Imperial Oil Resources
Flare Pit Remediation Project in the Big lake Area.

February, 2006

Visitors to Big Lake may wonder what the new oil- and gas-related activity around the north shore is all about. Following is a background and synopsis of the proposed activities as provided by David Slade from Imperial Oil.

Imperial Oil Resources sold its interests in the Big Lake area to Fletcher Challenge in 1997. Fletcher Challenge then sold to Dynamic Oil & Gas which recently sold to Sequoia Oil & Gas Trust.

Imperial Oil was obligated to remediate five flare pits associated with five active wellsites (see map for location of the sites). Imperial Oil has conducted the necessary environmental assessments and has developed a remediation plan to address contaminants of concern associated with the flare pits, specifically petroleum hydrocarbons and salt.

Imperial Oil is proposing to remove contaminated soil at three of the flare pits (10-36-53-26 W4M, 06-01-54-26 W4M and 10-02B-54-26 W4M). This soil will be disposed of at a West Edmonton landfill. The three pits will be backfilled with clean subsoil and surface soils will be reclaimed to meet Alberta Environment reclamation criteria.

The other two flare pits will be treated on site by the means of bioremediation. The 10-35B-53-26 W4M site, which is located on agricultural land, will comprise an ex situ biopile which will undertake treatment over approximately 2 years. Contamination at the 08-26-54-26 W4M site will be treated in situ in a process that will also take approximately 2 years to complete.

Mr. Slade from Imperial Oil has stated once his company has met its obligations in cleaning up the flare pit sites, that Sequoia will assume any future liabilities associated with the lease. Stephanie Murphy from Sequoia Oil and Gas has stated Sequoia does not plan to assume any future liabilities associated with the flare pits.

For further information, contact:

David J Slade, Imperial Oil
dave.j.slade@esso.ca
403-237-4126
Cell: 403-813-8699

or

Stephanie Murphy, Sequoia Oil and Gas
smurphy@sequoiatrust.com
403-770-6300