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The Petroleum Industry is in HIGH GEAR … HIGH GEAR …

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Presentation on theme: "The Petroleum Industry is in HIGH GEAR … HIGH GEAR …"— Presentation transcript:

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2 The Petroleum Industry is in HIGH GEAR … HIGH GEAR …

3 The Petroleum Industry is in HIGH GEAR … HIGH GEAR … to explore and drill for MORE OIL AND GAS

4 The Petroleum Industry is in HIGH GEAR … HIGH GEAR … to explore and drill for MORE OIL AND GAS World demand continues to rise dramatically Private companies are investing billions of dollars in exploration and drilling programs for new wells Governments are investing billions of dollars in joint ventures with private industry

5 The Petroleum Industry is in HIGH GEAR … HIGH GEAR … to explore and drill for MORE OIL AND GAS Increasing oil and gas prices are creating EXCITING BUSINESS OPPORTUNITIES in Canada

6 EMPIRE INTERNATIONAL SERVICE RIGS INC. was formed in 2005 to take advantage of these opportunities.

7 Global Crude Oil Reserves

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9 Canada Quick Oil Facts 7 th Largest in World Oil Production (projected 4 th by 2015) 3 rd Largest in World Natural Gas Production 2 nd Largest in World Crude Oil Reserves Source: Canadian Heavy Oil Association 80% of Canada’s spending in the oil and gas industry is in … ALBERTA

10 Population: 3.3 million Alberta One of 10 Canadian Provinces Size: 660,000 sq. km. (2 x Norway) Capital City: Edmonton Largest City: Calgary Major Attractions: - Banff - Lake Louise - West Edmonton Mall

11 Oil Reserves: Truly Immense! Alberta A “Business-oriented” Province Economy: Alberta produces: 70% of all Oil 80% of all Natural Gas in Canada Government:

12 AlbertaWestern Canada Operating oil wells (Dec. 2007) 32,500 70,000 Operating gas wells (Dec. 2007) 96, ,600 Total operating wells (*source CAPP) 128, ,600 Active service rigs (avg/July, 2008) (*source CAODC) The Opportunity

13 AlbertaWestern Canada Operating oil wells (Dec. 2007) 32,500 70,000 Operating gas wells (Dec. 2007) 96, ,600 Total operating wells (*source CAPP) 128, ,600 Active service rigs (avg/July, 2008) (*source CAODC) It takes 4 – 6 days to service a well. If each well is serviced every 2 years (typical), the number of service rigs and crews required are: ~ 880 ~ 1,360 The Opportunity

14 AlbertaWestern Canada Operating oil wells (Dec. 2007) 32,500 70,000 Operating gas wells (Dec. 2007) 96, ,600 Total operating wells (*source CAPP) 128, ,600 Active service rigs (avg/July, 2008) (*source CAODC) It takes 4 – 6 days to service a well. If each well is serviced every 2 years (typical), the number of service rigs and crews required are: ~ 880 ~ 1,360 Apparently … twice as many service rigs are required as are available. The Opportunity

15 Empire International Service Rigs Inc. was formed in January, 2005, to support the petroleum drilling industry. Empire manufactures and sells equipment to the companies that provide well services (service rig operators). Empire also refits and repairs existing equipment for gas and oil well operators and drilling contractors. Empire operates from Edmonton, Alberta, in the heart of Canada’s exploding oil and gas industry. The company is in a perfect position to capitalize on the current worldwide petroleum boom. The Company

16 Products Service Rigs Pump Trucks Doghouse Trailers Mud Tanks Junk Trucks Combination Buildings Custom Single Man Cabs

17 Services Heavy Duty Mechanical Welding Electrical Field Service Pneumatic Design & Repair Hydraulic Design & Repair Inspections Engineering

18 Facilities We started in 2005 with a tiny 500 sq. ft. office and shop. TODAY …

19 Facilities TODAY … 50,000 sq. ft. of office and heavy-duty shop with large yard space.

20 Our Team DIRECTORS ADVISORS John Tjelta President S.O. (Roy) Tjelta, AMA Chairman of the Board Peter Jensen, LLB Victor Leginsky, LLBKen Lee, CA

21 SALES TARGETS MET for Year 3 (2007) - $ 5.4 million in spite of industry slowdown due to Alberta manpower shortage. Completion of MANUFACTURE OF 2 NEW “SLANT RIGS” featuring several improvements to existing technology. DESIGN of NEW EQUIPMENT for OFFSHORE RIGS for markets in North Sea, Gulf of Mexico and Middle East. JOINT VENTURE PARTNERSHIPS with Chinese oil equipment manufacturers SALES OFFICE in SOUTH AMERICA Achievements

22 DIVERSIFICATION – Today’s Key to Success GEOGRAPHICAL: USA and Global Petroleum Industry NON-CONVENTIONAL TECHNOLOGIES: Alberta Oil Sands COMPLEMENTARY BUSINESS: Industrial Metal Fabrication PETROLEUM EXPLORATION: Limited Partnership Strategy

23 GEOGRAPHICAL: Global Markets The world petroleum industry is very healthy USA manufacturers operating at capacity Excellent opportunities around the world - Offshore drill and service rigs - Russia, Kazakhstan, Germany, Pakistan Empire has active bids out on several international projects. Diversification

24 ALBERTA OIL SANDS: Ft. McMurray Area Purchase of 3 active companies Mechanical Construction Engineering Consulting and Design Crane Services COMPLEMENTARY BUSINESS: Metal Fabrication Company specializes in high-tech LASER metal cutting would be first in Ft. McMurray area Diversification

25 PETROLEUM EXPLORATION Formation of Limited Partnership to seek and acquire producing oil and gas wells Major oil companies now focus on mega projects Smaller properties becoming available Excellent “niche” opportunity Perfect fit with Empire Group to supply equipment Diversification

26 PETROLEUM EXPLORATION Formation of Limited Partnership to seek and acquire producing oil and gas wells Major oil companies now focus on mega projects Smaller properties becoming available Excellent “niche” opportunity Perfect fit with Empire Group to supply equipment A new corporate structure will be required for this diversification program. Diversification

27 EMPIRE INTERNATIONAL ENERGY Inc. To be incorporated in Canada or Norway Funds to be raised by IPO through European broker(s) for: interest in Ft. McMurray group of companies financing Norsk Oil and Gas Drilling Fund Partnership working capital New Corporate Structure

28 Corporate Organization

29 Empire International Service Rigs Inc. The cornerstone of the Empire Group, formed in Jan./05 to support the petroleum drilling industry. Manufactures and sells equipment to the companies that provide oil and gas well services (service rig operators). Has met and exceeded sales targets for first 3 years. Invested substantially in R & D of new technologies - will reap huge benefits in 2008 and 2009 Recognizes need to diversify for growth and stability. The Empire Group

30 Charger International Metal Fabrication Inc. A stand-alone division of Empire International Service Rigs Inc. Formed to provide CNC (Computer Numeric Controlled) LASER cutting, CNC forming, and welding. Will be main provider of sheet metal fabrication services to the Empire Group of companies. Planning to expand to Ft. McMurray to serve Oil Sands projects. The Empire Group

31 Aqua Alberta Ltd. New company formed from purchase of shares and assets of Aqua Industrial Ltd., Race Engineering, and Race Crane Aqua Industrial Ltd. – a profitable operating company 20 years in Oil Sands area Current Sales > $35 million / yr. Workforce > 250 persons With new management team and working capital: Expected Sales in 2011 > $255 million Est. minimum profit: 15% The Empire Group

32 Norsk Oil and Gas Drilling Fund General Partner to seek opportunities to acquire producing oil and gas wells, including those abandoned by major petroleum companies in favour of “mega-projects”. Headed by Dr. John Little, who has a successful history spanning over three generations in this area. The Empire Group

33 Funding from IPO: $25,000, Application of IPO funds: Purchase of Aqua Industrial Ltd. $ 7,800, Aqua Working Capital $ 4,200, Empire Service Rigs $10,000, (production line & working capital) Charger Metal Fabrication $ 2,000, Norsk Drilling Fund $ 1,000, Total funds required $ 25,000, Brokers Fees $ 3,000, Total funds to be raised $ 28,000, Funding Requirements

34 Revenues Aqua49,000,000114,500,000186,300,000 Charger From Aqua 200,000 6,000,00018,000,00026,000,000 Empire From Aqua 7,000,00020,000, ,000 25,000,000 5,400,000 46,000,000 8,300,000 Race Eng.28,100,00029,800,00034,400,000 Race Crane Norsk Total Sales7,200,000104,000,000192,700,000301,000,000 Net Profit 10% = 720,000 20% = 20,800,000 22% = 42,394,000 22% = 66,220,000 Norsk Net Profit0500,0001,000,0003,000,000 Total Net Profit720,00021,300,00043,394,00069,220,000

35 Shares issued to date: 13,000,000 Shares issued via 3 E: 6,000,000 Total shares outstanding after IPO 19,000,000 Profit projected in 2009$ 21,300,000 P/E Ratio 1.12 EXCEPTIONAL? Share Structure

36 New Company Rapidly growing industry - both domestically and internationally Huge market opportunity - current shortfall and growing Forcing growth of company by acquisition - exceeding our expectations Profitable in first year of operation Conservative management philosophy Future opportunities in leasing Summary We are in the right industry the right country, and the right province, at the right time.

37 Our immediate objective is a listing on the Oslo Stock Exchange. Acquire a Sponsoring Broker Complete Seed Share Offering List Empire International Energy Inc. on Oslo Exchange Raise $28,000,000 through an I.P.O. to allow continued company growth for the benefit of shareholders Thank you. What now?

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