PRODUCT PRICE FORECAST
Including Operating and Capital Cost Escalation Factors (9)
Effective OCTOBER 1, 2008
                           
    OIL (1) GAS (6)        
  Exchange WTI Edmonton Hardisty Hardisty Cromer Henry AECO B.C. Condensate Propane Butane Sulphur
  Rate @ Cushing Light (2) Bow River (3) Heavy (4) Midale (5) Hub Spot Spot (1) (7) (7) (8)
YEAR US$/CDN$ US$/bbl CDN$/bbl CDN$/bbl CDN$/bbl CDN$/bbl US$/MMbtu $/MMbtu $/MMbtu $/bbl $/bbl $/bbl $/lt
                         
2002 Actual 0.64 26.08 40.43 31.85 27.60 35.48 n/a 4.07 4.07 41.16 20.90 27.76 N/A
2003 Actual 0.72 31.04 43.91 33.00 27.39 37.67 5.39 6.69 6.47 45.22 32.40 36.10 N/A
2004 Actual 0.77 41.40 52.96 36.86 29.11 45.75 6.14 6.73 6.53 54.07 34.70 39.97 N/A
2005 Actual 0.83 56.53 69.74 45.62 34.35 57.58 8.62 8.47 8.53 69.43 43.34 52.78 N/A
2006 Actual 0.88 66.05 73.66 51.90 43.37 62.27 7.23 6.93 6.33 75.01 44.07 60.36 N/A
2007 Actual 0.94 72.33 77.77 53.87 44.72 67.10 6.86 6.61 6.12 77.30 49.60 63.47 N/A
                           
2008 Estimate (9mo.) 0.98 113.34 116.28 95.56 86.77 105.37 9.69 8.58 8.53 115.86 64.30 86.07 N/A
                           
2008 Forecast (3mo.) 0.95 96.00 100.00 79.00 68.00 90.00 9.00 7.75 7.75 100.00 60.00 80.00 300.00
2009 Forecast 0.95 100.75 105.00 83.00 71.00 95.00 9.25 8.00 8.00 105.00 63.00 84.00 300.00
2010 Forecast 0.95 105.50 110.00 87.00 74.00 100.00 9.50 8.25 8.25 110.00 66.00 88.00 200.00
2011 Forecast 0.95 110.25 115.00 91.00 78.00 105.00 9.75 8.50 8.50 115.00 69.00 92.00 100.00
2012 Forecast 0.95 115.00 120.00 95.00 82.00 110.00 10.00 8.75 8.75 120.00 72.00 96.00 50.00
                           
   
  Prices escalating at 2.5 percent annually thereafter.  
                           
NOTES:
(1)  Oil and Condensate subject to quality differentials and transportation.
(2)  Light oil prices for 40.0 degrees API, 0.3% sulphur at Edmonton.
(3)  Medium oil prices for Bow River Blend at Hardisty.
(4)  Heavy oil prices for 12 degrees API at Hardisty.
(5)  Medium oil prices for Midale at Cromer.
(6)  Alberta gas prices are quoted at AECO (NOVA Inventory Transfer - NIT), B.C gas prices at Station #2.
(7)  Propane and Butane subject to adjustment from Edmonton to field prices.
(8)  Sulphur price is plant gate Alberta.
(9)  Operating & capital costs are forecast to escalate at 2.5% beyond the first forecast year.
RP/SCT/TJN/RKS/DZ/WGT/NJP/DCA/GCW/RES
October 6, 2008