Strata Pwr Corp. · OTC:SPOWF
Strata Pwr — Strata Oil & Gas — Investor Presentation (June 2013)
33 slides from Strata Pwr's investor presentation, June 2013
Slide 1: The next frontier in unconventional oil
June 2013 THE next exceptional shareholder returns inoil frontier in unconventional a rising petroleum market 1
Slide 2: Investment Highlights
INVESTMENT HIGHlightS DEVELOPMENT & PRODUCTION PLAN – Strata is progressing forward with its USD $365 million five-phase capital plan to produce 56,000 barrels (bbls) per day by 2019 PHASE 1 UNDER WAY – Engineering exploration and pre- production development of Cadotte holdings LAND POSITION –
Slide 3: Investment Highlights (continued)
INVESTMENT HIGHlights ( continued ) TREMENDOUS UPSIDE – High side estimates Up to NPV USD $1.9 Billion for Cadotte Central Project with 36% IRR (disc. 10%) High probability of exceeding 26% recovery rate with existing and new technology Cadotte West, 22 Cold-flow potential exists in Bluesky/
Slide 4: Our Business
our business Company: Strata Oil & Gas was incorporated in the US in Nov 1998, moved headquarters to Calgary, Alberta in 2005 and incorporated under Canadian law Sector: Heavy oil (carbonate hosted bitumen deposits) exploration and production in Alberta’s Peace River area Goal: Provide excepti
Slide 5: World's Oil Reserves
World’s oil reserves 1.258 Trillion bbls proved oil reserves Canada holds 15% of the world’s reserve - 335 Billion bbls crude bitumen – 315 Billion bbls crude oil – 19.7 Billion bbls World Oil Reserves ( billions of barrels ) 315 260 113 78 60 22 Canada Saudi Arabia Iraq Venezuela Russia U.S
Slide 6: Canadian Crude Oil Production
canadian crude oil production Currently produces 3.3 Million bbls/day There are an estimated 50.7 Billion bbls in oil sands that are not under active development (000’s barrels/day) 5000 Oil Sands In-Situ 4500 Oil Sands Mining 4000 Conventional Heavy 3500 Conventional Light 3000 2500 2000 1500 1
Slide 7: Alberta Oil Facts
alberta oil facts Growing production with approximately 1.4 Million bbls/day with 176 Billion bbls of proven oil reserves: crude bitumen – 171 Billion bbls crude oil – 1.5 Billion bbls Peace River Oil Sands holds over 188 Billion bbls of Oil Long life resource Typically 30 year reserve l
Slide 8: Peace River Oil Sands Area
peace river oil sands area The Peace River Oil Sands area covers 11,052 sections (2.37 million hectares) Historic Bitumen exploration and production has focused on Bluesky and Gething Formations, Cretaceous-age clastic sediments Recent Exploration addresses the Debolt Carbonate Debolt is sim
Slide 9: Land Position
land position Source: EUB ST98-2006 THE next frontier in unconventional oil NEXT 9
Slide 10: Current Land Tenure
current land tenure 82 Sections in Total in the Cadotte Area THE next frontier in unconventional oil NEXT | cadotte project 10
Slide 11: Cadotte Project
cadotte project During 2006-2007 Strata drilled three wells on this block Resource estimate for this block was announced in September, 2007 Contingent Resource designation, April 2010 Cadotte West Resource Evaluation completed 2013 Cadotte West Cold-flow study underway THE next frontier in
Slide 12: Major Operators: Cadotte Area
major operators: cadotte area THE next frontier in unconventional oil NEXT | major bitumen resource 12
Slide 13: Major Bitumen Resource
major bitumen resource 3.41 Billion bbls of bitumen (most likely estimate) Ore zone thickness exceeds 10 metres and 10wt% High continuity between wells High concentration of bitumen per section Bedded platform carbonate and cretaceous oil sands THE next frontier in unconventional oil NEXT
Slide 14: Stratigraphy
Stratigraphy THE next frontier in unconventional oil NEXT | drill hole locations 14
Slide 15: Drill Hole Locations
drill hole locations Winter 2006-2007 (29 sections) THE next frontier in unconventional oil NEXT | TYPICAL WIRELINE LOG 15
Slide 16: Typical Wireline Log
typical wireline log THE next frontier in unconventional oil NEXT | CROSS SECTION 16
Slide 17: Cross Section
CROSS section THE next frontier in unconventional oil NEXT | pre-feasibility study 17
Slide 18: Cadotte Central Pre-Feasibility Study
cadotte central PRE-FEASIBILITY Study Prepared by Norwest Questa Engineering Corporation Feb 2008 Method of extraction utilized for study – Horizontal Cyclical Steam (HCS) Norwest used effective OBIP* estimates rather than a gross OBIP (Gross OBIP is about 50% higher) Shell’s Carmon Project
Slide 19: Petroleum Initially in Place
petroleum initially in place Cadotte Block (51 sections) Millions of Barrels (MMSTB) Low Estimate Low Estimate Most Likely Estimate High Estimate Formation 10 wt% grade & 8 wt% grade & 10 m thick. minimum 10 m thick. minimum 8 wt% grade minimum Bluesky/Gething N/A 275 545 682 Debolt 1,436 2,100 2,15
Slide 20: Recoverable Resource Estimate
recoverable Resource Estimate RECOVERABLE PORTION OF Contingent and prospective Resource FOR THE CADOTTE AREA BY TARGET ZONE IN MILLIONS OF STOCK TANK BARRELS (MMSTB) Formation Low Estimate Most Likely Estimate High Estimate Bluesky/Gething 47 142 259 Debolt 571 561 963 Elkton N/A 184 383 TOTAL 404
Slide 21: Economic Evaluation (Updated 2010)
economic evaluation ( Updated 2010 ) DIFFERENT OIL PRICE ASSUMPTIONS (USD $ BILLIONS) Sproule and McDaniel and Associates forecast that Alberta Heavy Crude Oil will sell for USD $30 less than WTI THE next frontier in unconventional oil NEXT | pre-feasibility findings 21
Slide 22: Pre-Feasibility Findings (Cadotte Central)
pre-feasibility findings (Cadotte central) Economically Viable NPV (disc. 10%) of cash flows before income taxes of USD $1.3 Billion (over initial 20yrs, producing only 360 million bbls of the total 517 million bbls available) Daily Production Rate of 56,000 bbls per day Based on a review of
Slide 23: Carbonate Comparisons
CARBONATE Comparisons UPPER CADOTTE PROPERTY GROSMONT DEBOLT ORE 1 ORE Depth of Top Zone (m) 285 451 - 597 Zone thickness (m) 30 - 34 27 - 29 Net Pay Thickness (m) 12 10 - 19 Average Porosity (%) 19 +24 Avg. Horizontal Permeability (mD) 400 500 Average Water Saturation (%) 25 7 - 37 Average Oil Satu
Slide 24: Success in Cadotte
success in cadotte Grosmont (Buffalo Creek & Maclean) and the Debolt (Cadotte) formations have heterogeneous characteristics Net pay thickness, porosity, permeability, and other properties in the two formations are very similar Debolt is more desirable due to higher reservoir pressure and temp
Slide 25: Cadotte Central Development - Capital Plan
CADOTTE central development - CAPITAL PLAN THE next frontier in unconventional oil NEXT | phAse 1 – development strategy 25
Slide 26: Phase 1 Development Strategy
phase 1 DEVELOPMENT STRATEGY I. CADOTTE Initial Drilling Program Results Addressed Resource Evaluation & Pre-Feasibility Study Production Testing Determine Additional Drilling Locations Water Survey Submit Application for Pilot Plant II. CADOTTE WEST Preliminary Recognition of Resource
Slide 27: Phase 1 - Cadotte Development
phase 1 - cadotte development THE next frontier in unconventional oil NEXT | cadotte development timeline 27
Slide 28: Cadotte Development Timeline
cadotte DEVELOPMENT TIMELINE 2013 2014 2015 2016 2017 2018+ Production Testing Water Survey Pilot Design Engineering Cadotte West Plant Testing Application Plant Construction Production THE next frontier in unconventional oil NEXT | WEST CADOTTE LOCATION MAP 28
Slide 29: West Cadotte Location Map
west cadotte location map West Cadotte Geology Data sources are from existing drilling information Bluesky/Gething, Debolt, and Elkton ore zones on the leases Drilling reports bitumen in the ore zones Baytex, PennWest, Murphy Oil are Cold-Flow producing from Bluesky/ Gething formation THE ne
Slide 30: Leadership
leadership Ron Daems (President & CEO) Extensive financial and resource industry experience Career has focused primarily on business development, strategic planning and financial analysis in the resource sector Currently engaged as President and CEO of Capex Energy Services, a privately held c
Slide 31: Investment Potential
investment potential CADOTTE CENTRAL HIGH SIDE ESTIMATES NPV USD $1.9 Billion (10% disc.) with 36% IRR at $95/bbl High probability of exceeding 26% recovery rate with existing and new technology Price of oil expected to exceed $150/bbl WEST CADOTTE REGION Bluesky/Gething, Debolt, and Elkton
Slide 32: Forward Looking Statements
forward looking statementS This information may contain forward-looking statements about our exploration, production, and other operating and financial plans. These statements are not guarantees of future performance, involve certain risks, uncertainties, and assumptions that are difficult to predic
Slide 33: Contact Information
contact information ADDRESS Strata Oil & Gas Ltd. #408, 918 –16th Avenue N.W. Calgary, Alberta T2M 0K3 EMAIL invest@strataoil.com PHONE (403) 237 5443 TOLL FREE 1 877 237 5443 FAX (403) 775 0461 WEBSITE www.strataoil.com THE next frontier in unconventional oil 33