Galleon's 2009 daily production averaged 15,976 barrels of oil equivalent per day, consisting of 61.5 million cubic feet of natural gas and 5,728 barrels of oil and NGLs.

Galleon's gross proved plus probable reserve life index is 15.8 years based on average Q4 2009 production.

Undeveloped landholdings at December 31, 2009 were 694,466 net acres with an estimated value of $76.8 million based upon an independent evaluation prepared by Seaton-Jordan & Associates Ltd. In March 2010, there are large Crown land postings in the middle of Galleon's landholdings in the Peace River arch area. Galleon's undeveloped land value may increase significantly based on the amounts of the successful bids.

DeGolyer and MacNaughton Canada Ltd. of Calgary serve as Galleon’s reserves engineers.

At December 31, 2009, an amount of $217.2 million was drawn under the Corporation's available credit facilities of $310 million. Net debt was $226.9 million at December 31, 2009, a reduction of approximately 20% from December 31, 2008.

Galleon's net asset value per share at December 31, 2009 is estimated at $12.45 per basic share. This is based on December 31, 2009 forecast prices discounted 10% before tax.

The Corporation has entered into commodity price contracts in order to realize certain sales prices. All of our hedging activity is outlined in our news release on February 25, 2010.

Like most of our growth oriented peers, Galleon does not pay cash dividends. We believe we can accelerate our growth by retaining our earnings in order continue to invest in the exploration and production of oil and natural gas. Although Galleon does not pay dividends, we do, on occasion, take steps to increase the value of our shares, including buying back shares when they’re undervalued. This benefits shareholders by increasing the value of all remaining shares outstanding.

Production in 2010 is expected to average between 17,000 and 17,500 BOE/d (37% oil and liquids and 63% natural gas).
(Updated November 12, 2009)

Galleon’s board of directors has approved a 2010 capital expenditure budget of $160 million. This capital will be directed primarily toward the expansion of Eastern Montney natural gas, Puskwa Beaverhill Lake light oil and Doig light oil resource projects. Funding of the 2010 capital program is expected to be financed from internal cash flow, available bank credit facilities and minor asset sales.
(Updated November 12, 2009)

Galleon has used average commodity price assumptions of $75/Bbl USD WTI for oil and $6.25/GJ CDN for natural gas in the 2010 corporate budget. A foreign exchange rate of $0.95 has been used. In 2009, commodity prices received have averaged $60/Bbl USD WTI for oil and $3.75/GJ CDN for natural gas.
(Updated November 12, 2009)

Galleon believes it’s important to provide the market with guidance. Galleon also believes it’s important to do what we say we’re going to do. Due to the nature of our industry, many factors beyond Galleon’s control affect our performance. These factors can include changing commodity prices, government programs, geological uncertainties and weather.

As noted in our quarterly management’s discussion and analysis, forward-looking statements involve inherent risks and uncertainties, including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, Galleon's actual results may differ materially from our forecasts.

Our commitment to investors is to forecast conservatively in order to build a reputation for under promising and over delivering.

The price of Galleon’s shares on any given day is set by the buyers and sellers of the stock. As such, Galleon does not control the day-to-day fluctuations of the share price, only the underlying value of the Company. To this end, a great deal of value has been created since the Company’s inception and we will continue with the growth strategy that has given us so much success to date.

Because we trade publicly on the Toronto Stock Exchange and because our year-end is December 31, we will file our financial and operating results by the following deadlines: