ARCâ€™s Central Alberta properties are composed of a diverse set of assets producing from numerous geological horizons that yield high value, development opportunities. An example of this is Youngstown which was acquired in 2000. Detailed technical evaluation of the property, including the acquisition of 3-D seismic, led to numerous opportunities being identified. A successful drilling program undertaken in 2002 has helped identify additional locations to be drilled in 2003. A significant acquisition of assets in the Medicine River/Gilby area has consolidated and grown our interests in the region and puts a new core area on the map for ARC in Central Alberta. Medicine River In May 2002, ARC closed an acquisition in the Medicine River/Gilby area (located north of Calgary, Alberta), establishing ARC as a major operator in the area. The acquisition was a strategic fit and added significant operated and non-operated, long-life production. ARC operates two units in this area â€“ The Gilby Jurassic B and Medicine River Glauconitic A Unit No. 4. Evaluation work is on-going to assess the opportunities to increase production in these two units. Also in 2002, non-unit production and lands were acquired. Additional unit interests were acquired in five non-operated units where ARC previously had an ownership interest. Youngstown ARC has a 98 per cent average working interest in the Youngstown Arcs pool (located east of Red Deer, Alberta), which is a mature oil pool with an active water drive and low decline rates. In 2001, a 3-D seismic program was conducted over the pool. This information, combined with detailed geological and engineering evaluations, identified a number of opportunities. In 2002, ARC drilled three successful horizontal re-entry wells and one successful vertical well. These wells added in excess of 250,000 bbls of established reserves and 175 bopd of deliverability. The 2003 plan calls for three additional horizontal wells and one vertical well to be drilled. In addition, up-hole gas completions are planned for 2003. Various acquisitions were made in Youngstown in 2002. ARC has been increasing its interest by buying out partners in the area. Sundre ARC has an average working interest of 80 per cent in its lands in the Sundre area (located northwest of Calgary, Alberta). ARC operates three oil units, each of which is a mature oil pool under waterflood. A horizontal re-entry well drilled in December 2002 in the Rundle B Pool Unit (50.5 per cent working interest) is expected to commence production in the early part of 2003. Garrington In Garrington, ARC continued its successful re-completion program adding 120 boe/d to existing production. Additional re-completion candidates have been identified for 2003.