Alberta Oil & Gas Income Partnership Inc. Offering

Transcription

1 Alberta Oil & Gas Income Partnership Inc. Offering Fall 2009

2 Offering Structure $7,500,000 USD Offering Acquired the producing assets of Alberta Oil & Gas Income Partnership Inc.Completed May1, 2009 $5,000,000 USD for 2009 Cap ex. to improve the current production and drill 5 new in fill wells $15.00 USD offering per share through convertible debenture.

3 Financial Plan Acquired working interest in affirmed producing assets in Oklahoma with an experienced operator, $2,500, USD. Invest in low risk, predictable production with large calculated reserve base ignored by majors. Increase production with well optimization; and, Increase recovery factors through in fill drilling, $5,000, USD. Increase value to the investor and manage disbursements monthly.

4 Production Summary Field produced constantly since 1960 s. Adjacent wells drilled into Dutcher highly prolific. Drilled existing low risk wells, in fill drilling. Connected field to main pipe line. Current Production approx. 55 BOE (5 Proven Wells). Planned increase production approx BOE (5 Prospect Wells). 2 million BBLS produced to date, 8 million P+P Two Independent Geological reports available.

5 Strengths and Advantages Partners have success in finding undervalued assets and maximizing returns. Local operating partner with 25 Years in oil & gas exploration and production in Oklahoma. Realizing opportune times to invest in oil & gas. No current liabilities and existing cash flow. High quality reserve base with significant infrastructure. USA looking for continuous energy supply to cut down on growing foreign demand. Demand for oil is not going away.

6 Alberta Oil & Gas Income Partnership Inc. Multi-pay zones and Multi well Shallow depth all zones No Complex or hazardous drilling Wells in area have long life reserve index Opportunity to increase project On-going well maintenance Stable production with large reserve Mayberry #1

7 High Lights of Investment Field size 1700 acres, purchased more Aug 01/09 55 BOE Cash Flow monthly Low risk infill drilling and offsetting $275,000/well (5 wells). Operating costs below 3.50/Bbl 7% severance tax (Royalty). High bitumen results in higher price/bbl. High rates of return and cash flow. All existing wells to be reworked to increase production.

8 Projected Share Price based on future production $45.00 $40.00 $35.00 SHARE PRICE $30.00 $25.00 $20.00 $15.00 $ OIL $75.00 $85.00 $95.00 $ $10.00 $5.00 $ $75.00 $7.50 $11.25 $15.00 $18.75 $22.50 $26.25 $30.00 $85.00 $8.50 $12.75 $17.00 $21.25 $25.50 $29.75 $34.00 $95.00 $9.50 $14.25 $19.00 $23.75 $28.50 $33.25 $38.00 $ $10.50 $15.75 $21.00 $26.25 $31.50 $36.75 $42.00 BOE

9 Projected Annual Dividend per Share 8 7 Cash Distribution ($) BOE BOE BOE $/Barrell

10 GLENCOE FIELD Inception Aug 2003 Raised 3.5mm Drilled 8 low risk wells and built 4 mile pipe line Production exit of +200 Boe Proved up 11 million Bbls Paid out 1.2 mm in dividends Sold Glencoe field in Aug 08 for 13mm at 90 oil

11 OPERATIONAL Current Operator-Mitch Lyon has well over 25 years directly involved in drilling and operating wells in the same general area as the prospective development He began his career working in the oil fields and has significant experience in all aspect of drilling and well operations. He has been an active investor and developer acquiring interests in wells since He has personally worked on over 200 wells and more recently has directly managed over 35 well completions in the area. He has extensive contracts with local resources which enable us to continue to locate the best opportunities, hire local talent and perform high quality work. In addition, Mitch has access to local equipment, resources for oil oil rigs and for repair and maintenance resources as needed. Mitch will continue to serve as the head of drilling and operations in the new business going forward.

12 OPERATIONAL Principal-Cory L Dosdall has lived in Calgary, AB since 2001 after leaving the financial industry in Wichita, Kansas. While in the financial business Cory developed a professional relationship with the current operator, Mitch Lyon. Cory has been involved in raising capital for a number of Oil and Gas plays as well as financings for public companies in both Canada and the USA. Cory has completed several successful M&A deals over the last 3 years which has led to successful exits of these projects through the public markets. Cory and Mitch have worked on several projects in Oklahoma including the Glencoe field. With a proven track record of success and the proper environment the intention is to repeat this successful model.

13 Benefits Remove management uncertainty. Exposure to low operating costs. Financial flexibility for the upside and protection for the downside. Monthly cash distribution in US currency. Immediate pay out, monthly. Historically US dollar higher then Canadian. Incentives to increase drilling in US.

14 Summary Experienced team proven track record. Quality long life assets with stable production. Value- producing assets, exploration. Low operational expenses. Opportunity- immediate cash flow, monthly distribution, purchase while oil is reasonably valued. Direct investment into production. Proven track record.