IRADESSO QUARTERLY - BMIR - Bryan Mills Iradesso

Q2 proDuction Mix — natural gaS WeigHting (%)Median = 65%TwocoFortressTamarackDeeThreeCinchBowoodOpenRangeSeaviewArgosyOrleansCequenceSureYohoPetro-ReefAndersonIntlSovereignIronhorseProspExDiazDelphiVeroSondeWaldronTerraInsigniaMontereyBellatrixCrocottaArtekWranglerWestBellamontAngleNovusTriOilTwinButteWestFireWhitecapOrionMidwayEqualGreatPlainsDejourFreeholdPitdP PaintedPonyRockSecondWaveBonterraNuLochSurgeCulaneArsenalArcanWildStreamExallPalliserBlackPearlLegacyRenegadeEmerge1349121413131825283032333538394247474852555858585761636568737376767679797882818080818584848786868888929191shifting from gas to oil989899100For a substantial amount of time, oil has been the commoditywith more attractive economics, however from a volumesstandpoint, natural gas has been the commodity with a higherweighting by volume for juniors. Finally this appears to bechanging. The median natural gas weighting has dropped from75% in Q3 2009, to 71% in Q1 2010, to 65% this most recentquarter. This is probably a good thing for the short-term financialhealth of this sector.As is standard, we convert natural gas into oil equivalence byusing a ratio of six thousand cubic feet (mcf) of natural gasto one barrel of oil equivalent (boe). This ratio comes from anenergy equivalence at the burner tip. To put this calculation intoperspective, if we were to base the equivalency ratio on spotmarket pricing, it would take around 20 mcf to equate to eachbarrel of oil.forMulaavg. natural gas production per day (boe/d)avg. total productionJunior coMpariSon0 10 20 30 40 50 60 70 80 90 100Q uarterlY report : Q2 2010 7