ALTIMA RESOURCES - v.ARH

[Stocks4Me]

Altima Resources Ltd. and Unbridled Energy Corporation: Participation Agreement to Spend Flow Through Funds in the West Ferrier Area of West Central Alberta

VANCOUVER, BRITISH COLUMBIA, Dec 16, 2009 (MARKETWIRE via COMTEX News Network) --
Altima Resources Ltd. (Altima) (TSX VENTURE: ARH) and Unbridled Energy Corporation (Unbridled) (TSX VENTURE: UNE)(OTCBB: UNEFF)(FRANKFURT: O4U) have concluded a participation arrangement with Crimson Energy Ltd. (Crimson) in the West Ferrier area Twp 40-41 Rge 10 W5M of west central Alberta. The arrangement provides for the fracture stimulation, completion, and testing of multiple zones in Crimson's drilled and cased well in 41-10 W5M that are indicated to be gas bearing based upon log and initial test information. Upon Altima and Unbridled fulfilling their respective obligations under the participation agreement, the companies will be assigned a working interest to the base of the Mannville formation of 12.375% and 6.9795% respectively, and also assigned a working interest of 7.5% and 4.23% respectively, below the base of the Mannville in three sections of joint lands and two wells. This assignment would result in the combined companies having an interest in 27 sections (17,280 gross acres) and an interest in seven wells in the Chambers - Ferrier West region of west central Alberta.

Fracture stimulation of the three zones is underway and is anticipated to be completed prior to year end. The well is located approximately 300 meters from a regional gas transportation pipeline. Arrangements are being made to tie into this system. It is anticipated that production will commence in the second quarter of 2010.

ON BEHALF OF THE COMPANIES

Altima Resources Ltd.

Richard W. Switzer, President

Unbridled Energy Corporation

J. Michael Scureman, Chief Executive Officer

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of applicable Canadian provincial securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the proposed Transaction. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Unbridled and Altima disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:Altima Resources Ltd.Richard W. SwitzerPresident(604) 718-2800(604) 718-2808 (FAX)pubco@altimaresources.comUnbridled Energy CorporationJ. Michael ScuremanChief Executive Officer(724) 934-2340(724) 934-2355 (FAX)mikes@unbridledenergy.com
SOURCE: Altima Resources Ltd. and Unbridled Energy Corporation

mailto:pubco@altimaresources.com mailto:mikes@unbridledenergy.com

Copyright 2009 Marketwire, Inc., All rights reserved.

[Stocks4Me]

As further confirmationto the newsletter ... listen to this podcast from the 53rd minute ... the phone call took place a few months ago with John Richardson whom is a regular contributor to the Christian Financial Radio Network and he talks about Altima.

http://heavensembrace.org/media/cfrn052008.mp3

[Stocks4Me]

From a Newsletter ...
The analyst is John Richardson.  He offers a paid investment service called "modar" to the professional community, he goes by the moniker of "Market Savant".  He is solely involved in the professional sector.

Can a little known exploration entity really be sitting on Exxon-Sized Reserves?
 
When one considers, the highly accomplished record of success of its founder and then begin to understand the real mindset as to why after drilling some 220 wells all over North America and 130 of those for Mesa Petroleum and T Boone Pickens, one can more easily comprehend why they are, where they are, today:
 
And why this could be one of the great exploration bonanzas of the current era.
 
At a current price of just $0.19 and a market cap of under $10 Million, Altima Resources as the name implies could soon be headed higher,as the new investment model, that emulates the albeit stunning performance exhibited by Goldsource of Saskatchewan in its recent 100 fold rise from $0.19 to $19.00 in just3 months...
 
This next province neighbor made a massive coal discovery in an increasingly rich hydrocarbon basin that adjoins the staggeringly rich Bakken formation and extends to the Chambers region 36 Trillion Cubic Feet gas laden foothills of the Rockies in Western Alberta, where another neighbor and Altima look alike, just to the north with only a few more years under its exploration belt, a now eminently successful Duvernay, was recently bought out by Shell for $5.9 Billion. Duvernay and Altima straddle an area containing 376 TCF gas.
 
Already this is putting a lot of focus on Altima's own impressive reserves to the south and some in the oil industry, in the know, are already saying that with Duvernay being perhaps six times larger in certain areas than Altima and possibly not as large in other potential reserves, that this could value Altima at well over a billion dollars today and by some other measures, its assets could already be valued at many times higher.
 
Oil and Gas exploration can be very complicated and hard to understand or easily value, because there are many facets to each company, as to how well the geological potential is understood, and that is what really sets Altima apart, from many look alikes and pretenders. It is the geology that differentiates Altima, from a great many other less valuable or appealing competitors and is clearly why management is where they are.
 
Although Altima's management could be described as extremely conservative, according to their website www.altimaresources.com along with other published information, taking the very lowest end of reserves at between 50 Billion Cubic Feet to 100 BCF alone, this values the company at between one and two billion dollars including the ratio of oil or oil condensate that normally accompanies very large reserves of Natural Gas. However, further investigation has revealed the presence of a much greater reserve potential of at least a comfortable 200 BCF and with drillable potential of an average 10 Billion Cubic Feet per well, with perhaps at least an additional two dozen well potential, could add many hundreds of billions more and if that's not enough, the uniquely prolific geological structure of the region, suggests the presence of many trillions of cubic feet of gas targetable from within their domain that not only cannot be ruled out is the very reason the lifetime of drilling experience of its founder and associates settled on this prize in the first place.
 
And that's not all... What if this same CEO was the co-founder of a previous company that went from a low-end market value of just $600,000 to ultimately being sold for $2 Billion, that included some star properties nearby to where Altima is today, does the picture start to become a little bit clearer? That would equate to a 3,333 fold return and by any measure good enough reason to believe that Altima Resources ARH.v ARSLF would appear to have significant upside potential and over time, perhaps enough to be another Duvernay.
 
Altima appears to be gaining some serious traction, a large investor who has funded over $50 Billion called ARH one of the most enticing deals he's seen and another group looks ready to pledge significant funding.
 
The recent buying frenzy in areas surrounding the Haynesville Shale, only serve to highlight just how truly undervalued Altima is, demonstrating comparative measurements up to $1 Billion plus. Altima's CEO adds: 'Duverney started out 7 years ago doing exactly the same as what Altima has been doing over the past two years, beginning with a 20% interest in 1 section growing to an average of 58% in up to 21 sections today'. Altima's strong growth trend appears very similarly poised as Duvernay's. They're doing the same kinds of things that enabled Duvernay to go from zero to $5.9 Billion in 7 years.  Look forward to continuing growth.

[Stocks4Me]

Some thoughts regarding the PP ...

libertyg ...
Need to clarify a couple things. I have been staunchly heralding the buy-out opportunity here. You all know why. A buy-out would be a real windfall to all of us that's for certain. As an investor in something like this, at such an early stage before the general public realizes what we have, is a real coup.

But, just to balance this out and illustrate the bigger picture. If we as investor's are looking for the best and most prosperous avenue in our best interest. We don't want a buy-out. We would be best served if this thing was able to progress on it's natural course. Allowing Altima to bring this prospect to it's inevitable conclusion as illustrated by the Duvernay buy-out at 5.9 billion dollars. We would ultimately be valued at over $50.00 per share on the more conservative side with a trillion plus cft resource, plus the oil. Add the intangibles such as a potential in excess of 6 trillion cft. then we can see a value in the range of several hundreds of dollars. It's not inconceivable to ultimately be valued in excess of $1,000 dollars. These crazy numbers represent the "potential" that are not defined, but not out of the question either.

Although a buy-out in my minimum price of $7.42 would be wonderful for our pocketbooks. The real opportunity, the best that could happen, is let this company bring all it's efforts together into a real and fully operational, fully explored reserve. Would you be willing to wait a couple years to gain these types of returns? And in the shorter term trim out a healthy profit along the way? So $7.42 would be great, but my personal hope would be let these guys do what they do on there own. Regardless of either scenario, a price jump of substantial proportions is still inevitable in the shorter term.

libertyg ...
When i state this stuff, i am very careful to be as accurate and realistic as i can be. But, this is that big, i can't stress that enough. People want those PP shares. And we know PP's are a great tool to load up friends, family, associates, yourself............etc. That's why often after these you then see the big moves, eveyone who matters to the company is in, and the rest of the shareholders benefit. Thats why it's good to do some deep, deep digging on this company, it's a eureka moment when you figure all this out and have to shake your head trying to figure out how this can be. It's very rewarding to have discovered this and through countless hours and hours of digging and researching every nook and cranny.

It's no exaggeration, this really is an any day stock. And when any day comes, even i will end up wishing i pulled the trigger on more shares, and i am loaded up very heavy as it is. The last gratification i will get will be when all my personal hard work, is translated into the stock price. Then it will have come full circle and the fullness of the reward will bear it's bountiful fruitful harvest. I have had that happen now on three companies in the last 8 months i was early in, patiently waited trusting in my research, and KABOOM, like a rocket, out of no where the reward came. QMNM went up 7000%, PGR up from .30 to 1.65 in less than a month although has since fully retraced, and DLKM, from .17 cents to over .90 cents but also has retraced to about .55. I also know to trim some on those run-ups to protect. A couple others i had an interest investing in early but didn't pull the trigger on were CPQ, and LGO, and missed the biggest moves. Nothing in the investing world beats it, very satisfying, and i truly believe this company is going to dwarf the other 3 by far they have the goods.

[Stocks4Me]

Oversubscribed PP ...

                                ALTIMA RESOURCES LTD.
                      Suite 303, 595 Howe Street, Vancouver, B.C. V6C 2T5
                        Telephone: (604) 718-2800 Fax: (604) 718-2808
                                       NEWS RELEASE
       NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
                       DISSEMINATION IN THE UNITED STATES.
                 Altima Increases Equity Financings to up to $5,900,000
July 29, 2008 - Altima Resources Ltd. (TSX-V Symbol: ARH) (“Altima” or the “Company”)
announces that further to its news release dated June 4, 2008, it has amended a flow-through
private placement for gross proceeds of up to $2,700,000 instead of $1,500,000 previously
announced, and the issuance price has been reduced from $0.20 per FT Unit to $0.18 per FT
Unit. The non flow-through private placement for gross proceeds of up to $3,200,000 remains
the same as previously announced. These private placements are subject to acceptance by the
TSX Venture Exchange.
Up to $2.7M will be raised by the Company issuing up to 15,000,000 Flow-Through Units (the
“FT Units”) at a price of $0.18 per FT Unit. Each FT Unit will consist, as previously announced,
of one flow-through share and one-half share purchase warrant, each whole warrant entitling
the holder to acquire one non flow-through share for 24 months from the date of issuance at a
price of $0.275 for the first year and $0.40 for the balance of the 24 month term.
Proceeds of up to $2,700,000 raised from the Flow-Through private placement will be used for
exploration and development of the Company’s oil and gas properties located in Alberta, such
that the exploration work will qualify as Canadian Exploration Expense for the purposes of the
Income Tax Act (Canada), which will then be renounced by the Company to the placees.
The Company may pay finders fees in connection with the private placement in accordance with
TSX Venture Exchange policies.
                                    ON BEHALF OF THE BOARD
                                          “Richard Switzer”
                                     Richard Switzer, President
 The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this
                                               release.

[Stocks4Me]

                                     ALTIMA RESOURCES LTD.
                      MANAGEMENT DISCUSSION AND ANALYSIS
                               YEAR ENDED NOVEMBER 30, 2007
Altima’s exploration program is focused on deeper multi-zone gas and gas–condensate targets. The Chambers Area lies immediately west of the multiple producing pools in the Ferrier Field which continues to see significant industry drilling activity. During the past three years, over 100 wells have been drilled in Townships with Altima land holdings or in Townships adjacent to Altima land holdings.
Altima’s initial earning Well GEEL ET AL CHAMB 3-17-41-11 W5M (“3-17”) was spud on March 14, 2006, and reached a depth of 3,349 meters and production casing was set. By the fiscal year end 2006, the Test Well was completed (multi-zone completion) testing commercial rates of natural gas from multiple zones. Upon completion of the 3-17 well, The Company elected to the purchase of an interest in the 7-18-41-11 W5M well which tested water free gas and associated condensate.
In 2007 Altima’s capital was directed to building the Company’s exploration program through acquisition of additional working interests, including interests in five wells; increasing the land base, constructing permanent access roads, production pipelining, and the drilling of a new earning exploratory well.
On August 30, 2007 the Company signed a Letter Agreement with Golden Eagle Energy Inc (“GEEI”) whereby it acquired the GEEI assets in the Chambers Area, Alberta for cash consideration of $3,000,000 (paid) subject to a 50% Net Overriding Royalty (“NORR”) on 33.334% of the 100% interest purchased by the Company after deduction of Crown royalties and any other overriding royalties or like payments. In addition, the Company has the right and option up to and including December 31, 2008 to purchase and terminate the said NORR from GEEI for $1,500,000.
Exploration expenditures in the year included construction of all weather access roads completed to the 3-17-41-11W5M and 16-21-41-11 W5M wells. These access routes will serve future drilling locations and pipeline right of ways for Altima. Pipelining was completed in late October from the 3-17 well into the Conoco gas gathering system at 5-8-41-11 W5M. In November Altima reached a milestone in The Company’s Chambers operations by initiating natural gas and gas condensate sales from the 3-17 well.
The well was brought on-line at a restricted rate of approximately 1.0 million cubic feet per day of gas and 50 barrels per day of condensate.
During the third and fourth quarter, Altima drilled and completed an option well on Conoco Phillips lands located at 16-21-41-11 W5M. The 16-21 well spud on August 26, 2007, drilled to its total depth of 3289 meters, and the rig was released on September 27, 2007. Well costs were 19 % under budget which is attributed to a well designed and executed drilling program. Open-hole logging was performed, and production liner run and cemented to total depth. The 16-21 encountered numerous gas shows and
formations to test. Subsequent to year end, Altima completed and tested the well at commercial rates.
Up to the date of this MD&A, the Company and its partners have also elected to drill a second option well on lands from ConocoPhillips. The test well, located at Chambers is the new pool wildcat 5-15-41-11 W5M. This location was high-graded with the use of 3D seismic in conjunction with the results of the 16-21 and 3-17 wells. The 5-15 will spud in the summer of 2008. Plans to lay an approximate four-mile pipeline to the 16-21 well are under design with anticipated installation in the summer of 2008. This pipeline will be available for use by the 5-15 and additional projected future wells in this part of the
Company's acreage.
Additions to the Company’s petroleum and natural gas properties and equipment in the year totaled $6,579,799. Cumulative costs to November 30, 2007 totaled $10,829,903.

OPERATIONAL RESULTS
Annual results: During the current period, the Company recorded a net loss of $1,487,807 compared to a net loss of $1,257,687 for the comparative period in the prior year reflecting an increase of $230,120.
The primary reasons for this increase in the net loss was a major increase in financing fees of $605,306 (2006 - $nil) and interest costs in 2007 of $148,000 (2006-$Nil). Further increases occurred in the following expenses: consulting fees of $156,451 (2006 - $108,782), management fees of $221,500 (2006 - $83,500), and office and miscellaneous of $174,473 (2006 - $88,952). These increases are commensurate with the significant growth experienced by the Company in the year, particularly in relation to its petroleum and natural gas activities in the Chambers Area Gas Prospect in Alberta. These increases were offset by a large decrease in stock compensation expense in 2007 of $87,606 (2006 - $870,250).
In addition, during the current period, the Company recognized a future income tax recovery of $34,100 (2006 - $Nil) from the utilization of available tax assets of the current period to reduce the future tax liability recognized in connection with exploration expenses renounced to investors on flow-through shares.
In general, total general expenses reflect the normal corporate business cycle. Any other significant increase/decrease in expenses relate to the Company’s efforts to provide efficient and cost-effective administrative support to management’s ongoing efforts to seek new properties, monitor exploration expenditures, and increase shareholder value.
During the year ended November 30, 2007 the Company earned $90,721 in gas and liquid sales from the Chambers Prospect and deducted this amount from capitalized costs. Cash used in additions to the Company’s petroleum and natural gas properties and equipment in the year totaled $4,365,275.
Fourth quarter results: For the three months ended November 30, 2007 the Company recorded net loss of $195,571 (2006 – loss $163,661) reflecting an increase in losses of $31,910. The change in results is attributed primarily to increased costs related to the increased efforts applied to developing the Chambers area in Alberta, and finance costs for the loan to drill the wells in that area.
Significant revenues are expected to be generated in the first quarter of 2008 from the sale of gas and condensate from the first well completed and tied into the pipeline.

[Stocks4Me]

Here are a few pieces of DD scrounged from other sites:

courtesy of libertyg

Breaking Oil & Gas News: Monday July 14 2008

Shell to buy Canada's Duvernay Oil
**Duvernay has property just to the north of Altima Resources in the Chambers area of Alberta, with significant similarities*...

Royal Dutch Shell  has agreed to buy Canada's *Duvernay Oil*  for around C$5.9 billion to boost the major's production from prolific unconventional gas holdings. Shell and Duvernay said on Monday that Shell has made a cash offer of C$83 a share, 42 percent above Duvernay's Friday closing price of C$58.44 on the Toronto Stock Exchange. The offer was unanimously accepted by Duvernay's board.

Duvernay has substantial land holdings in two Canadian provinces: The prized Montney region in the northeast of British Columbia and in *Alberta's Deep Basin*, areas Shell hopes to add to its portfolio of tight gas interests.
"We weren't looking to sell but they approached us," said Mike Rose, Duvernay's chief executive. "Shell was very interested in the assets we've built up." Duvernay has one of the best holdings of the resource among mid-sized Canadian companies. "Duvernay has an unmatched position in terms of leverage to (natural gas) resources," said Robert Fitzmartyn, an analyst at FirstEnergy Capital.

(How's Altima's leverage looking right now?)

Indeed, Duvernay has said that its *Alberta Deep Basin* and Montney tight gas holdings could each eventually produce more than 200 million cubic feet of natural gas a day and have potential reserves of more than *1 trillion
cubic feet*. "Shell has a proven track record in North America tight gas activities. Duvernay could become a valuable part of the Shell portfolio," Shell Chief Exec Jeroen van der Veer.

Duvernay's yearend proved and probable reserves were *3.8 million barrels*of oil and 663 million cubic feet of natural gas, a figure that doesn't include its tight gas holdings. Chad Friess, an analyst at UBS Securities,
said in a note to clients that Duvernay's tight gas properties may hold as much as *6.1 trillion cubic feet of gas*.

*In comparison, Altima's reserves in the two hundred billion cubic feet of gas range to as high as 2 trillion cubic ft or more in situ, already existing within their domain and corresponding reserves of Ten Million to One Hundred Million Barrels of Oil and Condensate, its proximity to Duvernay, appears to validate Altima's trillion cubic feet potential.*

*Rivals, including oil major BP , have also been investing heavily in tight gas in North America and elsewhere. ***
*Duvernay rose C$23.62 to C$82.06 on the Toronto Stock Exchange.*

*To offer an additional perspective of what One Trillion Cubic Feet of Gas represents in terms of current valuation PetroHawk Energy (HK) controls approximately 1.062 Trillion cubic feet of Gas and has an Enterprise Value of $10.88 Billion and market value of around $8.93 B.*

*For Altima to be valued similarly, it would have to rise around one thousand fold from its current market valuation at just under $10 Million.*

*In light of the fact that Altima's president was the co-founder of an Oil and Gas company that increased in value from $650,000 to actually being sold for $2 Billion, in 2002, a stunning 3,076 fold increase in value: We would not preclude such a possibility from happening again.*
------------------------------------------------------------------------------------------------------

courtesy of libertyg

The best analogy i could come up with regarding why the investor community hasn't picked up on this yet would be,  a puzzle. If someone took all the pieces of a puzzle and threw them in the air and all the pieces fell randomly all over the place. That would be Altima resources. It doesn't appear to be anything on the surface when you look at all the scattered pieces. But when you meticulously place each piece in it's respective place you ultimately gain the full picture of what all those pieces represent. I spent the time gathering all of those pieces, and i was shocked to see how incredible the picture was. In my posts i have posted various puzzle pieces that are easily assembled by anyone willing to invest the time, it's a no brainer, and my claims will be validated in due time. I do caution patience as no one knows the day we begin our journey up, but you don't want to be a spectator when we begin that journey, and i don't think we will have very long to wait for this to start coming into focus for the general investor community.

I rely on the realities of human nature of bandwagon jumpers late to the party, lazy investors unwilling to invest the time required to be successful, and the reality that money managers won't place real money in companies like this until the first leg and most prosperous legs of run-ups have been realized. People don't realize various money managers won't do the work required to be early in an investment, they have the robot mentality and allow computers to do the thinking for them. Contrarian investing requires more patience, more work, and far more reward.

I offer Quest Minerals as a great example of how preliminary work offered great reward, now look at how many are aware of Quest, but my biggest gains had been comfortably taken weeks ago, now all those late to the party are hoping to get their money back let alone real gains. High risk stock and all my warnings went mostly ignored. Altima has minimal risk, and i would suspect only a handful of those i informed of this are invested. This one is a far wiser investment than Quest right now, and many still sit waiting to get rich on Quest, when this is the one that has real low risk potential to do it for them in the end. It's predictable, and will never change, hopefully a few eventually figure it out. History is littered with lemming carcasses that have run over the cliff en-mass.

[Stocks4Me]

Altima Resources Ltd
Altima Resources Ltd is a junior energy company engaged in the exploration and development of petroleum and natural gas in Western Canada. It is the Company’s intent to focus on new long life petroleum and natural gas prospects in select core areas and grow its reserve base through drilling. The company intends to focus its activities where it can participate in moderate depth, multi-zone prospects that are near known pools or in areas that are distinctly understood geologically. Concentration will be given to exploring for liquids rich high impact gas targets for value acceleration.

OPERATIONS * OVERVIEW

When Altima set out in March 2006 to acquire certain interests and participate in the drilling of a Mississippian Elkton test well located in the Chambers Area of west central Alberta, the Board and management set out to create a strong Junior exploration and production company with the goal of building significant shareholder value. Altima’s exploration and development program is a focused deeper multi zone, liquids rich gas targeted project. In 2007 Altima’s capital was directed to building our exploration program through the acquisition of additional working interests, increasing the Company’s land base, constructing permanent access roads, production pipelining, and the drilling of a new earning exploratory well. This year Altima’s capital program is directed to increasing our production capacity with additional gathering lines and compression facilities, and toward new drilling to expand the reserve base and production capacity.

OPERATIONS * EXPLORATION & DEVELOPMENT
 
2007 was a year of opportunity and significant milestones for Altima. In September, The Company concluded the Purchase from Golden Eagle Energy Inc. of all Golden Eagle assets in the Chambers area. This purchase increased Altima’s overall interest in the area from approximately 20% to 60%. Over the course of the year The Company brought its land base to 21 sections (13,440 acres) with an option on an additional 3 sections (1,920 acres). Construction of all weather access roads were completed to the 3-17 and 16-21 wells at a gross cost in excess of $1,000,000. These access routes will serve future drilling locations and pipeline right of ways. Pipelining was completed in late October from the 3-17 well into the Conoco gas gathering system. In November Altima reached a milestone in the Chambers operations by initiating natural gas and gas condensate sales from the 3-17-41-11 W5 well. During the third and fourth quarter, Altima drilled and completed an option well, located at 16-21-41-11 W5M, to its intended total vertical depth of 3,290 meters. The well was 19% under budget and reached total depth in 26 days from spud. Open-hole logging was performed, and production liner run and cemented to total depth. The 16-21 encountered numerous gas shows and formations to test. Subsequent to year end, Altima completed and tested the well at commercial rates. Plans to lay an approximate four-mile pipeline to the 16-21 well are under design with anticipated installation in the fall of 2008. This pipeline will be available for use by projected future wells in this part of the Company’s acreage.

The Chambers area contains significant potential to quickly grow cash flow and reserves. Over all, this play is growing toward an opportunity to drill a considerable number of wells over a large acreage position in this basin-centered gas play.

OPERATIONS * PROSPECTS
 
The Chambers area contains significant potential to quickly grow cash flow and reserves. Over all, this play is growing toward an opportunity to drill a considerable number of wells over a large acreage position in this basin-centered gas play. There are a limited number of plays today with potential to produce between 5 and 15 Bcf per well, as observed in wells just to the east of Chambers. To date at Chambers we have encountered numerous potentially productive intervals in conventional gas reservoirs including sands, shales, and carbonates.

OPERATIONS * WORD ON NATURAL GAS 

Demand
Natural gas has a healthy outlook for years to come. The United States is the world’s largest consumer and forecasters agree that the demand will continue to increase for decades. That bodes well for the price of natural gas, particularly as there are concerns about supply.

Seasonal Cycle
Natural gas prices tend to be higher in the winter and summer due to demands for heating and air conditioning. Prices are largely set by the NYMEX exchange based on perceptions of supply and demand.

Price Volatility
Severe winters on the East Coast or Southern United States can force the price of Natural Gas up substantially driven by major buyers such as utilities and major industries. The same supply concerns support prices during the summer air conditioning and gas storage injection season.

Supply
Many gas fields in North America are mature with decreasing annual production. New wells are producing less gas and production rates are declining faster than in the past. Over the next 10 - 20 years analysts predict that new higher cost sources of supply will be required.

The Company
It is Altima’s intent to position the Company in areas where large natural gas reserves from multiple formations remain to be discovered.