Canada

Western Canadian Properties

Chinook's principal designated western Canadian properties are shown in the figure to the right.

Plains District

The Plains District includes Chinook's assets largely east of the 5th Meridian and during 2012 included major properties at Enchant-Grand Forks, Atmore and Thornbury-Portage in Alberta.  During 2012, significant dispositions of assets at Manyberries, Craigmyle and Winmore occurred. Production from the assets owned by Chinook in the Plains District represented approximately 10% of Chinook's Canadian production during December 2012.  Chinook holds an approximate 33% average producing working interest in such assets.  The assets in the area are primarily operated.  Production is predominantly from Jurassic and Cretaceous formations in Alberta and averaged 3,441 Mcf/d of natural gas and 424 Bbls/d of crude oil and natural gas liquids for the three months ended December 31, 2012.

West Central District

The West Central District includes Chinook's assets largely between the 5th and 6th Meridians and includes major properties at Lochend, Gilby, Paddle River and Whitecourt.  During 2012, Chinook disposed of its interests in numerous producing units in the District, primarily at Carstairs and Crossfield as well as assets at Brazeau.  Production from the assets owned by Chinook in the West Central District represented approximately 38% of Chinook's Canadian production during December 2012.  Chinook holds an approximate 44% average producing working interest in such assets, excluding the effect of minor interest unit production amounting to approximately 1% of the total District production.  The assets in the area are primarily operated.   Production is primarily from Mississippian, Jurassic and Cretaceous aged formations, including Pekisko, Nordegg, Mannville, Ostracod, Glauconitic, Viking, Belly River and Edmonton zones.  Production averaged 14,481 Mcf/d of natural gas and 896 Bbls/d of crude oil and natural gas liquids for the three months ended December 31, 2012.

Grande Prairie District

The Grande Prairie District includes Chinook's assets west of the 6th Meridian and South of Township 77, and includes major properties at Gold Creek, Karr, Wapiti, Knopcik and Valhalla.  Production from the assets owned by Chinook in the Grande Prairie District represented approximately 28% of Chinook's Canadian production during December 2012.  Chinook holds an approximate 49% average producing working interest in such assets.  The assets in the area are primarily operated.   Production is primarily from Triassic and Cretaceous, Mannville, Dunvegan and Doe Creek aged formations and averaged 11,588 Mcf/d of natural gas and 737 Bbls/d of crude oil and natural gas liquids for the three months ended December 31, 2012. Chinook completed the acquisition of operated oil properties at Albright and Beaverlodge in December 2012 to increase its Dunvegan oil development inventory.

Peace River Arch District

The Peace River Arch District includes Chinook's assets west of the 6th Meridian and north of Township 76 and includes major properties at Gordondale, Boundary Lake, Hotchkiss and Rainbow Lake.  Production from the assets owned by Chinook in the Peace River Arch District represented approximately 24% of Chinook's Canadian production during December 2012.  Chinook holds an approximate 47% average producing working interest in such assets, excluding the effect of minor interest unit production amounting to approximately 2% of the total District production.  The assets in the area are primarily operated. Production in the Gordondale, Boundary Lake and Hotchkiss areas is primarily from Mississippian, Jurassic and Cretaceous aged formations, while in Rainbow Lake, the Keg River and Bluesky formations represent the primary oil and natural gas productive intervals, respectively.  Production from the Peace River Arch District averaged 9,031 Mcf/d of natural gas and 474 Bbls/d of crude oil and natural gas liquids for the three months ended December 31, 2012.