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Spitfire Energy, Ltd. (“Spitfire”) is an independent public company
(TSX-V: SEL) actively engaged in the exploration, development and production
of crude oil, natural gas and natural gas liquids in Western Canada.
At September 30, 2008, we owned 11.1 million common shares of Spitfire and
1.3 million warrants to acquire common shares of Spitfire. Our common share
holdings represent approximately 27% of the outstanding Spitfire common shares.
As a result of our 27% ownership of Spitfire’s outstanding common shares,
we are deemed to have the ability to exert significant influence over Spitfire’s
operating and financial policies. Accordingly, we reflect our investment in
Spitfire as an equity method investment. During the third quarter 2008 and
subsequently in October 2008, Spitfire’s common share price declined.
As of September 30, 2008, Spitfire’s share price had declined to Can
$0.35 per share.
For more detailed information on Spitfire and its operations,
please go to www.spitfireenergy.com.
| Please note that any opinion, estimates or forecasts made by Spitfire Energy Ltd. or analysts are theirs alone and do not represent opinions, forecasts or productions of HKN or its management. HKN does not by its reference to such reports imply its endorsement of or concurrence with such information, conclusions or recommendations. |
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