. Late in 2009, insignia drilled a 100% working interest horizontal Doig well in section 29-77-11W6 (102/13-29-77-11W6) and in 2010 the well was completed and placed on production in February. A second 100% working interest well was drilled in section 20-77-11W6 and placed on production in September. Two 50% working interest wells were drilled, completed and placed on production in December. Additional drilling is planned for 2011.

The wells produce into a company owned gathering system and the production is transported to the Spectra Gordondale East gas plant for processing. Insignia holds firm transportation and processing capacity at this plant. Natural gas liquids are trucked to either the CCS terminal at La Glace or to the Enerplus Valhalla 16-29-76-10W6 facility.

December 2010 working interest production to Insignia from this property was approximately 1,415 BOE/d. The GLJ Report has assigned total proved reserves of 2,623 MBOE and total proved plus probable reserves of 7,711 MBOE to the Pouce Coupe property.