EBY recompletes Kuhn 3 at Wooden Horse. Emerald Bay sells first 700 bbls of oil from the Kuhn 3 & 4 wells. Drills and tests Kuhn A5 at Wooden Horse and leases minerals rights to approximately 134 acres adjacent to Kuhn A5. Continues a work-over program on 40+ wells on PRI properties in Somerset and Taylor-Ina fields. Sells interest in electricity generation project. Adds new technical team to evaluate and execute development plans at Wooden Horse and Nash Creek.

EBY increases its interest in Production Resources Inc. (“PRI”) from 10% to 75% and its ownership in the Wooden Horse and Nash Creek projects from 27.78% to 50%. Average daily production rates at PRI increase approximately 15% to 57 bbls/day. EBY completes the MarPat drilling program, completing an additional 8 wells, for a total of 16 at the Somerset field. The Kuhn 4 well at Wooden Horse is tied in and production operations begin.

EBY begins its partnership with Alliance Petroleum Interests on a multi-well development program in South Texas.

125+ “in-fill” drilling targets in Atascosa, Medina and Bexar counties. Infrastructure is complete at Wooden Horse project.

To create revenue streams from natural gas wells that are uneconomical to produce EBY builds a natural gas-fired electrical power generation plant near Nevis, Alberta. EBY sells first oil loads at Wooden Horse and begins Nash Creek seismic.

Production increases 39% in the Taylor-Ina field of Medina County and 27% in the Somerset field of Atascosa County. In Guadalupe County, EBY completes the acquisition of approximately 3000+ acres of land for exploration and development. The lands are divided into 4 core projects: Wooden Horse, Nash Creek, Cottonwood Creek and Holmes Lake. The Company receives a drilling permit to drill the first horizontal well at Wooden Horse – Kuhn 1H.

Increases South Texas land position in Medina and Guadalupe counties. Drills two exploratory wells to confirm zone of interest and one salt water disposal well in Guadalupe County. Drills 12 (3 net) development wells in Medina County.

Mineral leasing operations continue for EBY in Medina, Atascosa, Frio and Guadalupe counties.

Due to instability in natural gas prices, EBY begins to divest its Canadian gas assets and pursue South Texas oil opportunities.

Establishes a significant land position in Alberta with over 50 drilling locations and has grown production to over 200 boe/day.

Ends its R&D efforts and transitions to exploration and production of natural gas in Central Alberta.

Founded as a research and development entity to develop the patented Lateral Drainhole Drilling Technology.