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8. Disclaimer • This document includes forward-looking statements. Forward-looking statements include, but are not limited to, the continued advancement of Derek Oil & Gas Corporation’s LAK Ranch project. When used in this document, the words “potential”, “plan”, ”could”, “estimate”, “expect”, “intend”, “may”, “should”, and similar expressions are intended to be among the statements that identify forward-looking statements. Although Derek believes that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that Derek’s LAK Ranch project will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, and other risks.

9. Derek Oil & Gas Corporation Mission: Derek Oil & Gas Corporation (Derek) has a corporate objective to become a mid-tier energy producer within one year This objective is to be accomplished through exploration, development & production from its oil & gas assets in North America This Presentation Features: Corporate Structure & Overview Projects – North America Investment Opportunities Management & Board of Directors Contact Information Introduction to Derek Oil & Gas Corporation

10. MAINMENU1 DRK:TSX.V INVESTING IN NORTH AMERICA

11. MAINMENU2 DRK:TSX.V INVESTING IN NORTH AMERICA

12. Corporate Overview Projects Board of Directors Investment Opportunity Picture Gallery Click on any menu item or just click anywhere on the screen to advance to the next slide Contact Us DRK:TSX.V INVESTING IN NORTH AMERICA

13. MAINMENU Corporate Overview Projects Board of Directors Investment Opportunity Picture Gallery Click on any menu item or just click anywhere on the screen to advance to the next slide Contact Us DRK:TSX.V INVESTING IN NORTH AMERICA

14. CORPORATE OVERVIEW Corporate Overview

15. Company Profile Oil Exploration, Development & Production Company • North American Property/Assets • Specializing in Enhanced Oil Recovery (“EOR”) Projects Public Company • Trading Board: TSX Venture Exchange • Ticker Symbol: DRK Share Structure (as at August 31, 2007) • Issued & Outstanding: 47,249,550 • Fully Diluted: 59,440,130 Previous

16. Derek’s Public & Financial Documents • Please visit: www.sedar.com to view all publicly filed documents including annual & quarterly statements • Or Call: 1.888.756.0066 • For immediate follow up on the most current information Previous

17. Project Details PROJECTS Previous

18. PROPERTY MAP SHOWING 3D SEISMIC AREA LAK Ranch Pilot Plant Town of Newcastle & Wyoming Refinery more info more info 3D Seismic Area 2880 Acres or 4.5 sq. miles Burlington Northern Railway Total Property Area 8000+ Acres MAIN MENU DRK:TSX.V INVESTING IN NORTH AMERICA

19. Newcastle Oil Refinery PROPERTY MAP SHOWING 3D SEISMIC AREA Just 5 miles (15 min.) from LAK Ranch Property DRK:TSX.V INVESTING IN NORTH AMERICA

20. Prime Property Asset PROPERTY MAP SHOWING 3D SEISMIC AREA • 8000 + Acres • Prolific Powder River Basin • Safe & Desirable North American Location • Excellent Access & Services

21. SURFACE FACILITIES Features of Surface Facilities MAIN MENU DRK:TSX.V INVESTING IN NORTH AMERICA

22. Surface Facility Features SURFACE FACILITIES • Fully paid for by Derek Oil & Gas • Plant handles up to 2,000 bopd • Bateman’s Engineered • 27 MM BTU Steam Generator • Natural gas pipeline supplies the steam generator • Complete heater treater plant • Aerial cooler system • Tank battery for oil storage • Water treatment plant for generator • Water supply contract in place DRK:TSX.V INVESTING IN NORTH AMERICA

23. WHAT IS FOUND UNDERGROUND MAIN MENU DRK:TSX.V INVESTING IN NORTH AMERICA

24. WHAT IS FOUND UNDERGROUND Blue Sky Hydrocarbon Potential The following are the Multiple oil potential horizons identified in the 3D seismic survey: • Newcastle Formation: • Lower Alluvial • Upper Marine • Fall River • Minnelusa DRK:TSX.V INVESTING IN NORTH AMERICA

25. WHAT IS FOUND UNDERGROUND Newcastle Sand Formation – New Drill Program • 12 Well drill program completed on +/- 20 acre drainage area • Net pay thickness (12 Well area): 35 feet • Average porosity (12 Well area): 22% • Average permeability (12 Well area): 1295 MD • Average oil saturation (12 Well area): 63% DRK:TSX.V INVESTING IN NORTH AMERICA

26. INITIAL DEVELOPMENT – 2005/2006 Continuous Steam Injection Program MAIN MENU DRK:TSX.V INVESTING IN NORTH AMERICA

27. INITIAL DEVELOPMENT – 2005/2006 Steam Flood Program • The Process: • Inject steam into vertical injector wells • Steam heats reservoir to decrease oil viscosity • Oil & water moves through permeable channels • Oil & water is pumped to the surface & separated using heater treater facility DRK:TSX.V INVESTING IN NORTH AMERICA

28. THE 12 WELL PROGRAM Producer 3 Producer 4 Producer 1 Producer 2 Central Injector MAIN MENU DRK:TSX.V INVESTING IN NORTH AMERICA

29. THE 12 WELL PROGRAM Producer 3 Producer 4 Producer 1 Producer 2 Central Injector Future Development Short Term – 1 Year • Observe steam flow & production increase from pilot phase development & newly completed 12 well program. • Added cash flow through increased oil production & re-investment into further development • Continued interpretation of 1.1 Million USD 3D Seismic survey Mid Term – 3 Years • Approximately 195 total new wells drilled with 115 being producer wells DRK:TSX.V INVESTING IN NORTH AMERICA

30. QUALITY OF OIL BEING PRODUCED Pore Spaces Horizontal Producer Well 1-P High Quality oil Characteristics MAIN MENU DRK:TSX.V INVESTING IN NORTH AMERICA

31. High Quality Oil Characteristics QUALITY OF OIL BEING PRODUCED: • Low Paraffin • Low Sulphur content: <0.5% • Pricing at WTI (West Texas Intermediate) less $7.00 per barrel • Average 19 API gravity oil • Oil characteristics suitable to produce Jet Fuel using catalytic cracking DRK:TSX.V INVESTING IN NORTH AMERICA

32. OIL & WATER SEPARATION PROCESS MAIN MENU

33. OIL & WATER SEPARATION PROCESS The Separation Process MAIN MENU

34. The Separation Process OIL & WATER SEPARATION • Produced fluids flow to the “Heater Treater” where oil & water (produced fluids) are separated • Produced fluids flow to their respective storage tanks • Oil is sold to purchaser and water is processed for disposal

35. INVESTMENT OPPORTUNITY Investment Opportunity Previous

36. Why Derek? • No exploration risk in Newcastle Sandstone • Expanding Reserves & Production on Per Share Basis • Safe & Well Situated North American Location • Focused & Active Management & Board of Directors • Effective, timely & personal Shareholder Communications Previous

37. BOARD OF DIRECTORS Board of Directors For a brief bio of our directors click on any of the names below Mr. Barry C. J. Ehrl President, C.E.O. & Director Mr. Alan H. Stevens B.S., M.S. Director Mr. John Lush Director Mr. George Eynon B.Sc., M.Sc. Director Mr. Charles B. Crowell BA, JD Director Dr. Eike Hamer MBA Director Investor Inquires: 1-888-756-0066 info@derekoilandgas.com Next Previous

38. Board of Directors Mr. Barry C. J. EhrlPresident, C.E.O. & Director • Barry is a founder of Derek Oil & Gas Corporation with over 35 years of experience working with public companies in the oil & gas sector. • Barry is an entrepreneur who has held several senior management positions in public companies and has been successful in raising millions of dollars in capital to fund the exploration & development of projects in North America & internationally.

39. Board of Directors Mr. Alan H. Stevens DirectorB.S., M.S. (Geological Engineering) • Former President of Southwest Energy Production Company and Senior Vice President of Worldwide Exploration for Occidental Petroleum, Al brings over 35 years experience in technical and managerial positions involving all phases of hydrocarbon exploration, production, operations and contract negotiations for both domestic and international projects to the Derek board of Directors. • Al’s expertise in all facets of the oil industry makes him a fundamental addition to the Derek board of directors.

40. Board of Directors Mr. George Eynon DirectorB.Sc. (London), M.Sc. (McMaster) • George is the current Vice President of Business Development & External Relations for the Canadian Energy Research Institute (“CERI”), a former President of the Canadian Society of Petroleum Geologists and past-Chair of the House of Delegates for the American Association of Petroleum Geologists. • George has also worked in senior level positions with companies such as Amaco, Paramount Resources, Superior Oil, Suncor Energy and Bow Valley Energy. For ten years George provided energy and management consulting for companies such as GEOS Energy Consulting, Ziff Energy Group and Cambridge Energy Research Associates. George brings over 30 years of experience in the upstream, oil & gas sector and energy consulting to Derek’s board of directors.

41. Board of Directors Mr. John LushDirector • John is an international executive with over 35 years of experience in the oil and gas sector. He is currently President of Petroval Pte Ltd. (Singapore), a company specializing in the sales and marketing of crude and refined oil products. • With extensive experience gained working in three continents in executive positions with BP, Phibro Energy and Neste, John brings international exposure and years of expertise in the oil industry to the Derek board of Directors.

42. Board of Directors Mr. Charles B. Crowell DirectorBA (John Hopkins), JD • Charles was admitted to the practice of law in Texas in 1974. Mr. Crowell has been a practicing attorney and a consultant to numerous oil and gas companies for 30 plus years. Charles brings his extensive experience to the Derek Board of Directors as Director of PetroHunter Energy Corporation, Providence Resources Inc., Gasco Energy, Inc., and a former Director of Comanche Energy Inc., Aero Services International Inc., Arakis Energy Corporation and Triton Europe, plc. • Mr. Crowell’s former positions include, Senior member of Crowell & Bishop, PLLC, Attorneys, Manager & Principal at Enigma Engineering Company, LLC. and Executive Vice President, Administration of Triton Energy Corporation.

43. Board of Directors Dr. Eike Hamer Director • Eike holds a Masters in Business Administration (MBA) from the University of Rostock, Germany with extensive studies at the University of Bonn and the University of Osnabruck. • Eike is current publisher of “Wirtschaft Aktuell”, a newspaper providing background information on political and economic developments in Europe. • Eike is the current CEO of ELUX Wealth Management, an investment advisory corporation.

44. PICTURE GALLERY Picture Gallery Previous

45. Aerial View of the Property Previous MAIN MENU

46. Zoom in of Aerial View of Above Ground Facilities Previous MAIN MENU

47. On-Site Pump Jack Previous MAIN MENU

48. Above Ground Facilities (Bateman’s Engineered) Previous MAIN MENU

49. First Phase of Vertical Injector Development Previous MAIN MENU

50. Cased & Insulated Piping to Run 365 Days a Year Previous MAIN MENU