Highpine Oil and Gas estimates that its December 2007 field production averaged 19,400 Boe/d, up 34% from December 2006 (14,500 Boe/d). December 2007 production was composed of 13,300 barrels oil and NGL's per day, and 36.6 million cubic feet of natural gas per day. Estimated fourth quarter production volumes were 19,500 Boe/d. Estimated average production for 2007 was 17,600 Boe/d, an increase of nearly 50% over the previous year.

In December, Highpine continued to experience production curtailments due to operational issues at some of its recipient gas plants. Highpine is taking steps to improve all of its recipient gas plant operations for 2008 including installing an additional booster compressor on one of its major sales lines from the Violet Grove 16-29 battery to increase throughput capacity of sour natural gas. In addition, during the first half of 2008, Highpine plans to debottleneck the 16-29 oil facility to substantially increase the facility's capacity.

Five Nisku wells at Pembina are awaiting tie-in and are expected on production during the first quarter of 2008. The second of two Cretaceous wells drilled at Ansell in Q1 2007 came on stream in November at a restricted rate of 2 MMcf/day (1 MMcf/day net).

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