The winter program commenced in November 2009 and included drilling six wells at its Kaybob property and eleven wells at its Redwater property, and a workover program at its Bigstone property. All six wells at Kaybob are now on production. Seven of the eleven wells at Redwater are on production with the remaining four completions and tie-in programs in progress. The Bigstone workover is expected to be completed before the end of March.

Current Orion production is 4,000boe/d, up 68% from Q4 2009 average production of 2,384, and 59% from the 2009 full year average of 2,514 boe/d. Additional production increases are planned related to the capital program that Orion has in place for 2010, which is funded from forecasted cash flow and Orion’s $50m credit facility.

The combined results of new drills and workovers are expected to add from 1,600 -2,000boe/d production by the end of Q1 2010. Orion expects to exit Q1 2010 with between 4,000 and 4,500boe/d of production, based on results to date and the forecasted production with Bigstone and finishing the tie-ins of Redwater new drills from its winter program.

At Kaybob, all six wells have been drilled, cased and are on production. Well costs at Kaybob are estimated at $4m per well to drill, complete, equip, and tie-in. All six wells have or are estimated to come in on or under budget.

Orion plans to drill an additional six to ten wells at Kaybob in 2010. Wells at Kaybob typically produce 110 – 120bbl/mmcf of condensate and natural gas liquids, and have an initial production rate of between 200 to 300boe/d. The remaining wells planned for 2010 are scheduled to be drilled after break-up.

At Redwater, Orion has finished drilling eleven wells in its winter program. Seven of the eleven wells drilled in the winter program are now on production and are producing 330boe/d.

Orion plans to drill an additional ten to twelve wells at Redwater in 2010. Wells at Redwater produce 28 API crude, with a small amount of associated gas, and typically have an initial production rate of between 20 to 25boe/d. The remaining wells planned for 2010 are scheduled to be drilled after break-up.

At Bigstone, three wells previously shut in are being brought back on production. A workover has been performed on one well and start-up plans are progressing for all three producers and the in-field water disposal system. These operations are expected to bring an additional 300 – 400boe/d onstream at Bigstone by the end of Q1 2010.