Corporate Presentation
June 2009
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Forward Looking Statements
This presentation contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those y anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.
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Corporate Presentation
June 2009
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Company Overview
• CE was formed in 2006; • CE closed on 2 stock for stock acquisitions valued at ~ US$31 mm • Total Capital Raised ~ US$40 mm • IPO Completed in November 2006; TSX-V:CE • 82 3 mm shares (basic) 87 7mm shares (fully diluted); 82.3 (basic), 87.7mm • Management and Directors own 22% on a fully diluted basis; • Current working capital position of ~$8.6US mm
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Note: All currency conversions done at current rate
Management
• Benjamin M. Jones CEO & President • John Proust • Eduard Epstein • Eileen Au Chairman CFO Secretary
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Leadership
John Proust: Chairman of the Board
•CEO & President; Director Southern Arc Minerals •CEO & President; Director Superior Mining International •Director •Past Director Western Uranium Corporation 9 Public Companies (TSXV:SA) (TSXV:SUI) (TSXV:WUC)
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Leadership
Benjamin M. Jones: CEO, President, Director, & Founder
•Founder •Gulf Coast Exploration Manager •Exploration Manager •Independent Explorationist •Exploitation Engineer CE Peace River Project (2000) Titan Exploration (1997) Carrolton Oil & Gas Interests (1986) Petra Energy (1981) Placid Oil (1977)
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Leadership
Pat S. Bolin: Director
•Chairman, CEO, President •Chairman •Director •Director Eagle Oil & Gas Beacon National Insurance Compass Bank Fidelity Bank
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Leadership
Kyle R. Burnett: Director
•Chairman, CEO, President •Chairman, CEO, President •Founder 1982 •Director •Founder, CEO Triumph Pacific Oil & Gas Arcadia Exploration & Production Republic Petroleum Company Bagby Energy Burnett Capital
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Leadership
John R. Howard: Director
•CEO, President Summit Energy: Division of Bayou Bend (TSXV:BBP)
•Chairman, CEO, President Carrolton Oil & Gas Interests (1984 to 2006)
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Leadership
Winston Purifoy: Director
•Corporate Finance & Operations Specialist: 28 Years Industry Experience •Grayhawk Advisors: Managing Partner
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CE Land Base & Pipeline Access
Shallow: 60,100 Acres Deep: 42,100 Acres
Pipeline
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Stratigraphic Overview
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Stratigraphic Overview
Moosebar Shale
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Stratigraphic Overview
Get g C Gething CBM
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7
Stratigraphic Overview
Halfway Sand
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7
CE Land Base with Monias Halfway Focus
Monias Halfway Cum 414 BCF
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Stratigraphic Overview
Montney/Doig Shale
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7
Stratigraphic Overview
Belloy
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7
Stratigraphic Overview
Devonian
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Regional Gething Structure Map
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Net Coal Isopach
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Net Coal Isopach
Net Coal Thickening Southwesterly
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Peace River CBM Project Area
Area of Initial Development
Gas Plant
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Initial 8 well coal/gas counts
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Summary of Netherland Report
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CBM Production
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Testing & Development History of Drunkard’s Wash
Source: Advanced Resources International
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CE Relative to Shell’s 92,800 Acre Land Position
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Montney Trend e d Reference
Dawson Field
Swan Field
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BC EMPR Doig Potential Study
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BC EMPR Upper Montney Potential Study
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Montney Activity Map
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CE Drilled & Cased Montney Wells
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West/CE Monias 13-30-81-21
Petrobank Septimus 13-22-82-20
282’>3% porosity
213’>3% porosity
HZ at 1826mMD IP d IP’d 7.5 MMCF/D + 180 bc/d
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Crew Montney Activity
Best IP @ 17.8 mm/d
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Shell Montney Activity
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Monterrey Montney Activity
Reported As 495’ > 3% Porosity
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CE Monias 100% Lands
CE 100% Acreage
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BC EMPR Upper Montney Potential Study
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Ladd Gates 10-19-81-23
West/CE Monias 13-30-81-21
374’>3% p porosity y
282’>3% porosity
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Natural Fracturing Example #1
4.2 mmcf/d In Doig Shale 1972 (natural) ( )
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Natural Fracturing Example #2
Imperial Kobes d-94-i/94-B-8 IP=10.3mmcf/d Cum = 44BCF Current 550mcf/d
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Canbriam Montney Activity
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Talisman Montney Activity—Farrell Project
IP’d 1st Vertical @ 4mmcf/d 5 wells drilled in ‘08-09; 2 verticals, 3 horizontals; 15 outstanding drilling permits; 30% of all TLM BC permits
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Talisman Analysis
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From Talisman Hudson’s Hope Presentation December 10, 2008
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Talisman Analysis
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From Talisman Hudson’s Hope Presentation December 10, 2008
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Talisman Analysis
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From Talisman Hudson’s Hope Presentation December 10, 2008
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Talisman Analysis
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From Talisman Hudson’s Hope Presentation December 10, 2008
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Talisman Analysis
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From Talisman Hudson’s Hope Presentation December 10, 2008
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Talisman Analysis
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From Talisman Hudson’s Hope Presentation December 10, 2008
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Talisman Montney Activity—Farrell Project
IP’d 1st Vertical @ 4mmcf/d 5 wells drilled in ‘08-09; 2 verticals, 3 horizontals; 15 outstanding drilling permits; 30% of all TLM BC permits
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Talisman Montney Resource Calculations
• 599,000 net acres (936 sections) in Montney Trend of BC & AB; • 49 TCF OGIP = 52 BCF/section OGIP (matches Crew’s OGIP); BCF/ ti ( t h C ’ OGIP) • 17.7 TCF = Contingent Resource (potentially recoverable); • 18.9 BCF/section potentially recoverable; • 4.7 BCF/well on 160 ac spacing; • 5.2 BCF/well history match (CE evaluation)
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BC Montney Actual Composite Average of 1st 92 HZ Wells
Case Study
10,000
1,000
Mcf/Day
100 10
Years
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Montney - Actual
54 20
Montney/N. La. Haynesville Composite Average 1st 53 HZ Wells
10,000
1,000
Mcf/Day
100 10
Years
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Montney - Actual Haynesville - Actual
55 20
Montney/Haynesville Actual & Montney Forecast
10,000
1,000
Mcf/Day
100 10
Years
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Montney - Actual Haynesville - Actual Montney- Forecast
56 20
Montney/Haynesville Actual & Forecast
10,000
1,000
Mcf/Day
100 10
Years
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Montney - Actual Haynesville - Actual Montney- Forecast Haynesville - Forecast
57 20
Montney Haynesville Forecast
100,000
10,000
Mcf/Day
1,000
Montney History Match
Haynesville High Case
100
Haynesville History Match
10
Years
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Montney - Actual Haynesville - Actual Montney- Forecast Haynesvill - Forecast Haynesville High - Forecast
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Montney—Haynesville Assumptions
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Montney/Haynesville ROI Analysis
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Montney/Haynesville PV 10% Discounted ROI
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Valuation Comparison
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12 Month Historical
• Raised $25 million in financing; • Built a gas plant; compressor station; pipeline connection; and gathering g p p pp g g system; • Drilled 10 wells; • 5 CBM wells on production; • 3 Montney wells cased pending completion; • 1 horizontal CBM well; • 1 horizontal Moosebar Shale well
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18 Months Forward
• Drill a minimum of 3 Montney Exploration wells; • Complete at least 3 Montney wells; p y • Monitor gas prices and performance of CBM project; • Continue to seek additional exploration and acquisition opportunities in NE BC • Carried through +C$25 mm of Montney Exploration Expenditures
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Conclusion
• CE i an emerging Canadian is i C di resource company 2 primary resource plays • Completely unlevered balance C l t l l db l sheet with US$8.6 mm cash 760 BCF net resource potential
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