Montney Targets Could Yield Millions in Probable Net Revenue over 14 Years

Pemberton Energy Ltd.

Pemberton's President Richard Saxon stated, "With this report in our hands we are not only bringing confidence to our shareholders, but securing a rewarding future as well. These results are much higher then our team's expectations. Using a 25% recovery rate, with 4.4 million barrels in place, has produced an excellent case scenario for all investors. With this most recent report of best average oil in place, we are looking at over $ 53,000,000 in probable net revenue over the next 14 years. We started out looking at developing six vertical wells, then took a look at 2 horizontal wells and projection numbers were significantly higher. Management felt we could enhance the production of the wells dramatically by using stage frac techniques to complete the horizontal wells. As large as the initial assessment is, management believes that even larger multi prospect potential exists on our Peace River Arch holdings."

Pemberton is developing a Montney exploitation plan for this area. Montney oil production in this area began in 2004 with the discovery of the George Montney Oil Pool by Tusk Energy Corp. The ERCB has booked an areal extent of 1164 acres for this pool. In 2007 Pemberton shot a high quality 3D seismic on in this area In early 2008 Pemberton drilled two exploratory wells. The first well, 10-15-82-3W6M ("10-15") was drilled to basement at a total depth of 2395m. The Montney zone show evidence of being hydrocarbon bearing due to light oil staining on the geological samples and significant gas shows on the mud log. The 10-15 well was on the edge of the Montney Gage pool.

The Company is planning a development program for a hydrocarbon bearing zone near the top of the Montney Formation that was penetrated in well 10-15. The Montney Formation is a clastic unit of Middle Triassic Age. It is 200 m. thick in well 10-15 and is unconformable overlain by the organic rich shale of the Nordegg Formation of Jurassic Age. The Montney Formation in this area consists of interbedded shale, siltstones and fine grained sandstones as was illustrated in the lithologic log obtained from well 10-15.

The lithologic log of the upper Montney of well 10-15 has a number of hydrocarbon indicators. At the top of the log, the mud gas readings are elevated as the well drills through the organic rich shale of the Nordegg Formation. There is a reduction in mud gas reading to background as the first clean sand of the Montney is drilled. After drilling a barren shale section with very low mud gas readings, the second Montney sand is penetrated with six metres of elevated mud gas reading before returning to background readings for the remainder of the Montney section. The wellsite geologist in his geological report on the chip samples noted that the Montney zone with the elevated mud gas reading was "qaurtzose, very fine grained grading in part of siltstone" with "good intergranular porosity" and "light even brown oil stain throughout". The oil staining is visible in the photo micrograph of these chip samples as the even tan colour of the fine grain sandstone. Another hydrocarbon indicator was the reported "immediate gold cut fluorescene" which will occur as oil is liberated from chip samples by an organic solvent and examined under UV light. A small amount of 33 API oil was recovered during the completion attempt and an oil analysis of this sample from the Montney zone was performed by Core Lab.

Mathew Dodwell, Director and VP of Production states: "After close review of the report on the Montney targets at the Gage properties, Pemberton initiated plans for development. With projected volumes and revenues as high as indicated in the Chapman Engineering report, Pemberton will be moving forward with plans to develop accordingly and with diligence. Development plans are underway to create a production system that will sufficiently accommodate Pemberton's growth in the area for years to come. With existing sales points in the general surrounding area, Pemberton energy feels this will be easy access for uninterrupted , long term production . Applications for development of the Gage properties are underway."

According to the summary of resource estimate and reservoir parameters, Petroleum Initially in place, STB is 4,400,435. Petroleum Initial in Place (PIIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources").

Recent developments in well bore equipment technology have made it possible to fracture horizontal well bores in tight oil and gas sands over multiple intervals. These completions are expensive but create greater production rates and improved ultimate recovery because of improved permeability in the immediate well bore vicinity all along the horizontal leg. These types of completions have been commonly used successfully in the Montney sand in northwest Alberta and northeast British Columbia. The incremental cost of this program to that of an unstimulated horizontal well is approximately $1,000,000 depending on the well bore configuration any number and size of the frac jobs. Reasonable estimates of increased rates and recoveries due to the multistage fracture completion compared to an unstimulated horizontal well were made.