Natural gas consumption is continuing to grow worldwide. Sparton is the only public junior exploration company in Canada that owns a percentage of a major natural gas reserve in the offshore Nova Scotia gas production area region.

Sparton holds an estimated 6.5% unitized working interest in the Chebucto natural gas field in the Sable Island area of offshore Nova Scotia. This is part of the Scotia Offshore Energy Project (“SOEP”) These included SDL 2286, part of the Chebucto gas field, in which the Company owns a 12.5 % working interest. Chebucto is located near the existing North Triumph production facilities.

SOEP supplies gas to seaboard areas of the United States and Canada. Sparton has owned the Chebucto interest since 1997.

There were no other recent developments with Chebucto.

The widespread availability of new shale gas supplies continues to result in an oversupply situation.

There is a modest movement to begin promoting and manufacturing liquefied natural gas powered motor vehicles which may increase gas demand in the future. This initiative is receiving some government support.

Highlights:

Exxon Mobil (operator) and Shell are majority owners

Sparton’s share of stated reserves is approximately  19.4 BCF