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TSX Venture - “RGY” October 1, 2005

MOVING IN THE RIGHT DIRECTION. TSX Venture - “RGY” October 1, 2005. Investment Snapshot. Area of focus: Central Alberta, Peace River Arch and Southwestern Saskatchewan Current production: 1,000 Boe/d 2005 estimated cash flow: $7.5 million

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TSX Venture - “RGY” October 1, 2005

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  1. MOVING IN THE RIGHT DIRECTION TSX Venture - “RGY” October 1, 2005

  2. Investment Snapshot • Area of focus: Central Alberta, Peace River Arch and Southwestern Saskatchewan • Current production: 1,000 Boe/d • 2005 estimated cash flow: $7.5 million • 2005 estimated CFPS: $0.38/share • Total net debt: $ 5.5 million • Shares outstanding: 19.8 million • Recent share price: $1.62 per share

  3. The RIVAL Team Colin Ogilvy, President and Chief Executive Officer 28 years of experience John Clark, Vice President, Engineering 29 years of experience John Wilson, Vice President, Exploration 27 years of experience George Ziroff, Vice President, Finance 28 years of experience Directors: Larry M. Jones Doug Martin Roy Gillespie Harley Winger Colin Ogilvy

  4. Corporate Philosophy • Experience & track record of management team is “cornerstone” for success • Strict adherence to corporate strategy and disciplined focus for all operations • Maintain financial strength and flexibility at all times

  5. Corporate Strategy • High working interest • Operatorship or control • Sweet gas or light Oil • Depth < 1,800 metres • Access to infrastructure • Land availability • Year-round accessible Edmonton Calgary

  6. Existing Core Areas Loon East Central Bellshill/Killam Robsart Production area Exploration area

  7. Core Areas Strategy • Primary emphasis on the shallower, multi-zone areas within Alberta & SW Sask. • Target areas where Rival has the technical expertise and a track record of success • Operations within areas with availability to cost-effective facility infrastructure • Focus on growth through the drill bit while targeting overall low cost structure

  8. Growth Strategy • Internally generated production growth • Full-cycle exploration • Two-pronged approach to growth: • “Grassroots” exploration • Complementary or strategic • property acquisitions or corporate transactions

  9. 2005 Corporate Objectives • Increase prospect inventory and landholdings • Focus on grassroots exploration activity • Increase operatorship and control over Company interests to 75% of production • Operate at least 90% of capital expenditures • Complete one strategic acquisition • Average 900 – 1,000 boe/d for 2005 • Target 1,200 boe/d exit rate production

  10. T7 T5 T3 Limit of Marine Ss. Limit of Marine Ss. T1 Robsart • Bearpaw/Belly River • Shallow gas (200-600m), sweet • Rival 50% WI • 3 well drilling program • Extensive infrastructure • 3 company owned plants • Undeveloped acreage • 53,000 net acres • Production (net) 2.0 MMcf/day

  11. ROBSART Recent Rival wells R26 R25 R24W3 T5 T4 T3

  12. Killam R 14 W4 T42 T41 6-30 Battery Locations

  13. Bellshill Lake R13W4 T42 T41 Locations

  14. 3D OUTLINE 3D OUTLINE FARM IN BLOCK FARM IN BLOCK Loon Area • Large farm-in on Metis lands (Rival 33%) • Crown equivalent • royalty • Slave Point/Granite • Wash (<1,800 m.) • 3D survey complete • Storm Exploration: • experienced operator Locations

  15. 2005 Performance (6 mos.) • Completed and tied-in 9 wells from Q4 successful drilling program • Drilled 5 of 6 wells successfully • Production averaged 785 boe/d • Oil & gas sales were over $6.6 million • Cash flow was over $3.0 million • Cash flow per share was $0.16/share • Sold Suffield, Sask. property for $950,000

  16. Potential for Growth • Solid, low risk development drilling program to be executed • Attractive long-term commodity price outlook • Drilling opportunities available • Competitive industry - Available capital • Significant asset and corporate rationalization activity underway

  17. Corporate Activity (Q4) • 3 wells at Robsart, Sask. (50%) • 2 wells at Bellshill (80%) • 2 wells at Killam (85%) • 2 wells in East Central (55%) • 2 seismic programs (100%) • Property or corporate acquisition

  18. Production to Date: (2005 monthly average boe/d) 1000 950 875 840 825 775 810 780 760 710 JA. FE. MR. AP. MA. JN. JL. AU. SE. OC. Oil (bbls) Gas (mcf)

  19. Outlook for Growth • 100 boe/d to be placed on production • Strong inventory of drilling prospects: • Robsart: 12 drilling prospects • Bellshill/Killam 4 drilling prospects (3D) • East Central: 5 drill-ready prospects • Loon: 3 drilling prospects (3D) • New exploration areas targeted • $8.5 million capital budget for 2005

  20. Outlook: Production (Yearly average Boe/d) 900 709 625 10 2002 2003 2004E 2005F Oil (bbls) Gas (mcf)

  21. Outlook: Revenue ($000) 14,500 10,500 9,000 100 2002 2003 2004E 2005F

  22. Outlook: Cash Flow ($000) 7,500 4,400 2,280 0 2002 2003 2004E 2005F

  23. Outlook: Cash Flow per Share ($) 0.38 0.23 0.20 0.0 2002 2003 2004E 2005F

  24. 2005 Forecast Performance(budgeted) • Production (‘05 Avg.): 900 boe/d • Revenue: $ 14.5 million • Cash flow $ 7.5 million • Cash flow per share $ 0.38/sh. • Net income $ 1.8 million • Net income per share $ 0.09/sh. (Fcst.)

  25. Rival Energy Investment Fundamentals • Proven management team • Disciplined operating strategy • Inventory of drilling prospects • Strong balance sheet / financial flexibility

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