Exhibit 99.1

BERKLEY RESOURCES INC.

OIL AND GAS ANNUAL DISCLOSURE FILING

NATIONAL INSTRUMENT 51-101

EFFECTIVE DECEMBER 31, 2006

PREPARED APRIL 27, 2007

Filed April 30, 2007

TABLE OF CONTENTS

TABLE OF CONTENTS	1
GLOSSARY OF SELECTED TERMS	2
MONETARY REFERENCES	3
FORWARD LOOKING STATEMENTS	3
STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION	3
Oil and Gas Reserves and Net Present Values - Constant Case	4
Oil and Gas Reserves and Net Present Values - Forecast Case	6
PRICING ASSUMPTIONS	9
RECONCILIATIONS OF CHANGES IN RESERVES AND FUTURE NET REVENUE	10
SIGNIFICANT FACTORS AND UNCERTAINTIES	11
FUTURE DEVELOPMENT COSTS	11
OTHER OIL AND GAS INFORMATION	12
Crude Oil and Natural Gas Wells	12
Oil and Gas Activity	12
Properties With No Attributed Reserves	14
Forward Contracts and Financial Instruments	14
Abandonment and Reclamation Costs	14
Tax Horizon	14
Acquisition, Exploration and Development Costs Incurred	15
Exploration and Development Drilling Activities	15
Production Estimates	15
Production History	17

APPENDIX

Appendix Attachment: NI 51-101 Tables prepared by AJM Petroleum Consultants

GLOSSARY OF SELECTED TERMS

The following are selected abbreviations and definitions of terms used herein:

“bbl” means billion barrels of total petroleum liquids;

“boe” means barrels of oil equivalent natural gas converted at 6 mscf of natural gas per barrel of oil;

“boe/day” means barrels of oil equivalent per day;

“bopd” means barrels of oil per day;

“Effective Date” means the effective date of the information contained in this Statement of Reserves Data and Other Oil and Gas Information, being December 31, 2006;

“mbbl” means thousands of barrels of oil;

“mboe” means thousands of barrels of oil equivalent;

“mbtu” means thousands of British Thermal Units;

“mcf” means thousands of cubic feet;

“mscf” means thousands of standard cubic feet;

“mscf/day” means thousands of standard cubic feet per day;

“mstb” means thousands of stock tank barrels;

“NGL’s” means natural gas liquids including condensate;

“NI 51-101” means National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators;

“Preparation Date” means the date of preparation of this Statement of Reserves Data and Other Oil and Gas Information, being April 27, 2007;

“stb” means stock tank barrel; and

“Berkley” or the “Company” means Berkley Resources Inc., a British Columbia corporation.

References to oil, gas, natural gas liquids, reserves (gross, net, proved, probable, possible, developed, developed producing, developed non-producing, undeveloped), constant prices and costs, forecast prices and costs, operating costs, development costs, future net revenue and future income tax expenses, shall unless expressly stated to be to the contrary, have the meaning attributed to such terms as set out in NI 51-101, Companion Policy 51-101CP and all forms referenced therein.

MONETARY REFERENCES

All monetary references contained in this Statement of Reserves Data and Other Oil and Gas Information are in Canadian dollars unless otherwise specified.

FORWARD LOOKING STATEMENTS

This Statement of Reserves Data and Other Oil and Gas Information contains forward-looking statements. These statements relate to future events or Berkley’s future performance. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Undue reliance should not be placed on these forward looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur.

Although Berkley believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Berkley cannot guarantee future results, levels of activity, performance, or achievements. Moreover, Berkley does not assume responsibility for the accuracy and completeness of the forward-looking statements.

Statements relating to “reserves” or “resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be profitably produced in the future. All forward-looking statements contained in this Statement of Reserves Data and Other Oil and Gas Information are expressly qualified by this cautionary statement. Berkley is not under any duty to update any of the forward-looking statements after the date hereof to conform such statements to actual results or to changes in Berkley’s expectations.

STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION

In accordance with the requirements of NI 51-101, the following Statement of Reserves Data and Other Oil and Gas Information for Berkley is dated with an Effective Date of December 31, 2006 and a Preparation Date of April 27, 2007.

AJM Petroleum Consultants (“Evaluator”) prepared the reserve report, dated as of April 20, 2007, with an effective date of December 31, 2006 (the “Report”) which evaluates the proved and probable crude oil, natural gas and NGL reserves attributable to Berkley’s interests in its properties and net present value of estimated future cash flow from such reserves, based on both forecasted and constant price and cost assumptions. This Report accounts for approximately 100% of the Company’s reserves. The reserves information contained in the Report was prepared and is presented in accordance with the requirements of NI 51-101.

In preparing the Report, the Evaluator obtained basic information from Berkley, which included land data, well information, geological information, reservoir studies, estimates of on-stream dates, contract information, current hydrocarbon product prices, operating costs data, capital budget forecasts, financial data and future operating plans. Other engineering, geological or economic data required to conduct the evaluation and upon which this Report is based, was obtained from public records, other operators and from the Evaluator’s non-confidential files. The extent and character of ownership and the accuracy of all factual data supplied for the independent evaluation, from all sources, was accepted by the Evaluator as represented by Berkley.

The following tables, based on the Report, show the estimated share of Berkley’s crude oil, natural gas and NGL reserves in its properties and the net present value of estimated future net revenue for these reserves, using constant and forecast prices and costs as indicated. All evaluations of the present value of estimated future net revenue in these reports are stated after provision for estimated future capital expenditures, well abandonment and reclamation costs (including the offsetting salvage value of tangible equipment after abandonment), before and after income taxes and indirect costs and do not necessarily represent the fair market value of the reserves. The recovery and reserve estimates of Berkley’s oil, NGL and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.

References to oil, gas, natural gas liquids, reserves (gross, net, proved, probable, possible, developed, developed producing, developed non-producing, undeveloped), constant prices and costs, forecast prices and costs, operating, costs, development costs, future net revenue and future income tax expenses shall, unless expressly stated to be to the contrary, have the meaning attributed to such terms as set out in National Instrument 51-101, Companion Policy 51-101CP and all forms referenced therein.

BERKLEY RESOURCES INC.

SUMMARY OF OIL AND GAS RESERVES AND NET PRESENT VALUE OF FUTURE NET

REVENUE ITEM 2.1

Constant Prices and Costs

Proved Reserves and Net Present Value

As at December 31, 2006

Total Company

Constant Case

	Oil				NGL’s				Natural Gas				Before Tax Discounted At				After Tax Discounted At
	Gross⁽¹⁾ (MBbl)		Net⁽²⁾ (MBbl)		Gross⁽¹⁾ (MBbl)		Net⁽²⁾ (MBbl)		Gross⁽¹⁾ (MMcf)		Net⁽²⁾ (MMcf)		0% (M$)		10% (M$)		0% (M$)		10% (M$)
Proved Developed Producing		126		96		0		0		214		176		2,170		1,442		2,170		1,442
Developed Non-Producing		15		11		0		0		22		19		637		545		637		545
Undeveloped		0		0		0		0		0		0		0		0		0		0
Total Proved		141		107		0		0		236		195		2,807		1,987		2,807		1,987

Notes:

⁽¹⁾	Gross Reserves means Berkley’s working interest (operating and non-operating) share before deduction of royalties and income taxes.

⁽²⁾	Net Reserves means Berkley’s working interest (operating and non-operating) share after deduction of royalties but before deduction of income taxes.

Additional Information - Future Net Revenue

As at December 31, 2006

Total Company

Constant Case

		Future Gross Revenue (M$)			Royalties (M$)			Operating Costs (M$)			Development Costs (M$)			Abandonment Costs (M$)			Future Net Revenue Before Income Tax (M$)			Future Income Tax (M$)			Undiscounted Future Net Revenue After Income Tax (M$)
Total Proved			8,291			(1,840	)		(3,455	)		0			(189	)		2,807			0			2,807

Additional Information - Future Net Revenue By Production Group

(Before Future Income Tax)

As at December 31, 2006

Total Company

Constant Case

Reserves Category	Production Group	Discounted at 10% (M$)
Total Proved	Oil (MBbl), light and medium crude oil, including solution gas and other by-products	1,537
Total Proved	Natural Gas (MMcf), associated and non-associated gas, including by-products	450
		1,987

Proved Reserves and Net Present Value (By Area)

As at December 31, 2006

Total Company

Constant Case

	Oil				NGL’s				Natural Gas				Before Tax Discounted At
	Gross (MBbl)		Net (MBbl)		Gross (MBbl)		Net (MBbl)		Gross (MMcf)		Net (MMcf)		10% (M$)
Carbon		0		0		0		0		89		78		164
John Lake		0		0		0		0		63		45		115
Leduc		0		0		0		0		56		47		149
Senex		40		32		0		0		22		19		1,400
Total Alberta		40		32		0		0		230		189		1,828
East Dollard, Saskatchewan		101		75		0		0		6		6		274
Abandonments														(115	)
Total Canada		141		107		0		0		236		195		1,987

BERKLEY RESOURCES INC.

SUMMARY OF OIL AND GAS RESERVES AND NET PRESENT VALUE OF FUTURE NET

REVENUE ITEM 2.2

Forecast Prices and Costs

Proved Plus Probable Reserves and Net Present Value

As at December 31, 2006

Total Company

Forecast Case

	Oil				NGL’s				Natural Gas				Before Tax Discounted At										After Tax Discounted At
	Gross (MBbl		Net (MBbl)		Gross (MBbl)		Net (MBbl)		Gross (MMcf)		Net (MMcf)		0% (M$)		5% (M$)		10% (M$)		15% (M$)		20% (M$)		0% (M$)		5% (M$)		10% (M$)		15% (M$)		20% (M$)
Proved
Developed Producing		126		95		0		0		219		180		3,625		2,453		1,994		1,744		1,579		3,625		2,453		1,994		1,744		1,579
Developed Non-Producing		14		11		0		0		22		18		753		692		641		599		562		644		675		638		598		562
Undeveloped		0		0		0		0		0		0		0		0		0		0		0		0		0		0		0		0
Total Proved		140		106		0		0		241		198		4,378		3,145		2,635		2,343		2,141		4,269		3,128		2,632		2,342		2,141
Probable		61		40		0		0		101		84		2,893		1,445		1,002		791		663		1,860		1,082		823		683		590
Total Proved plus Probable		201		146		0		0		342		282		7,271		4,590		3,637		3,134		2,804		6,129		4,210		3,455		3,025		2,731

Notes:

⁽¹⁾	Gross Reserves means Berkley’s working interest (operating and non-operating) share before deduction of royalties and income taxes.

⁽²⁾	Net Reserves means Berkley’s working interest (operating and non-operating) share after deduction of royalties but before deduction of income taxes.

Additional Information - Future Net Revenue

As at December 31, 2006

Total Company

Forecast Case

	Future Gross Revenue (M$)		Royalties (M$)			Operating Costs (M$)			Development Costs (M$)		Abandonment Costs (M$)			Future Net Revenue Before Income Tax (M$)		Future Income Tax (M$)			Undiscounted Future Net Revenue After Income Tax (M$)
Total Proved		11,925		(2,740	)		(4,589	)		0		(218	)		4,378		(109	)		4,269
Probable		6,128		(2,012	)		(1,215	)		0		(8	)		2,893		(1,034	)		1,859
Total Proved plus Probable		18,053		(4,752	)		(5,804	)		0		(226	)		7,271		(1,143	)		6,128

Additional Information - Future Net Revenue by Production Group

(Before Future Income Tax)

As at December 31, 2006

Total Company

Forecast Case

Reserves Category	Production Group	Discounted at 10% (M$)
Total Proved	Oil (MBbl), light and medium crude oil, including solution gas and other by-products	1,965
Total Proved	Natural Gas (MMcf), associated and non-associated gas, including by-products	670
		2,635
Total Proved plus Probable	Oil (MBbl), light and medium crude oil, including solution gas and other by-products	2,763

Total Proved plus Probable	Natural Gas (MMcf), associated and non-associated gas, including by-products	874
		3,637

Proved Plus Probable Reserves and Net Present Value (By Area)

As at December 31, 2006

Total Company

Forecast Case

	Oil				NGL’s				Natural Gas				Before Tax Discounted At
	Gross (MBbl)		Net (MBbl)		Gross (MBbl)		Net (MBbl)		Gross (MMcf)		Net (MMcf)		10% (M$)
Proved
Carbon		0		0		0		0		89		79		258
John Lake		0		0		0		0		67		47		169
Leduc		0		0		0		0		56		47		201
Senex		40		32		0		0		22		19		1,631
Total Alberta		40		32		0		0		234		192		2,259
East Dollard, Saskatchewan		100		74		0		0		7		6		501

Abandonments														(125	)

Total Canada		140		106		0		0		241		198		2,635
Probable
Carbon		0		0		0		0		36		30		59
John Lake		0		0		0		0		24		17		42
Leduc		0		0		0		0		37		32		91
Senex		19		16		0		0		2		2		641
Total Alberta		19		16		0		0		99		81		833
East Dollard, Saskatchewan		42		24		0		0		2		3		157

Abandonments														12

Total Canada		61		40		0		0		101		84		1,002

Proved Plus Probable
Carbon		0		0		0		0		125		109		317
John Lake		0		0		0		0		91		64		211
Leduc		0		0		0		0		93		79		292
Senex		59		48		0		0		24		21		2,272
Total Alberta		59		48		0		0		333		273		3,092
East Dollard, Saskatchewan		142		98		0		0		9		9		658

Abandonments														(113	)

Total Canada		201		146		0		0		342		282		3,637

PRICING ASSUMPTIONS

Constant Prices and Costs - December 31, 2006

AJM Petroleum Consultants used the following price and exchange rate and inflation rate assumptions as of December 31, 2006 in estimating Berkley’s reserves data using constant prices and costs.

Crude Oil and Natural Gas Liquids Prices

Oil		Natural Gas		NGL’s	Inflation Rate	Exchange Rate
West Texas Intermediate ($US)	Edmonton Light Sweet Crude (Cdn$/stb)	Alberta Par Price ($/mcf)	Alberta Spot Sales ($/mcf)	($/bbl))	% Per Annum	$US/$Cdn
61.05	67.06	6.14	6.41	-	0	0.8581

Forecast Prices and Costs

December 31, 2006

AJM Petroleum Consultants used the following price and exchange rate and inflation rate assumptions as of December 31, 2006 in estimating Berkley’s reserves data using forecast prices and costs.

Crude Oil and Natural Gas Liquids Prices

	Oil		Natural Gas		NGL’s	Inflation Rate	Exchange Rate
Year	West Texas Intermediate ($US)	Edmonton Light Sweet Crude (Cdn$/stb)	Alberta Par Price ($/mcf)	Alberta Spot Sales ($/mcf)	($/bbl))	% Per Annum	$US/$Cdn
2007	65.00	72.85	7.10	7.20	-	2.0	0.88
2008	69.35	77.75	7.70	7.80	-	2.0	0.88
2009	70.75	79.35	7.60	7.70	-	2.0	0.88
2010	69.00	77.30	7.70	7.80	-	2.0	0.88
2011	64.75	72.50	8.00	8.10	-	2.0	0.88

For the year ended December 31, 2006, the Company had the following weighted average historical prices:

Oil: light and medium crude oil (including solution gas and other by-products) $57.44/bbl

Natural Gas: associated and non-associated gas (including by-products) $ 6.88/mcf

RECONCILATIONS OF CHANGES IN RESERVES AND FUTURE NET REVENUE

Reserves Reconciliation

The following table sets forth a reconciliation of Berkley’s total net proved, probable and proved plus probable reserves as at December 31, 2006 against such reserves as at December 31, 2005 based on forecast price and cost assumptions:

	LIGHT AND MEDIUM OIL									ASSOCIATED AND NON-ASSOCIATED GAS								NATURAL GAS LIQUIDS
Factors	Net Proved (mbbl)			Net Probable (mbbl)			Net Proved Plus Probable (mbbl)			Net Proved (mmcf)			Net Probable (mmcf)		Net Proved Plus Probable (mmcf)			Net Proved (mbbl)			Net Probable (mbbl)			Net Proved Plus Probable (mbbl)
December 31, 2005		116			60			176			170			71		241			1			1			2
Extensions		2			2			4			-			-		-			-			-			-
Improved Recovery		-			-			-			-			-		-			-			-			-
Technical Revisions		7			(22	)		(15	)		50			13		63			(1	)		(1	)		(2	)
Discoveries		-			-			-			-			-		-			-			-			-
Acquisitions		-			-			-			-			-		-			-			-			-
Dispositions		-			-			-			-			-		-			-			-			-
Economic Factors		-			-			-			-			-		-			-			-			-
Production		(18	)		-			(18	)		(25	)		-		(25	)		-			-			-
December 31, 2006		107			40			147			195			84		279			-			-			-

Future Net Revenue Reconciliation

The following table sets forth a reconciliation of the estimate of the future net revenue discounted at 10%, attributable to net proved reserves as evaluated in Reports using constant prices and cost assumptions:

Period and Factor	Before Tax 2006(M$)			After Tax 2006 (M$)
December 31, 2005		3,017			2,636
Sales and Transfers of Oil and Gas Produced during the Period Net of Production Costs and Royalties⁽¹⁾		(740	)		(740	)
Net Change in Sales and Transfer Prices and in Production Costs and Royalties related to Future Production⁽²⁾		(933	)		(933	)
Changes in Previously Estimated Future Development Costs Incurred During the Period⁽³⁾		-			-
Changes in Estimated Future Development Costs ⁽⁴⁾		54			54
Net Change Resulting from Extensions and Improved Recovery⁽⁵⁾		29			29
Net Change Resulting from Discoveries⁽⁵⁾		-			-
Changes Resulting from Acquisitions of Reserves⁽⁵⁾		-			-
Changes Resulting from Dispositions of Reserves⁽⁵⁾		-			-
Net Change Resulting from Revisions in Quantity Estimates		258			258
Accretion of Discount⁽⁶⁾		302			302
Net Change of Income Taxes⁽⁷⁾		-			381
Other Significant Factors⁽⁸⁾		-			-
December 31, 2006		1,987			1,987

Notes:

⁽¹⁾	Company actual before income taxes, excluding G&A.

⁽²⁾	The impact of changes in prices and other economic factors on future net revenue.

⁽³⁾	Actual capital expenditures relating to the exploration, development and production of oil and gas reserves.

⁽⁴⁾	The change in forecast development costs.

⁽⁵⁾	End of period net present value of the related reserves.

⁽⁶⁾	Estimated as 10% of the beginning of period net present value.

⁽⁷⁾	The difference between forecast income taxes at beginning of period and the actual taxes for the period plus forecast income taxes at the end of period.

⁽⁸⁾	Includes changes due to revised production profiles, development timing, operating costs, royalty rates, actual price received in 2005 versus forecast, etc.

ADDITIONAL INFORMATION RELATING TO BERKLEY’S RESERVE DATA

Significant Factors and Uncertainties

The process of estimating oil and gas reserves is complex. It requires significant judgments and decisions based on available geological, geophysical, engineering and economic data. These estimates may change substantially as additional data from ongoing development activities and production performance becomes available and as economic conditions impacting oil and gas processing and costs change. The reserve estimates contained herein are based on current production forecasts, prices and economic conditions and are evaluated by an independent engineering firm.

As circumstances change and additional data become available, reserve estimates also change. Estimates made are reviewed and revised, either upward or downward, as warranted by the new information. Revisions are often required due to changes in well performance, prices, economic conditions and governmental restrictions.

Although every reasonable effort is made to ensure that reserve estimates are accurate, reserve estimation is an inferential science. As a result, the subjective decisions, new geological or production information and a changing environment may impact these estimates. Revisions to reserve estimates can arise from changes in year-end oil and gas prices and reservoir performance. Such revisions can be either positive or negative. The reserve estimates of the Company’s oil, NGL and natural gas reserves provided in the Statements of Reserves Data and Other Oil and Gas Information are estimates only and there is no assurance or guarantee that the estimated reserves will be recovered. Actual reserves may be greater or less than the estimates provided herein.

Future Development Costs Deducted in the Estimation of Future Net Revenue

Year	Total Proved Reserves (Constant Case) (M$)		Total Proved Reserves (Forecast Case) (M$)		Total Proved Plus Probable Reserves (Forecast Case) (M$)
2007		0		0		0
2008		0		0		0
2009		0		0		0
2010		0		0		0
2011		0		0		0
		0		0		0

Remaining Years		0		0		0
Total Canada		0		0		0
Discounted at 10%		0		0		0

As the above future development costs are nil there will be no cost of funding to reduce future net revenue. As a result, there will be no cost impact to render any property uneconomic for Berkley.

OTHER OIL AND GAS INFORMATION

Crude Oil and Natural Gas Wells

The following table summarizes the Company’s interest, as at December 31, 2006, in producing and non-producing crude oil and natural gas wells:

	Oil								Gas
Location	Producing				Non-Producing				Producing				Non-Producing
	Gross⁽¹⁾		Net⁽²⁾		Gross⁽¹⁾		Net⁽²⁾		Gross⁽¹⁾		Net^(\2)		Gross⁽¹⁾		Net⁽²⁾
Alberta		10.0		2.7		6.0		1.1		16.0		1.1		12.0		1.1
Saskatchewan		10.0		0.8		-		-		-		-		-		-
COMPANY TOTAL		20.0		3.5		6.0		1.1		16.0		1.1		12.0		1.1

Notes:

⁽¹⁾	“Gross Wells” are all wells in which the Company has an interest.

⁽²⁾	“Net Wells” are the aggregate percentage of Berkley’s interest in Gross Wells.

Oil and Gas Activity

The Company has continued to pursue quality projects with experienced partners in high opportunity areas. The Company will put its primary efforts into fully developing its existing Senex property and enhancing its representation in new projects now underway such as Crossfield, Alberta.

The Company presently holds working interests in approximately 50 oil and gas wells in Alberta and Saskatchewan with its working interests ranging from 1% to 35%. Efforts continue to purge the Company’s asset base of minor interest properties which will enable the Company to focus on higher interest opportunities. Generally the Company does not operate joint interest ventures; however Crossfield, Alberta is an exception where the Company holds the largest interest at 35%. Presently almost all of the Company’s production comes from five discrete areas of which three are natural gas and two produce oil.

The Company has drilling scheduled for two areas in Alberta during the balance of 2007 and into 2008. Both are high quality prospects, one is natural gas (Crossfield) and the second is a combination of dual zone oil and shallow natural gas (Senex). The Company recently reported on these two areas as follows:

Senex Area, Alberta (Townships 92/93, Ranges 6/7 W5M):

Berkley (20% ±) and its operating partner Onefour Energy Ltd. (80% ±) have increased their land holdings in this area to approximately 70 sections. This increase in land holdings will provide the Company with a very large block on which to develop all three productive formations identified to date. The formations are: Keg River (oil), Slave Point (oil) and Blue Sky (gas).

The Company and its partner have a nine Keg River well drilling program planned between August 1st 2007 and April 2008. This drilling program will cost the company approximately $2 million. The Company and its partner have also planned a 6 well program in the slave point zone. The 6 targets are 2 water injection wells and 4 targeted as producers. Over the last year and a half the Company and it’s partner have completed approximately 45 sections of 3D seismic. The Company is reviewing and analyzing this seismic and may come up with new targets in addition to those mentioned above for the next drilling period which is August through April.

Crossfield West Area, Alberta (Township 28, Range 1 W5M):

The licensing process of this sour-gas prospect is well underway. The Company (35%) and its partners have negotiated extensions to certain of its freehold leases which will maintain our existing drilling lease block of six sections; major investment has entered the immediate area of the Company’s lease block with an undisclosed party paying over three million dollars for near and adjacent leases at the March 22, 2006 Alberta Crown Sale. BP Canada paid $532,000 for a one section parcel diagonally offsetting our lands. The highest price paid at the Sale was for a one section lease laterally adjoining our block where a broker paid $770,304 ($3,009/hectare). The Company and its partners have sufficient holdings to move ahead with our own drilling plans; however negotiations are being pursued with the acquiring parties to extend our acreage position. The Company believes that it should have it’s licensing hearing before the end of September, 2007 and believe that they should be approved to drill before the end of 2007.

Summary

The Company has made a major commitment to the Senex Area in north-central Alberta. Large reserves of oil have been identified in two Devonian formations and a significant natural gas reserve in shallow lower Cretaceous sand. All three opportunities are being evaluated and the Company has drilled 5 successful Keg River wells between August 2006 and February 2007. As stated above, we have targeted nine more wells in the Keg river zone and 6 more wells in the slave point zone which is budgeted to be drilled between August 2007 and April 2008. The Company’s working interest in this project is 20%. Good progress is being made in the licensing process at Crossfield. The Company now expects to go to its hearing on licensing by September 2007 and hopes to drill by the end of the year.

Properties With No Attributed Reserves

The Company, as at December 31, 2006, held interests in undeveloped lands in Alberta, Canada (total Company) for 16,900 acres (gross) and 3,955 acres (net).

There are no work commitments on any of these undeveloped lands.

The Company has no rights in such unproved properties that are expected to expire in 2007.

Forward Contracts and Financial Instruments

Berkley has no forward contracts or financial instruments unless required by securities law.

Abandonment and Reclamation Costs

The Company uses its Evaluator to estimate its abandonment and reclamation costs. The costs are estimated on an area by area basis. The industry’s historical costs are used when available. If representative comparisons are not readily available, an estimate is prepared based on the various regulatory abandonment requirements.

The total of such costs, forecast net of estimated salvage value, is $189,000 (undiscounted) and $115,000 (discounted at 10%) in respect of proved reserves.

Tax Horizon

Berkley Resources Inc. was not required to pay income taxes for the year ended December 31, 2006 and has determined that it will not be taxable for the foreseeable future.

Acquisition, Exploration and Development Costs Incurred

The following table sets out the Company’s property acquisition, exploration and development costs for the fiscal year ended December 31, 2006:

Proved

Property Acquisition

(M$)

Exploration

(M$)

Development

(M$)

Unproved

(M$)

Total

Alberta/Saskatchewan

and Total:

132

1,964

1,189

3,502

6,787

Exploration and Development Drilling Activities

(For the Year Ended December 31, 2006)

					Net
	Gross		Net		Oil		Gas		Service		Dry
Exploration Wells		5.0		1.0		0.8		0.0		0.2		0.0
Development Wells		4.0		0.8		0.8		0.0		0.0		0.0
Total Company (Canada)		9.0		1.8		1.6		0.0		0.2		0.0

For discussion on current exploration and development activities, refer to “Oil and Gas Activity”

Production Estimates for the First Year - 2007 by Production Type

As at December 31, 2006

Total Company

Constant Case - Proved

	Oil				NGL’s				Natural Gas
	Gross (MBbl)		Net (MBbl)		Gross (MBbl)		Net (MBbl)		Gross (MMcf)		Net (MMcf)
Carbon		0		0		0		0		9		8
John Lake		0		0		0		0		21		16
Leduc		0		0		0		0		11		9
Senex		16		12		0		0		2		1
Total Alberta		16		12		0		0		43		34
East Dollard, Saskatchewan		8		6		0		0		0		0
Total Canada		24		18		0		0		43		34

Forecast Case - Proved Plus Probable

	Oil				NGL’s				Natural Gas
	Gross (MBbl)		Net (MBbl)		Gross (MBbl)		Net (MBbl)		Gross (MMcf)		Net (MMcf)
Proved Carbon		0		0		0		0		9		8
John Lake		0		0		0		0		21		16
Leduc		0		0		0		0		11		9
Senex		16		12		0		0		3		2
Total Alberta		16		12		0		0		44		35
East Dollard, Saskatchewan		8		6		0		0		0		0
Total Canada		24		18		0		0		44		35

Probable Carbon	0	0	0	0
John Lake	0	0	0	0
Leduc	0	0	0	0
Senex	3	2	1	1
Total Alberta	3	2	1	1
East Dollard, Saskatchewan	0	0	0	0
Total Canada	3	2	1	1

Proved Plus Probable Carbon	0	0	9	8
John Lake	0	0	21	16
Leduc	0	0	11	9
Senex	19	14	4	3
Total Alberta	19	14	45	36
East Dollard, Saskatchewan	8	6	0	0
Total Canada	27	20	45	36

Production History

Production Volume by Area

The following table discloses for each important area and in total, the Company’s gross production volumes for the financial year ended December 31, 2006 for each production type:

	Oil (bbls)		Natural Gas (mcf)
Alberta
Brazeau		0		8,276
John Lake		0		22,579
Carbon		0		9,029
Leduc		0		10,572
Senex		11,929		0
Minor		0		763
		11,929		51,219
Saskatchewan
Dollard		8,612		1,093
Company Total		20,541		52,312

Total Year 2006	Avg. Daily Production		Price Received		Royalties Paid		Production Costs		Netback
Oil/bbl		56.3	$	57.44	$	8.54	$	21.98	$	26.92
Gas/mcf		143.3	$	6.88	$	0.78	$	3.08	$	3.02

APPENDIX ATTACHMENT:

NATIONAL INSTRUMENT 51-101 TABLES

PREPARED BY AJM PETROLEUM CONSULTANTS