Rolling Thunder Announces December 31, 2006 Financial Results, Annual and Special Meeting of Shareholders & Personnel Changes



    CALGARY, April 12 /CNW/ - Further to its News Release dated March 12,
2007 announcing its December 31, 2006 Reserves and Operations Update, Rolling
Thunder Exploration Ltd. ("Rolling Thunder" or the "Corporation") (TSX-V:
ROL.A, ROL.B; OTO: RTHXF) is pleased to announce its financial results for its
transition year of eight months ended December 31, 2006.
    As a result of the Corporation's successful drilling program, Rolling
Thunder reports increased net asset value, industry leading finding and
development costs, and higher production and funds from operations.

    RESERVES, OPERATIONS & FINANCIAL HIGHLIGHTS

    
    -   Increased Proved reserves by 46 percent in eight months over the year
        ended April 30, 2006;

    -   Increased Proved plus Probable reserves by 50 percent in eight months
        over the year ended April 30, 2006;

    -   Net Present Value of the Proved plus Probable reserves, discounted at
        10 percent, increased 71 percent to $80.0 million for the year ended
        December 31, 2006 from $46.7 million for the year ended April 30,
        2006;

    -   Net Asset Value per share increased 41 percent over the same period
        to $1.91 at December 31, 2006 compared to $1.35 at April 30, 2006;

    -   Finding and development costs, excluding future capital, decreased to
        $11.10 per boe, Proved plus Probable, and $18.93 per boe, Proved;

    -   Achieved 97 percent success rate on drilling program; drilled nine
        gross (7.1 net) wells with eight gross (6.9 net) successes and one
        gross (.2 net) abandonment;

    -   Increased average production by 54 percent over the eight months
        ended December 31, 2006 to 713 boe/d from 463 boe/d for the year
        ended April 30, 2006;

    -   Exceeded 2006 exit target by 23 percent, averaging 1,109 boe/d for Q4
        2006;

    -   Significantly expanded Teepee Creek production from one producing
        well to six producing wells with two additional wells to tie-in;

    -   Operating costs, excluding transportation, decreased 25 percent over
        the eight months ended December 31, 2006 to $5.75 per boe compared to
        $7.63 per boe for the year ended April 30, 2006; operating costs,
        including transportation, decreased 13 percent to $8.15 per boe for
        the eight month period compared to $9.35 per boe for the year ended
        April 30, 2006;

    -   Funds from operations increased to $3,819,855 for the eight months
        ended December 31, 2006 compared to $3,363,906 for the year ended
        April 30, 2006; and

    -   Maintained a net debt to annualized fourth quarter funds from
        operations ratio of 0.38 as at December 31, 2006.


    -------------------------------------------------------------------------
    Financial Highlights            Eight Months
    (in Canadian $)                        Ended    Year Ended    Year Ended
                                     December 31,     April 30,     April 30,
                                            2006          2006          2005
    -------------------------------------------------------------------------
    Gross revenues                     9,134,686     9,329,725     5,579,618
    Funds from operations(1)           3,819,855     3,363,906     1,886,346
      Per share, basic and diluted(2)      0.098         0.129         0.088
    Net income (loss)                   (646,919)       88,850    (1,692,190)
      Per share, basic and diluted(2)     (0.017)        0.003        (0.079)
    Capital expenditures              14,215,177     9,175,412     2,898,648
    Total assets                      28,561,526    15,225,059     9,253,036

    -------------------------------------------------------------------------
    Operational Highlights          Eight Months
                                           Ended    Year Ended    Year Ended
                                     December 31,     April 30,     April 30,
                                            2006          2006          2005
    -------------------------------------------------------------------------
    Average daily sales volumes
      Oil and NGLs (bbls/d)                  396            99            85
      Natural gas (Mcf/d)                  1,900         2,182         1,570
    -------------------------------------------------------------------------
      Barrels of oil equivalent
       (boe/d)                               713           463           346
    -------------------------------------------------------------------------
    Average prices received
      Oil and NGLs ($/bbl)                 57.34         60.55         50.95
      Natural gas ($/Mcf)                   7.15          8.75          6.99
    -------------------------------------------------------------------------
      Barrels of oil equivalent
       ($/boe)                             50.92         54.24         44.13
    -------------------------------------------------------------------------
    Operating netback ($/boe)(3)
      Petroleum and natural gas
       revenues                            50.92         54.24         44.13
      Royalties                            14.02         14.53         13.07
      Operating expenses                    5.75          7.63          7.34
      Transportation expenses               2.40          1.72          1.95
    -------------------------------------------------------------------------
      Operating netback                    28.75         30.36         21.77
    -------------------------------------------------------------------------
    Wells drilled(4)
      Gross (net) drilled               9.0 (7.1)     6.0 (5.5)     2.0 (1.3)
      Gross (net) successful            8.0 (6.9)     4.0 (4.0)     1.0 (1.0)
      Gross (net) drilled and
       abandoned                        1.0 (0.2)     2.0 (1.5)     1.0 (0.3)
    -------------------------------------------------------------------------
      Success rate - gross (net)        89% (97%)     67% (73%)     50% (77%)
    -------------------------------------------------------------------------

    (1) Funds from operations is a non-GAAP measure and is calculated by
        adding/subtracting operating change in working capital. Management
        believes that funds from operations reports the Corporation's ability
        to generate cash from operations after interest and taxes and
        excludes the impact of changes in the Corporation's non-cash working
        capital related to operating activities. For a reconciliation of
        funds from operations to cash provided by operating activities, see
        "Non-GAAP Measures" section in the accompanying Management's
        Discussion & Analysis.

    (2) April 30, 2005 per share amounts have been retroactively adjusted to
        reflect the effect of the issue of one Class A common share for two
        common shares of San Telmo Energy Ltd., upon amalgamation of Rolling
        Thunder Exploration Ltd. with San Telmo Energy Ltd.

    (3) Netback and per boe information are non-GAAP measures and are
        calculated based on sales volumes for the period. For details
        regarding the calculation of netback and per boe information, see
        "Non-GAAP Measures" section in the accompanying Management's
        Discussion & Analysis.

    (4) Wells drilled reflect post-amalgamation numbers.
    


    MANAGEMENT'S DISCUSSION AND ANALYSIS

    This Management's Discussion and Analysis ("MD&A") of financial condition
and results of operations of Rolling Thunder Exploration Ltd. (formerly San
Telmo Energy Ltd.) is dated April 5, 2007. This MD&A is a review of the
results of operations and the liquidity and capital resources of the
Corporation for the eight month period ended December 31, 2006 compared to the
year ended April 30, 2006. It should be read in conjunction with the
accompanying audited consolidated financial statements of the Corporation for
the eight month period ended December 31, 2006 and the notes thereto.

    Certain information regarding Rolling Thunder, including management's
assessment of future plans and operations, constitutes forward-looking
information or statements under applicable securities law and necessarily
involves assumptions regarding factors and risks that could cause actual
results to vary materially, including, without limitation, assumptions and
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, incorrect assessment of the value of
acquisitions, failure to realize the anticipated benefits of acquisitions and
ability to access sufficient capital from internal and external sources. The
reader is cautioned that these factors and risks are difficult to predict and
that the assumptions used in the preparation of such information, although
considered reasonably accurate by Rolling Thunder at the time of preparation,
may prove to be incorrect. Accordingly, readers are cautioned that the actual
results achieved will vary from the information provided herein and the
variations may be material. Readers are also cautioned that the foregoing list
of factors is not exhaustive. Additional information on these and other
factors that could affect Rolling Thunder's operations or financial results
are included in Rolling Thunder's reports on file with Canadian securities
regulatory authorities. In particular, see the Risk Factors section of Rolling
Thunder's Annual Information Form ("AIF"). Consequently, there is no
representation by Rolling Thunder that actual results achieved will be the
same in whole or in part as those set out in the forward-looking information.
Furthermore, the forward-looking statements contained in this MD&A are made as
of the date of this MD&A, and Rolling Thunder does not undertake any
obligation to update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required pursuant to applicable securities legislation
and policy. The forward-looking statements contained herein are expressly
qualified by this cautionary statement.

    All amounts are expressed in Canadian dollars unless otherwise stated.
Petroleum and natural gas volumes are converted to an equivalent measurement
basis referred to as a "barrel of oil equivalent" ("boe") using a conversion
rate of six thousand cubic feet of natural gas to one barrel of oil ("6:1").
Readers are cautioned that boe figures may be misleading, particularly if used
in isolation. The 6:1 conversion ratio is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
    The accompanying audited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles ("GAAP")
in Canada. This MD&A provides certain financial measures that do not have a
standardized meaning prescribed by Canadian GAAP. These non-GAAP financial
measures may not be comparable to similar measures presented by other issuers.
    Rolling Thunder's Audit Committee and Board of Directors have reviewed
and approved the audited consolidated financial statements for the eight month
period ended December 31, 2006 and the notes thereto, and the related MD&A for
the same period ended.
    The continuous disclosure materials of the Corporation, including its
audited consolidated financial statements and related MD&A, AIF, Management
Information Circular and Proxy Statement, material change reports and press
releases issued by the Corporation are available through the SEDAR system at
www.sedar.com.

    CHANGE IN FISCAL YEAR-END

    In May 2006, the Corporation filed the regulatory forms to change Rolling
Thunder's fiscal year-end from April 30 to December 31. As a result of this
change, the Corporation has presented financial information for the three and
eight month periods ended December 31, 2006 with the three months ended
January 31, 2006 and year ended April 30, 2006 as the comparative periods.
    As a result of the change in year-end, certain information presented for
the eight month period ended December 31, 2006 is not directly comparable to
the same information for the year ended April 30, 2006.

    DISCLOSURE CONTROLS AND PROCEDURES

    Evaluation of Disclosure Controls and Procedures

    Disclosure controls and procedures are designed to provide reasonable
assurance that information required to be disclosed in reports filed with, or
submitted to, securities regulatory authorities is recorded, processed,
summarized and reported within the time periods specified under Canadian
securities laws. The information is accumulated and communicated to
management, including the President and Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosure.
    As of December 31, 2006, an evaluation was carried out, under the
supervision and with the participation of management, including the Chief
Executive Officer and Chief Financial Officer, of the effectiveness of Rolling
Thunder's disclosure controls and procedures as defined under the rules
adopted by the Canadian securities regulatory authorities. Based on that
evaluation, the President and Chief Executive Officer and Chief Financial
Officer concluded that the design and operation of Rolling Thunder's
disclosure controls and procedures were effective as at December 31, 2006.

    INTERNAL CONTROL OVER FINANCIAL REPORTING

    Management's Annual Report on Internal Control over Financial Reporting

    Management is responsible for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial
reporting is a process designed by, or under the supervision of, senior
management, and effected by the Board of Directors, management and other
personnel, to provide reasonable assurance regarding the reliability of
financial reporting and preparation of consolidated financial statements for
external purposes in accordance with Canadian GAAP. While Rolling Thunder's
Chief Executive Officer and Chief Financial Officer believe the Corporation's
internal controls and procedures provide a reasonable level of assurance that
they are reliable, an internal control system cannot prevent all errors and
fraud. It is management's belief that any control system, no matter how well
conceived or operated, can provide only reasonable, not absolute, assurance
that the objectives of the control system are met.
    During the eight month period ended December 31, 2006, there has been no
change in Rolling Thunder's internal control over financial reporting that has
materially affected, or is reasonably likely to materially affect, Rolling
Thunder's internal control over financial reporting.

    CEO AND CFO CERTIFICATIONS

    Rolling Thunder's President and Chief Executive Officer and Chief
Financial Officer will file with the Canadian securities regulators
certifications regarding Rolling Thunder's 2006 annual filings, as required by
Canadian securities regulators.

    CORPORATE REVIEW

    Rolling Thunder Exploration Ltd.

    Rolling Thunder was incorporated under the laws of the province of
Alberta on March 24, 2005. In May 2005, the Corporation raised $1,000,000 of
founders' equity by way of private placement. In June 2005, the Corporation
completed a $12,000,000 initial public offering and in July 2005, the
Corporation's shares commenced trading on the TSX-V. During the summer and
fall of 2005, Rolling Thunder began preliminary work on its initial farm-in
agreements at Gold Creek, Boundary Lake, Morinville and Mitsue, and negotiated
new opportunities at Ensign and Teepee Creek. In November 2005, Rolling
Thunder entered into an Arrangement Agreement with San Telmo Energy Ltd.,
whereby the companies agreed to amalgamate their businesses. The amalgamation
was completed pursuant to a court approved Plan of Arrangement in January
2006, adding three new core producing properties at Teepee Creek, McLeod and
Gordondale. In May 2006, the Corporation closed a bought deal private
placement for $9,500,181 and commenced its 2006 capital expenditures program,
which included a 164 square kilometer 3D seismic shoot and central battery
construction at Teepee Creek to facilitate production of Rolling Thunder's
major oil discovery in the area.

    Amalgamation with San Telmo Energy Ltd.

    On January 12, 2006, Rolling Thunder completed the amalgamation with San
Telmo Energy Ltd., whereby the Corporation would continue operations as
Rolling Thunder Exploration Ltd. under the leadership of its existing
management team.
    Under the terms of the Arrangement Agreement, Class A shareholders of
Rolling Thunder received one Class A common share of the amalgamated entity
for each Class A share held in Rolling Thunder, Class B shareholders of
Rolling Thunder received one Class B common share of the amalgamated entity
for each Class B share held in Rolling Thunder, and San Telmo common
shareholders received $0.60 per San Telmo common share comprised of, at the
election of each San Telmo shareholder: (i) 0.5 Class A common shares of the
amalgamated entity for each San Telmo common share held; (ii) $0.60 cash for
each San Telmo common share held; or (iii) a combination of shares and cash,
subject in all cases to a maximum aggregate cash consideration of $5,000,000.
San Telmo shareholders elected to receive in excess of $5,000,000 cash
consideration and as such, received a prorated portion of their elected cash
consideration with the balance paid in Rolling Thunder Class A common shares.
Holders of options of Rolling Thunder and holders of options of San Telmo
received replacement options in the amalgamated entity.


    
    SELECTED ANNUAL FINANCIAL INFORMATION(1)

    -------------------------------------------------------------------------
    (in Canadian $)                 Eight months
                                           ended    Year ended    Year ended
                                     December 31,     April 30,     April 30,
                                            2006          2006          2005
    -------------------------------------------------------------------------
    Petroleum and natural
     gas revenues                      8,889,825     9,167,498     5,579,618
    Royalties, net of ARTC            (2,447,830)   (2,455,372)   (1,334,854)
    Other revenues                       244,861       162,227             -
    Revenues, net of royalties         6,686,856     6,874,353     4,244,764
    Net income (loss)                   (646,919)       88,850    (1,692,190)
    Working capital deficiency        (3,244,395)   (2,420,938)   (1,966,919)
    Capital expenditures              14,215,177     9,175,412     2,898,648
    Total assets                      28,561,526    15,225,059     9,253,036
    Long-term liabilities              1,646,813     1,088,241       172,662
    Funds from operations(2)           3,819,855     3,363,906     1,886,346
    -------------------------------------------------------------------------

    ($ per share)
    -------------------------------------------------------------------------
    Net income (loss)
      Basic(3)                            (0.017)        0.003        (0.079)
      Diluted(3)                          (0.017)        0.003        (0.079)
    Funds from operations(2)
      Basic(3)                             0.098         0.129         0.088
      Diluted(3)                           0.098         0.129         0.088
    -------------------------------------------------------------------------
    Shares outstanding
      Common shares                            -             -    44,768,502
      Class A common shares           34,724,737    28,851,120             -
      Class B common shares              810,000       810,000             -
    Weighted average number of
     shares outstanding for
     the period
      Basic(3)                        39,081,005    25,977,023    21,487,674
      Diluted(3)                      39,081,005    26,094,404    21,487,674
    -------------------------------------------------------------------------

    (1) The selected three-year consolidated financial data is based on the
        Corporation's financial statements which are prepared in accordance
        with Canadian GAAP, except funds from operations information (see
        note 2 below). Certain comparative figures have been reclassified to
        conform with the current period presentation.

    (2) Funds from operations is a non-GAAP measure and is calculated by
        adding/subtracting operating change in working capital. Funds from
        operations reports the Corporation's ability to generate cash from
        operations after interest and taxes and excludes the impact of
        changes in the Corporation's non-cash working capital related to
        operating activities. For a reconciliation of funds from operations
        to cash provided by operating activities, see "Non-GAAP Measures"
        section in this MD&A.

    (3) April 30, 2005 per share amounts have been retroactively adjusted to
        reflect the effect of the issue of one Class A common share for two
        common shares of San Telmo Energy Ltd. upon amalgamation of Rolling
        Thunder Exploration Ltd. and San Telmo Energy Ltd.
    


    NON-GAAP MEASURES

    Funds From Operations

    The terms "funds from operations", "funds from operations per share" and
"funds from operations per boe" are non-GAAP measures and should not be
considered an alternative to, or more meaningful than, cash provided by
operating activities as determined in accordance with Canadian GAAP as an
indicator of the Corporation's performance. Funds from operations per share is
calculated using the same weighted average basic and diluted number of shares
outstanding used in the calculation of net income (loss) per share. All
references to funds from operations throughout this MD&A are based on cash
flow before changes in non-cash working capital. The following table provides
a reconciliation of "funds from operations" to "cash provided by operating
activities", the nearest GAAP measure.

    
    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Funds from
     operations       $  3,819,855  $  3,363,906  $  2,156,340  $    771,731
    Change in non-cash
     working capital       (15,003)   (1,213,301)    1,782,973       428,668
    -------------------------------------------------------------------------
    Cash provided by
     operating
     activities
     (GAAP financial
     measure)         $  3,804,852  $  2,150,605  $  3,939,313  $  1,200,399
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Netback and Per Boe Information

    Information presented on a "netback" and "per boe" basis represents
non-GAAP measures. Management believes that these are important supplemental
measures as they provide an indication of the results of the Corporation in
relation to the sales volumes of the Corporation. Readers are cautioned,
however, that these measures should not be construed as alternatives to
revenue and expense items determined in accordance with GAAP.
    Per boe amounts are derived by dividing the related GAAP measure or funds
from operations by the sales volumes for each respective period. The following
table presents the sales volumes for each period:

    
    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Oil and NGLs (bbls)     97,031        36,268        62,746        11,464
    Natural gas (Mcf)      465,378       796,541       235,626       187,306
    -------------------------------------------------------------------------
    Boe                    174,594       169,025       102,017        42,682
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    OVERALL PERFORMANCE

    Operational Activities

    In the eight months ended December 31, 2006, Rolling Thunder drilled nine
(7.1 net) wells with a success rate of 89 percent (97 percent net). As a
result of the Corporation's drilling success during the period, average daily
sales volumes increased to 713 boe/d for the period compared to 463 boe/d for
the year ended April 30, 2006. Rolling Thunder's sales volumes mix was
56 percent oil and NGLs and 44 percent natural gas for the eight months ended
December 31, 2006 compared to 21 percent and 79 percent, respectively, for the
year ended April 30, 2006. The change in sales volumes mix was the result of
the Corporation's significant oil discovery at Teepee Creek.
    During the eight months ended December 31, 2006, commodity prices for
both oil and NGLs and natural gas declined. Rolling Thunder realized commodity
prices of $57.34 per bbl for oil and NGLs and $7.15 per Mcf for natural gas.
Rolling Thunder did not hedge any production during the eight months ended
December 31, 2006. The Corporation is unable to predict with certainty whether
oil, NGL and natural gas prices will increase during 2007.
    As a result of centralization of operations at one of the Corporation's
core properties of Teepee Creek, Rolling Thunder saw a decrease in per unit
operating costs to $5.75 per boe for the eight month period ended December 31,
2006 compared to $7.63 per boe for the year ended April 30, 2006. This was
partially offset by an increase in transportation costs related to increased
oil transportation to $2.40 per boe for the period from $1.72 per boe in the
prior year.
    Rolling Thunder incurred a net loss of $646,919 for the eight months
ended December 31, 2006, or $0.017 per share, basic and diluted, compared with
net income of $88,850 for the year ended April 30, 2006, or $0.003 per share.
Funds from operations increased to $3,819,855 for the eight months ended
December 31, 2006 compared to $3,363,906 for the year ended April 30, 2006,
and decreased on a per share basis to $0.098 per share, basic and diluted, in
the current period from $0.129 per share, basic and diluted in the previous
year.

    Investing Activities

    Rolling Thunder incurred capital expenditures of $14,215,177 for the
eight months ended December 31, 2006 compared to $9,175,412 for the year ended
April 30, 2006. The most significant portion of Rolling Thunder's 2006 capital
program was incurred at Teepee Creek, where the Corporation purchased two
additional sections of land, completed a 164 square kilometer 3D seismic
shoot, drilled six (5.5 net) of its total nine (7.1 net) wells drilled,
re-completed two existing wells which resulted in increased production from
the wells, tied-in three (2.5 net) wells and completed construction of an oil
battery to accommodate the new production from the area.
    Capital expenditures were financed through a combination of cash flow
from operations, equity financing and use of existing credit facilities.

    Financing Activities

    On May 18, 2006, the Corporation closed a private placement of 1,497,000
Class A common shares at a price of $1.67 per Class A common share totaling
$2,499,990; 1,098,951 Class A common shares issued on a flow-through basis
eligible for renunciation of Canadian Development Expenses ("CDE") at a price
of $1.82 per CDE flow-through share totaling $2,000,091; and 2,381,000 Class A
common shares issued on a flow-through basis eligible for renunciation of
Canadian Exploration Expenses ("CEE") at a price of $2.10 per CEE flow-through
share totaling $5,000,100. Total gross proceeds of the private placement were
$9,500,181. As a result, the Corporation had $2,000,091 of CDE qualifying
expenditures to incur by December 31, 2006 and $5,000,100 of CEE qualifying
expenditures to incur by December 31, 2007. As at December 31, 2006, the
Corporation had fulfilled the CDE expenditures requirement of $2,000,091. In
addition, Rolling Thunder had incurred $421,089 of qualifying CEE expenditures
and had $4,579,011 of CEE expenditures remaining to be incurred by
December 31, 2007 in order to fulfill its CEE flow-through commitment. The
income tax deductions related to the total CDE and CEE flow-through
expenditures of $7,000,191 were renounced in February 2007 to the CDE and CEE
flow-through share subscribers with an effective date of December 31, 2006.
    On November 21, 2006, Rolling Thunder increased its revolving operating
demand loan limit to a maximum of $13,000,000. The Corporation has a
non-revolving acquisition/development demand loan of up to $3,000,000. At
December 31, 2006, the Corporation had $458,951 of bank debt.

    
    RESULTS OF OPERATIONS

    Sales Volumes

    -------------------------------------------------------------------------
                     Eight                         Three     Three
    Average         months      Year              months    months
     daily           ended     ended               ended     ended
     sales        December     April            December   January
     volumes      31, 2006  30, 2006    Change  31, 2006  31, 2006    Change
    -------------------------------------------------------------------------
    Oil and NGLs
     (bbls/d)          396        99      300%       682       125      446%
    Natural gas
     (Mcf/d)         1,900     2,182      (13%)    2,561     2,036       26%
    -------------------------------------------------------------------------
    Total (boe/d)      713       463       54%     1,109       464      139%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Sales volumes
     mix by product

    Oil and NGLs       56%       21%                 62%       27%
    Natural gas        44%       79%                 38%       73%
    -------------------------------------------------------------------------
    Total             100%      100%                100%      100%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Rolling Thunder's average sales volume rate for the eight months ended
December 31, 2006 increased 54 percent to 713 boe/d compared to 463 boe/d for
the year ended April 30, 2006. The increase was primarily the result of the
Corporation's Teepee Creek 06-10, 14-03 and 16-34 wells being put on
production during the period. The Teepee Creek 06-10 and 14-03 wells came on
production in September and averaged approximately 290 boe/d during the period
of September to December. Production from Rolling Thunder's Teepee Creek 16-34
commenced in October, with the well averaging approximately 140 boe/d during
the period of October to December. In addition, the Corporation completed a
workover of the Teepee Creek 06-03 well in September, which resulted in a
significant increase in production from approximately 40 boe/d during the
period of May to August to approximately 435 boe/d during the period of
September to December. As a result, oil and NGL average sales volumes
increased 300 percent to 396 boe/d for the eight month period ended
December 31, 2006 compared to 99 boe/d for the year ended April 30, 2006.
Natural gas average sales volumes decreased by 13 percent for the eight months
ended December 31, 2006 compared to the year ended April 30, 2006 as a result
of the Gordondale 14-22 well being shut-in for approximately two weeks during
September while the 02/14-22 well was being drilled, and third party
curtailment of the McLeod 06-18 during the period. During December, the
curtailment of the McLeod 06-18 well was alleviated.
    The Corporation's average sales volume rate for the three month period
ended December 31, 2006 increased 139 percent to 1,109 boe/d compared to
464 boe/d for the three months ended January 31, 2006. Oil and NGL average
sales volumes increased 446 percent to 682 boe/d for the current quarter
compared to 125 boe/d for the three months ended January 31, 2006. In
addition, natural gas average sales volumes increased 26 percent to
2,561 Mcf/d for the quarter ended December 31, 2006 compared to 2,036 Mcf/d
for the prior year's quarter. The increases were due to added production from
the Teepee Creek wells during the quarter, as discussed in the previous
paragraph.

    
    Revenues and Commodity Prices

    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Revenues
    Oil and NGLs      $  5,563,469  $  2,196,113  $  3,311,483  $    451,132
    Natural gas          3,326,356     6,971,385     1,872,137     2,100,775
    -------------------------------------------------------------------------
                         8,889,825     9,167,498     5,183,620     2,551,907
    Other                  244,861       162,227        10,696        17,785
    -------------------------------------------------------------------------
    Total             $  9,134,686  $  9,329,725  $  5,194,316  $  2,569,692
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Average prices
     received

    Oil and NGLs
     (per bbl)        $      57.34  $      60.55  $      52.78  $      39.35
    Natural gas
     (per Mcf)                7.15          8.75          7.95         11.22
    -------------------------------------------------------------------------
    Total (per boe)   $      50.92  $      54.24  $      50.81  $      59.79
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Oil and natural gas revenues for the eight months ended December 31, 2006
were $8,889,825 compared to $9,167,498 for the year ended April 30, 2006.
Rolling Thunder's total sales volumes for the eight month period were
174,594 boe (comprised of 97,031 bbls of oil and NGLs and 465,378 Mcf of
natural gas) compared to 169,025 boe (comprised of 36,268 bbls of oil and NGLs
and 796,541 Mcf of natural gas) for the year ended April 30, 2006. The
Corporation received average prices during the period of $57.34 per bbl for
oil and NGLs and $7.15 per Mcf for natural gas compared to $60.55 for oil and
NGLs and $8.75 per Mcf for natural gas during the prior year period. Rolling
Thunder realized a weighted average sales price of $50.92 per boe for the
eight months ended December 31, 2006 compared to $54.24 per boe for the year
ended April 30, 2006, a six percent decrease.
    Oil and natural gas revenues for the three months ended December 30, 2006
increased 103 percent to $5,183,620 compared to $2,551,907 for the three
months ended January 31, 2006. The increase in revenues for the quarter
compared to the three months ended January 31, 2006 was attributable to higher
sales volumes and higher oil and NGL prices partially offset by a decrease in
natural gas prices. Rolling Thunder's total sales volumes for the quarter were
102,017 boe (comprised of 62,746 bbls of oil and NGLs and 235,626 Mcf of
natural gas) compared to 42,682 boe (comprised of 11,464 bbls of oil and NGLs
and 187,306 Mcf of natural gas) for the quarter ended January 31, 2006. During
the current quarter, the Corporation received average prices of $52.78 per bbl
for oil and NGLs and $7.95 per Mcf for natural gas compared to $39.35 per bbl
for oil and NGLs and $11.22 per Mcf for natural gas during the three month
period ended January 31, 2006. Rolling Thunder realized a weighted average
sales price of $50.81 per boe for the quarter ended December 31, 2006 compared
to $59.79 per boe for the quarter ended January 31, 2006, a 15 percent
decrease.
    Rolling Thunder receives a premium on a per Mcf basis compared to AECO
rates due to the Corporation's higher energy content per Mcf of natural gas
sales.
    All of the Corporation's production was sold on the spot market. During
the eight months ended December 31, 2006, the Corporation did not engage in
any hedging activities. As of the date of this MD&A, the Corporation did not
have any production hedged under commodity contracts.
    Rolling Thunder recognized other revenues of $244,861 for the eight
months ended December 31, 2006. Other revenues consisted of royalty
adjustments associated with prior periods in the amount of $152,776. The
remaining balance of $92,085 consisted of interest earned on short-term
investments and marketing fees charged to working interest partners.

    
    Royalties

    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Crown royalties,
     net of ARTC      $  1,710,921  $  1,415,074  $  1,137,052  $    458,240
    Overriding and
     freehold royalties    736,909     1,040,298       430,866       325,039
    -------------------------------------------------------------------------
    Total             $  2,447,830  $  2,455,372  $  1,567,918  $    783,279
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    As a percentage
     of oil and natural
     gas revenue               28%           27%           30%           31%
    -------------------------------------------------------------------------
    Royalties per boe $      14.02  $      14.53  $      15.37  $      18.35
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Royalties include crown, overriding and freehold royalties, offset by
Alberta Royalty Tax Credits ("ARTC"). Rolling Thunder's royalties were
$2,447,830, or 28 percent of oil and natural gas revenues for the eight months
ended December 31, 2006, compared to $2,445,372, or 27 percent of oil and
natural gas revenues for the year ended April 30, 2006. For the quarter ended
December 31, 2006, royalties expense was $1,567,918, or 30 percent of oil and
natural gas revenues, compared to $783,279, or 31 percent of oil and natural
gas revenues for the three months ended January 31, 2006.
    Overall, royalties as a percentage of oil and natural gas revenues
increased by one percent for the eight months and decreased by one percent for
the three months ended December 31, 2006 compared to the year ended April 30,
2006 and the quarter ended January 31, 2006. Overriding and freehold
royalties, as a percentage of oil and natural gas revenues, for the eight and
three months ended December 31, 2006, decreased to eight percent for the eight
months and quarter ended December 31, 2006 compared to 11 percent and
13 percent for the year ended April 30, 2006 and the three months ended
January 31, 2006, respectively. The decreases resulted from an increase in
allowable deductions in the calculation of gross overriding royalties in the
current year and quarter. These decreases were offset by increases in crown
royalties, net of ARTC, as a percentage of oil and natural gas revenues, of
four percent for the same periods, respectively. The increases were due to the
maximum eligible royalty limit under the ARTC program. Under the program, a
Corporation was eligible to receive a refund for eligible crown royalties paid
to the Alberta government up to a maximum allowable limit. The Corporation's
change in fiscal and taxation year resulted in the pro-ration of the allowable
limit based on eight months.
    On September 30, 2006, the Alberta government announced the elimination
of the ARTC program effective January 1, 2007. As a result of this
announcement, the Corporation will not receive ARTC refunds subsequent to
January 1, 2007. The ARTC refund was calculated at 25 percent of eligible
crown royalties. Rolling Thunder recorded ARTC of $335,616 for the eight
months ended December 31, 2006 compared to $435,341 for the year ended
April 30, 2006.

    
    Operating Expenses

    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Operating
     expenses         $  1,004,410  $  1,289,378  $    420,595  $    249,392
    -------------------------------------------------------------------------
    Operating
     expenses
     per boe          $       5.75  $       7.63  $       4.12  $       5.84
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Operating expenses decreased to $1,004,410 for the eight months ended
December 31, 2006 compared to $1,289,378 for the year ended April 30, 2006.
For the quarter, operating expenses increased 69 percent to $420,595 compared
to $249,392 for the three months ended January 31, 2006. For the eight months,
Rolling Thunder experienced increased production volumes compared to the year
ended April 30, 2006; however, overall operating expenses decreased as a
result of cost savings realized in the Corporation's Teepee Creek area,
discussed in the next paragraph. The quarter over quarter increase was due to
significantly increased production during the current quarter compared to the
quarter ended January 31, 2006, partially offset by the Teepee Creek area
costs savings.
    For the eight month period ended December 31, 2006, operating expenses
per boe decreased 25 percent to $5.75 per boe compared to $7.63 per boe for
the year ended April 30, 2006. For quarter ended December 31, 2006, operating
expenses per boe decreased 29 percent to $4.12 per boe compared to $5.84 per
boe for the quarter ended January 31, 2006. The decreases in per boe operating
costs for the eight months and quarter ended December 31, 2006 were primarily
due to operating cost savings realized as a result of the centralization of
operations at Teepee Creek through the construction of an oil battery and
increased sales volumes for the eight months and quarter ended December 31,
2006 compared to the year ended April 30, 2006 and the three months ended
January 31, 2006, respectively.

    
    Transportation Expenses

    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Transportation
     expenses         $    418,925  $    290,704  $    312,809  $     82,614
    -------------------------------------------------------------------------
    Transportation
     expenses per boe $       2.40  $       1.72  $       3.07  $       1.94
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Transportation expenses increased to $418,925 and $312,809 for the eight
and three months ended December 31, 2006, respectively, compared to $290,704
and $82,614 for the year ended April 30, 2006 and three months ended
January 31, 2006, respectively. The increases were attributable to increased
volumes of oil transported during the eight months and quarter, partially
offset by reduced per unit expenses due to the Corporation entering into a
new, more favourable, transportation agreement related to Teepee Creek.
    Transportation expenses on a per boe basis increased 40 percent to
$2.40 per boe and 58 percent to $3.07 per boe for the eight and three months
ended December 31, 2006, respectively, compared to $1.72 per boe and $1.94 per
boe for the year ended April 30, 2006 and three months ended January 31, 2006,
respectively. The increases were primarily due to the significant increase in
oil production resulting from the new Teepee Creek wells that came on
production during the eight and three months ended December 31, 2006.
Transportation expenses related to oil hauling compared to natural gas
pipeline transportation are typically higher. Both the year-to-date and
quarterly increases in per boe transportation costs were partially offset by
the reduced per unit costs related to the new transportation agreement
discussed previously.

    
    Operating Netback Information

    -------------------------------------------------------------------------
    (per boe)         Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Petroleum and
     natural gas
     revenue          $      50.92  $      54.24  $      50.81  $      59.79
    Royalties                14.02         14.53         15.37         18.35
    Operating expenses        5.75          7.63          4.12          5.84
    Transportation
     expenses                 2.40          1.72          3.07          1.94
    -------------------------------------------------------------------------
    Operating netback $      28.75  $      30.36  $      28.25  $      33.66
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Rolling Thunder's operating netback decreased five percent to $28.75 per
boe and 16 percent to $28.25 per boe for the eight and three month periods
ended December 31, 2006, respectively, from $30.36 per boe and $33.66 per boe
for the year ended April 30, 2006 and quarter ended January 31, 2006,
respectively. The decreases were primarily the result of lower average
commodity prices and increased transportation expenses per boe, partially
offset by lower royalties and operating expenses per boe during the eight and
three months ended December 31, 2006.

    
    General and Administrative ("G&A") Expenses

    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Gross G&A
     expenses         $  1,600,378  $  1,822,982  $    772,018  $    650,403
    Overhead recovery     (239,385)      (57,076)      (92,724)       (1,542)
    -------------------------------------------------------------------------
    Net G&A expenses  $  1,360,993  $  1,765,906  $    679,294  $    648,861
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    G&A expenses
     per boe          $       7.80  $      10.45  $       6.66  $      15.20
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    G&A expenses, net of recoveries for the eight months ended December 31,
2006 decreased to $1,360,993 ($7.80 per boe) from $1,765,906 ($10.45 per boe)
for the year ended April 30, 2006. The decrease was due to reduced management
and related salary expenses incurred for the eight month period ended
December 31, 2006 compared to the full year ended April 30, 2006, partially
offset by increased staffing costs associated with new hires during the year
as a result of the growth of Rolling Thunder. The decrease was also
attributable to severance payments of approximately $340,000 recorded in the
prior year ended April 30, 2006 related to executive severance expenses
incurred upon amalgamation with San Telmo Energy Ltd. In addition, management
fees and directors' fees were not incurred in the eight months ended
December 31, 2006, whereas for the year ended April 30, 2006, management fees
and directors' fees of approximately $190,000 were paid to San Telmo
management and directors. These aggregate decreases were partially offset by
increased professional fees related to audit, design and legal services of
approximately $150,000, as well as increased professional engineering expenses
of approximately $110,000 during the eight months ended December 31, 2006
compared to the year ended April 30, 2006.
    G&A expenses, net of recoveries for the three month period ended
December 31, 2006 increased to $679,294 ($6.66 per boe) from $648,861
($15.20 per boe) for the three month period ended January 31, 2006. The
increase was partly attributable to increased professional fees for audit,
design and legal services accrued in the quarter related to the preparation of
period end financial statements and other annual reports. During the three
months ended December 31, 2006, the Corporation also recorded annual bonuses
of $101,000. These increases were partially offset by reduced management and
related salary expenses of approximately $240,000 compared to the three months
ended January 31, 2006, and approximately $340,000 which was recorded in the
quarter ended January 31, 2006 related to executive severance expenses, as
discussed previously.

    Interest Expense

    Rolling Thunder incurred interest expense of $82,673 for the eight months
ended December 31, 2006 compared to $164,459 for the year ended April 30,
2006. The reduction in interest expense resulted primarily from reduced
interest charges related to outstanding loan balances during the period
compared to the year ended April 30, 2006. Rolling Thunder accrued interest
expense of $66,466 for the eight months ended December 31, 2006 compared to
$61,575 for the year ended April 30, 2006 related to unspent qualified
expenditures on flow-through share commitments discussed further in the
"Income and Other Taxes" section of this MD&A. Cash interest paid was $16,207
for the eight months ended December 31, 2006 compared to $102,884 in the prior
year, which related to interest incurred on outstanding loan balances.

    Stock-based Compensation

    The Corporation has a stock-based compensation plan granting directors,
officers, employees of, and consultants to, Rolling Thunder options to
purchase Class A common shares of the Corporation. The Corporation recorded
stock-based compensation expense of $1,318,524 and $218,018 for the eight
months and quarter ended December 31, 2006, respectively, compared to
$1,103,985 and $401,595 for the year ended April 30, 2006 and three months
ended January 31, 2006, respectively. The year-to-date increase from prior
year was due to additional stock-based compensation expense being recognized
in the current year as a result of the issuance of 1,095,000 stock options, at
a price of $1.67 per option, on May 1, 2006, the issuance of 275,000 options,
at a price of $1.32, on June 22, 2006, and the issuance of 655,000 stock
options, at a price of $1.51 per option, on August 30, 2006, to directors,
officers, employees of, and consultants to, Rolling Thunder to acquire Class A
common shares of the Corporation. The quarter over quarter decrease is the
result of the timing of recognition of stock-based compensation expense
related to stock option grants issued in prior years. Rolling Thunder
recognized $389,500 related to the vesting of options issued by San Telmo in
prior periods to directors, officers, employees of, and consultants to, San
Telmo for the quarter ended January 31, 2006. These options were fully vested
as at January 31, 2006 and therefore, no stock-based compensation expense
relating to these options was recognized during the quarter ended December 31,
2006.

    
    Depletion, Depreciation and Accretion ("DD&A")

    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Depletion         $  2,675,562  $  3,614,556  $  1,407,086  $    595,906
    Depreciation            18,827        10,941        10,383         7,781
    Accretion               19,712         4,390         9,342         2,692
    -------------------------------------------------------------------------
    Total             $  2,714,101  $  3,629,887  $  1,426,811  $    606,379
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    DD&A per boe      $      15.55  $      21.48  $      13.99  $      14.21
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Depletion is calculated based on depletable capital expenditures, future
development costs of proved reserves, production rates and proved petroleum
and natural gas reserves. Rolling Thunder records asset retirement obligations
based on the present value of estimated remediation, reclamation and
restoration costs associated with its facilities, including well sites and
pipelines. The liability is increased each reporting period due to the passage
of time through the recording of accretion expense.
    Rolling Thunder recorded DD&A expense of $2,714,101 ($15.55 per boe) for
the eight months ended December 31, 2006 compared to $3,629,887 ($21.48 per
boe) for the year ended April 30, 2006. The decrease resulted from large
additions to proved reserves during the year and decreased future development
costs related to proved undeveloped reserves, partially offset by increased
capitalized costs included in the determination of depletable capital costs,
which resulted from increased drilling activity during the eight months ended
December 31, 2006 compared to the year ended April 30, 2006.
    Rolling Thunder recorded DD&A expense of $1,426,811 ($13.99 per boe) for
the three months ended December 31, 2006 compared to $606,379 ($14.21 per boe)
for the quarter ended January 31, 2006. The increase was primarily due to
production increasing 139 percent compared to the three months ended
January 31, 2006 and increased capitalized costs included in the determination
of depletable capital costs, which resulted from increased drilling activity
during the quarter. This was partially offset by additional proved reserve
additions in the Teepee Creek area and decreased future development costs
related to proved undeveloped reserves during the quarter ended December 31,
2006 compared to the three months ended January 31, 2006.
    The Corporation excluded from its depletion and depreciation calculation
costs associated with undeveloped land and seismic of $1,816,092 (April 30,
2006 - $1,855,151), as well as an estimated salvage value of developed
property and facilities of $1,016,618 (April 30, 2006 - $300,000) and included
future development costs associated with proved undeveloped reserves of
$3,690,200 (April 30, 2006 - $7,981,700).

    Income and Other Taxes

    In March 2006, Rolling Thunder renounced $9,000,000 of flow-through
obligations with an effective date of December 31, 2005 as a result of the
flow-through obligations associated with the Class A common shares and Class B
common shares issued on a flow-through basis on Rolling Thunder's initial
public offering in June 2005. The Corporation recognized a future income tax
liability in the amount of $3,025,800 in relation to the renunciation of these
flow-through expenses. The Corporation accrues interest to Canada Revenue
Agency on flow-through funds renounced in 2005 that remain unexpended at the
end of each month in 2006. As at December 31, 2006, the Corporation had
fulfilled the obligation and incurred $9,000,000 of eligible expenditures. The
Corporation recognized interest expense related to the unexpended qualifying
expenditures of $66,466 during the eight months ended December 31, 2006.
    On May 18, 2006, the Corporation closed a private placement of 1,497,000
Class A common shares at a price of $1.67 per Class A common share totaling
$2,499,990; 1,098,951 Class A common shares issued on a flow-through basis
eligible for renunciation of Canadian Development Expenses ("CDE") at a price
of $1.82 per CDE flow-through share totaling $2,000,091; and 2,381,000 Class A
common shares issued on a flow-through basis eligible for renunciation of
Canadian Exploration Expenses ("CEE") at a price of $2.10 per CEE flow-through
share totaling $5,000,100. Total gross proceeds of the private placement were
$9,500,181. As a result, the Corporation had $2,000,091 of CDE qualifying
expenditures to incur by December 31, 2006 and $5,000,100 of CEE qualifying
expenditures to incur by December 31, 2007. As at December 31, 2006 the
Corporation had fulfilled the CDE expenditures requirement of $2,000,091. In
addition, Rolling Thunder had incurred $421,089 of qualifying CEE expenditures
and had $4,579,011 of CEE expenditures remaining to be incurred by
December 31, 2007 in order to fulfill its CEE flow-through commitment. The
income tax deductions related to the total CDE and CEE flow-through
expenditures of $7,000,191 were renounced in February 2007 to the CDE and CEE
flow-through share subscribers with an effective date of December 31, 2006.
    The provision for income taxes differs from the amount obtained by
applying the combined federal and provincial income tax rate for 2006 of
32.10 percent to income before income taxes. The difference is primarily due
to non-deductible crown charges, DD&A and stock-based compensation and
resource allowance deductions deductible for tax purposes.

    Tax Pools

    The table below presents Rolling Thunder's estimated tax pools, net of
the $9,000,000 related to the flow-through share obligations that were
renounced in March 2006.

    
    -------------------------------------------------------------------------
                                                 December 31,  Rate of Claim
                                                        2006             (%)
    -------------------------------------------------------------------------
    Canadian exploration expense                $  6,335,292             100
    Canadian development expense                   5,444,149              30
    Canadian oil and natural gas
     property expense                              2,363,056              10
    Undepreciated Capital Cost                     5,690,106          20-100
    Share issue costs                              1,259,083              20
    Cumulative Eligible Capital                      176,131               7
    Non-capital losses                               281,238             100
    -------------------------------------------------------------------------
    Total                                       $ 21,549,055
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Corporation issued CDE and CEE flow-through shares on May 18, 2006
for $7,000,191. These expenditures were renounced in February 2007 and have
not been reflected in the determination of tax pools.

    Net Income

    Rolling Thunder recorded a net loss of $646,919, or $0.017 per basic and
diluted share, for the eight months ended December 31, 2006 compared to net
income of $88,850, or $0.003 per basic and diluted share, for the year ended
April 30, 2006.
    The Corporation recorded net income of $192,111, or $0.005 per basic and
diluted share, for the three months ended December 31, 2006 compared to net
income of $369,657, or $0.014 per basic and diluted share, for the three
months ended January 31, 2006.
    The factors contributing to the net loss and net income for the eight and
three months ended December 31, 2006, respectively, are discussed in previous
sections of this MD&A.

    
    FUNDS FROM OPERATIONS

    -------------------------------------------------------------------------
                      Eight months                Three months  Three months
                             ended    Year ended         ended         ended
                       December 31,     April 30,  December 31,   January 31,
                              2006          2006          2006          2006
    -------------------------------------------------------------------------
    Funds from
     operations       $  3,819,855  $  3,363,906  $  2,156,340  $    771,731
      Per basic and
       diluted share  $      0.098  $      0.129  $      0.055  $      0.030
      Per boe         $      21.88  $      19.90  $      21.14  $      18.08
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Funds from operations increased to $3,819,855 and $2,156,340 for the
eight and three months ended December 31, 2006, respectively, compared to
$3,363,906 and $771,731 for the year ended April 30, 2006 and three months
ended January 31, 2006, respectively. The year-to-date and quarter over
quarter increases in funds from operations is due to increased sales volumes
partially offset by lower realized average commodity prices and higher G&A
expenses. On a per boe basis, funds from operations increased to $21.88 per
boe and $21.14 per boe for the eight and three months ended December 31, 2006,
respectively, compared to $19.90 per boe and $18.08 per boe for the year ended
April 30, 2006 and the three months ended December 31, 2006, respectively.

    
    CAPITAL EXPENDITURES

    -------------------------------------------------------------------------
    (in                Three       Three         Two       Eight
     Canadian $)      months      months      months      months        Year
                       ended       ended       ended       ended       ended
                    December   September     June 30,   December    April 30,
                    31, 2006    30, 2006        2006    31, 2006        2006
    -------------------------------------------------------------------------
    Land              89,489       4,895     149,212     243,596   1,058,237
    Geological and
     geophysical      17,897     461,094   1,585,582   2,064,573      99,290
    Drilling and
     completions   3,509,413   2,902,591   2,828,612   9,240,616   5,303,535
    Tie-ins and
     facilities    1,281,590   1,085,360      58,096   2,425,046   1,076,873
    Workovers              -     197,707           -     197,707           -
    Acquisitions           -           -           -           -   1,628,090
    -------------------------------------------------------------------------
                   4,898,389   4,651,647   4,621,502  14,171,538   9,166,025
    Office
     furniture and
     equipment        37,347       4,855       1,437      43,639       9,387
    -------------------------------------------------------------------------
    Total          4,935,736   4,656,502   4,622,939  14,215,177   9,175,412
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Rolling Thunder's capital expenditures for the eight months ended
December 31, 2006 were $14,215,177, an increase of 55 percent from the
$9,175,412 spent during the year ended April 30, 2006. The Corporation spent
$235,815 on acquiring two sections of land in the Teepee Creek area;
$1,931,770 on seismic costs for the Teepee Creek 3D shoot and McLeod 2D
purchase; and $9,147,653 on drilling, completion and workover activities for
Teepee Creek 03-11, 06-03, 06-10, 06-18, 08-03, 03/08-16, 14-03, 14-35 and  
16-34, Gordondale 16-22 and 02/14-22, and McLeod 06-08. In addition, Rolling
Thunder spent $997,473 on facilities costs for the Teepee Creek 06-10 and   
14-03 wells, and $1,427,524 on the construction of the Teepee Creek 06-03 oil
battery.
    Capital expenditures for the three months ended December 31, 2006 were
$4,935,736. The Corporation spent $89,489 on acquiring a quarter section of
land at McLeod; $17,897 on seismic for the McLeod area; $3,416,450 on drilling
and completion activities for Teepee Creek 06-03, 06-18, 08-03, 03/08-16,   
14-03 and 14-35, and McLeod 06-08; $782,448 on facilities and equipping costs
for Teepee Creek 16-34 and Gordondale 16-22; and $499,142 on separators for
Teepee Creek 06-10 and 14-03, and on the expansion and upgrade of the Teepee
Creek 06-03 oil battery.

    
    SUMMARY OF EIGHT MOST RECENTLY COMPLETED CONSOLIDATED QUARTERLY RESULTS

    -------------------------------------------------------------------------
    (in Canadian $)    December 31, September 30,      June 30,     April 30,
                              2006          2006        2006(1)         2006
    -------------------------------------------------------------------------
    Revenues, net of
     royalties           3,626,397     2,326,726       733,733     1,157,583
    Net income (loss)      192,111      (130,861)     (708,169)   (1,025,710)
    Net income (loss)
      Per share, basic
       and diluted           0.005        (0.003)       (0.019)       (0.044)
    Funds from
     operations          2,156,340     1,381,011       282,504       188,195
    Funds from
     operations
      Per share, basic
       and diluted           0.053         0.035         0.010         0.008
    Capital
     expenditures        4,935,736     4,656,502     4,622,939     2,308,900
    Total assets        28,561,526    27,221,046    24,168,740    15,225,059
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                        January 31,   October 31,      July 31,     April 30,
                              2006        2005(2)         2005          2005
    -------------------------------------------------------------------------
    Revenues, net of
     royalties           1,786,413     2,143,109     1,787,248     1,539,318
    Net income (loss)      369,657       676,555        68,348      (310,601)
    Net income (loss)
      Per share, basic
       and diluted           0.014         0.030         0.003        (0.016)
    Funds from operations  771,731     1,400,920     1,003,060       937,489
    Funds from operations
      Per share, basic
       and diluted           0.030         0.063         0.050         0.048
    Capital
     expenditures        4,263,525     1,642,137       960,850       266,250
    Total assets        22,898,607    12,239,978    10,569,999     9,253,036
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Rolling Thunder changed its fiscal year-end to December 31 from
        April 30. The two months ended June 30, 2006 represent the second
        quarter of the new fiscal year.

    (2) For the quarter ended October 31, 2005 and quarters presented prior
        thereto, basic and diluted per share amounts have been retroactively
        adjusted to reflect the effect of the issue of one Class A common
        share for two common shares, upon amalgamation of Rolling Thunder
        Exploration Ltd. with San Telmo Energy Ltd.
    

    Identifiable trends in Rolling Thunder's business in the past eight
quarters reflect continued exploration and development of petroleum and
natural gas properties as well as increased prices of petroleum and natural
gas sold by the Corporation from the quarter ended April 30, 2005 to the
quarter ended April 30, 2006.
    The decrease in revenues and net income in the quarter ended April 30,
2006 and the subsequent quarter ended June 30, 2006 reflect lower average
sales volumes compared to previous quarters as a result of third party
compressor failures and production curtailments at McLeod, lost production
resulting from the Teepee 04-10 well, which was shut-in in January 2006 and
prior period adjustments from third party aggregators recorded in the quarter
ended April 30, 2006.
    The increase in revenues and decrease in net loss/increase in net income
for the three months ended September 30, 2006 and December 31, 2006 reflect a
trend of increased drilling success and the Corporation's ability to bring
production on-stream. The increase in revenues and decrease in net
loss/increase in net income were partially offset by decreases in average
commodity prices realized in these quarters.
    The quarter ended December 31, 2006 is discussed in detail throughout
this MD&A.

    LIQUIDITY AND CAPITAL RE

SOURCES Liquidity and Capital Resources Liquidity risks arise from the use of liquid financial resources to meet the day-to-day funding requirements of the Corporation and in the management of assets and liabilities in order to maintain an optimal capital structure. Rolling Thunder manages liquidity risk to meet its financial obligations and commitments in a cost effective manner and to fund growth and expansion opportunities that are recognized by the Corporation. Sources and Uses of Cash The Corporation believes that its access to debt and equity markets, unutilized bank credit facilities and funds generated from operations will provide it with sufficient liquidity and capital resources to fund existing operations and commitments, as well as expansion and development opportunities in 2007. There is no assurance, however, that debt and equity financing will be available on terms acceptable to the Corporation to meet its capital requirements. ------------------------------------------------------------------------- Summarized statement of cash flow Eight months ended Year ended December 31, April 30, 2006 2006 ------------------------------------------------------------------------- Funds generated from operations $ 3,819,855 $ 3,363,906 Change in working capital (15,003) (1,213,301) ------------------------------------------------------------------------- Net cash provided by operations 3,804,852 2,150,605 Net cash provided by (used in) financing activities 8,888,057 (6,149,502) Net cash provided by (used in) investing activities (12,703,950) 3,951,464 Decrease in cash (11,041) (47,433) Cash, beginning of period 11,041 58,474 Cash, end of period - 11,041 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Funds from operations Funds from operations were $3,819,855 for the eight months ended December 31, 2006 compared to $3,363,906, as discussed previously in this MD&A. Financing activities On May 18, 2006, the Corporation closed a private placement of 1,497,000 Class A common shares at a price of $1.67 per Class A common share totaling $2,499,990; 1,098,951 Class A common shares issued on a flow-through basis eligible for renunciation of CDE at a price of $1.82 per CDE flow-through share totaling $2,000,091; and 2,381,000 Class A common shares issued on a flow-through basis eligible for renunciation of CEE at a price of $2.10 per CEE flow-through share totaling $5,000,100. Total gross proceeds of the private placement were $9,500,181. Upon the amalgamation of Rolling Thunder and San Telmo on January 12, 2006, the Corporation converted 8,333,333 common shares of San Telmo into 8,333,333 preferred shares at a stated value of $0.60 per preferred share. These shares were redeemed by the Corporation for aggregate cash consideration of $5,000,000. Investing activities Rolling Thunder incurred $14,215,177 of capital expenditures for the eight months ended December 31, 2006 compared to $7,547,322 (excluding costs associated with acquisitions of $1,628,090) for the year ended April 30, 2006. On January 12, 2006, the Corporation issued 10,820,000 Class A common shares and 810,000 Class B common shares in exchange for the outstanding Class A and Class B common shares of Rolling Thunder prior to amalgamation. The values assigned to the Class A and Class B common shares issued were $11,552,844 and $8,100, respectively (see Note 3 of the accompanying audited consolidated financial statements). ------------------------------------------------------------------------- Working capital December 31, April 30, As at 2006 2006 ------------------------------------------------------------------------- Current assets $ 3,462,732 $ 1,988,813 Current liabilities $ 6,707,127 $ 4,409,751 Working capital deficiency $ (3,244,395) $ (2,420,938) Current ratio 0.52 0.45 ------------------------------------------------------------------------- ------------------------------------------------------------------------- As at December 31, 2006, the Corporation had a working capital deficiency of $3,244,395 compared to a working capital deficiency of $2,420,938 as at April 30, 2006. The increase in the working capital deficiency of the Corporation is primarily due to increased accounts payable related to capital expenditures from drilling, completions, tie-ins and facilities. Rolling Thunder generated funds from operations of $3,819,855 for the eight months ended December 31, 2006 and anticipates increased funds from operations in 2007 relating to additional production from new wells drilled in the eight months ended December 31, 2006 and new wells to be drilled in the upcoming 2007 fiscal year. Rolling Thunder has a planned capital program of approximately $22 million for 2007 and anticipates being in a working capital deficiency position throughout 2007, should an equity financing not be completed during that year. The Corporation plans on meeting future working capital deficiencies through increased cash flow from operations and funding its capital requirements through access to equity markets and its currently unutilized credit facilities detailed in the following table. ------------------------------------------------------------------------- Amount Amount Outstanding Available at at December 31, December 31, Debt instruments Total Amount 2006 2006 ------------------------------------------------------------------------- Revolving operating demand bank loan $ 13,000,000 $ (450,000) $ 12,550,000 Non-revolving acquisition/ development loan 3,000,000 - 3,000,000 ------------------------------------------------------------------------- $ 16,000,000 $ (450,000) $ 15,550,000 ------------------------------------------------------------------------- ------------------------------------------------------------------------- For additional details of Rolling Thunder's credit facilities, see Note 5 of the accompanying audited consolidated financial statements. Rolling Thunder's management maintained a year-end debt to annualized fourth quarter funds from operations ratio of 0.38. Management's objective is to maintain a debt to funds from operations ratio of less than 1.0 for 2007. COMMITMENTS The Corporation was committed to spend $9,000,000 related to Rolling Thunder's initial public offering June 30, 2005 by December 31, 2006 on expenditures that qualify as CEE for income tax purposes. As at December 31, 2006, the Corporation fulfilled this commitment and had incurred $9,000,000 of eligible expenditures. Pursuant to the private placement on May 18, 2006, Rolling Thunder was committed to spend $2,000,091 by December 31, 2006 on expenditures that qualified as CDE and $5,000,100 by December 31, 2007 on expenditures that will qualify as CEE. As at December 31, 2006, the Corporation had fulfilled its CDE commitment. In addition, the Corporation had incurred $421,089 of eligible CEE expenditures and had $4,579,011 CEE expenditures remaining to be incurred by December 31, 2007 in order to fulfill its CEE commitment. On September 1, 2006, the Corporation entered into a sublease for office space for the term of January 1, 2007 to March 31, 2008 after which, the lease will be month to month until December 31, 2011. The estimated amount due under the sublease, including rent and estimated related operating expenses and taxes is $147,710. On October 5, 2006, the Corporation entered into a Farm-out Participation and Option Agreement with an independent public oil and gas company whereby the Corporation was committed to spud a test well on or before February 1, 2007. Subsequent to December 31, 2006, the commitment date to spud the test well was extended and the commitment was fulfilled on February 24, 2007. OUTSTANDING SHARE DATA ------------------------------------------------------------------------- April 5, December 31, April 30, As at 2007 2006 2006 ------------------------------------------------------------------------- Class A common shares 34,724,737 34,724,737 28,851,120 Class B common shares 810,000 810,000 810,000 Class A common share options 2,550,000 2,550,000 3,040,000 Class A common share warrants - - 650,000 ------------------------------------------------------------------------- ------------------------------------------------------------------------- OFF BALANCE SHEET ARRANGEMENTS The Corporation is not party to any contractual arrangement, under which an unconsolidated entity may have any obligation under certain guarantee contracts, a retained or contingent interest in assets transferred to an unconsolidated entity, or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets. The Corporation has no obligation under derivative instruments, nor under a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the registrant, or engages in leasing, hedging or research and development services with the registrant. TRANSACTIONS WITH RELATED PARTIES December 31, 2006 During the eight months ended December 31, 2006, the Corporation incurred $124,999 related to consulting fees to a private holding and geological services company that provided geological services to the Corporation, of which an officer of the Rolling Thunder is an officer and controlling shareholder. In addition, Rolling Thunder paid $111,500 related to engineering consulting fees provided by an engineering services company, of which an officer of Rolling Thunder is an officer and controlling shareholder. These transactions were recorded as general and administrative expenses during the eight months ended December 31, 2006. As at December 31, 2006, accounts payable and accrued liabilities included a balance of $71,500 related to these transactions. During the eight months ended December 31, 2006, the Corporation incurred $278,807 related to gross overriding royalties ("GOR") to a private holding and geological services company that provided geological services to the Corporation, of which an officer of the Corporation is an officer and controlling shareholder. This private holding and geological services company has a three percent GOR on certain Teepee Creek, Boundary Lake and Gold Creek properties, a two percent GOR on the McLeod and Gordondale properties and a one percent GOR on the Mahaska property. These transactions were recorded as royalty expenses during the eight months ended December 31, 2006. As at December 31, 2006, accounts payable and accrued liabilities included a balance of $39,929 related to these transactions. April 30, 2006 Prior to amalgamation, San Telmo paid directors' fees of $60,000 for the year ended April 30, 2006 to directors and/or companies controlled by directors of San Telmo. Management fees of $129,960 were paid to a director and officer of San Telmo. San Telmo also paid professional fees of $29,595 during the year to a legal firm, in which a director of San Telmo was a partner. In addition, rent of $8,400 during the year was paid to a company controlled by a director of San Telmo. Upon amalgamation, the Corporation paid approximately $340,000 related to severance to officers of San Telmo. The Corporation paid $16,500, with respect to the termination of a Geological and Project Management Services Agreement, to a private holding and geological services company that provided geological consulting services to San Telmo, of which an officer and director of the Corporation is an officer and controlling shareholder. In addition, $15,000 was paid to the same private holding and geological services company to satisfy a change of control provision with respect to gross overriding royalties in the aforementioned Agreement with San Telmo. Subsequent to amalgamation, the Corporation paid $58,512 related to gross overriding royalties and $54,322 related to consulting fees to a private holding and geological services company that provided geological services to the Corporation, of which an officer and director of the Corporation is an officer and controlling shareholder. This private holding and geological services company has a three percent GOR on certain Teepee Creek, Boundary Lake and Gold Creek properties, a two percent GOR on the McLeod and Gordondale properties and a one percent GOR on the Mahaska property. The Corporation paid $21,000 in financial consulting fees to a private consulting firm, of which an officer of the Corporation is an officer and shareholder. These transactions were in the normal course of operations and have been valued at the exchange amount, which is the amount of consideration established and agreed to by the related parties. FINANCIAL AND OTHER INSTRUMENTS The Corporation's financial instruments consist of cash and cash equivalents, accounts receivable and accrued receivables, bank indebtedness and accounts payable and accrued liabilities. In addition, Rolling Thunder engages in the sale of energy commodities. These instruments and the sale of energy commodities result in exposures to credit, interest rate, energy commodity prices and foreign exchange rate risks. Management of Rolling Thunder may use financial instruments to reduce corporate risk in certain situations. As of the date of this MD&A, the Corporation did not have any hedging commitments in place. RISK FACTORS The oil and natural gas industry is subject to numerous risks that can affect the amount of cash flow from operating activities and the ability to grow. The Corporation manages its operations in a manner intended to minimize exposure to these risks. These risks include but are not limited to: - Fluctuations in commodity prices, exchange rates and interest rates; - Government and regulatory risk in respect of royalty and income tax regimes; - Regulatory risks related to production, exploration and development, pipeline and facilities construction; - Operational risks that may affect the quality and recoverability of reserves or cause injury or damage to persons or property; - Geological risk associated with accessing and recovering new quantities of reserves; - Transportation risk in respect of the ability to transport oil and natural gas to market; - Capital markets risk and the ability to finance future growth; - Weather risk in respect of the ability to enter and drill wells in wet areas; - Gas processing risk in respect of the ability to process gas into third party owned facilities; - Environmental risk in respect of the ability to remedy spills, releases or emissions of various substances produced in association with oil and gas operations; and - Human resources risk in respect of the ability to access and retain key personnel to ensure proper and timely execution of the Corporation's business plan and effectively manage operations. These and other risk factors are discussed in detail in the Corporation's Annual Information Form, which is available at www.sedar.com. The Corporation strives to minimize these business risks by: - Employing management and technical staff with extensive industry experience; - Adhering to a strategy of exploring in areas where it has technical expertise; - Maintaining a low cost structure; - Maintaining prudent financial leverage; - Operating to control timing and costs; and - Maintaining insurance in accordance with industry standards to address the risk of liability for pollution, blow-outs, property damage, personal injury and other hazards. Critical Accounting Estimates The Corporation's accounting policies are described in Note 2 to the accompanying audited consolidated financial statements. Certain accounting policies are identified as critical accounting policies because they require management to make judgments and estimates based on conditions and assumptions that are inherently uncertain. These accounting policies could result in materially different results should the underlying assumptions or conditions change. Management assumptions are based on factors that, in management's opinion, are relevant and appropriate. Management assumptions may change over time as operating conditions change. The Corporation's financial and operating results incorporate certain estimates including the following: Oil and Natural Gas Reserves The process of estimating reserves is complex. It requires significant judgments and decisions based on available geological, geophysical, engineering and economic data. Reserve estimates are based on current production forecasts, prices and economic conditions. These estimates may change substantially as additional data from ongoing development and production activities becomes available and as economic conditions impact oil and gas prices and costs. Rolling Thunder's properties are evaluated by independent petroleum engineering consultants. Impairment of Petroleum and Natural Gas Assets The Corporation is required to review the carrying value of all petroleum and natural gas assets for impairment. Impairment is indicated if the carrying value of the petroleum and natural gas assets exceeds the estimated undiscounted future net funds derived from operation and disposal of the assets. If impairment is indicated, then the amount by which the carrying amount exceeds the estimated fair value of the petroleum and natural gas assets is charged to earnings. In determining the undiscounted future net funds from operations and fair value of petroleum and natural gas assets, management makes estimates regarding reserves, production rates, prices, future costs and other relevant assumptions. Depletion Expense Rolling Thunder applies the full cost method of accounting for exploration and development costs. In accordance with this method of accounting, all costs related to the exploration and development of petroleum and natural gas properties are capitalized whether or not the activities funded were successful. The net capitalized costs and estimated future development costs less estimated salvage values and certain capitalized costs related to unproved properties is amortized using the unit-of-production method based on estimated proved oil and gas reserves. Costs related to unproved properties may be excluded from costs subject to depletion until proved reserves have been determined or the value of an unproved property is impaired and is then added to costs subject to depletion. Management reviews unproved properties for impairment quarterly and any impairment is transferred to the costs being depleted. Asset Retirement Obligations The Corporation is required to provide for future removal and site restoration costs. Management estimates these costs in accordance with existing laws, contracts or other policies. The fair value of the liability for the Corporation's asset retirement obligations is recorded in the period in which it is expected to be incurred, discounted to its present value using the Corporation's risk-adjusted interest rate and expected inflation rate. The offset to the liability is recorded in the carrying amount of property and equipment. The liability amount is increased each reporting period due to the passage of time and the amount of accretion is charged to earnings in the period. Revisions to the estimated timing of cash flows or to the original estimated undiscounted cost could also result in an increase or decrease to the obligation. Actual costs incurred upon settlement of the retirement obligation are charged against the obligation to the extent of the liability recorded. In calculating asset retirement obligations, management is required to make estimates and assumptions related to the future costs, inflation and credit-adjusted risk-free rates and the timing of future costs. For asset retirement obligations incurred in 2006, the Corporation used the following assumptions: current and future inflation rates of 2.0 percent based on government of Canada forecasts, risk-free interest rate based on the Bank of Canada's benchmark bonds with the corresponding maturity equal to the expected term of the asset retirement obligation and a credit premium for the Corporation of 4.0 percent. Stock-based Compensation Rolling Thunder applies the fair value method for valuing stock option grants. The fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model. In order to calculate the fair value of options granted, the following information is required: stock price at date of grant, exercise price of option, risk-free interest rate, volatility of the Corporation's stock price, expected life of the option, the expected annual dividend rate for future periods and vesting periods. Management is required to make assumptions regarding the risk-free interest rate, expected volatility of the Corporation's stock price, expected life, dividend rate and estimated number of options that will actually be exercised in future periods. For option grants during the eight months ended December 31, 2006, management assumed a risk-free interest rate based on Bank of Canada rates for bonds with a similar life as the options granted, calculated volatility based on the past trading history of the Corporation's shares, used an expected life of five years, a zero dividend rate as the Corporation does not declare dividends, and assumed that the full amounts vested at a particular future time period were exercised. Future Income Taxes The Corporation uses the liability method of accounting for income taxes. Temporary differences arising from the differences between the tax basis of an asset or liability and the carrying amount on the balance sheet are used to calculate future income tax assets or liabilities. Management is required to make assumptions regarding the timing of taxable income and interpretation of complex laws and regulations in calculating future income taxes. All tax filings are subject to audit and potential reassessment after the lapse of considerable time. Accordingly, the actual income tax asset or liability may differ significantly from that estimated and recorded by management. ACCOUNTING CHANGES Non-Monetary Transactions Effective for non-monetary transactions initiated in periods beginning on or after January 1, 2006, the new Handbook Section 3831 "Non-monetary Transactions" requires all non-monetary transactions to be measured at fair value, subject to certain exceptions. Commercial substance replaces culmination of the earnings process as the test for fair value measurement and is a function of the cash flows expected from the exchanged assets. Adopting the provisions of this standard in 2006 did not have an impact on Rolling Thunder's consolidated financial statements. Financial Instruments - Recognition and Measurement Effective for interim and annual financial statements beginning on or after October 1, 2006, the new Handbook Section 3855 "Financial Instruments - Recognition and Measurement" prescribes that all financial instruments within the scope of this standard, including derivatives, be included on a company's balance sheet. Contracts that can be settled by receipt or delivery of a commodity will also be included in the scope of the section. These financial instruments must be measured, either at their fair value or, in limited circumstances when fair value may not be considered the most relevant measurement method, at costs or amortized cost. It also specifies when gains and losses as a result of changes in fair value are to be recognized in the income statement. This new Handbook section will be adopted by Rolling Thunder as of January 1, 2007 on a prospective basis. The Corporation does not expect this new requirement to have an impact on Rolling Thunder's consolidated financial statements. Hedges Effective for interim and annual financial statements for fiscal years beginning on or after October 1, 2006, the new Handbook Section 3865 "Hedges" specifies the circumstances under which hedge accounting is permissible, how hedge accounting may be performed, and where impacts should be recorded. The provisions of this standard introduce three specific types of hedging relationships: fair value hedges, cash flow hedges and hedges of a net investment in self-sustaining foreign operations. This new Handbook section will be adopted by Rolling Thunder as of January 1, 2007 on a prospective basis. The Corporation does not expect this new requirement to have an impact on Rolling Thunder's consolidated financial statements unless the Corporation enters into hedging agreements in future periods. Comprehensive Income Effective for interim and annual financial statements for fiscal years beginning on or after October 1, 2006, the new Handbook Section 1530 "Comprehensive Income" requires that an enterprise present comprehensive income and its components in a separate financial statement that is displayed with the same prominence as other financial statements. The Section introduces a new requirement to present certain gains or losses temporarily outside net income. This Handbook section will be adopted by Rolling Thunder as of January 1, 2007 on a prospective basis. The Corporation does not expect this new requirement to have an impact on Rolling Thunder's consolidated financial statements. ROLLING THUNDER EXPLORATION LTD. (Formerly San Telmo Energy Ltd.) CONSOLIDATED BALANCE SHEETS (in Canadian dollars) ------------------------------------------------------------------------- December 31, April 30, 2006 2006 ------------------------------------------------------------------------- ASSETS Current assets Cash $ - $ 11,041 Accounts receivable and accrued receivables 2,935,449 1,407,030 Prepaid expenses and deposits 527,283 570,742 ------------------------------------------------------------------------- 3,462,732 1,988,813 Property, plant and equipment (Note 4) 25,098,794 13,236,246 ------------------------------------------------------------------------- $ 28,561,526 $ 15,225,059 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Current liabilities Bank indebtedness (Note 5) $ 458,951 $ 1,128,562 Accounts payable and accrued liabilities 6,248,176 3,281,189 ------------------------------------------------------------------------- 6,707,127 4,409,751 Future income taxes (Note 6) 899,900 702,800 Asset retirement obligations (Note 7) 746,913 385,441 ------------------------------------------------------------------------- 8,353,940 5,497,922 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital (Note 8) 18,845,732 13,785,702 Contributed surplus (Note 9) 1,169,743 3,423,330 Retained earnings (deficit) (Note 10) 192,111 (7,481,965) ------------------------------------------------------------------------- 20,207,586 9,727,067 ------------------------------------------------------------------------- $ 28,561,526 $ 15,225,059 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Commitments (Notes 8 and 15) See accompanying notes to the consolidated financial statements. Approved by the Board of Directors: (signed) "Keith Macdonald" (signed) "Raymond Smith" Keith Macdonald Raymond Smith Chairman & Director Director ROLLING THUNDER EXPLORATION LTD. (Formerly San Telmo Energy Ltd.) CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT) (in Canadian dollars) ------------------------------------------------------------------------- Eight months ended Year ended December 31, April 30, 2006 2006 ------------------------------------------------------------------------- REVENUE Oil and natural gas $ 8,889,825 $ 9,167,498 Royalties (2,447,830) (2,455,372) Other (Note 11) 244,861 162,227 ------------------------------------------------------------------------- 6,686,856 6,874,353 ------------------------------------------------------------------------- EXPENSES Operating 1,004,410 1,289,378 Transportation 418,925 290,704 General and administrative 1,360,993 1,765,906 Short-term interest 82,673 164,459 Stock-based compensation (Note 8) 1,318,524 1,103,985 Depletion, depreciation and accretion 2,714,101 3,629,887 ------------------------------------------------------------------------- 6,899,626 8,244,319 ------------------------------------------------------------------------- Loss before income taxes (212,770) (1,369,966) Future income tax recovery (expense) (Note 6) (434,149) 1,458,816 ------------------------------------------------------------------------- Net income (loss) (646,919) 88,850 Deficit, beginning of period (7,481,965) (7,570,815) Elimination of deficit (Note 10) 8,320,995 - ------------------------------------------------------------------------- Retained earnings (deficit), end of period $ 192,111 $ (7,481,965) ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) per share (Note 12) Basic $ (0.017) $ 0.003 Diluted $ (0.017) $ 0.003 ------------------------------------------------------------------------- ------------------------------------------------------------------------- See accompanying notes to the consolidated financial statements. ROLLING THUNDER EXPLORATION LTD. (Formerly San Telmo Energy Ltd.) CONSOLIDATED STATEMENTS OF CASH FLOWS (in Canadian dollars) ------------------------------------------------------------------------- Eight months ended Year ended December 31, April 30, 2006 2006 ------------------------------------------------------------------------- Cash provided by (used in): Operating activities Net income (loss) $ (646,919) $ 88,850 Items not involving cash: Depletion, depreciation and accretion 2,714,101 3,629,887 Stock-based compensation 1,318,524 1,103,985 Future income tax expense (recovery) 434,149 (1,458,816) ------------------------------------------------------------------------- 3,819,855 3,363,906 Change in non-cash working capital (Note 13) (15,003) (1,213,301) ------------------------------------------------------------------------- 3,804,852 2,150,605 Financing activities Decrease in bank indebtedness (669,611) (995,544) Issue of Class A common shares (Note 8) 9,500,181 - Share issue costs (Note 8) (705,082) - Cash received on exercise of warrants 24,600 262,400 Cash received on exercise of stock options 752,166 - Redemption of preferred shares - (5,000,000) Cancellation of Class A common shares (Note 8) - (415,740) Change in non-cash working capital (Note 13) (14,197) (618) ------------------------------------------------------------------------- 8,888,057 (6,149,502) Investing activities Expenditures on property, plant and equipment (14,215,177) (7,547,322) Cash acquired in business acquisition (Note 3) - 10,812,080 Amalgamation costs (Note 3) - (323,117) Change in non-cash working capital (Note 13) 1,511,227 1,009,823 ------------------------------------------------------------------------- (12,703,950) 3,951,464 Decrease in cash (11,041) (47,433) Cash, beginning of period 11,041 58,474 ------------------------------------------------------------------------- Cash, end of period $ - $ 11,041 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Supplemental cash flow information: ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interest paid $ 16,207 $ 102,884 Interest received $ 75,762 $ 32,406 ------------------------------------------------------------------------- ------------------------------------------------------------------------- See accompanying notes to the consolidated financial statements. ROLLING THUNDER EXPLORATION LTD. (Formerly San Telmo Energy Ltd.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------------------------------------- 1. NATURE OF BUSINESS On January 12, 2006 Rolling Thunder Exploration Ltd. ("ROL") completed an amalgamation with San Telmo Energy Ltd. ("STU"), a public junior oil and gas exploration company. STU was deemed the acquiring entity in the transaction. The amalgamated entity is a continuation of STU and continues operations under the name of Rolling Thunder Exploration Ltd. ("Rolling Thunder" or the "Corporation"). The Corporation's Class A and Class B common shares trade on the TSX Venture Exchange ("TSX-V"). In addition, the Class A common shares are also quoted in the U.S. The Corporation is engaged in the acquisition, exploration, development and production of petroleum and natural gas reserves in western Canada. In May 2006, the Corporation changed its fiscal year-end from April 30 to December 31. As a result of this change, these financial statements present financial information of the Corporation for the eight month period ended December 31, 2006 with the twelve month period ended April 30, 2006 presented as the comparative period. 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These financial statements are prepared by management in accordance with Canadian generally accepted accounting principles and are stated in Canadian dollars. Significant accounting policies are summarized below: Basis of consolidation On January 12, 2006 the Corporation dissolved its wholly-owned subsidiary, San Telmo Energy Inc. Prior to the dissolution the consolidated financial statements included the accounts of San Telmo Energy Ltd. and its wholly owned subsidiary, San Telmo Energy Inc. All inter-entity transactions have been eliminated on consolidation. Certain comparative figures have been reclassified to conform with current period presentation. Use of estimates The preparation of financial statements and related disclosures in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amounts of revenue and expenses during the period. Estimates are based on historical experience and on other assumptions that are believed at the time to be reasonable under circumstances. The actual results may differ from those previously estimated. Key areas where management has made complex or subjective judgments include fair value of certain assets, the accounting for depletion and depreciation, environmental and asset retirement obligations, stock-based compensation, purchase price allocations and income taxes. Joint ventures A substantial part of the Corporation's exploration and development activities are conducted jointly with others and accordingly, the financial statements reflect only the Corporation's proportionate interest in such activities. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank balances with banks and short-term investments with a maturity of 90 days or less at the time of issue. Property, plant and equipment a) The Corporation follows the Canadian full cost method of accounting for petroleum and natural gas operations, whereby costs of exploring for and developing petroleum and natural gas properties and related reserves are initially capitalized into a single Canadian cost center. Such costs include those related to lease acquisitions, geological and geophysical activities, lease rentals on non-producing properties, drilling of productive and non-productive wells, tangible production equipment, and that portion of general and administrative expenses directly attributable to exploration and development activities. Costs of acquiring unproved properties are initially excluded from the full cost pool and are assessed each reporting period to ascertain whether impairment has occurred. When proved reserves are assigned to the property or the property is considered to be impaired, the cost of the property or the amount of impairment is added to the full cost pool. Proceeds received from the disposal of properties are normally deducted from the full cost pool without recognition of a gain or loss. When a significant portion of properties are sold, a gain or loss is recorded and reflected in the statement of earnings. Depletion of petroleum and natural gas properties and depreciation of production equipment is calculated using the unit-of-production method based upon estimated proved reserves, before royalties, as determined by an independent engineer. For purposes of the calculation, natural gas reserves and production are converted to equivalent volumes of petroleum based upon relative energy content. The Corporation places a limit on the aggregate carrying value of property, plant and equipment (PP&E), which may be amortized against revenues of future periods ("ceiling test"). An impairment loss is recognized if the carrying value exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the Corporation's proved reserves. Cash flows are based on third party quoted forward prices, adjusted for the Corporation's contract prices and quality differentials. The cost of unproved properties that contain no probable reserves and have been excluded from depletion and depreciation are subject to a separate test for impairment. Upon recognition of impairment, the Corporation then measures the amount of impairment by comparing the carrying amounts of the PP&E to the fair value of the PP&E, which will usually be an amount equal to the estimated net present value of future net cash flows from proved plus probable reserves. A risk-free interest rate is used to calculate the Corporation's net present value of the future cash flows. b) Office furniture, equipment and leasehold improvements are recorded at cost, and are amortized under the declining balance method at the following rates: Office furniture and equipment 20% Computer hardware 30% Computer software 100% Leasehold improvements are amortized over the life of the lease. Asset retirement obligations The Corporation recognizes legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development or normal use of assets. A liability for the asset retirement obligation (ARO) is recognized when incurred, recorded at fair value and classified as a long-term liability in the balance sheet. When the liability is initially recorded, the entity will record the net present value of the cost with an increase in the carrying value of the related long-lived asset. The capitalized amount is depleted on a unit-of-production basis over the life of the reserves. The liability amount is increased each reporting period due to the passage of time and the amount of accretion is charged to earnings in the period. Revisions to the estimated timing of cash flows or to the original estimated undiscounted cost would also result in an increase or decrease to the ARO and PP&E. Actual costs incurred upon settlement of the ARO are charged against the ARO to the extent of the liability recorded. It is possible the Corporation's estimates of its ultimate obligations could change as a result of changes in regulations, the extent of environmental remediation required and the means of reclamation or costs of environmental remediation required. Changes in estimates are accounted for prospectively from the period the estimate is revised. Income taxes The Corporation uses the liability method of accounting for income taxes. Under the asset and liability method, future tax assets and liabilities are recognized for the future taxes attributable to temporary differences arising from the differences between the tax basis of an asset or liability and the financial statement carrying amount on the balance sheet used to calculate future income tax assets or liabilities. Future income tax assets or liabilities are measured using the Company's enacted or substantively enacted tax rates anticipated to apply in the periods that the temporary differences are expected to be recovered or settled. The effect on future taxes and liabilities of a change in tax rates is recognized in income in the period that includes that substantive enactment date. Flow-through shares The Corporation has issued flow-through shares and the resultant proceeds are used to fund exploration and development expenditures within a defined time period. The income tax deductions associated with the expenditures funded by flow-through arrangements are renounced to investors in accordance with the appropriate tax legislation. A future income tax liability is recognized in the period when the Corporation files the renouncement with the appropriate tax authorities and share capital is reduced by the estimated costs of the renounced tax deductions. Revenue recognition Revenues associated with sales of crude oil, natural gas and natural gas liquids are recognized when title passes to the purchaser. Stock-based compensation The Corporation has a stock option plan as described in Note 8. The Corporation follows the fair value method for recognition of stock and stock options awarded to directors, officers, employees and consultants. Under this method the fair value of the stock or stock options is charged to earnings with a corresponding increase in contributed surplus. The fair value is estimated on the grant date using the Black-Scholes option-pricing model. Compensation costs are recognized over the vesting period of the stock or stock options. Consideration received by the Corporation on the exercise of stock options will be recorded as share capital. Stock or stock options granted to non-employees for goods or services provided are recognized based on the fair value of the consideration received, or the fair value of the equity instruments, whichever is more reliably measurable. Per share amounts Basic per share amounts are calculated using the aggregate of the weighted average number of Class A common and Class B common shares outstanding during the period. For the purpose of the per share calculation, the Class B common shares are converted into Class A common shares. The number of Class A common shares obtained upon conversion of each Class B common share is equal to $10.00 divided by the greater of $1.00 or the 30 day volume weighted average market price of the Class A common shares for the year. Diluted per share amounts are calculated by applying the treasury stock method, whereby the effect of "in-the-money" instruments such as stock options and warrants affect the calculation. The treasury stock method assumes that the proceeds that could be obtained upon exercise of the options and warrants are used to purchase Class A common shares at the average market price during the period. The incremental shares, calculated as the difference between the number of shares assumed issued and the number of shares assumed purchased, are then included in the calculation of weighted average number of shares used in the computation of diluted earnings per share. 3. ACQUISITIONS April 30, 2006 Acquisition On January 12, 2006, the Corporation completed the amalgamation of STU and ROL. STU was deemed to be the acquirer in the transaction. As consideration, the Corporation issued 10,820,000 Class A common shares and 810,000 Class B common shares. The transaction was measured at the exchange value and accounted for using the purchase method. The purchase price was determined based on the fair value of the assets acquired as this value was more reliably measurable due to the nature of the assets acquired and the low trading volumes of ROL. The results of operations of ROL are included in the accounts of the Corporation from January 12, 2006 to April 30, 2006. The purchase price was allocated as follows: --------------------------------------------------------------------- Net assets acquired: --------------------------------------------------------------------- Cash and cash equivalents $ 10,812,080 Non-cash working capital (1,606,226) Petroleum and natural gas properties and equipment 1,628,090 Future income tax asset 769,200 Asset retirement obligations (42,200) --------------------------------------------------------------------- $ 11,560,944 --------------------------------------------------------------------- --------------------------------------------------------------------- Purchase price consideration: --------------------------------------------------------------------- Common shares - Class A, net of amalgamation costs $ 11,229,727 Common shares - Class B 8,100 Amalgamation costs 323,117 --------------------------------------------------------------------- $ 11,560,994 --------------------------------------------------------------------- --------------------------------------------------------------------- 4. PROPERTY, PLANT AND EQUIPMENT --------------------------------------------------------------------- December 31, 2006 --------------------------------------------------------------------- Accumulated depletion and Net book Cost depreciation value --------------------------------------------------------------------- Petroleum and natural gas properties and equipment $ 33,394,141 $ 8,370,539 $ 25,023,602 Office equipment and leasehold improvements 103,598 28,406 75,192 --------------------------------------------------------------------- $ 33,497,739 $ 8,398,945 $ 25,098,794 --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- April 30, 2006 --------------------------------------------------------------------- Accumulated depletion and Net book Cost depreciation value --------------------------------------------------------------------- Petroleum and natural gas properties and equipment $ 18,880,842 $ 5,697,393 $ 13,183,449 Office equipment and leasehold improvements 64,859 12,062 52,797 --------------------------------------------------------------------- $ 18,945,701 $ 5,709,455 $ 13,236,246 --------------------------------------------------------------------- --------------------------------------------------------------------- At December 31, 2006, the cost of unproved properties of $1,816,092 (April 30, 2006 - $1,855,151) and the salvage value of developed properties of $1,016,618 (April 30, 2006 - $300,000) have been excluded from petroleum and natural gas properties and equipment for the purposes of calculating depletion. Future development costs totaling $3,690,200 (April 30, 2006 - $7,981,700) were included in the calculation of depletion. The Corporation prepared a ceiling test at December 31, 2006, in accordance with CICA Accounting Guideline 16 - Oil and Gas Accounting - Full Cost, to assess the recoverability of costs recorded in respect of petroleum and natural gas properties. As a result of the test, a ceiling test write-down was not required as at December 31, 2006. The petroleum and natural gas prices are based on the December 31, 2006 commodity price forecast of the Corporation's independent reserve engineers. These prices have been adjusted for commodity price differentials specific to the Corporation. The following table summarizes the benchmark prices used in the ceiling test calculation: --------------------------------------------------------------------- Year Foreign WTI Exchange WTI Edmonton AECO Oil Rate Oil Par Price Gas ($U.S./ ($Cdn/ ($Cdn/ ($Cdn/ ($Cdn/ bbl)(1) $U.S.) bbl) bbl)(1) Mcf)(1) --------------------------------------------------------------------- 2007 65.00 0.88 73.86 72.85 7.15 2008 69.35 0.88 78.81 77.75 7.70 2009 70.75 0.88 80.40 79.35 7.60 2010 69.00 0.88 78.41 77.30 7.70 2011 67.10 0.88 76.25 75.15 8.00 2012 66.25 0.88 75.28 74.15 8.15 2013 67.55 0.88 76.76 75.60 8.25 2014 68.90 0.88 78.30 77.15 8.50 2015 70.30 0.88 79.89 78.70 8.65 2016 71.70 0.88 81.48 80.25 8.85 --------------------------------------------------------------------- (1) Prices remain consistent for 2017 and increase at a rate of approximately 2.0% thereafter 5. BANK INDEBTEDNESS --------------------------------------------------------------------- December 31, April 30, 2006 2006 --------------------------------------------------------------------- Cheques issued in excess of funds on hand $ 8,951 $ 178,562 Revolving demand bank loan 450,000 950,000 --------------------------------------------------------------------- $ 458,951 $ 1,128,562 --------------------------------------------------------------------- --------------------------------------------------------------------- The Corporation has a revolving operating demand bank loan with a limit up to $13,000,000. The loan bears interest at the National Bank of Canada prime rate plus 0.25 percent per annum with interest only payments paid monthly. The Corporation has a non-revolving acquisition/development demand loan of up to $3,000,000 repayable monthly over the half-life of the reserves being financed, including interest at the National Bank of Canada prime rate plus 0.50 percent. As at December 31, 2006 and April 30, 2006 the non-revolving acquisition/development demand loan was unutilized. These facilities are secured by a General Security Agreement and by a $20,000,000 debenture with a floating charge over all assets of the Corporation with a negative pledge and undertaking to provide fixed charges on the Corporation's major producing properties at the request of the bank. Additional security includes the assignment/endorsement by the Corporation of all risk insurance, revenues and monies under material contracts, if applicable. 6. INCOME TAXES The income tax provision is calculated by applying the applicable combined Canadian federal and provincial statutory tax rate to pre- tax income (loss) with adjustments as set out in the following table: --------------------------------------------------------------------- December 31, April 30, 2006 2006 --------------------------------------------------------------------- Loss before income taxes $ (212,770) $ (1,369,966) Average combined federal and provincial tax rate 32.10% 30.74% --------------------------------------------------------------------- Computed income tax provision (68,300) (421,111) Increase (decrease) in income taxes resulting from: Provincial royalties and other levies 166,445 233,505 Resource allowance (171,488) (261,294) Stock-based compensation 423,246 383,600 Change in statutory tax rates (25,992) (945) Reduction of foreign development expense tax pools 85,416 - Other 24,822 (12,396) Change in valuation allowance - (1,380,175) --------------------------------------------------------------------- Income tax expense (recovery) $ 434,149 $ (1,458,816) --------------------------------------------------------------------- --------------------------------------------------------------------- The components of the net future income tax asset (liability) were as follows: --------------------------------------------------------------------- December 31, April 30, 2006 2006 --------------------------------------------------------------------- Future income tax assets: Non-capital loss carry-forwards $ 90,300 $ 1,408,000 Asset retirement obligations 239,800 129,600 Share issue costs 404,200 262,300 Amalgamation costs 56,500 62,100 --------------------------------------------------------------------- 790,800 1,862,000 Future income tax liabilities: Carrying amount of property, plant and equipment in excess of tax bases (1,690,700) (2,564,800) Net future income tax liability $ (899,900) $ (702,800) --------------------------------------------------------------------- --------------------------------------------------------------------- 7. ASSET RETIREMENT OBLIGATIONS The following table summarizes changes in asset retirement obligations for the period: --------------------------------------------------------------------- December 31, April 30, 2006 2006 --------------------------------------------------------------------- Asset retirement obligations, beginning of period $ 385,441 $ 172,662 Changes in liabilities during the year related to: Acquisitions - 42,200 Additions 257,409 166,189 Revisions 114,351 - Liabilities settled (30,000) - Accretion expense 19,712 4,390 --------------------------------------------------------------------- Asset retirement obligations, end of period $ 746,913 $ 385,441 --------------------------------------------------------------------- --------------------------------------------------------------------- At December 31, 2006, management estimates that undiscounted expected cash flows required to settle the Corporation's asset retirement obligations will be incurred as follows: --------------------------------------------------------------------- 2008 - 2012 $ 642,809 2013 - 2017 474,878 --------------------------------------------------------------------- $ 1,117,687 --------------------------------------------------------------------- --------------------------------------------------------------------- The undiscounted amount of the estimated future cash flows required to settle the obligations as at December 31, 2006 was $1,117,687 (April 30, 2006 - $489,176). These obligations will be settled at the end of the useful lives of the underlying assets, which currently average 5.48 years (April 30, 2006 - 5.00 years), but extend up to 10 years into the future. The estimated future cash flows have been calculated using an inflation rate of two percent and discounted at a weighted average credit-adjusted risk-free rate of 8.26 percent (year ended April 30, 2006 - 8.0 percent). 8. SHARE CAPITAL (a) Authorized Authorized December 31, 2006 and April 30 2006: Unlimited number of voting Class A common shares Unlimited number of voting Class B common shares convertible at the option of the Corporation, at any time after July 31, 2008 and before July 31, 2010 into Class A common shares. After July 31, 2008 and prior to July 31, 2010 the conversion is at the option of the Corporation. After August 1, 2010 and prior to September 1, 2010 the option to convert is at the option of the shareholder. Unlimited number of preferred shares, issuable in series (b) Issued and outstanding --------------------------------------------------------------------- Class A common shares issued and outstanding Number Amount --------------------------------------------------------------------- Balance, April 30, 2005 44,768,502 $ 10,414,878 Conversion of common shares to preferred shares 8,333,333 (5,000,000) --------------------------------------------------------------------- 36,435,169 5,414,878 Exchange of one Class A common share for two common shares of STU(1) (18,217,599) - --------------------------------------------------------------------- 18,217,570 5,414,878 Issued on acquisition of ROL 10,820,000 11,552,842 Issued for cash on exercise of warrants 160,000 262,400 Shares cancelled on amalgamation (346,450) (198,585) Amalgamation costs - (323,117) Tax effect of amalgamation costs - 94,984 Tax effect of flow-through shares issued in 2005 - (3,025,800) --------------------------------------------------------------------- Class A common share balance, April 30, 2006 28,851,120 $ 13,777,602 --------------------------------------------------------------------- --------------------------------------------------------------------- (1) 14 Class A common shares were retired upon amalgamation. --------------------------------------------------------------------- Class A common shares issued and outstanding Number Amount --------------------------------------------------------------------- Balance, April 30, 2006 28,851,120 $ 13,777,602 Issued pursuant to private placement 4,976,951 9,500,181 Share issue costs - (705,082) Tax effect of share issue costs - 237,049 Issued for cash on exercise of warrants 15,000 24,600 Issued for cash on exercise of options 881,666 752,166 Transferred of contributed surplus on exercise of options - 24,111 Elimination of deficit (see Note 10) - (4,772,995) --------------------------------------------------------------------- Class A common share balance, December 31, 2006 34,724,737 $ 18,837,632 --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- Class B common shares issued and outstanding Number Amount --------------------------------------------------------------------- Balance, April 30, 2005 - $ - Issued on acquisition of ROL 810,000 8,100 --------------------------------------------------------------------- Balance, December 31, 2006 and April 30, 2006 810,000 $ 8,100 --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- Preferred shares issued and outstanding Number Amount --------------------------------------------------------------------- Balance, April 30, 2005 - $ - Issued on amalgamation 8,333,333 5,000,000 Repurchased and cancelled (8,333,333) (5,000,000) --------------------------------------------------------------------- Balance, December 31, 2006 and April 30, 2006 - $ - --------------------------------------------------------------------- --------------------------------------------------------------------- Total share capital, December 31, 2006 $ 18,845,732 --------------------------------------------------------------------- --------------------------------------------------------------------- December 31, 2006 On May 18, 2006, the Corporation closed a private placement of 1,497,000 Class A common shares at a price of $1.67 per Class A common share totaling $2,499,990; 1,098,951 Class A common shares issued on a flow-through basis eligible for renunciation of Canadian Development Expenses ("CDE") at a price of $1.82 per CDE flow-through share totaling $2,000,091; and 2,381,000 Class A common shares issued on a flow-through basis eligible for renunciation of Canadian Exploration Expenses ("CEE") at a price of $2.10 per CEE flow-through share totaling $5,000,100. Total gross proceeds of the private placement were $9,500,181. As a result, the Corporation had $2,000,091 of CDE qualifying expenditures to incur by December 31, 2006 and $5,000,100 of CEE qualifying expenditures to incur by December 31, 2007. As at December 31, 2006, the Corporation had fulfilled the CDE expenditures requirement of $2,000,091. In addition, Rolling Thunder had incurred $421,089 of qualifying CEE expenditures and had $4,579,011 of CEE expenditures remaining to be incurred by December 31, 2007 to fulfill its CEE flow-through commitment. The income tax deductions related to the total CDE and CEE flow-through expenditures of $7,000,191 were renounced in February 2007 to the CDE and CEE flow-through share subscribers with an effective date of December 31, 2006. A future income tax liability related to the renunciation of these expenditures will be recognized at that time. Total costs related to the private placement were $705,082. A future income tax benefit of $237,049, relating to the share issue costs, was recognized as a decrease to future income tax liability and a corresponding increase to share capital. April 30, 2006 Upon the amalgamation of ROL and STU on January 12, 2006, the Corporation converted 8,333,333 common shares of STU into 8,333,333 preferred shares at a stated value of $0.60 per preferred share. These shares were redeemed by the Corporation for aggregate cash consideration of $5,000,000. Each remaining STU common share was exchanged for 0.5 Class A common shares of the Corporation. The Corporation issued 10,820,000 Class A common shares and 810,000 Class B common shares in exchange for the outstanding Class A and B common shares of ROL. The values assigned to the Class A and B common shares issued were $11,552,842 and $8,100, respectively (see Note 3). Effective January 12, 2006, a STU shareholder exercised the right to dissent. The shareholder dissented rights related to 692,900 common shares of STU representing rights to 346,450 Class A common shares of the Corporation. The Corporation paid cash consideration of $0.60 per dissented STU share for total consideration of $415,740. The Corporation cancelled the shares effective January 12, 2006. The assigned value of the shares cancelled was $198,585. The amount paid in excess of assigned value of $217,155 was charged to contributed surplus (see Note 9). Prior to the amalgamation, ROL had issued flow-through common shares. On amalgamation the Corporation assumed a commitment for flow-through expenditures relating to these shares in the amount of $9,000,000. The income tax deductions relating to the total flow-through expenditures of $9,000,000 were renounced in March 2006 to the flow-through share subscribers with an effective date of December 31, 2005. Foregone tax benefits of $3,025,800 related to renounced expenditures were recognized by the Corporation with a reduction to share capital and a corresponding increase in future income tax liability. (c) Shares in escrow At June 30, 2005, 4,000,000 Class A common shares were held in escrow pursuant to the requirements of National Policy 46-201 "Escrow for Initial Public Offerings". Ten percent of these shares were released from escrow July 8, 2005, 15 percent were released on January 8, 2006 and 15 percent were released on July 8, 2006. At December 31, 2006, a total of 2,400,000 Class A common shares remained in escrow. These shares will be released in 15 percent tranches (based on the original number of Class A commons shares subject to escrow) during consecutive six month intervals, the last release scheduled for July 8, 2008. As at April 30, 2005, 160,714 common shares (321,427 common shares prior to the effect of the exchange of two common shares of STU for one Class A common share of the Corporation) of the Corporation were subject to an escrow agreement and could not be transferred, assigned or otherwise dealt with without the consent of the regulatory body having jurisdiction thereon. On April 20, 2006 certain conditions were met and the remaining 160,714 Class A common shares under the agreement were released from escrow. (d) Stock options Stock option plan The Corporation has a stock option plan whereby options to purchase Class A common shares may be granted by the board of directors to directors, officers, employees of, and consultants to, the Corporation. The Plan has reserved for issuance a number of Class A common shares equal to ten percent of the total number of Class A common shares issued and outstanding from time to time, calculated on a non-diluted basis. No one participant in the plan is permitted to hold options entitling such participant to purchase more than five percent of the total number of Class A common shares issued and outstanding in any 12 month period and, in the case of consultants and persons retained to perform investor relations activities, two percent in any 12 month period. The board of directors shall determine the period during which an option may be exercised at the time the option is granted, subject to any vesting limitations, which may be imposed by the board at the time such option is granted. All options granted will be exercisable for a period not to exceed five years, will be non-transferable and will comply with the requirements of the regulatory authorities. Agents' options Prior to amalgamation, ROL had issued an option to purchase 495,000 Class A common shares to Agents relating to shares sold under a public offering. On amalgamation, replacement options were issued to the Agents that were fully vested, had an exercise price of $1.00 and an expiry date of December 31, 2006. As at December 31, 2006 all agents' options were exercised. The following table summarizes information about the Corporation's stock options: --------------------------------------------------------------------- Class A common share stock options at December 31, 2006 Options Outstanding --------------------------------------------------------------------- Weighted Number average of exercise options price --------------------------------------------------------------------- Outstanding, April 30, 2006 3,040,000 $ 1.26 Granted 2,025,000 1.57 Exercised (881,666) (0.85) Expired (1,633,334) (1.68) --------------------------------------------------------------------- Outstanding, December 31, 2006 2,550,000 $ 1.38 --------------------------------------------------------------------- --------------------------------------------------------------------- Exercisable, December 31, 2006 1,063,331 $ 1.31 --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- Class A common share stock options at April 30, 2006 Options Outstanding --------------------------------------------------------------------- Weighted Number average of exercise options price --------------------------------------------------------------------- Common share options outstanding, April 30, 2005 3,775,000 $ 0.75 Common share options cancelled (75,000) (0.25) --------------------------------------------------------------------- 3,775,000 0.75 Effect of exchange of one Class A common share for two common shares of STU(1) (1,850,000) - --------------------------------------------------------------------- 1,850,000 1.52 Granted to replace existing options of ROL on amalgamation(2) 1,325,000 1.01 Class A common share options granted 115,000 0.75 Class A common share options cancelled (250,000) (1.64) --------------------------------------------------------------------- Outstanding, April 30, 2006 3,040,000 $ 1.26 --------------------------------------------------------------------- --------------------------------------------------------------------- Exercisable, April 30, 2006 2,355,000 $ 1.26 --------------------------------------------------------------------- --------------------------------------------------------------------- (1) On amalgamation, in-the-money option holders of STU were issued 0.5 Class A common share replacement options having an exercise price equal to the difference between (a) the fair market value of a Class A common share determined immediately after the effective date of the amalgamation and (b) two times the option value of the STU option. All other option holders of STU were issued 0.5 Class A common share replacement options having an exercise price equal to two times the exercise price of the applicable STU option. (2) On amalgamation, the Corporation issued 830,000 Class A common share options to directors, officers, employees and consultants to replace options outstanding under ROL's stock option plan. These options have exercise prices ranging from $1.00 to $1.20 and remaining weighted average contractual lives of between 4.17 and 4.33 years. In addition, 495,000 Class A common share options were issued to Agents to replace options that were related to a public offering by ROL. A summary of the outstanding stock options as at December 31, 2006 is as follows: --------------------------------------------------------------------- Options Options Outstanding Exercisable --------------------------------------------------------------------- Number Weighted average Number outstanding at remaining exercisable at December 31, contractual life December 31, Exercise Price 2006 (years) 2006 --------------------------------------------------------------------- $0.75 115,000 4.25 38,333 $1.00(1) 620,000 3.50 413,332 $1.05(1) 20,000 3.58 13,333 $1.32 275,000 4.50 91,667 $1.51 655,000 4.67 218,333 $1.67 865,000 4.33 288,333 --------------------------------------------------------------------- $0.75 - $1.67 2,550,000 4.22 1,063,331 --------------------------------------------------------------------- --------------------------------------------------------------------- (1) Options granted to former option holders of ROL on amalgamation. Stock-based compensation The fair value of each option granted was estimated on the date of grant using the Black-Scholes Option Pricing Model to calculate stock-based compensation expense for the options granted during the eight month period ended December 31, 2006 and the year ended April 30, 2006. The weighted average fair value of the options granted and assumptions used in the model were as follows: --------------------------------------------------------------------- December 31, April 30, 2006 2006 --------------------------------------------------------------------- Fair value of options granted ($/share) 1.25 0.47 Risk-free interest rate (%) 4.26 3.39 Expected hold period (years) 5.00 3.80 Expected volatility (%) 108 63 Expected dividend yield (%) - - --------------------------------------------------------------------- --------------------------------------------------------------------- The Corporation recognized stock-based compensation expense of $1,318,524 for the eight months ended December 31, 2006 (year ended April 30, 2006 - $1,103,985) which decreased net income/increased net loss by $1,318,524 for the eight months ended December 31, 2006 (year ended April 30, 2006 - $1,103,985) with a corresponding charge to contributed surplus. (e) Share purchase warrants --------------------------------------------------------------------- Class A common share warrants at December 31, 2006 Options Outstanding --------------------------------------------------------------------- Weighted Number average of exercise options price --------------------------------------------------------------------- Outstanding, April 30, 2006 650,000 $ 1.64 Exercised (15,000) (1.64) Expired (635,000) (1.64) --------------------------------------------------------------------- Outstanding, December 31, 2006 - $ - --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- Class A common share warrants at April 30, 2006 Warrants Outstanding --------------------------------------------------------------------- Weighted Number average of exercise warrants price --------------------------------------------------------------------- Common share warrants outstanding, April 30, 2005 2,010,736 $ 1.05 Warrants expired (390,736) (2.00) --------------------------------------------------------------------- 1,620,000 0.82 Effect of exchange of one Class A common share for two common shares of STU (810,000) (0.82) --------------------------------------------------------------------- 810,000 1.64 Exercise of warrants (160,000) (1.64) --------------------------------------------------------------------- Outstanding, April 30, 2006 650,000 $ 1.64 --------------------------------------------------------------------- --------------------------------------------------------------------- 9. CONTRIBUTED SURPLUS --------------------------------------------------------------------- December 31, April 30, 2006 2006 --------------------------------------------------------------------- Contributed surplus balance, beginning of period $ 3,423,330 $ 2,536,500 Stock-based compensation 1,318,524 1,103,985 Transferred to share capital on exercise of options (24,111) - Cancellation of Class A common shares (see Note 8) - (217,155) Reduction of deficit (see Note 10) (3,548,000) - --------------------------------------------------------------------- Contributed surplus, end of period $ 1,169,743 $ 3,423,330 --------------------------------------------------------------------- --------------------------------------------------------------------- 10. RETAINED EARNINGS (DEFICIT) On September 21, 2006, the shareholders of the Corporation approved a reduction in the deficit of the Corporation to a maximum of $9,500,000. At September 30, 2006, the Corporation eliminated the deficit to $nil. The deficit account was credited in the amount of $8,320,995 with an offsetting charge in the amount of $3,548,000 to contributed surplus and $4,772,995 to the Class A share capital account. The amount charged to contributed surplus was equal to the contributed surplus credited to the account for pre-amalgamation stock-based compensation expense recognized by San Telmo Energy Ltd. 11. OTHER REVENUE Other revenue for the eight months ended December 31, 2006 included a non-recurring refund of gross overriding royalties paid to industry partners in previous periods. The aggregate amount of the refunds was $152,776. The remaining balance of $92,085 of other revenue was comprised of marketing and interest income. 12. PER SHARE AMOUNTS A reconciliation of net income (loss) per share is summarized as follows: --------------------------------------------------------------------- December 31, 2006 --------------------------------------------------------------------- Weighted average shares Net loss outstanding Per share --------------------------------------------------------------------- Class A common shares 33,882,096 Class A common shares on deemed conversion of Class B common shares 5,198,909 --------------------------------------------------------------------- Basic - Class A common shares $ (646,919) 39,081,005 $ (0.017) Dilutive effect of options - --------------------------------------------------------------------- Diluted - Class A common shares $ (646,919) 39,081,005 $ (0.017) --------------------------------------------------------------------- --------------------------------------------------------------------- For the calculation of weighted average number of diluted shares outstanding for the eight months ended December 31, 2006, 2,550,000 options were excluded as they were determined to be anti-dilutive. --------------------------------------------------------------------- April 30, 2006 --------------------------------------------------------------------- Weighted average shares Net income outstanding Per share --------------------------------------------------------------------- Class A common shares 24,354,658 Class A shares on deemed conversion of Class B common shares 1,642,365 --------------------------------------------------------------------- Basic - Class A common shares $ 88,850 25,997,023 $ 0.003 Dilutive effect of options 97,381 --------------------------------------------------------------------- Diluted - Class A common shares $ 88,850 26,094,404 $ 0.003 --------------------------------------------------------------------- --------------------------------------------------------------------- For the calculation of weighted average number of diluted shares outstanding for the year ended April 30, 2006, 2,625,000 options and 650,000 warrants were excluded as they were determined to be anti-dilutive. 13. SUPPLEMENTAL CASH FLOW INFORMATION --------------------------------------------------------------------- December 31, April 30, 2006 2006 --------------------------------------------------------------------- Changes in non-cash working capital: Accounts receivable and accrued receivables $ (1,528,419) $ 105,640 Prepaid expenses and deposits 43,459 (408,994) Accounts payable and accrued liabilities 2,966,987 1,705,484 --------------------------------------------------------------------- $ 1,482,027 $ 1,402,130 --------------------------------------------------------------------- --------------------------------------------------------------------- Changes in non-cash working capital: Operating $ (15,003) $ (1,213,301) Financing (14,197) (618) Investing 1,511,227 1,009,823 Acquisition (Note 3) - 1,606,226 --------------------------------------------------------------------- $ 1,482,027 $ 1,402,130 --------------------------------------------------------------------- --------------------------------------------------------------------- 14. RELATED PARTY TRANSACTIONS December 31, 2006 During the eight months ended December 31, 2006, the Corporation incurred $124,999 related to consulting fees to a private holding and geological services company that provided geological services to the Corporation, of which an officer of Rolling Thunder is an officer and controlling shareholder. In addition, Rolling Thunder paid $111,500 related to engineering consulting fees provided by an engineering services company, of which an officer of Rolling Thunder is an officer and controlling shareholder. These transactions were recorded as general and administrative expenses during the eight months ended December 31, 2006. As at December 31, 2006, accounts payable and accrued liabilities included a balance of $71,500 related to these transactions. During the eight months ended December 31, 2006, the Corporation incurred $278,807 related to gross overriding royalties ("GOR") to a private holding and geological services company that provided geological services to the Corporation, of which an officer of the Corporation is an officer and controlling shareholder. This private holding and geological services company has a three percent GOR on certain Teepee Creek, Boundary Lake and Gold Creek properties, a two percent GOR on the McLeod and Gordondale properties and a one percent GOR on the Mahaska property. These transactions were recorded as royalty expenses during the eight months ended December 31, 2006. As at December 31, 2006, accounts payable and accrued liabilities included a balance of $39,929 related to these transactions. April 30, 2006 Prior to amalgamation, STU paid directors' fees of $60,000 for the year ended April 30, 2006 to directors and/or companies controlled by directors of STU. Management fees of $129,960 were paid to a director and officer of STU. STU also paid professional fees of $29,595 during the year to a legal firm, in which a director of STU was a partner. In addition, rent of $8,400 during the year was paid to a company controlled by a director of STU. Upon amalgamation, the Corporation paid approximately $340,000 related to severance to officers of STU. The Corporation paid $16,500, with respect to the termination of a Geological and Project Management Services Agreement, to a private holding and geological services company that provided geological consulting services to STU, of which an officer and director of the Corporation is an officer and controlling shareholder. In addition, $15,000 was paid to the same private holding and geological services company to satisfy a change of control provision with respect to gross overriding royalties in the aforementioned Agreement with STU. Subsequent to amalgamation, the Corporation paid $58,512 related to gross overriding royalties and $54,322 related to consulting fees to a private holding and geological services company that provided geological services to the Corporation, of which an officer and director of the Corporation is an officer and controlling shareholder. This private holding and geological services company has a three percent GOR on certain Teepee Creek, Boundary Lake and Gold Creek properties, a two percent GOR on the McLeod and Gordondale properties and a one percent GOR on the Mahaska property. The Corporation paid $21,000 in financial consulting fees to a private consulting firm, of which an officer of the Corporation is an officer and shareholder. These transactions were in the normal course of operations and have been valued at the exchange amount, which is the amount of consideration established and agreed to by the related parties. 15. COMMITMENTS The Corporation was committed to spend $9,000,000 related to the ROL initial public offering June 30, 2005 by December 31, 2006 on expenditures that qualify as Canadian Exploration Expense for income tax purposes. As at December 31, 2006 the Corporation fulfilled this commitment and had incurred $9,000,000 of eligible expenditures. Pursuant to the private placement on May 18, 2006 (see Note 8), Rolling Thunder was committed to spend $2,000,091 by December 31, 2006 on expenditures that qualified as CDE and $5,000,100 by December 31, 2007 on expenditures that will qualify as CEE. As at December 31, 2006, the Corporation had fulfilled its CDE commitment. In addition, the Corporation had incurred $421,089 of eligible CEE expenditures and had $4,579,011 of CEE expenditures remaining to be incurred by December 31, 2007 in order to fulfill its CEE commitment. On September 1, 2006, the Corporation entered into a sublease for office space for the term of January 1, 2007 to March 31, 2008 after which, the lease will be month to month until December 31, 2011. The estimated amount due under the sublease, including rent and estimated related operating expenses and taxes is $147,710. On October 5, 2006, the Corporation entered into a Farm-out Participation and Option Agreement with an independent public oil and gas company whereby the Corporation is committed to spud a test well on or before February 1, 2007. Subsequent to December 31, 2006 the commitment date to spud a test well was extended and the commitment was fulfilled on February 24, 2007. 16. FINANCIAL INSTRUMENTS The financial instruments recognized on the consolidated balance sheets include cash, accounts receivable and accrued receivables, bank indebtedness and accounts payable and accrued liabilities. The fair values of these financial instruments other than bank indebtedness approximate their carrying amounts due to the short-term nature. The carrying value of bank indebtedness approximates its fair value due to floating interest terms. The Corporation is exposed to fluctuation in commodity prices, foreign currency exchange rate, credit and interest rate risks. (a) Commodity price risk The Corporation is exposed to significant risk related to crude oil price fluctuations and to a lesser extent natural gas price movements. (b) Foreign currency exchange rate risk The Corporation is exposed to foreign currency fluctuation as crude oil and natural gas prices are referenced to U.S. dollar denominated prices. (c) Credit risk The Corporation is exposed to credit risk from financial instruments to the extent of non-performance by third parties. A substantial portion of the Corporation's accounts receivables are with customers and joint venture partners in the petroleum and natural gas industry and are subject to normal credit risks. Amounts owing from three customers comprised 94 percent of the accounts receivable balance at December 31, 2006 (April 30, 2006 - three customers, 99 percent of accounts receivable). (d) Interest rate risk The Corporation is exposed to interest rate risk principally related to its bank indebtedness to the extent of floating interest rates on the outstanding balances. SEDAR FILINGS Rolling Thunder anticipates that it will file on SEDAR (www.sedar.com) its Annual Report for its transition year of eight months ended December 31, 2006, along with its audited consolidated financial statements, notes thereto and Auditor's Report, and its Management's Discussion & Analysis for the same period ended, on or before April 30, 2007. The Corporation also anticipates that it will file its Notice of Annual and Special Meeting and Management Information Circular and Proxy Statement for its annual and special meeting of shareholders to be held on June 7, 2007 and its Annual Information Form for the period ended December 31, 2006, on or before April 30, 2007. ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS Rolling Thunder will hold its Annual and Special Meeting of Shareholders at The Metropolitan Conference Centre, Royal Room, Calgary, Alberta, on Thursday, June 7, 2007 at 2:30 pm (Calgary time). RESIGNATION OF VP, EXPLORATION & COO Mr. Ken Ellison has resigned as Vice President, Exploration and Chief Operating Officer of Rolling Thunder, effective April 16, 2007. The Management and Board of Directors of Rolling Thunder would like to take this opportunity to thank Mr. Ellison for his dedication and many contributions to the Corporation's growth, and wish him success in his future endeavors. ABOUT ROLLING THUNDER To find out more about Rolling Thunder Exploration Ltd. (TSX-V: ROL.A, ROL.B; OTO: RTHXF), visit our website at www.rollingthunderexploration.com. Natural Gas volumes that have been converted to barrels of oil equivalent (BOEs) have been converted on the basis of six thousand cubic feet (Mcf) to one barrel (bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six mcf to one bbl is based on an energy equivalency method and does not necessarily represent value equivalency at the wellhead. Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future outcomes or outlook. The following discussion is intended to identify certain factors, although not necessarily all factors, which could cause future outcomes to differ materially from those set forth in the forward-looking information. The risks and uncertainties that may affect the operations, performance, development and results of Rolling Thunder's businesses include, but are not limited to, the following factors: volatility of oil and gas prices, commodity supply and demand, fluctuations in currency and interest rates, ultimate recoverability of reserves, timing and costs of drilling activities and pipeline construction, new regulations and legislation and the availability of capital. The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate by Rolling Thunder at the time of preparation, may prove to be incorrect or may not occur. Accordingly, readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the foregoing list of factors and risks is not exhaustive. Additional information on these and other risks, uncertainties and factors that could affect Rolling Thunder's operations or financial results are included in our filings with the securities commissions or similar authorities in each of the provinces of Canada, as may be updated from time to time. There is no representation by Rolling Thunder that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Rolling Thunder does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information:

For further information: To find out more about Rolling Thunder
Exploration Ltd. (TSX-V: ROL.A, ROL.B; OTO: RTHXF), visit our website at
www.rollingthunderexploration.com, or contact: Peter Bolton, President & Chief
Executive Officer, (403) 532-6221, peterb@rollingthunderexploration.com;
Kamelia Wong, Chief Financial Officer, (403) 532-6223,
kameliaw@rollingthunderexploration.com

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ROLLING THUNDER EXPLORATION LTD.

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