OIL & GAS

We continued to grow this unit’s long-term potential during 2010. Our U.S. E&P joint venture, NFR Energy (NFR), increased their proved reserves from 1.0 Tcfe to 1.2 Tcfe and also acquired additional acreage holdings. We plan to eventually sell down our interest in this company when market conditions are more conducive.

In 2011, we expect to complete the sale of certain Colombian assets sometime during the second quarter at a very attractive return on investment. We have postponed plans to monetize our dry gas assets in the British Columbia shales and our interest in the NFR joint venture until the gas pricing environment is more conducive to a sale.