Each unit consists of one common share of the Company and 3/4 of a warrant to purchase one common share. Each warrant will be exercisable to purchase one common share at an exercise price of US$0.40 per share and will be exercisable beginning six months from date of issuance, which is expected to be June 4, 2012, and will expire five years after the date of issuance. A total of 18,130,305 shares and 13,597,729 warrants are being issued in connection with the offering. The Company intends to use the net proceeds from this offering for exploration, development and acquisition of oil and gas properties and working capital purposes.