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PRESIDENT'S MESSAGE TO SHAREHOLDERS

Skope is pleased to report to shareholders the Company's activities for the period ended December 31, 2010. This third quarter ended December 31, 2010 represents the first quarter during which the assets acquired in September 2010 are under Skope's ownership.

Skope's assets consist of an 80% working interest in a package of producing shallow gas assets, located in southeast Alberta and southwest Saskatchewan. Natural gas production averaged 27.2 mmcf/d (4,533 boe/d) during the quarter. Production for the quarter was in line with our expectations and is showing relative stability despite low capital spending of $204,797 for the three months ended December 31, 2010. Operational activities were focused on a detailed technical review of the assets, identifying and optimizing work-over and drilling targets.

For the third quarter ended December 31, 2010, Skope recorded gross revenue of $8.7 million, funds from operations of $3.5 million ($0.45 per share basic and fully diluted). Bank debt, net of working capital, as at December 31, 2010 was $55.1 million.

Operations

Following a detailed review of the Company's assets, management has identified a large inventory of work-over and recompletion prospects. These prospects will be exploited over a two-year period, and should contribute to relatively flat production with an on stream cost estimated at less than $10,000/boe/d. Most of these prospects are in the Pendor and Eagle Butte core areas.

Skope and its partner Spur Resources Ltd. (the operator of Skope's assets) plan to drill three horizontal wells targeting three zones including the Bow Island, the Medicine Hat and the Second White Specks formations. Skope had planned to drill these three horizontal wells in January 2011 but drilling has been delayed due to low rig availability in the Company's operating areas. These wells will be drilled as soon as possible subject to equipment availability.

Our detailed assessment of well productivity on existing production has revealed two pieces of incremental information. First, underlying declines appear to be slightly flatter than originally contemplated (12-15% versus 17.5%). Should this prove sustainable, maintenance capital spending could be lower than previously expected. Second, in certain regions, production is vulnerable to temporary freezing in very cold conditions. During the extreme weather conditions this winter, approximately 5-10% of production was affected for two to three days. We are assessing the economics of applying capital to mitigate this situation.

Risk Management

It is Skope's policy to actively manage commodity and interest rate risk by utilizing financial commodity and interest rate hedging products. The primary objective of our risk management program is the protection of the Company's cash flow to fund capital spending and dividends. Our financial statements and management's discussion and analysis for the periods ended December 31, 2010 provide a detailed breakdown of our commodity and interest rate hedging contracts.

Outlook

Skope Energy was formed to acquire natural gas assets during weak cyclical periods. Our initial acquisition fits well with that strategy, and generates strong free cash flow and stable production even at relatively low prices. As new concepts such as horizontal drilling are tested, Skope expects that sustaining production on its asset base will require a decreasing capital commitment. In addition, Skope is evaluating additional acquisition opportunities which present themselves during weaker commodity cycles. Finally, Skope's large land base has piqued the interest of other operators looking for ways of partnering with Skope in a variety of structures.

On behalf of the Board of Directors,

Henry Cohen, President and Chief Executive Officer

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, management focus, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. In particular, this press release contains forward-looking statements relating, but not limited to:

• plans to exploit the Company's inventory of work-over and recompletion prospects and the expected results therefrom;
• estimated onstream costs associated with the Coompany's development plans;
• drilling plans and the timing thereof;
• anticipated well productivity and declines;
• expectations regarding required levels of maintenance capital;
• the amount of capital expenditures and the Company's capital expenditure plans;
• expectations regarding future economics in the Company's operating areas; and
• Skope's business strategy and management focus and the results therefrom.

These forward-looking statements are based on various assumptions including: the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; the timing, location and extent of future drilling operations; anticipated timing and results of capital expenditures; estimates of future production and operating costs; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates, Skope's ability to obtain equipment in a timely manner to carry out development activities, impact of increasing competition, ability to market oil and natural gas successfully and the ability of Skope to access capital. While Skope considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions in Canada, the U.S. and globally; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Skope believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this new release and the company 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 may be required by applicable securities laws.

NON-GAAP FINANCIAL MEASURES

Skope uses the following terms for measurement within this press release that do not have a standardized prescribed meaning under GAAP and these measurements may not be comparable with the calculation of similar measurements of other entities.

The terms "funds from operations", "funds from operations per share" and "operating netback per mcf" in this press release are not recognized measures under Canadian generally accepted accounting principles (GAAP). Management of Skope believes that in addition to net earnings and cash flow from operating activities as defined by GAAP, these terms are useful supplemental measures to evaluate operating performance and assess leverage. Funds from operations per share are calculated using the weighted average shares outstanding used in calculating earnings per share. Users are cautioned however, that these measures should not be construed as an alternative to net earnings or cash flow from operating activities determined in accordance with GAAP as an indication of Skope's performance.

Skope considers funds from operations to be an important measure of its ability to generate the funds necessary to finance capital expenditures and repay debt. All references to funds from operations throughout this press release are based on cash provided by operating activities before the change in non-cash working capital and actual asset retirement expenditures since Skope believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating Skope's operating performance. Skope's method of calculating funds from operations may differ from that of other companies and, accordingly, may not be comparable to measures used by other companies. Management's Discussion and Analysis for the three months ended December 31, 2010 and for the period from June 23, 2010 to December 31, 2010 includes a reconciliation of cash provided by operating activities to funds from operations.

FREQUENTLY USED TERMS

In this press release, the following terms are defined as follows:

"bbl" Barrel

"boe" Barrel(s) of oil equivalent

"boe/d" Barrel(s) of oil equivalent per day

"mcf" Thousand cubic feet

"mcf/d" Thousand cubic feet per day

"mmcf" Million cubic feet

"mmcf/d" Million cubic feet per day

51-101 ADVISORY

In conformity with National Instrument 51-101, Standards for Disclosure of Oil and Gas Activities ('NI 51-101'), natural gas volumes have been converted to barrels of oil equivalent using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Readers are cautioned that the term 'boe' may be misleading, particularly if used in isolation.

FILINGS

Skope has filed with Canadian securities regulatory authorities its unaudited financial statements for the three months ended December 31, 2010 and for the period from June 23, 2010 to December 31, 2010 and the accompanying Managements' Discussion and Analysis ("MD&A"). These filings are available under Skope's SEDAR profile at [ www.sedar.com ]. Full pdf versions of the financial statements and the accompanying MD&A are available on our website at [ www.skopeenergy.com ].

INFORMATION REGARDING SKOPE

Skope is a Canadian public company in the business of oil and natural gas exploration, development and production in Western Canada with a focus on shallow natural gas. Skope's assets consist of an 80% working interest in a package of producing shallow gas assets, located in southeast Alberta and southwest Saskatchewan.

Skope's common shares are listed on the TSX under the symbol "SKL".