Overview and Highlights:

— Breaker Energy average production rate grew to 6,883 boe/d, a 36% raise over the year-ago quarter average of 5,060 boe/d and a 3% increase over the fourth quarter 2008 average of 6,702 boe/d. This occurred even with production and capital deferrals in the first quarter of 2009. The company has realized 46% oil and natural gas liquids weighting in the first quarter of 2009. This represents Breaker Energy’s 18th consecutive quarter of production growth since inception

— Breaker Energy achieved 17% production per share growth in the first quarter of 2009 as compared to the year-ago quarter

— In the first quarter of 2009, Breaker Energy invested CAD23 million and achieved a 100% success rate drilling three 100% working interest wells, focused at fireweed and Irricana

— At Fireweed, Breaker Energy brought two horizontal multi-frac wells on stream and more than doubled the capacity of its 100% working interest compression facilities. Through these operations, the company has almost tripled production at its fireweed liquids rich natural gas resource play in northeast British Columbia

— Fireweed continues to carry out with high production rates. Breaker Energy’s first well, on stream in the first quarter of 2009, produced 91 mboe after just more than two months of production

— At Irricana, Breaker Energy continues to raise its major light oil production with its horizontal multi-frac drilling development. The company has drilled two 100% working interest light oil wells during the first quarter of 2009. These wells came on stream at 425

and 325 boe/d correspondingly

— At Millard, Breaker Energy drilled a well in the fourth quarter of 2008 with an early production rate of 170 bbls/d. The well continues to execute in line with the best historical wells in the pool

— Breaker Energy started a waterflood operations at its large light oil discovery at East Prairie. Independent reserve evaluators estimate that oil recoveries should more than double under waterflood

— Breaker Energy’s large high quality drilling inventory of more than 400 locations comprises more than 175 (gross) oil locations. Breaker Energy has grown oil production by drilling similar sites in past years to raise access to over 50 million barrels of oil in place at Millard, almost 90 million barrels of light oil in place at Irricana and more than 10 million barrels of light oil in place at East Prairie from internal estimates. Breaker estimates recovery factor so far on all three of these pools to be less than 5%

— At Girouxville, where Breaker Energy has demonstrated a success rate of about 90% drilling light sweet oil discoveries, the company has doubled its undeveloped land position and shot its largest proprietary 3D seismic program so far previous year. This considerably raised Breaker Energy’s drilling inventory in the area, most of which qualify for royalty-free initial production and high initial netbacks. The company has already discovered 13 new light oil pools in the area, with the best discovery to date testing at initial rates of 1,500 bbls/d with cumulative production to date of over three hundred thousand barrels

— Breaker Energy took advantage of the Alberta government’s new royalty incentive programs announced during the first quarter of 2009. The company deferred the tie-in of more than 1 mmcf/d in its greater East Prairie area until April 2009. This ensures an initial crown royalty rate of 5%. Breaker Energy also delayed the spudding of a well in its Medicine Hat area in early April 2009 to obtain both the drilling depth royalty credit and the five% initial royalty rate

— Breaker Energy attained cost savings in all recent projects compared with previous quarters and remains focused on finding further operational efficiencies.

— Breaker Energy has an inventory of more than 400 low risks mainly light oil and natural gas drilling locations with spacing approvals in hand. Many of these locations provide very high internal rates of return and are well placed to take advantage of the recent Alberta royalty incentives. Breaker Energy’s existing production mix comprises major light oil weighting which allows for more than average netbacks and major cash flow at existing commodity prices

— Breaker Energy’s high quality drilling inventory provides operational flexibility and puts the company in a great position to respond to the changing economic, governmental and commodity price environment and to rise capital spending should conditions improve during the year

Fireweed, British Columbia

Breaker Energy nearly tripled production since acquisition at its Fireweed liquids rich, natural gas resource play in north east British Columbia during the first quarter of 2009. The company brought two horizontal multi-frac wells on stream and more than doubled the capacity of its 100% working interest compression facilities.

The company’s first horizontal multi-frac well at Fireweed continues to produce at high rates. In its first two and a half months of high rate production ending April 15, 2009, the well produced about 91 mboe of cumulative production and had an instantaneous raw production rate of about 1,000 boe/d. Breaker Energy notes that this well’s decline rate has started to flatten which is consistent with the company’s analysis that the well has tapped into a large resource.

The company has successfully treated its second horizontal multi-frac well with eight fracs in mid-March 2009 and tied the well into Breaker Energy’s compressor station at the end of March 2009. Field measurements recorded that the well flowed at an average raw rate of about 1,000 boe/d (which comprises about 5.3 mmcf/d of natural gas and about 120 bbls/d of natural gas liquids) for the last 24 hours of the test ending the morning of April 3, 2009. The company has drilled this well in the north end of the property where wells historically produced at lower rates.

Breaker Energy said that the result of the well has also validated gas saturation in earlier untested sands. Instantaneous raw gas production on April 15, 2009 was about 3 mmcf/d which, when combined with the historical natural gas yields for the field, translates to a sales rate of about 570 boe/d for the new well.

Both horizontal wells measured initial bottom hole pressures exceeding 16 MPa at a true vertical depth of about 1,645 meters, indicating only a small amount of drainage from over 20 vertical legacy wells which have cumulative production of over 17 bcf.

With Breaker Energy’s facility expansion complete, the company expects average total production rates from the Fireweed property of about 2,300 boe/d for April 2009, close to triple the production rate when the company has acquired the property less than one year ago. Because of the high pressure and flow rates of Breaker Energy’s two new horizontal wells, a portion of its pre-existing Fireweed production of about 750 boe/d will carry on to be curtailed pending completion of the pipeline gathering system looping project planned for the second half of 2009. This project will further improve the production capability from all wells and accommodate growing volumes in the area.

In addition to the value of the natural gas liquids produced at Fireweed, the high heat content of the gas enables Breaker Energy’s Fireweed gas production to obtain a considerably higher sales price per mcf than typical dry gas.

This ongoing success confirms the potential of the Fireweed high rate, liquids rich resource play. At present, Breaker Energy has recognized 14 additional drilling sites in the Doig at Fireweed bringing the company’s total horizontal resource play inventory to about 190 potential new locations.