NOTICE OF APPLICATION
APPLICATION NO. 1657852
DAYLIGHT ENERGY LTD
PEMBINA FIELD

The Energy Resources Conservation Board (ERCB/Board) has received Application No. 1657852 (Application). This notice is to advise of the filing of this Application. Note that if no submissions are received on or before October 8, 2010, relating to the Application, the ERCB may continue to process this Application without further notice.

Note, the Board is currently reviewing two applications in Section 5, Township 50, Range 6, West of the 5th Meridian. The first application, Application No. 1623169, was submitted on September 4, 2009, by West Energy Ltd., now Daylight Energy Ltd. (Daylight). The second application was submitted by Daylight on August 11, 2010. This Notice of Application is for the second application, Application No. 1657852. If no submissions are received on or before October 8, 2010, relating to Application No. 1657852, the ERCB may continue to process Application No. 1657852 without further notice.

Description of the Application
Daylight has applied pursuant to Section 2.020 of the Oil and Gas Conservation Regulations for a licence to drill a directional well from a surface location in Legal Subdivision (LSD) 11, Section 5, Township 50, Range 6, West of the 5th Meridian, to a projected bottomhole location in LSD 1-7-50-6W5M. The maximum hydrogen sulphide ( H 2 S ) concentration would be about 211.5 moles per kilomole ( 21.15 per cent) and the cumulative drilling H 2 S release rate would be 2.5 cubic metres per second, with a corresponding emergency planning zone of 1.33 kilometres (km). The purpose of the well would be to obtain oil production from the Nisku formation. The proposed well would be located about 7 km east of the Hamlet of Rocky Rapids.

To obtain a copy of the Application, contact

Daylight Energy Ltd.
Sun Life Plaza, West Tower
2100, 144 – 4 Avenue SW
Calgary, Alberta T2P 3N4
Attention: Cheryl Vance
Telephone: 403-218-6886
Fax: 403-266-6988

To view a copy of the Application and supporting documents, contact

Requirement to File a Submission
If you have an interest in this matter, you are required to make a submission with respect to this Application even if you have previously filed a submission with the Board or with Daylight on this Application.

If no submissions are received, the ERCB will continue to process and may approve the Application without further notice or without a hearing.

How to File a Submission
Any party intending to make a submission with respect to the Application must file by 4:00 p.m., on or before the filing dates below.

Send one copy of your submission to the applicant at the name and address above and ten copies to

Alanda Allum, Application Coordinator
Applications Branch, Facilities Applications Group
Energy Resources Conservation Board
640 – 5 Avenue SW
Calgary, Alberta T2P 3G4

After October 16, 2010, please direct the above ten copies of submissions for the ERCB to

Alanda Allum, Application Coordinator
Applications Branch, Facilities Applications Group
Energy Resources Conservation Board
250 – 5 Street SW
Calgary, Alberta T2P 0R4

Contents of a Submission

Under Section 24(2) of the Energy Resources Conservation Board Rules of Practice ( Rules of Practice ), submissions must contain the following:

(a) a concise statement indicating

(i) the manner in which the intervener's rights may be directly and adversely affected by a decision of the Board on the proceeding,

(ii) the nature and scope of the intervener's intended participation,

(iii) the disposition of the proceeding that the intervener advocates, if any,

(iv) the facts the intervener proposes to show in evidence,

(v) the reasons why the intervener believes the Board should decide in the manner that the intervener advocates, and

(vi) the intervener's efforts, if any, to resolve issues associated with the proceeding directly with the applicant;

(b) the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the intervener;

(c) if the intervener is represented by a representative, the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the representative; and

(d) if the intervener is an unincorporated organization, the nature of the intervener's membership.

Compensation Issues
Submissions relating exclusively to compensation for land usage are not dealt with by the ERCB and should be referred to the Alberta Surface Rights Board.

Applications for Confidentiality
In accordance with Section 13 of the Rules of Practice, all documents filed in respect of this proceeding must be placed on the public record. However, any party may apply for confidentiality of information under Section 13(2). Any application under Section 13(2) that is to be considered during a public hearing of the application must be copied to the other parties to the proceeding. The Board may grant a request for confidentiality on any terms it considers appropriate, subject to the Freedom of Information and Protection of Privacy Act.

Questions of Constitutional Law
Under Section 25 of the Rules of Practice a person who intends to raise a question of constitutional law before the Board must give notice in accordance with Section 12 of the Administrative Procedures and Jurisdiction Act and its regulation.

For information about ERCB procedures, contact

Applications Branch, Facilities Applications Group
Attention: Alanda Allum
Telephone: 403-297-8848
Fax: 403-297-4117
E-mail: alanda.allum@ercb.ca

Issued at Calgary, Alberta, on September 28, 2010.
ENERGY RESOURCES CONSERVATION BOARD

Patricia M. Johnston, Q.C., General Counsel