Update from Calgary

There are a couple of items that I wanted to update you on with respect to
our outsourcing arrangements and staffing. First, the outsourcing
arrangement with Petro-Canada has been extended for an additional five-year
term. The commercial guys are very happy about this and have given a lot of
credit to Energy Operations and Accounting for the successful renewal of this
agreement.

Secondly, we have an existing outsourcing agreement with Startech Energy for
volumes totaling 8 - 10 MMcf/d. These properties have been purchased by a
company called ARC. The existing MSA for Startech properties is being
terminated and a new agreement covering all of ARC's production is in the
final stages of negotiation. Starting in May/June, the volumes under this
new arrangement will be between 50 - 60 MMcf/d. This increased volume and
associated receipt points creates the need to add one person to the Logistics
group. This position was not budgeted for, however, I have received
approval from Rob Milnthorp to add this position. Please let me know if you
have any concerns about this net staff addition.

Thanks
Peggy