Nextraction Energy Corp · OTC:NXTFF

Nextraction Energy — Investor Presentation (September 2010)

24 slides from Nextraction Energy's investor presentation, September 2010

  1. Slide 1: Corporate Presentation

    Corporate Presentation September 2010 The NEXT round of extraction on known plays

  2. Slide 2: Disclaimer and Forward Looking Statements

    •DISCLAIMER The information contained in this presentation is confidential. The contents are not to be reproduced or distributed to any third party, including the public or press. The information contained herein, while obtained from sources which we believe are reliable, is not guaranteed as to its

  3. Slide 3: Company Assets

    Company Assets APPALACHIAN BASIN Pinedale Anticline Field * Appalachian Basin Shale Play** •1,200 producing wells •Estimated undiscovered gas •3,800 PUD’s resources of 900 BCF •Producing 1.2 BCFG/day • 500+ locations •Recoverable Reserves – 38 TCFG •Ongoing production testing •Recoverable Reserves –

  4. Slide 4: Reserves, Undiscovered Resources and Future Net Revenue

    Reserves, Undiscovered Resources and Future Net Revenue Undiscovered Gas PROJECT Proved Reserves Probable Reserves Possible Reserves Resources MBOE (P1) MBOE (P2) MBOE (P3) BCFG Appalachian Basin - - - 493 - 2,500 North Pinedale - 889.2 14,269.7 - SOURCE - MHA Petroleum Consultants, LLC MBOE - Thous

  5. Slide 5: Share Structure - as at September 3, 2010

    Share Structure - as at September 3, 2010 Nextraction is a debt free, tightly held company Issued and Outstanding Shares 16,908,613 Warrants ($0.65 shares to 11/5/10) 3,819,903 Warrants ($0.95 shares to 11/19/10) 1,548,000 Warrants ($1.25 shares to 3/29/11) 2,120,000 Stock Options ($0.42 shares to 1

  6. Slide 6: Stock Chart and Milestones

    STOCK CHART AND MILESTONES Announced 51-101 report of undiscovered gas resource estimate of 419BCFG-2.5TCFG (most likely 900 BCFG) on Appalachian Basin Project Received positive core test results in Closed Appalachian project Closed over- $2.8MM and increased interest subscribed financing in Pinedal

  7. Slide 7: Nextraction Management

    NEXTRACTION MANAGEMENT  Mark S. Dolar, President, Chief Executive Officer and Director has 28 years experience in the American oil and gas industry, and has developed extensive knowledge and expertise in the production and development of oil and gas properties. As managing partner of privately held

  8. Slide 8: Acquisition Criteria

    ACQUSITION CRITERIA  Potential to produce 100-250 BCFGE or 12 MM BOE*  Potential to Generate $250 Million to $1 Billion in Revenues  Generate greater than 25% IRR Fracing Operations in Pinedale  Finding cost of less than $2.50 per MCFG or $18 per Barrel of Oil Drilling Operations in Pinedale *MM

  9. Slide 9: Chattanooga Shale Gas in the Appalachian Basin

    CHATTANOOGA SHALE GAS IN THE APPALACHIAN BASIN Kentucky and Tennessee

  10. Slide 10: Shale Gas in the Appalachian Basin

    SHALE GAS IN THE APPALACHIAN BASIN

  11. Slide 11: Appalachian Basin

     70,130 Acre Farm-in Appalachian Basin  Core confirmed shale Chattanooga Shale Gas Play contains substantial gas in place  First well completed & producing from multiple zones  1400 BTU Gas (Liquids Rich Gas)  Gas sells into NYMEX market at a premium

  12. Slide 12: Appalachian Basin

     5 Stage Multi Stage Frac Appalachian Basin  Flowed back averaging 170 Chattanooga Shale Gas Play MCFGPD – conventional zones Mountain Minerals #5 Well  Vertical wells cost $280,000 Campbell County, TN to drill and complete  Horizontal wells cost $1.1 MM to drill and complete  Reserve estimates

  13. Slide 13: Nextraction's Acreage Map

     22     21  23     25 24 23 22 21 25 24 23 21 25 24 23 22 21 25 24 23 22 21 25  24  23  22 21  25 24 23  22 21 25 24 23   22 25 24 22  21 25 24 23 22 21                                                            

  14. Slide 14: NI 51-101 Technical Report

    NI 51-101 Technical Report *Estimated Undiscovered Gas Resources (Devonian Shale formation) Working Interest (%) Gross Gas in Place Net Gas in Place (BCF) (BCF) Total Resource 100 Low Case -419 Low Case -419 Most Likely -903 Most Likely -903 High Case - 2503 High Case – 2503 *Estimated Undiscovered

  15. Slide 15: Deal Terms

    Deal Terms Nextraction has entered into a partnership agreement with Vinland Energy Operating, LLC and South Fork Energy, LLC. NEXT 25 WELLS BEFORE PAYOUT FIRST 4 WELLS NEXTRACTION 95% BEFORE PAYOUT SOUTH FORK 5% NEXTRACTION 95% VINLAND/VANGUARD 0% SOUTH FORK 5% VINLAND/VANGUARD 0% AFTER PAYOUT (if

  16. Slide 16: N. Pinedale Anticline Tight Sand Gas Play

    N. PINEDALE ANTICLINE TIGHT SAND GAS PLAY SUBLETTE COUNTY, WY

  17. Slide 17: N. Pinedale Anticline

    N. Pinedale Anticline Nextraction Acreage Noble #6-24 Nextraction Top Lease Production Super pads

  18. Slide 18: Noble 6-24 Well and Reserve Estimates

    •Completed 13 of 21 Nextraction new acquisitions multi-stage; most porous Nextraction zones to be frac’d at a Recently completed later date the 14,906’ Noble 6-24 well and •Well costs between $5-6.5 is producing MM to drill and complete Nextraction Top lease •Net reserve estimates of Noble #6-24 80

  19. Slide 19: Nextraction Lease Position

    Nextraction Lease R 106 W Sub ette County Wyom ng    R 108 W Position  R 109 W                   Ma o Ope a o s n he a ea   R 110 W  nc ude                   

  20. Slide 20: North Pinedale Anticline Projected Internal Rate of Return

    North Pinedale Anticline Projected Internal Rate of Return PRICE PER 4 BCFG; 40 KBO 5 BCFG: 60 KBO 6 BCF; 72 KBO MCFG 4.24 BCFGE 5.36 BCFGE 6.432 BCFGE $4/MCF 15.052% 25.620% 37.627% $5/MCF 26.288% 42.022% 60.782% $6/MCF 39.432% 62.716% 89.726% $7/MCF 54.802% 86.403% 125.316% Source - Internally gen

  21. Slide 21: Deal Terms

    Deal Terms Nextraction has entered into a partnership agreement with Vantage Energy Green River, LLC FIRST 2 WELLS BEFORE PAYOUT NEXTRACTION VANTAGE WI-100% NRI- 81.15% WI-0% NRI-0% AFTER 150% PAYBACK (if back-in is exercised) NEXTRACTION VANTAGE WI-73.75% NRI-60.59% WI-26.25% NRI–21.13% SUBSEQUENT

  22. Slide 22: Investment Highlights & Summary

    Investment Highlights & Summary  In Production – Generating Revenue  Risk dollars have been invested; projects in development phase.  Technical Expertise  Vantage Energy operates Pinedale Property (Former EnCana Management);  Management and Consulting teams with specific expertise in project ar

  23. Slide 23: Upcoming Milestones

    Upcoming Milestones  Drill and complete 3 additional proof of concept wells in Appalachian Basin in 2010  Drill second Pinedale well in 2011  Drill 25 wells in Appalachian Basin before end of 2011  Acquisition(s) that meet our criteria

  24. Slide 24: Nextraction Energy Corp. Contact Details

    Nextraction Energy Corp. 550 Burrard Street, Suite 328 Vancouver, B.C., Canada V6C 2B5 Company Contact: Investor Relations Contact: Mark S. Dolar Sequoia Partners, LLC President & CEO Phone: (604) 601-5614 Phone: (604) 630-0300 Don Graham Cell: (778) 558-4310 Cell: (801) 502-5085 James Beesley Cell:

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