A new working relationship has been established with a joint venture between CREEnergy Oil and Gas Inc. (CREEnergy) and Kodiak Energy, Inc. (Kodiak). The agreement is built on the foundation of respect for the people of the Communities of Peerless/Trout Lake First Nation and Alberta Cree Nation (Bison Lake), their Heritage, their Lands and the Environment. This is also a strategic alliance. CREEnergy will work with Kodiak to develop oil and gas reserves for the benefit of both CREEnergy and Kodiak.

Kodiak has a well developed relationship with Aboriginal communities in northern Canada. This comes from a strong commitment by Kodiak management and personnel for open and honest communications and negotiations with the community leaders -- with demonstrated respect for their culture, land and residents. Further, Kodiak's reputation has also been recognized through negotiations with regulatory agencies, resulting in several of these agreements being used as templates with other companies and projects. This reputation has become known outside the far north of Canada.

CREEnergy is the authorized agent of Peerless/Trout Lake First Nation and Alberta Cree Nation, which are new First Nations in various stages of ratification from the Federal Government of Canada to satisfy outstanding Treaty Land Entitlement Claims. Within these new First Nations are approximately 15 townships or 540 sections of mineral rights for development in Alberta.

CREEnergy was looking for a company that would partner in development decisions and respect their heritage. They desired to form a relationship with a newer company that has a clean regional track record.

Kodiak was one of the industry companies shortlisted in that search. Through discussions, meetings and negotiations since May of 2008, CREEnergy selected Kodiak as the company to form a joint venture with to develop certain oil and gas projects. The final agreement is the result of those negotiations.

Key priorities were established during those discussions:
• Use the royalties from the oil and gas production and work programs to develop revenues. The long term purposes of the revenues are to support education, employment and development opportunities for the Peerless/Trout Lake First Nation and the Alberta Cree Nation.

• Open communication at all stages of the developments.

• Staged and managed growth, with regard to the interests of the communities during each step

• Identify and source other development opportunities, using similar models, either as a value add or on a joint venture basis.

The following link presents the structure of the agreement and identified areas of interest.

CREEnergy Summary