Arsenal operates and has production in both Canada and the US. Canadian production which generates approximately 44% of corporate funds from operations is 61% crude oil and NGL’s and 39% natural gas and represents approximately 63% of corporate production. US production which generates approximately 56% of corporate funds from operations is 94% crude oil and NGL’s and represents approximately 37% of corporate production. In Canada, the Company operates under Arsenal Energy Inc. Production in Canada averaged 2,318 Boe per day for Q2 2013. In the US, the Company operates under its 100% owned subsidiary Arsenal Energy USA Inc. Production in the US averaged 1,389 Boe per day for Q2 2013.