Projects

DEVELOPMENT

Just Freehold’s 2006 drilling program is focused on low risk natural gas prospects in areas with established and underutilized gas gathering and processing infrastructure. JFEC's wells to date have been drilled with multi-zone targets.

Just Freehold's Dorenlee (43-20W4) well was spudded in October and our Kelsey well (44-18W4) in November 2006. Both of these wells were completed in the Belly River formations, tied in to local pipeline infrastructure and are now on production since January and February respectively. In both instances, JFEC leased the entire gas spacing unit and partially farmed out the costs of drilling, completing and equipping the wells so as to minimze capital at risk and maximize capital efficiency.

Just Freehold pooled its partial interests in a section near Joffre (39-25W4) and participated with Quicksilver et al in drilling a well in November to test the Belly River and Edmonton sands. The upper Belly River sand has tested positive for gas and the well is currently be evaluated with regard to comingled coal bed methane production.

Just Freehold farmed in on a half section leased by Progress Energy, to complete its section spacing unit in Gilby (39-1W5). JFEC then partnered with and farmed out a partial interest to Emerald Bay and drilled the well in January 2007. The well is currently being tested in multiple Jurassic, Ellerslie, and Mannville zones.

Just Freehold has slated several more wells for drilling this spring/summer of 2007.

LEASING

Just Freehold Energy has committed to using the new freeholder-friendly lease agreement developed by the Freehold Owners Association (FHOA) in all freehold leasing situations. The concepts of honesty, respect and good faith which underlie the FHOA Lease are fundamental to JFECs operating philosophy. As of April 2008, freehold owners have invited JFEC to lease more than 80,000 acres (approximately 125 sections). JFEC has now leased, optioned and purchased more than 18,500 acres of freehold mineral rights, representing in excess of 90 drilling locations. Word of the freeholder-friendly FHOA Lease and JFECs willingness to use it is spreading and new leasing opportunities are being presented to JFEC daily. To date we have drilled 13 wells on 3,530 acres. By year end we plan to have drilled approximately 40 wells on total 7,000 acres and to have increased our mineral lease holdings to 25,000 acres.