21 ARC ResouRCes AnnuAl  report 10 1495m 1494m 1424m 1564m 1630m 1662m 16-22-47-9W5 6-7-47-9W5 4-21-48-8W5 1375m RgE 8 RgE 7 RgE 6W5 5KM TWP 49 TWP 48 TWP 47 c onglo M er Ate unit upper sAnd unit Middle unit loWer sAnd unit 10-27-48-8W5 16-35-48-8W5 16-7-49-7W5 16-20-49-7W5 top of cArdiuM  forMAtion uppersHAle unit Most of the property is under a WAterflood  that enhances recovery. the  application of horizontal  drilling and multi-stage  fracturing has produced  great r esults. We will  continue this strategy into  2011 with plans to more  than double our use of  HoriZontAl Wells  And Multi-stAge  coMpletion  tecHnology. Arc’s holdings in pembina cover an e xtensive ar ea with  VAriABle  geology, which adds comple xity to our efforts to  economically access the  lArge oil  resource.