MCKAY RIVER

• Approval for 12,000 bbl/d initial project application expected in Q2 2010, to be followed by completion of construction and first steam in mid to late 2011
  
  
• First class reservoir established: 43 delineation wells have been drilled in six square mile primary project area (4.5 square mile expansion area also partly delineated); 15-30 metres net minimum pay; excellent cap rock containment and minimal fluid impairment zones; over 200 kms of 2D seismic shot;
  
  
• Satisfactory source well testing, geo-technical analysis for plant and pad sites and cap rock integrity analyses all completed
  
  
• Base line environmental data gathered and aboriginal and public consultation complete
  
  
• Design Basis Memorandum completed by experienced team who have designed and project managed similar SAGD facilities on budget and on time
  
  
• Extensive petrophysical analysis and reservoir modeling conducted
  
  
• minimal environmental impact project design-small footprint, 95% water recycle and no tailings ponds
  
  
• Bounty has 20% working interest in 59 sections (15,104 hectares) of land including initial project area
  
  
• Primary project expected to generate:
  -$1.9 B free cash flow
  -$240 M NPV@10%
  -21% ROR over 30 year project life
  
  
• 200 kms of 2D seismic shot in summer 2007 and 32 core holes drilled this winter
  
  
• 12 to 27 meters net continuous bitumen (26-30 meters gross bitumen)
  
  
• adjacent to successful analogue Petro-Canada in situ project
  
  
• experienced engineering team has been engaged to advance SAGD application
  
  
• environmental studies, reservoir modeling, facilities design are proceeding
  
  For more detailed STP-McKay SAGD Project information:
  http://www.shpacific.com/wp-files/Presentation/STP-Presentation-2009-05.pdf