strAtegic  AdVAntAge tHe dAWson  gAs plAnt the first of two 60 MMcf per dAy  gas plants at dawson  came on-stream in May 2010. the second phase is currently under  construction and  expected to start-up in April 2011. At completion, the total Arc operated capacity will be 120 MMcf per dAy  and total production will be 165 MMcf per dAy. Arc Added tHe pArKlAnd field in 2010 with the acquisition of storm in August. parkland is an eXcellent strAtegic fit given the similar geological characteristics and proximity to dawson and the West Montney fields. the acquisition expands Arc’s undeveloped land holdings in the Montney by 64 gross sections. parkland produces over 1,000 barrels per day of natural gas liquids. (1) per glJ independent reserve evaluation as of december 31, 2010 and based on gl J forecast pricing as at January 1, 2011. the Bcfe values  are sales volumes, with the exception of dgiip which is presented as raw volumes (Bcf). (2) per independent glJ “economic contingent resource evaluation” as of december 31,  2010 and based on glJ forecast pricing as of January 1, 2011. (3) includes sunrise, septimus and sundown. (4) this volume is an arithmetic sum of multiple estimates of proved, probable and possible reserve categories, which statistical principles indi- cate may be misleading as to volumes that may actually be recovered. readers should give attention to the estimates of individual classes  of reserves and appreciate the differing probabilities of recovery associated with each class. PARKLAnD LAnD HOLDIngS reserVes And resources deceMBer 31,2010 estiMAte  estiMAte econoMic reserVes (Bcfe) (1)  contingent resource (Bcfe) (2) cuMulAtiVe proVed + dgiip (1) production  proVed + proBABle + loW Best HigH (Bcf) (Bcfe) proVed proBABle  possiBle  (4) estiMAte  estiMAte  estiMAte Montney Area Dawson 3,800 106 601 901 1,002 318 381 477 West Montney (3) 5,500 6 111 253 315 272 331 708 Parkland 800 66 160 227 248 17 18 23 total 10,100 178 872 1,381 1,565 607 730 1,208 p ArKlA nd A rc W ells o tHer Wells enc AnA fAr M- in lA nds R17 R16 R15  R14W6 T81 T80 ARC ResouRCes 10 17 AnnuAl  report