We have developed a highly successful investment strategy that has stood the test of time and several business cycles. 
Investment strategy core principles:

• Develop unique in-house expertise and knowledge. We have built a team of highly experienced energy industry professionals that bring together all the skills necessary to effectively deploy capital in a technical and dynamic sector. The majority of our investment team members are engineers, geologists and geophysicists, each of whom spent several years in technical roles with energy companies.  As well we are always striving to be at the forefront when it comes to identifying emerging areas of opportunity and assessing risk. Much of this insight comes from our unique in-house investment research capability that provides proprietary views on macro-economic industry issues such as commodity markets and the business cycle. Not only do we apply these insights internally, we also work very closely with our portfolio companies.
  
  
• Focus on areas where we can leverage off our expertise and knowledge, and where we see the potential for exceptional returns. Our core focus since inception has been and remains the early stage segment of the Exploration and Production(E&P) business where we provide capital to support growth strategies ranging from buy-exploit to grass-roots exploration. To date, much of this investment has occurred in Canada, but we are actively applying this experience and expertise to source international opportunities that offer access to much larger, lower cost resource potential in areas with acceptable political risk.  We have also invested significant capital and are actively sourcing opportunities in what we call the Energy Development and Infrastructure(ED&I) area. This area includes the energy infrastructure and power generation sectors, as well as emerging new sources of energy supply such as the oil sands and renewable energy.
  
• Leverage off our extensive network relationships. Formed since the firm's foundation in 1989, these relationships with energy industry participants, including management teams, investment banking and law firms, commercial banks, industry consultants, among others, provide us with access to new investments and opportunities as well as the management, technical and financial skills and advice needed to build successful energy companies.
  
  
• Maintain a disciplined investment analysis and due diligence process. This comprehensive process ensures we have examined and understood the key elements of all proposed investments, most notably the quality of management and business plans. Extensive reference checking through our relationship network is a critical part of this process. The vast majority of our due diligence is done internally, although we do retain expert consultants if required.
  
  
• Seek exceptional management teams and companies that have the potential to generate multi fold returns. Some of the key attributes we look for include:
  
  
• Management alignment through the investment of substantial personal capital and attractive performance based compensation plans that are tied to the realization of key returns;
  
• A competitive advantage, be it an attractive niche of the energy business, specialized knowledge and expertise, proprietary technology and/or a track record of superior execution; and
  
• Well defined business plans that provide a clear roadmap for value creation and ultimate exit
  
  
• Proactively originate investment opportunities. We are constantly seeking to originate investment opportunities through the creation of start-up companies to take advantage of emerging industry trends; the re-capitalization and turn around of under-performing companies and the use of tax-loss vehicles and other merchant banking concepts.
  
  
• Invest through cycles. Through our history, we have successfully deployed capital through all stages of the energy sector's business cycle. A key reason for this success is our understanding of the business cycle and the drivers of value creation. We have also focused on exiting investment positions in periods of strong markets to maximize investment returns. Building companies that have the balance sheet strength and asset quality to weather the periodic down cycles that characterize the energy business is a key element of this strategy.
  
  
• Work alongside portfolio companies to add value as a supportive long-term investor and trusted partner. We constantly monitor all of the companies in our portfolio and are always striving to contribute to their value creation challenge by providing access to our in-house investment research, our relationship network and follow-on capital; strategic, financial, transactional and capital markets expertise; and guidance on best practices relating to corporate governance, risk management, strategic planning and budgeting. Much of this support and contribution comes through representation on the boards of our portfolio companies.
  
  
• Promote strong corporate governance and effective, engaged boards. We are strong believers that sound corporate governance practices combined with an effective, engaged board with a broad range of skills and experience are critical to the success of our portfolio companies.