Click your left mouse button or an arrow button if present, to advance the slide. At any time you may press ESC to Quit the presentation
DRK:TSX.V INVESTING IN NORTH AMERICA Previous Disclaimer This document includes forward-looking statements. Forward-looking statements include, but are not limited to, the continued advancement of Derek Oil & Gas Corporation’s LAK Ranch project. When used in this document, the words “potential”, “plan”, ”could”, “estimate”, “expect”, “intend”, “may”, “should”, and similar expressions are intended to be among the statements that identify forward-looking statements. Although Derek believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that Derek’s LAK Ranch project will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, and other risks.
DRK:TSX.V INVESTING IN NORTH AMERICA Introduction to Derek Oil & Gas Corporation Derek Oil & Gas Corporation Mission: Derek Oil & Gas Corporation (Derek) has a corporate objective to become a mid-tier energy producer within one year This objective is to be accomplished through exploration, development & production from its oil & gas assets in North America This Presentation Features: Corporate Structure & Overview Projects – North America Investment Opportunities Management & Board of Directors Contact Information
MAIN MENU1 DRK:TSX.V INVESTING IN NORTH AMERICA
MAIN MEN U2 DRK:TSX.V INVESTING IN NORTH AMERICA
Click on any menu item or just click anywhere on the screen to advance to the next slide
MAIN MENU Click on any menu item or just click anywhere on the screen to advance to the next slide DRK:TSX.V INVESTING IN NORTH AMERICA
DRK:TSX.V INVESTING IN NORTH AMERICA Previous Company Profile Oil Exploration, Development & Production Company North American Property/Assets Specializing in Enhanced Oil Recovery (“EOR”) Projects Public Company Trading Board: TSX Venture Exchange Ticker Symbol: DRK Share Structure (as at August 31, 2007) Issued & Outstanding: 47,249,550 Fully Diluted: 59,440,130 Previous
DRK:TSX.V INVESTING IN NORTH AMERICA Derek’s Public & Financial Documents Please visit: www.sedar.com to view all publicly filed documents including annual & quarterly statementswww.sedar.com Or Call: 1.888.756.0066 For immediate follow up on the most current information Previous
DRK:TSX.V INVESTING IN NORTH AMERICA PROJECTS Previous
Burlington Northern Railway Town of Newcastle & Wyoming Refinery Total Property Area 8000+ Acres 3D Seismic Area 2880 Acres or 4.5 sq. miles LAK Ranch Pilot Plant more info DRK:TSX.V INVESTING IN NORTH AMERICA PROPERTY MAP SHOWING 3D SEISMIC AREA
Newcastle Oil Refinery Just 5 miles (15 min.) from LAK Ranch Property DRK:TSX.V INVESTING IN NORTH AMERICA PROPERTY MAP SHOWING 3D SEISMIC AREA
Prime Property Asset 8000 + Acres Prolific Powder River Basin Safe & Desirable North American Location Excellent Access & Services PROPERTY MAP SHOWING 3D SEISMIC AREA
SURFACE FACILITIES Features of Surface Facilities DRK:TSX.V INVESTING IN NORTH AMERICA
Surface Facility Features Fully paid for by Derek Oil & Gas Plant handles up to 2,000 bopd Bateman’s Engineered 27 MM BTU Steam Generator Natural gas pipeline supplies the steam generator Complete heater treater plant Aerial cooler system Tank battery for oil storage Water treatment plant for generator Water supply contract in place DRK:TSX.V INVESTING IN NORTH AMERICA SURFACE FACILITIES
WHAT IS FOUND UNDERGROUND DRK:TSX.V INVESTING IN NORTH AMERICA
Blue Sky Hydrocarbon Potential The following are the Multiple oil potential horizons identified in the 3D seismic survey: 1) Newcastle Formation: 1) Lower Alluvial 2) Upper Marine 2) Fall River 3) Minnelusa WHAT IS FOUND UNDERGROUND
DRK:TSX.V INVESTING IN NORTH AMERICA Newcastle Sand Formation – New Drill Program 12 Well drill program completed on +/- 20 acre drainage area Net pay thickness (12 Well area): 35 feet Average porosity (12 Well area): 22% Average permeability (12 Well area): 1295 MD Average oil saturation (12 Well area): 63% WHAT IS FOUND UNDERGROUND
INITIAL DEVELOPMENT – 2005/2006 Continuous Steam Injection Program DRK:TSX.V INVESTING IN NORTH AMERICA
Steam Flood Program INITIAL DEVELOPMENT – 2005/2006 The Process: Inject steam into vertical injector wells Steam heats reservoir to decrease oil viscosity Oil & water moves through permeable channels Oil & water is pumped to the surface & separated using heater treater facility DRK:TSX.V INVESTING IN NORTH AMERICA
THE 12 WELL PROGRAM Central Injector Producer 1 Producer 2 Producer 3 Producer 4 DRK:TSX.V INVESTING IN NORTH AMERICA
Central Injector Producer 1 Producer 2 Producer 3 Producer 4 DRK:TSX.V INVESTING IN NORTH AMERICA Short Term – 1 Year Observe steam flow & production increase from pilot phase development & newly completed 12 well program. Added cash flow through increased oil production & re-investment into further development Continued interpretation of 1.1 Million USD 3D Seismic survey Mid Term – 3 Years Approximately 195 total new wells drilled with 115 being producer wells Future Development THE 12 WELL PROGRAM
QUALITY OF OIL BEING PRODUCED High Quality oil Characteristics Horizontal Producer Well 1-P Pore Spaces DRK:TSX.V INVESTING IN NORTH AMERICA
High Quality Oil Characteristics QUALITY OF OIL BEING PRODUCED: Low Paraffin Low Sulphur content: <0.5% Pricing at WTI (West Texas Intermediate) less $7.00 per barrel Average 19 API gravity oil Oil characteristics suitable to produce Jet Fuel using catalytic cracking DRK:TSX.V INVESTING IN NORTH AMERICA
The Separation Process OIL & WATER SEPARATION PROCESS
The Separation Process OIL & WATER SEPARATION Produced fluids flow to the “Heater Treater” where oil & water (produced fluids) are separated Produced fluids flow to their respective storage tanks Oil is sold to purchaser and water is processed for disposal
DRK:TSX.V INVESTING IN NORTH AMERICA INVESTMENT OPPORTUNITY Previous
DRK:TSX.V INVESTING IN NORTH AMERICA Why Derek? No exploration risk in Newcastle Sandstone Expanding Reserves & Production on Per Share Basis Safe & Well Situated North American Location Focused & Active Management & Board of Directors Effective, timely & personal Shareholder Communications Previous
DRK:TSX.V INVESTING IN NORTH AMERICA BOARD OF DIRECTORS Mr. Barry C. J. Ehrl President, C.E.O. & Director Mr. Alan H. Stevens B.S., M.S. Director Mr. George Eynon B.Sc., M.Sc. Director Mr. John Lush Director Investor Inquires: 1-888-756-0066 email@example.com Mr. Charles B. Crowell BA, JD Director For a brief bio of our directors click on any of the names below Dr. Eike Hamer MBA Director Previous Next
CLOSE DRK:TSX.V INVESTING IN NORTH AMERICA Mr. Barry C. J. Ehrl President, C.E.O. & Director Barry is a founder of Derek Oil & Gas Corporation with over 35 years of experience working with public companies in the oil & gas sector. Barry is an entrepreneur who has held several senior management positions in public companies and has been successful in raising millions of dollars in capital to fund the exploration & development of projects in North America & internationally.
CLOSE DRK:TSX.V INVESTING IN NORTH AMERICA Mr. Alan H. Stevens Director B.S., M.S. (Geological Engineering) Former President of Southwest Energy Production Company and Senior Vice President of Worldwide Exploration for Occidental Petroleum, Al brings over 35 years experience in technical and managerial positions involving all phases of hydrocarbon exploration, production, operations and contract negotiations for both domestic and international projects to the Derek board of Directors. Al’s expertise in all facets of the oil industry makes him a fundamental addition to the Derek board of directors.
CLOSE DRK:TSX.V INVESTING IN NORTH AMERICA Mr. George Eynon Director B.Sc. (London), M.Sc. (McMaster) George is the current Vice President of Business Development & External Relations for the Canadian Energy Research Institute (“CERI”), a former President of the Canadian Society of Petroleum Geologists and past-Chair of the House of Delegates for the American Association of Petroleum Geologists. George has also worked in senior level positions with companies such as Amaco, Paramount Resources, Superior Oil, Suncor Energy and Bow Valley Energy. For ten years George provided energy and management consulting for companies such as GEOS Energy Consulting, Ziff Energy Group and Cambridge Energy Research Associates. George brings over 30 years of experience in the upstream, oil & gas sector and energy consulting to Derek’s board of directors.
CLOSE DRK:TSX.V INVESTING IN NORTH AMERICA Mr. John Lush Director John is an international executive with over 35 years of experience in the oil and gas sector. He is currently President of Petroval Pte Ltd. (Singapore), a company specializing in the sales and marketing of crude and refined oil products. With extensive experience gained working in three continents in executive positions with BP, Phibro Energy and Neste, John brings international exposure and years of expertise in the oil industry to the Derek board of Directors.
CLOSE DRK:TSX.V INVESTING IN NORTH AMERICA Mr. Charles B. Crowell Director BA (John Hopkins), JD Charles was admitted to the practice of law in Texas in 1974. Mr. Crowell has been a practicing attorney and a consultant to numerous oil and gas companies for 30 plus years. Charles brings his extensive experience to the Derek Board of Directors as Director of PetroHunter Energy Corporation, Providence Resources Inc., Gasco Energy, Inc., and a former Director of Comanche Energy Inc., Aero Services International Inc., Arakis Energy Corporation and Triton Europe, plc. Mr. Crowell’s former positions include, Senior member of Crowell & Bishop, PLLC, Attorneys, Manager & Principal at Enigma Engineering Company, LLC. and Executive Vice President, Administration of Triton Energy Corporation.
CLOSE DRK:TSX.V INVESTING IN NORTH AMERICA Dr. Eike Hamer Director Eike holds a Masters in Business Administration (MBA) from the University of Rostock, Germany with extensive studies at the University of Bonn and the University of Osnabruck. Eike is current publisher of “Wirtschaft Aktuell”, a newspaper providing background information on political and economic developments in Europe. Eike is the current CEO of ELUX Wealth Management, an investment advisory corporation.
DRK:TSX.V INVESTING IN NORTH AMERICA PICTURE GALLERY Previous
DRK:TSX.V INVESTING IN NORTH AMERICA Previous Contact Us Head Office: Suite 1201 – 1111 West Hastings St. Vancouver, BC Canada V6E 2J3 Tel.: 604-331-1757 Fax: 604-669-193 Toll Free: 1-888-756-0066 Transfer Agent: Computershare Trust Company Of Canada 2nd floor,510 Burrard St. St., Vancouver, BC Canada V6C 3B9 US Site Office: P.O. Box 823 32 Tub Town Rd. Newcastle, Wyoming USA 82701 Auditors: PriceWaterhouseCoopers Address: Vancouver, BC Canada Lawyers: Tupper, Johnson & Yeadon 1710-1177 West Hastings St. Vancouver, BC Canada V6E 2L3 w w w. d e r e k o i l a n d g a s. c o m