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Investor Presentation 17 th May 2011. The information contained in this presentation or subsequently provided to the Recipient of this Presentation whether.

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Presentation on theme: "Investor Presentation 17 th May 2011. The information contained in this presentation or subsequently provided to the Recipient of this Presentation whether."— Presentation transcript:

1 Investor Presentation 17 th May 2011

2 The information contained in this presentation or subsequently provided to the Recipient of this Presentation whether orally or in writing by or on behalf of Baraka Energy & Resources Limited (BKP) or its respective affiliates, directors, employees, agents or consultants (“information”) is provided to the recipients on the terms and conditions set out in this notice. The purpose of this presentation is to provide Recipients with information relating to BKP, the Georgina Basin tenements EP127 and EP128 of which BKP has an interest in (“the Projects”). The presentation has been prepared by BKP and each Recipient must make his/her own independent assessment and investigation of BKP and the projects and should not rely on any statement or the adequacy and accuracy of any information. This presentation has been prepared as a summary only and does not contain all information about BKP or the Projects. The information in this presentation and made to you verbally is subject to updating, completion, revision, further verification and amendment. BKP makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the information. BKP and its respective affiliates, directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from the Presentation, except liability under statute that cannot be excluded. The Presentation contains reference to certain intentions, expectations and plans of BKP and the Projects. These intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of BKP and the Projects may be influenced by a number of factors, many of which are outside the control of BKP and the Projects. No representation or warranty, express or implied, is made by BKP or any of its respective affiliates, directors, officers, employees, agents and consultants that any intentions, expectations or plans will be achieved either totally or partially or that any particular profitability or value will be achieved. Disclaimer

3 Baraka signs farmout agreement on exploration permits EP127 and EP128 located in the prospective Southern Georgina Basin, Northern Territory, retaining a 25% free carried undivided interest Amended Agreement signed with Baraka's Joint Venture partner, Petro Frontier results in a substantial increase in Petro Frontier’s exploration budget in the Joint Venture (near double previous commitment) Announcement of Potential Oil Resource Estimates released by independent resource-evaluation firm, Ryder Scott Successful completion of capital raising via share purchase plan to raise $3.15 Million Investment Highlights

4 Shares on Issue1,980,655,046 Share Price (16 th May 2011)$0.019 Unlisted Options (Exp 30/06/2011 @ 0.3cents) 25,000,000 Unlisted Options (Exp 30/06/2012 @ 2 cents) 22,000,000 Market Cap ($Million)37.632 Cash Position$5 Million 52 – week low$0.003 52 –week high$0.03 Board of Directors Collin Vost Managing Director Barry J MacKinnon Non- Executive Chairman Justin Vost Non- Executive Director Corporate Snapshot

5 Southern Georgina Basin

6 Baraka has a carried 25% undivided working interest up to completion of a minimum 500 metres of horizontal drilling into the Basel Arthur Creek Shale on either EP127 or EP128 Baraka retains an undivided 75% working interest in approximately 75kms² around the Elkedra–7 well on EP127, where previous drilling has indicated oil shows The tenements covers an area 30,000kms² (7.4 million acres) in the south central part of the Northern Territory, to the south-east of Tennant Creek and the north-east of Alice Springs Project Overview

7 “The Georgina Basin of the NT represents one of the few remaining virtually unexplored, hydrocarbon prospective, on shore sedimentary basins in the world. The fact that this basin is located in a country with a stable political, legal and regulatory system makes this basin all the more significant. The Southern Georgina Basin covers more than 100,000 square kilometres (24.7 million acres) in the NT and the western part of Queensland. Baraka’s two exploration Permits are situated over what is believed to be a prospective part of the basin". (Source: Ryder Scott, Independent Resource Evaluation Firm) Baraka’s Tenements

8 Previous test wells drilled in the Georgina Basin have demonstrated oil shows and good quality source rocks, seals and reservoirs with target horizons ranging from 300 metres to 1000 metres Historically, a total of twenty nine wells had been drilled, with the most recent eight wells being drilled in 1991, all of which had oil shows but were abandoned. However, development in drilling technologies, namely the use of Horizontal and Multi Stage Fraccing Technology,has made basins such as South Georgina a valuable exploration prospect Historical Results b) Oil stain/solid bitumen in vuggy porosity from Elkedra-2, 283.9m, Hagen Member c)Weak oil stain from Elkedra-2, 353.5m, Hagen Member (Source: ISIS Petroleum Report 2009)

9 Anticipated drilling program will be operated by Baraka’s experienced Canadian Joint Venture Partner, Petro Frontier (TSX listed, Market Cap of CAD$142.780 million*) Drilling program will incorporate the latest Horizontal and Multi-Stage Fraccing Stimulation Technology, enhancing the possibility of a discovery by opening up hundreds of metres of potential pay zone Baraka Board believes this is the first time such technology is being utilised on Oil Shale in Australia The development of Multi-Stage Fraccing Stimulation Technology continues and is responsible for one of the largest oil discoveries in North America, the Bakken Formation which covers parts of North Dakota, Montana and Saskatchewan *as at 13/05/2011 Planned Exploration Program

10 Petro Frontier’s Board of Directors has approved a 2011 capital expenditure budget of CAD$32 million net to Petro Frontier (CAD$32 million gross), consisting of drilling up to six exploratory wells and the acquisition of up to approximately 1,000 km of additional 2D seismic. The six planned exploratory wells consist of up to three unconventional horizontal wells and up to three conventional vertical wells The second well expected to be drilled by PetroFrontier will be a horizontal well ("MacIntyre 2") in EP127, Northern Territory, Australia, where PetroFrontier holds a 75% working interest and is also the operator. MacIntyre-2 is planned to be drilled in a similar manner to Baldwin-2 using the existing well as a guide for the new horizontal well. MacIntyre-2 also includes conventional targets above the Basal Arthur Creek shale zone Planned Capital Expenditure by Operator, Petro Frontier

11 Companies exploring large basins in Australia LocationExpected Expenditure Baraka Petroleum/PFC (25%/75% Joint Venture) PFC as Operator Georgina Basin, Northern Territory$32 Million on drilling and seismic program Hess Corporation/Falcon Oil and Gas (65%/35% Joint Venture) Hess as Operator Beetaloo Basin, Northern Territory$40 Million on a seismic program fully funded by Hess Corporation Central Petroleum (EP132) – ASX ListedSouthern Georgina (EP132), and Amadeus Basin, Northern Territory Not Available Armour Energy - To be listed on the ASXMcArthur, South Nicholson and Georgina Basins, Northern Territory Proposed $50 Million IPO raising in late 2011 TME ResourcesCooper-Eromanga Basin, South Australia Not Available “There has been significant consolidation by Canadian companies with interests in the Southern Georgina Basin as it is increasingly viewed there are strong technical similarities between the Lower Arthur Creek and the prolific unconventional Bakken oil shale formation in the Williston Basin of Canada and the US”. ( Source: CTP Website)

12 Unrisked Estimates of Undiscovered OOIP and Prospective Recoverable Oil Resources in the Lower Arthur Creek “Hot Shale” Southern Georgina –Northern Territory, Australia Exploration Permit Unrisked Undiscovered OOIP (Oil in Place) (Billion of Barrels) Unrisked Prospective Recoverable Oil Resource (Billion of Barrels) LowBestHighLowBestHigh EP12719.78927.71537.1901.7532.7234.009 EP12834.96948.93465.7183.0974.8127.084 Subtotal EP 127,128 54.75876.649102.9084.8507.53511.093 Summary of Resources from the Lower Arthur Creek “Hot Shale” on Baraka’s tenements according to Ryder Scott Baraka’s interest in the above Prospect Lower Arthur Creek “Hot Shale” is 25%. (Source :Ryder Scott Report)

13 Log ParametersBakkenArthur Creek Porosity (ave)4%-8%4%-13% Permeability (ave)0.5-2.0mD1-100mD Shale Thickness (ave)26 metres22 metres Res. Thickness (ave)4.5 metres9.0 metres Total Organic Carbon8%5% Resistivity Peak1,000 ohms10,000 ohms Bakken Shale VS Arthur Creek Shale “The Permit area contains the Arthur Creek Shale which is geologically superior to the Bakken Shale. The Williston Basin Bakken Shale play is now the largest oil play in the United States. Reserves have recently been estimated as high as 24 Billion barrels of oil. A recent Petroleum Consultants Report for the Georgina Basin Arthur Creek Shale indicates oil reserves substantially greater than the Bakken Shale in the Williston Basin”. (Source: Allen White, president of International TME resources Inc) (Source: Petro Frontier 2011 January Corporate Presentation)

14 Baraka’s Lands Superimposed On Bakken Shale

15 Conventional Oil is extracted using traditional oil well methods. The formations typically have separate source rocks, reservoir rocks and trap rocks. The source rock contains the organic material which generates the hydrocarbons, which then migrate out of the source rock into porous and permeable reservoir rocks. The hydrocarbons are prevented from migrating out of the reservoir rock (trapped) by a layer of overlying impermeable trap rock. Conventional Oil VS Unconventional Oil

16 Unconventional Oil plays or Shale oil is extracted using unconventional methods such as Horizontal and Multi-Stage Fraccing Stimulation Technology. The rock in this type of unconventional accumulation is both source and reservoir. Like normal source rocks they contain a high Total Organic Carbon content (TOC). During the thermal generation of hydrocarbons from the organic matter within the shale, a large amount of the generated hydrocarbons are expelled, migrating to a reservoir or possibly escaping to the surface. However, in this type of unconventional reservoir, a significant amount of the generated hydrocarbons remain trapped within the low permeability shales and siltstones, hence the term oil shale. Conventional Oil VS Unconventional Oil continued.........

17 Horizontal Drilling and Hydraulic Fracturing

18 Name changed to Baraka Energy & Resources Limited to reflect a broader focus on global investments into energy and resource projects Aim to diversify project risk Global demand for energy will not fade with a rapidly increasing & diverse population, which is why energy projects will continue to be a primary focus of Baraka The Board continues to seek and assess new projects, including coal assets with early cash flow opportunities, to create shareholder value Just the beginning.....The Creation of a Energy and Resources Company

19 A research report has now been released by Proactive Investors and is available on the company’s website Quantum Partners LP, a fund managed by Soros Fund Management and chaired by one of the world’s most successful speculators, George Soros, has been identified as a large shareholder in Petro Frontier. In the Boards view, this adds substantial credibility to the area in which Baraka holds its 25% interest Drilling likely to commence within a short time frame Recent and Upcoming Activities

20 Collin Vost Managing Director Phone: 08 6436 2350 Fax: 08 9367 2450 Email: Postal Address: P.O. Box 255 South Perth WA 6951 For Further Information

21 Thank you - End of Presentation

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