Headwater Exploration Inc. is a Canada-based resource company, which is engaged in the exploration and development and production of petroleum and natural gas in Canada. The Company’s core operating areas are Marten Hills and McCully Field. Marten Hills is located approximately 250 kilometers (km) north of Edmonton, Alberta, within the Clearwater play. It owns approximately 270 sections of Clearwater rights. The McCully Field is located approximately 10 km northeast of Sussex, New Brunswick, in the farming community of Penobsquis. It owns and operates a natural gas processing plant, with a processing capacity of about 35 million standard cubic feet per day (mmscfpd), and a 50 km transmission line connected to the Maritimes and Northeast pipeline. The Company has oil production, reserves, and lands in the Clearwater play in the Marten Hills area of Alberta as well as low decline natural gas production and reserves in the McCully Field near Sussex, New Brunswick.