Unconventional Resources

Unconventional natural gas resources have become significant sources of natural gas accounting for approximately 25% of total U.S. gas production. The three predominant forms of unconventional natural gas that contribute significantly to the supply are, tight gas sands, gas shales, and coal-bed methane. The U.S. Geological Survey (USGS) in the "2002 National Oil and Gas Assessment" estimated that the Greater Green River Basin contains 84.6 trillion cubic feet of natural gas. New Frontier Energy has interests in three properties within the Greater Green River Basin; the Slater Dome Field, the Flattops Prospect, and the Focus Ranch Federal Unit. For more about coal-bed methane, click here.

Slater Dome Field
New Frontier Energy is the operator of and has a 66.66% working interest in the Slater Dome CBM Field. The project, situated along the southern edge of the Atlantic Rim is an area where several CBM projects are being successfully operated. The 2002 USGS assessment includes geologic formations present within the Slater Dome Field development area identified by previously drilled wells. New Frontier Energy's principal production is from the Basal Iles coals at depths ranging from 700 to 3,200 feet and has wells producing from the Williams Fork and Almond coals also. The Company believes significant production and reserve potential is present on its acreage in the Upper and Lower Iles, Williams Fork, Almond, Pioneer and Darling coal seams, with conventional trap potential in the Deep Creek, Niobrara and Frontier formations. All of these formations have tested productive in an eight-mile radius of the Slater Dome Field. The Company has also identified conventional gas targets at the Field.

An independent petroleum engineering firm estimated New Frontier Energy's proved reserves at the Slater Dome Project at 15.6 BCF net to NFEI's interest as of February 28, 2008. The estimated future, after tax, cash flow from the proven reserves discounted at 10% is estimated to be approximately $25.6 million. To see additional Slater Dome photos, click here.

Focus Ranch Unit
The Focus Ranch Unit consists of approximately 30,500 net acres in northwest Colorado located adjacent to and south east of the Slater Dome Field. Clayton Williams Energy, Inc drilled the Federal 12-1 well in 2006. New Frontier Energy has entered into a farm-out agreement to acquire between a 74% and 99% working interest and become the operator of the Focus Ranch Federal Unit. The well requires testing and if found commercial, New Frontier Energy will utilize the existing right of way to build a gas line connecting the Focus Ranch production to the existing Slater Dome gathering system.

Flattops Prospect
The Flattops Prospect consists of approximately 3,276 net acres located along the eastern portion of the Cherokee Ridge that separates the Wyoming Washakie and the Colorado Sand Wash Basins (sub-basins of the Greater Green River Basin). The Flattops acreage is centered around the Montgomery #1 well located in Carbon County, Wyoming. Kirby Petroleum drilled the well in 1967 to test the Mesa Verde sands for oil production. Gas was encountered in the Fort Union, Lance and Almond sections of the Mesa Verde formation and a drill stem test in the Almond section of the Mesa Verde formation flowed at a rate of 147 MCF per day. The well was plugged and abandoned however, due to the lack of a pipeline infrastructure at the time. New Frontier Energy believes Flattops has potential to add production and reserves alongside its existing gas pipeline leading to Baggs, and in close proximity to the Slater Dome gas field. The Company operates the property with a 100% working interest and plans to drill a direct offset to Montgomery #1 targeting the basal Fort Union Coals formation during 2009.

Colorado Denver- Julesburg Basin Seismic Program
New Frontier Energy acquired license to approximately 335 miles of 2D seismic data in the Colorado Denver-Julesburg Basin to identify oil and gas prospects for future acquisition and development. In the fall of 2007, the Company began acquiring Denver Julesburg Basin leases in Northeast Colorado for a new internally developed exploration project called the Amber Waves Prospect. New Frontier Energy currently owns 100% of the working interest in approximately 6,800 net acres, and is the operator of the Amber Waves Prospect. The Company is marketing the prospect to industry partners and will attempt to obtain a promoted or carried working interest as well as a prospect fee.