Production
Natural gas production for the year decreased to average 4.6 MMcfd from 6.0 MMcfd for 2006 and oil production decreased to average 97 Bopd for 2007 compared with 130 Bopd for the prior year.
In Canada, 2007 average natural gas production was down 11% to 2.7 MMcfd from 3.0 MMcfd in 2006. Gas production in the United States was down 36% to average 1.9 MMcfd for 2007 compared with 3.0 MMcfd in 2006.
Reserves
The independent engineering evaluation of Diaz's properties assigned proved reserves before royalties of 2.4 million BOE and total reserves before royalties totaled 4.8 million BOE at December 31, 2007. These reserve estimates result in a before tax present value of estimated future net revenues, discounted at 10%, of $83.2 million.