Chamaelo Exploration Ltd.
TSX : CXN

Chamaelo Exploration Ltd.

November 10, 2005 06:00 ET

Chamaelo Exploration Ltd.: Third Quarter Financial and Operating Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 10, 2005) - CHAMAELO EXPLORATION LTD. (TSX:CXN) is pleased to announce its results for the period ended September 30, 2005.

HIGHLIGHTS

- On July 27, 2005, Chamaelo completed a bought deal financing for 3,000,000 common shares priced at $7.50 per share for gross proceeds of $22,500,000.

- Drilled 3 (2.54 net) successful shallow gas wells in West Central Alberta.

- Commenced fall/winter drilling program that includes a minimum of 22 wells.

- Subsequent to quarter-end, Chamaelo announced a business combination with two private companies - Tournament Energy Ltd. ("Tournament") and a private technology company ("TechCo") by way of plan of arrangement (the "Arrangement"). Tournament has oil and gas assets located in Chamaelo's West Central Alberta Core Area producing 3,100 boepd with value of approximately $190 million. TechCo has a technology business that will be distributed to its existing shareholders as part of the Arrangement. The Arrangement is expected to close in early January 2006.



------------------------------------------------------------------------
Three Months Ended Period Ended
FINANCIAL(1) September 30, 2005 September 30, 2005
------------------------------------------------------------------------
($, except where noted)
Oil and natural gas sales 6,069,790 6,558,269

Funds from operations 3,489,285 3,606,517
per share - basic 0.18 0.19
per share - diluted 0.17 0.17

Net earnings 1,155,415 1,132,505
per share - basic 0.06 0.06
per share - diluted 0.06 0.05

Capital expenditures 2,455,393 3,474,830

Net cash and working capital 31,183,916

Common shares outstanding
weighted average - basic 19,519,704 19,327,909
- diluted 20,845,251 20,653,468

end of period - basic 20,368,342
- diluted 25,869,600
------------------------------------------------------------------------
------------------------------------------------------------------------

(1) There are no comparative numbers as the Company was incorporated on
April 25, 2005 and began active operations on June 22, 2005. Results
from oil and natural gas activities take into account only the 101-day
period from June 22, 2005 to September 30, 2005.


------------------------------------------------------------------------
Three Months Ended Period Ended
OPERATING(1) September 30, 2005 September 30, 2005
------------------------------------------------------------------------
Number of producing days 92 101

Daily production
Oil and liquids - (bbls/d) 403 406
Natural gas - (mcf/d) 3,896 3,879
------------------------------------------------------------------------
Oil equivalent - (boe/d @6:1) 1,052 1,052

Revenue, net of transportation
Oil and liquids - ($/bbl) 69.07 68.55
Natural gas - ($/mcf) 9.43 9.22
------------------------------------------------------------------------
Oil equivalent - ($/boe @6:1) 61.38 60.39

Royalties
Oil and liquids - ($/bbl) 13.81 13.64
Natural gas - ($/mcf) 2.02 1.98
------------------------------------------------------------------------
Oil equivalent - ($/boe @6:1) 12.75 12.54

Production expenses
Oil and liquids - ($/bbl) 10.74 10.79
Natural gas - ($/mcf) 1.58 1.59
------------------------------------------------------------------------
Oil equivalent - ($/boe @6:1) 9.97 10.01

Operating netback
Oil and liquids - ($/bbl) 44.52 44.12
Natural gas - ($/mcf) 5.83 5.65
------------------------------------------------------------------------
Oil equivalent - ($/boe @6:1) 38.66 37.84
------------------------------------------------------------------------
------------------------------------------------------------------------

(1) There are no comparative numbers as the Company was incorporated on
April 25, 2005 and began active operations on June 22, 2005. Results
from oil and natural gas activities take into account only the 101-day
period from June 22, 2005 to September 30, 2005.


Management's Discussion and Analysis

November 7, 2005

Chamaelo Exploration Ltd. "(Chamaelo" or the "Company") is an emerging oil and natural gas company, actively engaged in the acquisition, development, exploration for and production and marketing of oil and natural gas reserves in the Western Canadian Sedimentary Basin.

Chamaelo was incorporated under the Business Corporations Act (Alberta) on April 25, 2005 and commenced operations on June 22, 2005 under a Plan of Arrangement entered into by the Company, Chamaelo Energy Inc. and Vault Energy Trust. Under the Plan of Arrangement, the Company acquired certain oil and natural gas properties from Chamaelo Energy Inc. As a result, the interim financial statements for the period ended September 30, 2005 and the disclosure throughout the Management's Discussion and Analysis ("MD&A") reflect Chamaelo's business from the date of its inception with no comparative disclosure available. Results from oil and natural gas activities take into account only the 101-day period from June 22, 2005 to September 30, 2005.

Chamaelo commenced trading on the Toronto Stock Exchange on June 27, 2005 under the symbol "CXN".

The MD&A should be read in conjunction with the unaudited interim financial statements for the period ended September 30, 2005. Barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil ("6:1") unless otherwise stated. The unaudited interim financial statements and financial data contained in the MD&A have been prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP") in Canadian currency (except where noted as being in another currency).

This MD&A may contain forward-looking information that involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. Such risks and uncertainties include, but are not limited to: risks associated with the oil and gas industry (e.g. - operational risks in exploration, development and production; changes and/or delays in the development of capital assets; uncertainty of reserve estimates; uncertainty of estimates and projections relating to production and costs; commodity price fluctuations; environmental risks; and industry competition).

Funds from operations as presented does not have any standardized meaning prescribed by Canadian GAAP and therefore may not be comparable to similar measures used by other companies. The determination of funds from operations is detailed on the Statement of Cash Flows.



------------------------------------------------------------------------
Summary of Financial Three Months Ended Period Ended
Results(1) September 30, 2005 September 30, 2005
------------------------------------------------------------------------
($, except where noted)
Oil and natural gas sales 6,069,790 6,558,269

Funds from operations 3,489,285 3,606,517
per share - basic 0.18 0.19
per share - diluted 0.17 0.17

Net earnings 1,155,415 1,132,505
per share - basic 0.06 0.06
per share - diluted 0.06 0.05

Total assets 82,694,901

Net cash and working capital 31,183,916

Total long-term liabilities 3,524,277
------------------------------------------------------------------------
------------------------------------------------------------------------

(1) There are no comparative numbers as the Company was incorporated on
April 25, 2005 and began active operations on June 22, 2005. Results
from oil and natural gas activities take into account only the 101-day
period from June 22, 2005 to September 30, 2005.


Chamaelo Exploration Ltd.
Management Discussion & Analysis
Period ended September 30, 2005
------------------------------------------------------------------------
Three Months Ended Period Ended
Production September 30, 2005 September 30, 2005
------------------------------------------------------------------------
Average Daily Production
Oil and liquids (bbls/d) 403 406
Natural gas (mcf/d) 3,896 3,879
------------------------------------------------------------------------
Total (boe/d) 1,052 1,052
------------------------------------------------------------------------
------------------------------------------------------------------------


The reported oil and natural gas production reflects operating activities for the Company's first 101 days of operations from June 22, 2005 to September 30, 2005. Crude oil and natural gas liquids production averaged 403 boe/d while natural gas production averaged 3,896 mcf/d during the three months ended September 30, 2005. Year to date, daily crude oil and natural gas liquids production averaged 406 boe/d while natural gas production averaged 3,879 mcf/d.



------------------------------------------------------------------------
Three Months Ended Period Ended
Revenue September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$ $
Oil and liquids 2,636,839 2,887,644
Natural gas 3,432,951 3,670,625
------------------------------------------------------------------------
Total revenue 6,069,790 6,558,269
Transportation expenses (124,851) (137,702)
------------------------------------------------------------------------
Total revenue, net of transportation 5,944,939 6,420,567
------------------------------------------------------------------------
------------------------------------------------------------------------

Average Sales Price
------------------------------------------------------------------------
Oil and liquids ($/bbl) 71.03 70.44
Natural gas ($/mcf) 9.58 9.37
------------------------------------------------------------------------
Average sales price ($/boe) 62.67 61.69
Transportation expenses ($/boe) (1.29) (1.30)
------------------------------------------------------------------------
Average sales price ($/boe),
net of transportation 61.38 60.39
------------------------------------------------------------------------
------------------------------------------------------------------------


Revenue totaled $6,069,790 for the three months ended September 30, 2005. Year to date revenue totaled $6,558,269. Currently, the Company sells all its oil, natural gas liquids and natural gas on the spot market. Future prices received from the sale of oil, natural gas liquids and natural gas may fluctuate as the result of market factors. The Company did not hedge any of its oil, natural gas liquids or natural gas production for the period. The following table outlines the Company's realized wellhead prices and industry benchmarks:



------------------------------------------------------------------------
Three Months Ended Period Ended
Commodity Pricing September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$US $Cdn $US $Cdn
Oil and liquids
Corporate Price $/bbl 71.03 70.44
West Texas Intermediate $/bbl 63.01 62.40
Edmonton Par $/bbl 77.21 76.58

Natural gas
Corporate Price $/mcf 9.58 9.37
AECO Daily Spot Price $/mcf 9.25 9.06

Exchange Rates
U.S./Cdn Dollar Average
Exchange Rate 0.8321 0.8298
------------------------------------------------------------------------
------------------------------------------------------------------------


Corporate average oil and natural gas liquids price was 92.0% of Edmonton Par price for the three months and year to date periods ended September 31, 2005. A difference can be a result of quality (higher or lower API), sour content, natural gas liquids included in reporting and various other factors. Chamaelo's differences are mainly as a result of sour content in the oil and production of natural gas liquids that are priced lower than Edmonton Par. Note that these differences change on a monthly basis pending demand for each particular product.



Transportation Expenses Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
Oil and liquids ($/bbl) 1.96 1.89
Natural gas ($/mcf) 0.15 0.15
------------------------------------------------------------------------
Total ($/boe) 1.29 1.30
------------------------------------------------------------------------
------------------------------------------------------------------------


Transportation expenses are third-party pipeline tariffs and trucking costs incurred to deliver the products to the purchasers at main hubs. The Company expects to have industry average transportation costs, as most of the current production and capital expenditure plans are located in West Central Alberta.



Royalties Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$ $
Oil and liquids 512,677 559,199
Natural gas 722,496 774,443
------------------------------------------------------------------------
Total royalties 1,235,173 1,333,642
------------------------------------------------------------------------
------------------------------------------------------------------------

Average Royalty Rate (% of sales)
------------------------------------------------------------------------
Oil and liquids 19.4 19.4
Natural gas 21.0 21.1
------------------------------------------------------------------------
Average royalty rate 20.3 20.3
------------------------------------------------------------------------
------------------------------------------------------------------------


Crude oil, natural gas liquids and natural gas royalties totaled $1,235,173 during the three months ended September 30, 2005. The overall effective royalty rate was 20.3 percent of the Company's total revenue from the sale of crude oil, natural gas liquids and natural gas. Year to date, royalties totaled $1,333,642 for an overall effective royalty rate of 20.3 percent.



Production Expenses Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
Oil and liquids ($/bbl) 10.74 10.79
Natural gas ($/mcf) 1.58 1.59
------------------------------------------------------------------------
Total ($/boe) 9.97 10.01
------------------------------------------------------------------------
------------------------------------------------------------------------


Per unit production expenses were $9.97/boe ($10.74/bbl of oil and $1.58/mcf of gas) for the three months ended September 30, 2005. Chamaelo recognizes that controlling production expenses play an integral role in the effective exploitation of reserves typically found today in the Western Canadian Sedimentary Basin. Chamaelo is committed to focusing efforts on opportunities that will improve operational efficiencies and reduce per boe production expenses to enhance netbacks.



Operating Netback Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
Oil and liquids ($/bbl)
Revenue 71.03 70.44
Royalties 13.81 13.64
Production expenses 10.74 10.79
Transportation expenses 1.96 1.89
------------------------------------------------------------------------
Operating netback 44.52 44.12
------------------------------------------------------------------------
------------------------------------------------------------------------

------------------------------------------------------------------------
Natural gas ($/mcf)
Revenue 9.58 9.37
Royalties 2.02 1.98
Production expenses 1.58 1.59
Transportation expenses 0.15 0.15
------------------------------------------------------------------------
Operating netback 5.83 5.65
------------------------------------------------------------------------
------------------------------------------------------------------------

------------------------------------------------------------------------
Combined $/Boe (6:1)
Revenue 62.67 61.69
Royalties 12.75 12.54
Production expenses 9.97 10.01
Transportation expenses 1.29 1.30
------------------------------------------------------------------------
Operating netback 38.66 37.84
------------------------------------------------------------------------
------------------------------------------------------------------------


The operating netback is a key indicator of an exploration and production company's ability to generate cash flow for reinvestment. During the three months ended September 30, 2005, Chamaelo generated an operating netback of $38.66 per boe. Year to date, Chamaelo generated an operating netback of $37.84 per boe. The Company benefited from strong commodity prices and favorable royalty rates.



General and Administrative Three Months Ended Period Ended
Expenses ("G&A") September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$ $
G&A expenses (gross) 387,159 548,038
G&A capitalized (38,602) (38,602)
G&A recoveries (6,500) (6,500)
------------------------------------------------------------------------
G&A expenses (net) 342,057 502,936
------------------------------------------------------------------------
G&A expenses ($/boe) 3.53 4.73
------------------------------------------------------------------------
------------------------------------------------------------------------


G&A totaled $342,057 in the three months ended September 30, 2005, or $3.53 per boe. Year to date, G&A totaled $502,936, or $4.73 per boe, which is unusually high due to costs of approximately $160,000 associated with the start-up of the business and commencement of operations. The Company expects per-unit G&A costs will decline significantly as production levels increase.



Depletion, Depreciation Three Months Ended Period Ended
and Accretion ("DD&A") September 30, 2005 September 30, 2005
------------------------------------------------------------------------
DD&A ($) 1,379,693 1,516,435
DD&A ($/boe) 14.24 14.26
------------------------------------------------------------------------
------------------------------------------------------------------------


During the three months ended September 30, 2005, DD&A expense totaled $1,379,693, or $14.24 per boe. Included in the provision for DD&A during the quarter is $38,892 ($0.40 per boe) for accretion of asset retirement obligations. Year to date, DD&A expense totaled $1,516,435 or $14.26 per boe. Included in the provision for DD&A during the year to date period is $42,679 ($0.40 per boe) for accretion of asset retirement obligations.


------------------------------------------------------------------------
Taxes Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$ $
Capital taxes 20,930 20,930
Future income taxes 680,985 680,985
------------------------------------------------------------------------
701,915 701,915
Taxes ($/boe) 7.25 6.60
------------------------------------------------------------------------
------------------------------------------------------------------------


Capital taxes for the three months ended September 30, 2005 were $20,930 consisting of Large Corporations Tax ("LCT"). Future income taxes are recorded using the liability method. The Company has approximately $42.8 million in tax pools to shelter against future income.

Funds from Operations and Net Earnings

Funds from operations for the three months ended September 30, 2005 was $3.5 million ($0.17 per diluted share). Net earnings totaled $1.2 million ($0.06 per diluted share) in the three months ended September 30, 2005. Year to date, funds from operations totaled $3.6 million ($0.17 per diluted share). Year to date, net earnings totaled $1.1 million ($0.05 per diluted share).

Capital Expenditures

On June 22, 2005, as a result of a Plan of Arrangement involving the Company, Chamaelo Energy Inc., and Vault Energy Trust, the Company acquired certain oil and natural gas properties from Chamaelo Energy Inc. in exchange for common shares and common share purchase warrants of the Company. Pursuant to the Plan of Arrangement, the Company issued 14,290,421 common shares and 699,322 common share purchase warrants of the Company to Chamaelo Energy Inc. shareholders on a pro-rata basis. As the Company and Chamaelo Energy Inc. are deemed to be related parties, the net assets acquired by the Company will be recorded at Chamaelo Energy Inc.'s net book value as follows:



Net assets acquired Amount ($)
------------------------------------------------------------------------
Oil and natural gas properties 44,694,608
Office and other equipment 32,426
Asset retirement obligation (3,206,034)
------------------------------------------------------------------------
41,521,000
------------------------------------------------------------------------
------------------------------------------------------------------------

Consideration of acquisition
Issuance of 14,290,421 common shares 41,389,355
Issuance of 699,322 warrants 131,645
------------------------------------------------------------------------
41,521,000
------------------------------------------------------------------------
------------------------------------------------------------------------

Net cash payments for capital expenditures are as follows:

------------------------------------------------------------------------
Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$ $
Land 437,400 437,400
Drilling, completions and workovers 1,343,315 2,189,552
Equipment 98,216 98,216
Geological and Geophysical 539,205 712,405
Other 37,257 37,257
------------------------------------------------------------------------
2,455,393 3,474,830
------------------------------------------------------------------------
------------------------------------------------------------------------


During the quarter, Chamaelo drilled 3 (2.54 net) wells, all of which resulted in successful natural gas wells. These natural gas wells are expected to be tied-in in the fourth quarter of 2005.

Liquidity and Capital Resources

Net cash and working capital was $31.2 million at September 30, 2005.

On June 21, 2005, the Company completed a private placement financing for an aggregate of 3,076,923 units at a price of $3.25 per unit for gross proceeds of $10,000,000. Each unit is comprised of one non-voting common share and one non-voting common share purchase warrant of the Company.

On June 22, 2005, as a result of a Plan of Arrangement involving the Company, Chamaelo Energy Inc., and Vault Energy Trust, the Company acquired certain oil and natural gas properties from Chamaelo Energy Inc. in exchange for common shares and common share purchase warrants of the Company. Pursuant to the Plan of Arrangement, the Company issued 14,290,421 common shares and 699,322 common share purchase warrants of the Company to Chamaelo Energy Inc. shareholders on a pro-rata basis.

On July 27, 2005, the Company completed a private placement financing for an aggregate of 3,000,000 common shares priced at $7.50 per common share for gross proceeds of $22,500,000.

On October 25, 2005, the Company announced it has entered into an arrangement whereby it will combine with two private companies - Tournament Energy Ltd. ("Tournament") and a private technology company ("TechCo") by way of plan of arrangement (the "Arrangement"). Tournament has oil and gas assets located in Chamaelo's West Central Alberta Core Area with value of approximately $190 million. TechCo has a technology business that will be distributed to its existing shareholders as part of the Arrangement. The Arrangement is expected to close in early January 2006.

The Company has a revolving operating demand loan credit facility available up to $10.5 million bearing interest at prime with a Canadian bank. The credit facility is secured by a $30 million fixed and floating charge debenture on the assets of the Company.

The Company anticipates it will make substantial capital expenditures for the acquisition, exploration, development and production of oil and natural gas reserves in the future. The Company will utilize current cash reserves, internally generated cash flow from operations, debt where deemed appropriate and equity financing if market conditions are favourable to finance its capital expenditures.



Summary of Quarterly Results Q2/05 Q3/05
------------------------------------------------------------------------
$ $

Oil and natural gas sales 488,479 6,069,790

Funds from operations 117,232 3,489,285
per share - basic 0.01 0.18
per share - diluted 0.01 0.17

Net earnings (loss) (22,910) 1,155,415
per share - basic - 0.06
per share - diluted - 0.06
------------------------------------------------------------------------
------------------------------------------------------------------------


Outstanding Share Data

The Company is authorized to issue an unlimited number of voting common shares and non-voting common shares. The voting common shares of the Company are traded on the Toronto Stock Exchange ("TSX") under the symbol "CXN". The non-voting common shares have the same rights and privileges as the voting common shares except for the voting feature. The non-voting common shares can be converted to voting common shares at any time by the Company subject to TSX approval. The following table summarizes the common shares outstanding and the number of shares exercisable into common shares from options and warrants:



------------------------------------------------------------------------
September 30, 2005 November 7, 2005
------------------------------------------------------------------------
Voting common shares 17,291,419 17,291,419
Non-voting common shares 3,076,923 3,076,923
Options 1,726,000 1,749,000
Warrants 3,775,258 3,775,258
------------------------------------------------------------------------
Total 25,869,600 25,892,600
------------------------------------------------------------------------
------------------------------------------------------------------------

Commitments

The Company is committed to payments under an operating lease for office
space as follows:

Amount ($)
------------------------------------------------------------------------
2005 75,308
2006 313,261
2007 313,261
2008 313,261
2009 243,968
------------------------------------------------------------------------
1,259,059
------------------------------------------------------------------------
------------------------------------------------------------------------


Critical Accounting Policies

Management is required to make judgments, assumptions, and estimates in the application of generally accepted accounting principles that have a significant impact on the financial results of the Company. The following summarizes the accounting policies that are critical to determining the company's financial results.

Full Cost Accounting - The Company follows the full cost method of accounting whereby all costs related to the acquisition of, exploring for and developing oil and natural gas reserves are capitalized and charged against earnings.
These costs, together with the estimated future costs to be incurred in developing proved reserves, are depleted or depreciated using the unit-of-production method based on the proved reserves before royalties as estimated by independent petroleum engineers. The costs of undeveloped properties are excluded from the costs subject to depletion and depreciation until it is determined whether proved reserves are attributable to the properties or impairment occurs. Reserve estimates can have a significant impact on earnings, as they are a key component in the calculation of depletion. A downward revision to the reserve estimate could result in higher depletion and thus lower net earnings. In addition, estimated reserves are also used in the calculation of the impairment (ceiling) test. Oil and natural gas properties are evaluated each reporting period through an impairment test to determine the recoverability of capitalized costs. The carrying amount is assessed as recoverable when the sum of the undiscounted cash flows expected from proved reserves plus the cost of unproved interests, net of impairments, exceeds the carrying amount. When the carrying amount is assessed not to be recoverable, an impairment loss is recognized to the extent that the carrying amount exceeds the sum of the discounted cash flows from proved and probable reserves plus the cost of unproved interests, net of impairments. The cash flows are estimated using expected future prices and costs and are discounted using a credit adjusted risk-free interest rate. Proceeds from the sale of oil and natural gas properties are applied against capitalized costs, with no gain or loss recognized, unless such a sale would result in a change in the depletion rate of 20% or more.

Oil and Gas Reserves - The Company's oil and gas reserves are evaluated and reported on by independent petroleum engineers. The estimates of reserves is a very subjective process as forecasts are based on engineering data, projected future rates of production, estimated future commodity prices and the timing of future expenditures, which are all subject to uncertainty and interpretation.

Asset Retirement Obligations - The Company is required to provide for future abandonment and site restoration costs. These costs are estimated based on existing laws, contracts or other policies. The obligations are initially measured at fair value and subsequently adjusted for the accretion of discount and any changes to the underlying cash flows. The asset retirement cost is capitalized to oil and natural gas properties and equipment and amortized into earnings on a basis consistent with depletion and depreciation. The estimate of future abandonment and site restoration costs involves estimates relating to the timing of abandonment, the economic life of the asset and the costs associated with abandonment and site restoration which are all subject to uncertainty and interpretation.



Chamaelo Exploration Ltd.
Balance Sheet
(Unaudited)

As at September 30, 2005
------------------------------------------------------------------------
$
------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents 29,538,021
Accounts receivable 6,138,747
Prepaid expenses and deposits 132,658
------------------------------------------------------------------------
35,809,426
Oil and natural gas properties and
equipment (note 3) 46,885,475
------------------------------------------------------------------------
82,694,901
------------------------------------------------------------------------
------------------------------------------------------------------------

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities 4,604,580
Capital taxes payable 20,930
------------------------------------------------------------------------
4,625,510

Asset retirement obligations (note 5) 3,348,222

Future income taxes (note 6) 176,055

Shareholders' equity:
Share capital (note 7) 73,078,159
Contributed surplus 334,450
Retained earnings 1,132,505
------------------------------------------------------------------------
74,545,114

Commitments (note 10)
Subsequent events (note 11)
------------------------------------------------------------------------
82,694,901
------------------------------------------------------------------------
------------------------------------------------------------------------

See accompanying notes to the financial statements


Chamaelo Exploration Ltd.
Statements of Operations and Retained Earnings (Deficit)
(Unaudited)

Three months ended Period ended (1)
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$ $
------------------------------------------------------------------------
Revenue:
Oil and natural gas 6,069,790 6,558,269
Transportation expense (124,851) (137,702)
Royalties (1,235,173) (1,333,642)
Interest income 107,805 107,805
------------------------------------------------------------------------
4,817,571 5,194,730
Expenses:
Production 965,299 1,064,347
General and administrative 342,057 502,936
Stock-based compensation 273,192 276,592
Depletion, depreciation
and accretion 1,379,693 1,516,435
------------------------------------------------------------------------
2,960,241 3,360,310
------------------------------------------------------------------------
Earnings before taxes 1,857,330 1,834,420

Taxes (note 6):
Capital taxes 20,930 20,930
Future income taxes 680,985 680,985
------------------------------------------------------------------------
701,915 701,915

Net earnings 1,155,415 1,132,505
Deficit, beginning of period (22,910) -
------------------------------------------------------------------------
Retained earnings, end of period 1,132,505 1,132,505
------------------------------------------------------------------------
------------------------------------------------------------------------
Net earnings per share:
Basic 0.06 0.06
Diluted 0.06 0.05
------------------------------------------------------------------------
------------------------------------------------------------------------

See accompanying notes to the financial statements

(1) Period from commencement of operations on June 22, 2005 to
September 30, 2005


Chamaelo Exploration Ltd.
Statements of Cash Flows
(Unaudited)

Three months ended Period ended (1)
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
$ $
------------------------------------------------------------------------
Cash provided by (used in):

Operating:
Net loss 1,155,415 1,132,505
Items not affecting cash:
Depletion, depreciation
and accretion 1,379,693 1,516,435
Stock-based compensation 273,192 276,592
Future income taxes 680,985 680,985
------------------------------------------------------------------------
Funds from operations 3,489,285 3,606,517
Net change in non-cash operating
working capital (3,687,307) (3,804,547)
------------------------------------------------------------------------
(198,022) (198,030)
------------------------------------------------------------------------

Financing:
Issuance of share capital 22,502,343 32,502,344
Share issue costs (1,450,115) (1,450,115)
------------------------------------------------------------------------
21,052,228 31,052,229
------------------------------------------------------------------------
------------------------------------------------------------------------
Investing:
Purchase and development of
oil and natural gas properties
and equipment (2,455,393) (3,474,830)
Net change in non-cash
investing working capital 1,139,215 2,158,652
------------------------------------------------------------------------
(1,316,178) (1,316,178)
------------------------------------------------------------------------
Change in cash and cash equivalents 19,538,028 29,538,021
Cash and cash equivalents,
beginning of period 9,999,993 -
------------------------------------------------------------------------
Cash and cash equivalents,
end of period 29,538,021 29,538,021
------------------------------------------------------------------------
------------------------------------------------------------------------

See accompanying notes to the financial statements

(1) Period from commencement of operations on June 22, 2005 to
September 30, 2005


Risk Assessment

The acquisition, exploration and development of oil and natural gas properties involves many risks common to all participants in the oil and natural gas industry. Chamaelo's exploration and development activities are subject to various business risks such as unstable commodity prices, interest rate and foreign exchange fluctuations, the uncertainty of replacing production and reserves on an economic basis, government regulations, taxes and safety and environmental concerns. While the management of Chamaelo realizes these risks cannot be eliminated, they are committed to monitoring and mitigating these risks. The Company currently does not have any commodity price, interest rate, or foreign exchange contracts in place.

Reserves and Reserve Replacement

The recovery and reserve estimates on Chamaelo's properties are estimates only and the actual reserves may be materially different from that estimated. The estimates of reserve values are based on a number of variables including price forecasts, projected production volumes and future production and capital costs. All of these factors may cause estimates to vary from actual results.

Chamaelo's future oil and natural gas reserves, production, and cash flows to be derived there from are highly dependent on Chamaelo successfully acquiring or discovering new reserves. Without the continual addition of new reserves, any existing reserves Chamaelo may have at any particular time and the production therefrom will decline over time as such existing reserves are exploited. A future increase in Chamaelo's reserves will depend on its abilities to acquire suitable prospects or properties and discover new reserves.

To mitigate this risk, Chamaelo has assembled a team of experienced technical professionals who have expertise operating and exploring in areas which Chamaelo has identified as being the most prospective for increasing Chamaelo's reserves on an economic basis. To further mitigate reserve replacement risk, Chamaelo has targeted a majority of its prospects in areas which have multi-zone potential, year-round access and lower drilling costs and employs advanced geological and geophysical techniques to increase the likelihood of finding additional reserves.

Operational Risks

Chamaelo's operations are subject to the risks normally incidental to the operation and development of oil and natural gas properties and the drilling of oil and natural gas wells. Continuing production from a property, and to some extent the marketing of production therefrom, are largely dependent upon the ability of the operator of the property.

Commodity Price Risk

The Company's oil and natural gas production is marketed and sold on the spot market to area aggregators based on daily spot prices that are adjusted for product quality and transportation costs. The Company is exposed to foreign currency fluctuations as crude oil prices received are referenced to U.S. dollar denominated prices.

Safety and Environmental Risks

The oil and natural gas business is subject to extensive regulation pursuant to various municipal, provincial, national, and international conventions and regulations. Environmental legislation provides for, among other things, restrictions and prohibitions on spills, releases or emissions of various substances produced in association with oil and natural gas operations. Chamaelo is committed to meeting and exceeding its environmental and safety responsibilities. Chamaelo has implemented an environmental and safety policy that is designed, at a minimum to comply with current governmental regulations set for the oil and natural gas industry. Changes to governmental regulations are monitored to ensure compliance. Environmental reviews are completed as part of the due diligence process when evaluating acquisitions. Environmental and safety updates are presented and discussed at each Board of Directors' meeting. Chamaelo maintains adequate insurance commensurate with industry standards to cover reasonable risks and potential liabilities associated with its activities as well as insurance coverage for officers and directors executing their corporate duties. To the knowledge of management, there are no legal proceedings to which Chamaelo is a party or of which any of its property is the subject matter, nor are any such proceedings known to Chamaelo to be contemplated.

Additional information related to the company, may be found on the SEDAR website at www.sedar.com.

1. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of presentation

Chamaelo Exploration Ltd. ("Chamaelo" or the "Company") was incorporated under the Business Corporations Act (Alberta) on April 25, 2005 and commenced operations on June 22, 2005 under a Plan of Arrangement entered into by the Company, Chamaelo Energy Inc. and Vault Energy Trust. Under the Plan of Arrangement, the Company acquired certain oil and natural gas properties from Chamaelo Energy Inc. (see note 2). As a result, the financial statements prepared are for the period from June 22, 2005 to September 30, 2005.

The Company commenced trading on the Toronto Stock Exchange on June 27, 2005 under the symbol "CXN". The Company is engaged in the acquisition, development and exploration for and production and marketing, of oil and natural gas reserves in the Western Canadian Sedimentary Basin.

These financial statements have been prepared by management in accordance with accounting principles generally accepted in Canada.

b) Oil and natural gas properties and equipment

The Company follows the full cost method of accounting whereby all costs related to the acquisition of, exploring for and developing oil and natural gas reserves are capitalized and charged against earnings as set out below. Such costs include land acquisition costs, geological and geophysical expenses, production equipment, carrying charges of non-producing properties, costs of drilling both productive and non-productive wells and overhead charges directly related to acquisition, exploration and development activities.

These costs, together with the estimated future costs to be incurred in developing proved reserves, are depleted or depreciated using the unit-of-production method based on the proved reserves before royalties as estimated by independent petroleum engineers. Oil and natural gas reserves and production are converted into equivalent units based upon estimated relative energy content of six thousand cubic feet of natural gas to one barrel of oil. The costs of undeveloped properties are excluded from the costs subject to depletion and depreciation until it is determined whether proved reserves are attributable to the properties or impairment occurs.

Oil and natural gas properties are evaluated each reporting period through an impairment test to determine the recoverability of capitalized costs. The carrying amount is assessed as recoverable when the sum of the undiscounted cash flows expected from proved reserves plus the cost of unproved interests, net of impairments, exceeds the carrying amount. When the carrying amount is assessed not to be recoverable, an impairment loss is recognized to the extent that the carrying amount exceeds the sum of the discounted cash flows from proved and probable reserves plus the cost of unproved interests, net of impairments. The cash flows are estimated using expected future prices and costs and are discounted using a credit adjusted risk-free interest rate.

Proceeds from the sale of oil and natural gas properties are applied against capitalized costs, with no gain or loss recognized, unless such a sale would result in a change in the depletion rate of 20% or more.

Portions of the Company's oil and natural gas activities are conducted jointly with others and accordingly these financial statements reflect only the Company's proportionate interest in such activities.

c) Office and other equipment

Office and other equipment is depreciated using the straight-line method over the estimated useful life of three years.

d) Asset retirement obligations ("ARO")

The Company recognizes the liability associated with future site reclamation costs in the financial statements at the time when the liability is incurred. ARO obligations are initially measured at fair value and subsequently adjusted for the accretion of discount and any changes to the underlying cash flows. The asset retirement cost is capitalized to oil and natural gas properties and equipment and amortized into earnings on a basis consistent with depletion and depreciation.

e) Use of estimates

The amounts recorded for depletion and depreciation, asset retirement obligations and the amounts used in impairment test calculations are based on estimates of proved reserves, production rates, oil and natural gas prices, future costs and other relevant assumptions. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant.

f) Revenue recognition

Oil and natural gas revenues are recognized when title and risks pass to the purchaser.

g) Cash and cash equivalents

Cash and cash equivalents includes short-term investments, such as money market deposits or similar type instruments, with maturity of three months or less when purchased.

h) Income taxes

The Company follows the liability method of accounting for future income taxes, whereby temporary differences arising from the difference between the tax basis of an asset or liability and its carrying amount on the balance sheet are used to calculate future income tax liabilities or assets. Future income tax liabilities or assets are calculated using tax rates anticipated to apply in the periods that the temporary differences are expected to reverse.

i) Stock-based compensation

The Company has a stock-based compensation plan, which is described in note 7. The Company applies the fair value method for valuing stock options granted to officers, directors, employees and consultants. Under this method, compensation cost attributable to stock options granted to officers, directors, employees and consultants is measured at fair value at the grant date and expensed over the vesting period with a corresponding increase to contributed surplus. Upon the exercise of the stock options, consideration paid together with the amount previously recognized in contributed surplus is recorded as an increase to share capital.

j) Per share information

Per share information is computed using the weighted average number of common shares outstanding during the period. Diluted per share information is calculated using the treasury stock method, which assumes that any proceeds from the exercise of stock options and warrants would be used to purchase common shares at the average market price during the period. No adjustment to diluted earnings per share is made if the result of these calculations is anti-dilutive.

2. PLAN OF ARRANGEMENT

On June 22, 2005, as a result of a Plan of Arrangement involving the Company, Chamaelo Energy Inc., and Vault Energy Trust, the Company acquired certain oil and natural gas properties from Chamaelo Energy Inc. in exchange for common shares and common share purchase warrants of the Company. Pursuant to the Plan of Arrangement, the Company issued 14,290,421 common shares and 699,322 common share purchase warrants of the Company to Chamaelo Energy Inc. shareholders on a pro-rata basis. As the Company and Chamaelo Energy Inc. are deemed to be related parties, the net assets acquired by the Company will be recorded at Chamaelo Energy Inc.'s net book value as follows:



Net assets acquired Amount ($)
------------------------------------------------------------------------
Oil and natural gas properties 44,694,608
Office and other equipment 32,426
Asset retirement obligation (3,206,034)
------------------------------------------------------------------------
41,521,000
------------------------------------------------------------------------
------------------------------------------------------------------------

Consideration of acquisition
Issuance of 14,290,421 common shares 41,389,355
Issuance of 699,322 warrants 131,645
------------------------------------------------------------------------
41,521,000
------------------------------------------------------------------------
------------------------------------------------------------------------


3. OIL AND NATURAL GAS PROPERTIES AND EQUIPMENT

Accumulated Net
Depletion and Book
Cost Depreciation Value
$ $ $
------------------------------------------------------------------------
Oil and natural gas properties 48,289,548 1,470,471 46,819,077
Office and other equipment 69,683 3,285 66,398
------------------------------------------------------------------------
48,359,231 1,473,756 46,885,475
------------------------------------------------------------------------
------------------------------------------------------------------------


As at September 30, 2005, the cost of oil and natural gas properties includes $6,351,322 relating to properties from which there is no production and no reserves assigned and which have been excluded from costs subject to depletion and depreciation. During the period ended September 30, 2005, the provision for depletion, depreciation and accretion includes $42,679 for accretion of asset retirement obligations. During the period ended September 30, 2005, the Company capitalized $38,602 of general and administrative costs.

The Company performed an impairment (ceiling) test calculation at September 30, 2005 to assess the recoverable value of the oil and natural gas properties. The oil and natural gas future prices are based on October 1, 2005 commodity price forecasts of the Company's independent reserve evaluators. These prices have been adjusted for commodity price differentials specific to the Company. The following table summarizes the benchmark prices used in the ceiling test calculation. Based on these assumptions, there was no impairment at September 30, 2005.



------------------------------------------------------------------------

Foreign Edmonton Light
WTI Oil Exchange Crude Oil AECO Gas
Year ($US/bbl) Rate ($Cdn/bbl) ($Cdn/mmbtu)
------------------------------------------------------------------------

2005 65.00 0.840 76.50 13.10
2006 60.00 0.840 70.50 10.35
2007 55.00 0.840 64.75 8.85
2008 51.00 0.840 60.00 8.10
2009 48.00 0.840 56.50 7.55
2010 46.50 0.840 54.75 7.25
2011 45.00 0.840 52.75 6.95
2012 45.00 0.840 52.75 6.95
2013 46.00 0.840 54.00 7.10
2014 46.75 0.840 55.00 7.25
2015 47.75 0.840 56.25 7.45
Escalate
Thereafter 2.0% per year 2.0% per year 2.0% per year
------------------------------------------------------------------------
------------------------------------------------------------------------


4. REVOLVING CREDIT FACILITY

The Company has a revolving operating demand loan credit facility available up to $10.5 million bearing interest at prime with a Canadian bank. The credit facility is secured by a $30 million fixed and floating charge debenture on the assets of the Company.

5. ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations result from net ownership interests in oil and natural gas properties including well sites, gathering systems and processing facilities. The Company estimates the total undiscounted amount of cash flows (adjusted for inflation) required to settle its asset retirement obligations is approximately $11.8 million which will be incurred between 2005 to 2032. A credit-adjusted risk-free rate of 7 percent was used to calculate the fair value of the asset retirement obligations.

A reconciliation of the asset retirement obligations is provided below:



Amount ($)
------------------------------------------------------------------------

Balance at April 25, 2005, Incorporation -
Liabilities transferred upon Plan
of Arrangement (note 2) 3,206,034
Liabilities incurred in period 99,509
Liabilities settled in period -
Accretion expense 42,679
------------------------------------------------------------------------
Balance at September 30, 2005 3,348,222
------------------------------------------------------------------------
------------------------------------------------------------------------


6. TAXES

a) The provision for income taxes on the statement of operations and retained earnings (deficit) differs from the amount that would be computed by applying the expected tax rates to net earnings before income taxes. The reasons for the difference between such expected income tax expense and the amount recorded are as follows:



Three Months Ended Period Ended
September 30, 2005 September 30, 2005
Income tax rate 37.62% 37.62%
------------------------------------------------------------------------
$ $
Expected income tax expense 698,728 690,109
Increase in income taxes
resulting from:
Non-deductible crown charges 222,837 238,706
Resource allowance (259,803) (271,098)
Capital taxes 20,930 20,930
Reduction of tax rates (80,786) (80,786)
Non-deductible stock-based
compensation 102,775 104,054
Other (2,766) -
------------------------------------------------------------------------
701,915 701,915
------------------------------------------------------------------------
------------------------------------------------------------------------

b) The components of the net future income tax liability at
September 30, 2005 are as follows:

Amount ($)
------------------------------------------------------------------------

Future income tax liabilities:
Oil and natural gas properties and equipment (1,806,657)
Future income tax assets:
Asset retirement obligations 1,125,672
Share issue costs 504,930
------------------------------------------------------------------------
Net future income tax liability (176,055)
------------------------------------------------------------------------
------------------------------------------------------------------------


7. SHARE CAPITAL

a) Authorized:

Unlimited number of voting common shares and non-voting common shares.

b) Issued and outstanding:


Number of
Shares Amount ($)
------------------------------------------------------------------------
Voting common shares
Issued for cash
Incorporation 1 1
Private placment 3,000,000 22,500,000
Exercise of warrants 997 2,682
Issued upon Plan of Arrangement
(note 2) 14,290,421 41,389,355
Share issue costs
(net of future taxes of $504,930) - (945,185)
------------------------------------------------------------------------
17,291,419 62,946,853
Non-voting common shares
Private placement (note 7(C)) 3,076,923 8,923,077
------------------------------------------------------------------------
Balance at September 30, 2005 20,368,342 71,869,930
------------------------------------------------------------------------
Warrants (note 7(C)) - 1,208,229
------------------------------------------------------------------------
Total value of common shares and warrants 73,078,159
------------------------------------------------------------------------
------------------------------------------------------------------------


On June 21, 2005, the Company completed a private placement financing for an aggregate of 3,076,923 units at a price of $3.25 per unit for gross proceeds of $10,000,000. Each unit is comprised of one non-voting common share and one non-voting common share purchase warrant of the Company. The fair value of the warrants was $1,076,923 (see note 7(C)). 2,256,500 of these units were issued to officers, directors, and employees of the Company with service commitments ranging from one to three years. If the service commitment is not met, the Company will have the option to buy back the units at the original $3.25 issue price on a pro-rata basis reflecting the time of service completed.

c) Warrants



Weighted
Number of Average Expiry
Warrants Price ($) Amount ($) Date
------------------------------------------------------------------------
Balance at
April 25, 2005,
Incorporation - - - -
Plan of
Arrangement
(note 2) 618,100 2.10 103,754 May 26, 2009
Plan of
Arrangement
(note 2) 81,232 2.35 27,891 April 12, 2007
Private
placement 3,076,923 5.80 1,076,923 June 21, 2010
Exercised for
shares (997) 2.35 (339)
------------------------------------------------------------------------
Balance at
September
30, 2005 3,775,258 5.12 1,208,229
------------------------------------------------------------------------

------------------------------------------------------------------------


On June 21, 2005, the Company issued 3,076,923 non-voting common share purchase warrants as part of the initial private placement (see note 7 (b)). The fair value of the warrants at issue date was estimated at $1,076,923 using the Black-Scholes option pricing model with the following assumptions: Dividend yield - nil; expected volatility - 32%; risk-free interest rate - 3.1%; expected life - 4 years; and estimated value of underlying shares - $2.90.

d) Stock options

The Company has authorized the issuance of 1,729,042 common shares under a stock option plan enabling certain officers, directors, employees and consultants to purchase common shares. The Company has reserved for issuance 1,729,042 common shares for this purpose. The Company will not issue options exceeding 10% of the shares outstanding at the time of the option grants. Under the plan, the exercise price of each option equals the market price of the Company's shares on the date of the grant. The options vest over a period of 3 years and an option's maximum term is 5 years. As at September 30, 2005, 1,726,000 options have been granted and are outstanding at prices ranging from $7.60 - $8.08 per share with expiry dates ranging from June 30, 2010 to September 15, 2010.

The Company had the following stock options outstanding at September 30, 2005:



Weighted Weighted
Number of Average Average
Options Price ($) Years to Expiry
------------------------------------------------------------------------
Balance at April 25, 2005,
Incorporation - - -
Options granted 1,640,000 7.60 4.75
------------------------------------------------------------------------
Balance at June 30, 2005 1,640,000 7.60 4.75
Options granted 86,000 7.99 4.92
------------------------------------------------------------------------
Balance at September 30, 2005 1,726,000 7.62 4.76
------------------------------------------------------------------------
------------------------------------------------------------------------
Exercisable at
September 30, 2005 - - -
------------------------------------------------------------------------
------------------------------------------------------------------------


e) Stock-based compensation

The compensation cost recognized during the period ended September 30, 2005 for the stock option plan was $334,450, of which $276,592 has been charged against income and $57,858 has been capitalized.

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:



Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
Fair value per option $2.41 $2.28
Risk-free rate 3.3% 3.1%
Expected life 4 years 4 years
Expected volatility 32.0% 32.0%
Dividend yield - -
------------------------------------------------------------------------
------------------------------------------------------------------------


f) Per share information

The weighted average number of shares outstanding for the determination of basic and diluted per share amounts are as follows:



Three Months Ended Period Ended
September 30, 2005 September 30, 2005
------------------------------------------------------------------------
Basic 19,519,704 19,327,909
Diluted 20,845,251 20,653,468
------------------------------------------------------------------------
------------------------------------------------------------------------


8. FINANCIAL INSTRUMENTS

a) Fair values

The carrying value of cash and cash equivalents, accounts receivable, prepaid expenses and deposits, capital taxes payable and accounts payable and accrued liabilities approximate their fair value due to the near term maturity of these instruments.

b) Credit risk

A substantial portion of the Company's accounts receivable are with customers and joint venture partners in the oil and gas industry and are subject to normal industry credit risks. The credit risk on receivables is mitigated by selling to a number of large credit worthy purchasers. As at September 30, 2005, $3,581,492 was receivable from Vault Energy Trust, which included standard joint venture amounts and also revenue from purchasers collected on Chamaelo's behalf.

c) Commodity price risk

The Company's oil and natural gas production is marketed and sold on the spot market to area aggregators based on daily spot prices that are adjusted for product quality and transportation costs.

The Company is exposed to foreign currency fluctuations as crude oil prices received are referenced to U.S. dollar denominated prices.



9. SUPPLEMENTAL CASH FLOW INFORMATION

a) Net change in non-cash working capital
Amount ($)
------------------------------------------------------------------------

Accounts receivable (6,138,747)
Prepaid expenses and deposits (132,658)
Accounts payable and accrued liabilities 4,604,580
Capital taxes payable 20,930
------------------------------------------------------------------------
Net change in non-cash working capital (1,645,895)
------------------------------------------------------------------------
------------------------------------------------------------------------

Relating to:
Investing 2,158,652
Operating (3,804,547)
------------------------------------------------------------------------
Net change in non-cash working capital (1,645,895)
------------------------------------------------------------------------
------------------------------------------------------------------------

b) Interest and taxes
$
------------------------------------------------------------------------
Cash interest received 107,805
Cash interest paid -
------------------------------------------------------------------------
107,805
Cash taxes paid -
------------------------------------------------------------------------
------------------------------------------------------------------------

10. COMMITMENTS

The Company is committed to payments under an operating lease for
office space as follows:

Amount ($)
------------------------------------------------------------------------
2005 75,308
2006 313,261
2007 313,261
2008 313,261
2009 243,968
------------------------------------------------------------------------
1,259,059
------------------------------------------------------------------------
------------------------------------------------------------------------


11. SUBSEQUENT EVENTS

On October 25, 2005, the Company announced it has entered into an arrangement whereby it will combine with two private companies - Tournament Energy Ltd. ("Tournament") and a private technology company ("TechCo") by way of plan of arrangement (the "Arrangement"). Tournament has oil and gas assets located in Chamaelo's West Central Alberta Core Area with value of approximately $190 million. TechCo has a technology business that will be distributed to its existing shareholders as part of the Arrangement. The Arrangement is expected to close in early January 2006.


Contact Information

  • Chamaelo Exploration Ltd.
    Robert J. Zakresky
    President & CEO
    (403) 705-3006
    or
    Chamaelo Exploration Ltd.
    Nolan Chicoine
    VP Finance & CFO
    (403) 705-3022
    or
    Chamaelo Exploration Ltd.
    Suite 700, 639 - 5th Avenue S.W.
    Calgary, Alberta T2P 0M9
    (403) 705-3135
    (403) 705-3130 (FAX)
    Website: www.chamaelo.ca