2009 Liquidity Analysis

in millions of dollars

Cash position @ December 12, 2008 289

Cash burn:

Q4 2008 and 2009 interest payments on Senior Notes -114

Q4 2008 and 2009 interest payments on Convertibles -7

Q4 2008 additional well pair at Pod One -5

2009 capex Conventional -15

Exploration -13

Pod One -11

MRC (assumes Sept 2009 turnaround deferred) -6

Additional costs of deferring Algar -22

Transfer lines between Pod One and Algar -14

Additional Algar commitments -73

Total cash burn from December 12, 2008 to the end of 2009 -280

End of 2009 cash position 9

Credit Facility capacity 200

End of 2009 cash and credit position 209

Algar Project:

Spent as at December 12, 2009 77

Additional Algar commitments 73

Costs incurred on Algar as at December 31, 2009 150

Total Algar Project 345

Algar costs remaining as at December 31, 2009 195

Available credit room to complete Algar 14

•Assumes Algar

construction deferred until

Jan 2010

•Dec.12, 2008 cash

position sufficient to fund

capital and term debt

interest payments through

2009, without drawing on

bank lines

•End of 2009 cash and

bank credit position

anticipated to be sufficient

to complete Algar in 2010

•2009 operating netback

anticipated to be sufficient

to fund G&A and working

capital requirements

(1) Capital expenditures may change based on results of operations, commodity prices, economic factors and availability of

capital. Refer to slide 2 for forward looking information.