TSX-V: TBD USA - OTC: TBDYF

Transcription

1 TSX-V: TBD USA - OTC: TBDYF

2 Highlights Natural Gas Gordon Creek, Utah Adjacent to Utah s largest gas field Drunkard s Wash Currently Bcf Proven Reserves + Bcf Probable Reserves Potential to increase conventional reserves to 0 Bcf Mancos Shale major additional reserve potential through the adoption of modern completion techniques Current (0) NI -0 valuation of US$ million CO (0% DOE Funded) Oil Pending CO Sequestration Pilot Project - $ million budget for Gordon Creek Prove up CO reserves discovered in 0 s and 0 s Establish potential C0 sequestration business opportunity Extensive infrastructure to be retained by Thunderbird for gas and/or CO production Powder River Basin, Wyoming oil exploration 000 acres in emerging prolific Niobrara oil shale trend Pending Niobrara vertical well completion (Ascent farmout) Surrounded by EOG Niobrara 00 horizontal drilling Duschene County, Utah acquiring land on emerging prolific green river oil shale play

3 Gordon Creek - Natural Gas (BBG: NYSE) (MAE: ASX) Originally developed in the 0 s Produced 0 BCF from Ferron formation Recent reactivation and drilling program Clear Creek Gordon Creek Helper Proved reserves: Bcfe 0,00 acres Program potential: Bcfe Drunkards Wash (APC: NYSE) (COP: NYSE),000 net acres 0 MMCfe/day Cumulative Gas Production: BCF Expected Recoverable Reserves:,0 BCF

4 Gordon Creek - Natural Gas Conoco Drunkards Wash Field Bcf to date 0 wells. Tcf projected.0 Bcf/well based on wells per section Drunkards Wash Thunderbird Gordon Creek Field > 00 ASL. Bcf to date wells ( on production) > 0 potential locations

5 Highlights Management David Evans P. Geol. Ph.D Chairman Rick Ironside P.Eng. MBA President, Chief Operating Officer Barry Brumwell C.E.T. Vice President of Operations Over 0 years collective experience creating, building and selling oil & gas companies, including: Barrington Petroleum -,000+ BOE/Day Defiant Energy Corp 00+ BOE/Day Defiant Resources Corp. 0+ BOE/Day The Utah Advantage Gordon Creek borders Drunkard s Wash, Utah s most prolific natural gas field Low royalty rates, land costs and operating costs Recent completion of REX pipeline lowering Rockies pricing differential Utah named one of the top business friendly jurisdictions in the world (00 Fraser Institute study) Favorable US CDN Exchange rate favors US operations

6 Gordon Creek Natural Gas Making Progress Under New Management (. years) Increased P reserves % and asset value % without access to new capital for development drilling Refinanced company debt, replacing Macquarie bank with debenture holders Created a new development strategy with potential to add 0 bcf proven reserves with only million capital expenditures Concluded gas purchase funding with Sandstorm Metals & Energy Ltd. $ Million funding for 0 and 0 (commitment of 0 new drills, re-entries) In 0, new drills and rework existing wellbores In 0, drill the balance of the 0 new wells Sandstorm pays an operating and royalty fee of $.00 plus 0% of field price > $.00 For subsequent wells, Sandstorm pays a prescribed well fee For subsequent lands in a mutual interest area, Sandstorm pays % Recently received DOE approval of the Gordon Creek CO sequestration Pilot Project Increasing oil focus, gaining entry into two new prolific oil plays

7 Gas Reserves: By Category Reserve Category GAS (MMCF) Proved Reserves Proved Developed Producing.0.,0.. Proved Developed Non-Producing,.,0.,.,0. Proved Undeveloped,0.,.,.,0. Total Proved Reserves (P),.,.,.,. Probable Reserves Total Proved + Probable Reserves (P) Possible Reserves Total Proved + Probable + Possible Reserves (P),. 0,.,.,.0,.,. 0,.,.,0. 0,0.,.,.,. 0,.,.0,.

8 Oil & Gas Reserves: Discounted NPV Reserve Category PV0 MM US$ PV0 MM US$ PV0 MM US$ PV0 MM US$ Proved Reserves Proved Developed Producing Proved Developed Non-Producing.... Proved Undeveloped Total Proved Reserves (P) Probable Reserves Total Proved + Probable Reserves (P) Possible Reserves Total Proved + Probable + Possible Reserves (P)

9 S00E 0S00E S00E 0S00E 0S00E 0S00E S00E 0S00E 0S00E M TB A SWD D J D TB -D M A- E- B- B- -D B- D- A- B-0 A- D- B- B- A- A- B- A- D- D D DREWD- D U A- TB --(A) TB --(B) TB GC TB -0 TB U -0 TB U - - TB - TB -D U U -A D- -X D A D D A D- D A A D RGU H A- D D- - F-SWD -A A- A- D- B- A- D- A- F- E- A- H- A- D- D- H- A- F- - A-0 D- A- A- D- A- A- A- A- B- A- A- D- A- F- A- A- A D TB -- A- - B- 0-- A B- 0- C- 0- D F- K- - M B G- F- E- G- 0- B B- B- B- C- 0- E- 0- E- E- E E A -A UTU-X TR R -R -R -R -R -R -R -R -R -R -R -R -R -0R -0R -R -R -R -R -R -0R -0R DRUNKARDS WASH COMPARISON WELLS PETRA 0/0/00 :: PM Gordon Creek Drunkard s Wash Best Practices Study 0 wells Proximity Statistical Analysis Mapping of Sands & Coals Drunkards Wash Drunkards Wash Comparison Wells

10 Highlights Best Practices Study Technical Analysis Study of completion practices, logs and statistical data for 0 wells in close proximity to Gordon Creek Coals and sands are equivalent and can be mapped from Drunkard s Wash across Gordon Creek and beyond 0 wells divided into wells with thicker sands and mostly coal wells Statistical solution for gas contribution of sands and coals Conclusions Ferron sands and coals at Drunkard s Wash continue through Gordon Creek Substantial by-passed pay at Gordon Creek as a result of differences in historical practices at Gordon Creek versus Drunkard s Wash Best practice is to complete stimulate and simultaneously produce coals and sands with porosity > % and to produce associated water

11 Highlights Best Practices Study DRUNKARDS WASH RIVER GAS CORP 0- Drunkards 0, Wash 0, River Gas Corp 0-0, 0, GORDON CREEK THUNDERBIRD ENERGY CORP -0-- Gordon Creek Thunderbird Energy Corp -0-- K_FERRON 0 () 0 () 00 () 00 () 0 () 0 () 00 () 00 () 0 () K_BASAL_MARINE Sandstone 00 () Coal 0

12 Highlights Best Practices Study Gas Rate (mcf/day) Drunkard's Wash - Average Well Forecast Volumes - Economic Limit - mcf/day Years, MMcf, MSTB Years on Production Coal Contribution (Avg.. ft) Sand Contribution (Avg. Phi x h =.0)

13 Full Cycle Economic Analysis NYMEX Gas Price vs. IRR and Payout 0 IRR (%), Payout (MTHS) PAYOUT (MTHS) IRR (%) 0 0 (Current Price) 0 NYMEX GAS PRICE (US $)

14 Shale Gas Play Comparisons $.00 Gordon Creek - Compared to a Ranking of the Various Natural Gas Shale Plays $.00 * Break Even - $/Mcf $.00 $.00 $.00 $.00 $.00 $.00 $0.00 * Economic Break Even Assumes 0% Before Tax Return on Capital and Excludes Sunk Costs (Acreage, overhead, etc.)

15 Full Cycle - Economic Analysis Well Parameters To be conservative, we have assumed a % reduction in reserves and IP rates Average reserves of. Bcf per well First year average rate of 0 mcf/day raw gas Average SITLA, Fee or BLM Royalty =.% Est. drill, complete, equip and tie-in $0,000 US Land acquisition cost per location $,000 US Mainline cost per well $,000 US Operating cost - $000 per well per month plus $0./mcf Transportation offset to NYMEX gas price = $0.0 US Conclusions Full cycle break even price roughly $.00 NYMEX $.00 NYMEX flat price yields a.% Internal Rate of Return $.0 NYMEX yields a.% IRR and a month payout

16 Mancos Shale Lower Blue Gate Member,00 to,00 ft of thick uniform calcareous shale. GORDON CREEK THUNDERBIRD ENERGY CORP -0-- Overlain and underlain by established sandstone / coal gas reservoirs. Over,000 ft has TOC (type II and mixed type II-III kerogen) greater than.0%, 0 feet has TOC greater than.%, and nearly 00 feet has TOC greater than.0%. Chronologically and Stratigraphically equivalent to the White Specks/Medicine Hat shale play in southern Alberta. Is an under pressured reservoir that can greatly benefit from advancements in Propane Fracturing technologies. 0 () 00 () 0 () 00 () The OMIMEX STATE -A at Gordon Creek tested MMcf/d and came on un-stimulated at 0 Mcf/d. Large mud gas readings, and widespread gas shows all demonstrate the strong potential for widespread development of this shale gas reservoir. 0 (0) 00 (0) Gamma Ray 0-0 API Gas Detector

17 Recent Drilling Activity and Results XTO (Exxon) New Western Ferron Extension locations drilled at the end of day average test rates of 00 Mcf/d. Not yet tied-in. XTO/ConocoPhillips - Southwestern Ferron Extension new drills since 00 - wells a section. IP rates from 00 Mcf/d. MMcf/d.

18 Development Plan Growth Summary Status Quo Stage December 0 Stage December 0 Sandstorm Funding Gross Capital (US M$) Land Drilling/Completion/Equip Workovers Gathering & Facility TOTAL,000 00,0 ( wells),000 ( wells) 00,0 0,000 0,0 ( wells) -,0,0 ASSUMPTIONS Production per well 0 to 0 mcf/day Reserves per well of. to.0 bcf (Net Thunderbird) Production (boe/day) Gross Net 0 0 (0), to, 0 to 0,0, to,, to, Netback of $. per mcf assuming NYMEX price of $.00 per mcf Net RESERVES (Bcfe) Proven Probable TOTAL P to.0.0 to 0.0. to.0 0. to to 0.0 Field Cash Flow (M$/Month) Net to to 0 Summary acquire sections, work over existing wells, drill 0 new wells and build mile main pipeline to add net Thunderbird; + boe/day and.+ bcf of P reserves (.+ bcf of P reserves) Total Capital - $. million ($. million net Thunderbird) 0

19 Development Plan Asset Growth Status Quo Stage December 0 Stage December 0 P&NG 0% (CDN MM$) P&NG $.0/mcf (CDN MM$) Working Capital (CDN MM$) Debt (CDN MM$) Shares Outstanding (Millions) Asset Value/Share (Basic) (CDN $) Asset Value/Share (F.D.) (CDN $).* (.)/0.** $0. $. $. $0.0 $0. $. * January 0 NI -0 Valuation (Proforma Closing Sandstorm Funding) ** Assuming exercise of all warrants (Fully Diluted)