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News Release

FOR IMMEDIATE RELEASE

EUB ISSUES DECISION ON LEGAL ENTITLEMENT OF COALBED METHANE

Calgary, Alberta (Wednesday, March 28, 2007) The Alberta Energy and Utilities Board (EUB) has issued Decision 2007 - 024 which reviewed EUB coalbed methane (CBM) licenses held by Bearspaw Petroleum Ltd., Devon Canada Corporation, and Fairborne Energy Ltd. in the Clive, Ewing Lake, Stettler, and Wimborne Fields and concluded the companies are entitled to develop the resource under EUB regulations.

The twenty-eight well licenses and related approvals were challenged by EnCana Corporation and Carbon Development Partnership who own coal rights in the areas where the companies produced or intended to produce CBM. The Board's decision confirms that the licences were properly issued.

This issue arose on split title freehold mineral lands where one party owns the coal and another party has leased natural gas rights and both parties claim legal entitlement to the CBM. The EUB considered the matter at a public hearing that concluded with a final submission filed on February 12, 2007.

The decision also triggers the immediate issuance of Bulletin 2007 – 07: Processing of Applications Involving Objections Relating to Legal Entitlement of Coalbed Methane. The decision also sets aside the directions in Bulletin 2006 – 019: Applications Involving Objections Relating to the Legal Entitlement of Coalbed Methane, which governed all applications and well licenses where legal entitlement of the coalbed methane was at issue.

The EUB ensures that the discovery, development, and delivery of Alberta’s energy resources and utility services take place in a manner that is fair, responsible, and in the public interest.

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Decision 2007 - 024 can be found on the EUB web site at www.ercb.ca

For more information, please contact:

Darin Barter, EUB Communications
Tel: 403-297-4116
Cell: 403-681-0946
Email: darin.barter@eub.ca

NR2007-10