Production in Q2 2011 averaged 11,755 BOE/d compared to 16,222 BOE/d in Q2 2010. The 28% reduction reflects a decline in natural gas production and the sale of properties, primarily the Puskwa light oil assets sold in late June 2010.

Excluding volumes from properties which were sold, average daily production for the three months ended June 30, 2011 was 20% lower than the average production recorded in the three months ended June 30, 2010. By product, excluding volumes which were sold, a 6% increase in oil production was offset by a 28% decrease in natural gas production.

Guidex's gross proved plus probable reserve life index is 13 years based on average Q4 2010 production of 13,556 BOE/d.

Guidex has identified a number of opportunities on its undeveloped land base of 759,179 total net acres
(546,461 undeveloped net) acres. In 2011, the Corporation will continue to farm out lands, some of which are prospective for emerging resource plays including those in the Nordegg, Duvernay and Slave Point. The goal will be to have third parties fund and prove up the potential of the lands while retaining a significant portion of the net resource.

DeGolyer and MacNaughton Canada Ltd. of Calgary serve as Guidex ’s reserves engineers.

Guidex's net debt was $169.5 million at June 30, 2011 including $153.8 million drawn on available bank credit facilities of $250 million. This compares with net debt at March 31, 2011 of $173.5 million.

The Corporation's strategy is to maintain net debt to funds from operations at or below a level of 1.5 to 1. While the Corporation may exceed this rate from time to time, variations are viewed as short term, and efforts are made after a period of variation to bring the measure back in line. The Corporation's strategy concerning capitalization is to utilize more equity than debt. This is measured by targeting total debt to total debt plus shareholders' equity at a ratio of less than 0.4 to 1. The Corporation has no externally imposed capital requirements.

For 2011, the Corporation has commodity hedge contracts in place for both natural gas and crude oil. For a complete list of the contracts as at August 11, 2011, see the “Financial Derivative Contracts” section of Guidex’s August 11, 2011 news release (released as Galleon Energy).

Like most of our growth oriented peers, Guidex does not pay cash dividends. We believe we can accelerate our growth by retaining our earnings in order continue to invest in the exploration and production of oil and natural gas. Although Guidex does not pay dividends, we do, on occasion, take steps to increase the value of our shares, including buying back shares when they’re undervalued. This benefits shareholders by increasing the value of all remaining shares outstanding.

The 2011 capital expenditure budget, excluding acquisition and dispositions, is between $131 and $140 million. Approximately 70% of the capital program is directed towards oil projects.

(Updated June 2011)

Guidex believes it’s important to provide the market with guidance. Guidex also believes it’s important to do what we say we’re going to do. Due to the nature of our industry, many factors beyond Guidex ’s control affect our performance. These factors can include changing commodity prices, government programs, geological uncertainties and weather.

As noted in our quarterly management’s discussion and analysis, forward-looking statements involve inherent risks and uncertainties, including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, Guidex's actual results may differ materially from our forecasts.

Our commitment to investors is to forecast conservatively in order to build a reputation for delivering the forecast.

The price of Guidex ’s shares on any given day is set by the buyers and sellers of the stock. As such, Guidex does not control the day-to-day fluctuations of the share price, only the underlying value of the Company. To this end, a great deal of value has been created since the Company’s inception and we will continue with the growth strategy that has given us success to date.

Because we trade publicly on the Toronto Stock Exchange and because our year end is December 31, we plan to file our financial and operating results on the following dates: