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Compeer Area Viking Resource Play

Compeer Area Viking Resource Play. Focus on Viking light oil resource plays with new technology. Key Considerations.

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Compeer Area Viking Resource Play

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  1. Compeer Area Viking Resource Play Focus on Viking light oil resource plays with new technology

  2. Key Considerations Each of the recipients, by accepting and providing this Overview Memorandum respectively, expressly disclaims any fiduciary relationship and agrees that the recipient is responsible for making its own independent judgments with respect to any transaction and any other matters regarding this Overview Memorandum. Forward looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward looking statements may also include any statement relating to future events, conditions or circumstances. Strongbowcautions you not to place undue reliance upon any such forward looking statements, which speak only as of the date they are made. Forward looking statements relate to, among other things, changes in the resource market; the market focus of Strongbow’s revenue mix and margin targets; operations priorities; and strategy for its products and solutions. The risks and uncertainties that may affect forward looking statements include, among others, the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of Strongbow’s customers, demand for Strongbow’s assets and other risks detailed from time to time in Strongbow’s filings with the Securities and Exchange Commission and Canadian provincial securities regulators. Forward looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Certain statements in this presentation constitute forward looking statements or forward looking information within the meaning of applicable securities laws (“forward looking statements”). Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Strongbow ResourcesInc.(“Strongbow” or “the Company”), or developments in Strongbow’s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward looking statements. In particular, statements concerning oil and gas reserves may involve the implied assessment that the resources described can beprofitably produced in the future, based on certain estimates and assumptions. No independent third party has reviewed the reasonableness of any such statements, estimates or assumptions. No member of the Strongbow represents or warrants that such forward looking statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the forward looking statements. Similarly, no representation or warranty is made that the assumptions on which the forward looking statements are based may be reasonable. No audit, review or verification has been undertaken by Strongbow or an independent third party of the assumptions, data, results, calculations and forecasts presented or referred to herein. The recipient acknowledges that neither it nor Strongbow intends that Strongbow act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person.

  3. Corporate Profile • Share Information • Listed on OTCQB under the symbol STBR.QB • • Basic Shares Outstanding:109,686,705 shares • Insiders & Founders Group Ownership: 50% • • Largest Shareholder: Holloman Corp. - 27.53 million shares • Land Base • Compeer Area: 8 Sections - 5,120 acres OTCQB:STBR

  4. Strongbow’s Team • Michael Caetano, CEO and President • over 15 years of successful business development & leadership • specializing in capital funding, mergers & acquisitions • worked in the oil and gas industry for the last five years • Robert Madzej, BBA,SFU- COO • . Over 10 years experience in business operations • . Highly skilled in financial structuring and economical decision making • Technical Team - Apex Energy Consultants Inc. • Robert Martin, P. Geol. • over 30 years of petroleum and minerals exploration & exploitation • experience • Several successful O&G exploration projects and well discoveries • Doug M. MacLellan, P. Eng. • over 30 years of management experience with major and junior O&G • companies; technical /engineering, production, operations, and financials • Michael Kamis, P. Eng., President of Apex Energy Consultants Inc. • over 34 years of Petroleum Engineering/Geological studies relating to • Western Canada, the United States and international oil and gas fields OTCQB:STBR

  5. Development Plan Phase 1 completed • Drilled 5-29-33-2W4Hz Compeer Area of Alberta. • Earned 8 sections of land from Harvest Operations Corp. Phase 2 • Test 5-29-33-2 W4Hz • Plan to drill 4 wells per section for a total of 31 wells in the Compeer Area from October 2013 to February 2014 • Raise $37-40 million in equity and/or debt to finance the project • Currently the Company has one well ready to commence production OTCQB:STBR

  6. Viking Light Oil OTCQB:STBR

  7. Viking Light Oil 1. Large OOIP/potential to expand play. Estimated of 6.0 billion barrels of original oil in place places the Viking play second only to the Cardium in terms of magnitude among emerging tight oil plays. There is potential for significant expansion of the play. 2. Attractive per well economics,. Estimated IRRs of 188% and breakeven of US$36.00/bbl, Viking Drilling and completion cost much lower than Cardium or Bakken. 3. Well delineated/low geological risk. Initially discovered in the 1950s, Viking oil pools in southwest Saskatchewan and SE Alberta have been well delineated with vertical drilling, and hence there is little geological risk associated with the play. 4. Upside to technology/cost reductions. As with most tight oil and tight gas plays that are exploitable using horizontal multi-stage fracking, continued technological innovations to completion techniques have the potential to increase recovery factors and improve economics. In the case of Viking, the impact of expected cost reductions on per well economics is magnified, because drilling costs for these relatively shallow wells are already significantly lower." OTCQB:STBR

  8. Compeer Area OTCQB:STBR

  9. OTCQB:STBR

  10. Compeer Area Viking OilDevelopment Plan Viking HZ MSF TypeWell Curve Assumptions • Oil recovery per well = 2.9 million Bbls/section divided by ultimately up to 4 wells/section * 10% Rf = 72,500 Bbls/HZ • Gas recovery per well = 2.9 Bcf/section divided by ultimately up to 4 wells/section * 20% Rf = 141 MMcf/HZ • Average (risked) IP of 8 HZ MSF Viking wells is equal to 46 bbl/d oil & 145 Mcf/d (average over life GOR of 4,000 Scf/bbl) OTCQB:STBR

  11. Compeer Area Viking Oil • 100/5 -29 -33 -2W4 Well • 5 m of net pay • 20 % porosity • Sw = 30% • So= 20% • Bo = 1.1 • 34 o API • 2.9 Million Bbls per Section • 2.9 Bcf per Section TYPE LOG 100/5-29-33-2W4 OTCQB:STBR

  12. Metrics COMPEER: •Wells IP at 50 BOPD •Capital of $1,200,000 per well OTCQB:STBR

  13. First Year Production Forecast OTCQB:STBR

  14. First Year Projections With an assumption that the Company raised debt or equity of $37-40 million to complete the development plan.

  15. Annual Net Income, Cash Balances & Capital Expenditures Summary OTCQB:STBR

  16. Compeer Area • Alberta Crown Royalty: 7.5% on each new Horizontal oil well for 18 months or 50,000 Barrels (HONWRR). 0% to 40% based on flow rate and price thereafter. • Farm-in on Harvest Petroleum: subject to a sliding scale overriding royalty of 5 to 15%. Earned 8 sections after first well drilled. OTCQB:STBR

  17. Contact Information Office 333 N Sam Houston Pkwy East, Suite 600, Houston, Texas 77060 OTCQB:STBR

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