12.	STOCK OPTIONS

Stock based compensation generally takes the form of equity classified stock options granted to employees and non-employees. Options are granted under the Company's 2006 Stock Option Plan and vest over various terms – generally 18 months to three years. One set of option grants included a performance condition based upon achieving a defined bitumen in place barrel count. Two other sets of option grants included both a market condition based upon total shareholder return over a three year period and performance conditions based upon achieving a combination of defining a reservoir recovery configuration and achieving a defined bitumen in place barrel count. The fair value of the options containing the performance and market conditions were estimated at the date of grant and amortization of these amounts commences when satisfaction of the performance conditions becomes probable. As of January 31, 2012, it was not probable that any of the performance or market conditions would be satisfied.

The following summarizes our stock option activity under the Company's 2006 Stock Option Plan for the nine months ended January 31, 2012:

	Options			Weighted- Average Exercise Price		Weighted-Average Grant-Date Fair Value		Aggregate Intrinsic Value
Outstanding at April 30, 2011		22,883,452		$	3.02	$	2.44	$	-
Granted		100,000			0.29		0.19		-
Forfeited		(2,568,452	)		2.66		1.92		-
Expired		(3,390,000	)		5.95		5.22		-
Outstanding at January 31, 2012		17,025,000		$	2.47	$	1.95		-
Exercisable at January 31, 2012		11,341,250		$	3.30	$	2.65	$	-

Of the total number of outstanding options at January 31, 2012, 4,550,000 options are subject to market and performance conditions with a weighted average grant date fair value of $0.57 per option. As of January 31, 2012, these options have not yet vested and no stock based compensation expense has been recognized as achievement of the required performance and market conditions is not probable.

The weighted-average remaining contractual term of vested and exercisable options at January 31, 2012 was 3.0 years.

During the nine months ended January 31, 2012, 100,000 (January 31, 2011 - 1,617,474) options were granted and accounted for using the Black-Scholes option-pricing model and nil (January 31, 2011 - 3,050,000) options were granted and accounted for using the trinomial option-pricing model.

The trinomial option-pricing model takes into account the same input assumptions as the Black-Scholes model; however, it also further incorporates into the fair-value determination, the possibility that the market condition may not be satisfied and the impact of the possible differing stock price paths. The following weighted average assumptions were used to determine the fair value of the options granted during the nine months ended January 31, 2012 and 2011:

Black Scholes	2012			2011
Expected Life (years)		3.84			4.01
Risk free interest rate		1.96	%		2.59	%
Expected volatility		93.15	%		97.11	%
Dividend yield		0	%		0	%

As at January 31, 2012, the Company had unrecognized stock option compensation cost of $105,341 which will be recorded in future periods as options vest. The expense is expected to be recognized over a weighted-average period of 1.2 years. As at January 31, 2012, there were 5,683,750 unvested options with a weighted average grant date fair value of $0.55. The weighted average grant date fair value of options that vested and were forfeited during the period was $1.50 and 0.81, respectively.