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Energy Growth Story

Energy Growth Story. Corporate Presentation April 2004 NASDAQ: IFNY.

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Energy Growth Story

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  1. Energy Growth Story Corporate Presentation April 2004 NASDAQ: IFNY FORWARD-LOOKING STATEMENTS: This presentation contains statements that may constitute forward-looking statements, usually containing the words “believe, estimate, project, expect” or similar expressions. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation reform Act. Of 1995. Forward looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Factors that could cause or could contribute to such differences include, but are not limited to the results of drilling, the availability of third party financing, and other contractual arrangements at the time and on the terms anticipated fluctuations in the prices of oil and gas uncertainties inherent in estimating the quantities of oil and gas, and projecting future rates of production and timing of development activities completion, operating risks, acquisition risks liquidity and capital requirements, the effects of government regulations, adverse changes in the market for the company’s oil and gas production, continued acceptance of the company’s oilfield services in the marketplace, dependence upon third party vendors and other risks detailed in the company’s periodic reports and filings with the Securities and Exchange Commission. By making these forward looking statements, the company undertakes no obligation to update these statements for revisions or changes after the date of this presentation.

  2. IFNY: History • 1994: Acquired Oilfield Service Operations  $5 MM Consideration Consisting of Cash, Stock and Notes  $4 MM of Revenues in Fiscal 1995; $12 MM of Revenues in Calendar 2003 • 1996: Acquired Acreage in the Raton Basin  24,000 Acres; 17,000 Acres Added in 1998  Drilled 30 Wells by End of 1998  Gas Gathering Pipeline System Built in 1997 • 1998: Raton Basin Operations Sold to Evergreen Resources  500,000 Shares of Evergreen Stock and $1 MM of Cash and Debt Assumption  Valued at $8.5 Million as of Closing in December 1998;  Over $15 Million Ultimately Realized and Re-Deployed to Build Current E&P Operations • 2000: Labarge, Pipeline and Piceance Basin Prospects Acquired in the Rockies  Labarge Prospect Acquired in January 2000  Pipeline Prospect Acquired in July 2000  Piceance Basin Prospect Acquired in November 2000 • 2002: Sand Wash Basin Prospect Acquired  Sand Wash Basin Prospect Acquired in April 2002 • 2003: Nicaraguan Concession Awarded to Infinity  Awarded in May 2003; Culmination of Four-Year (1999-2003) Effort by Infinity  1998 2-D Seismic Survey by Government Indicates Presence of Hydrocarbon-Bearing Structures  Potential World-Class Cretaceous Carbonate Play Similar to Those Found in Mexico and Venezuela • 2004: Letter of Intent for Fort Worth Basin Acreage  25,000 Acres  Transaction Pending  Good Relationship With Partners Who Have a Successful Track Record in the Barnett Shale Play Energy Growth Story

  3. Current Projects / Operations  Infinity Oil & Gas of Wyoming - Greater Green River Basin - Wamsutter Arch Pipeline Field - Greater Green River Basin - Labarge Field - Sand Wash Basin - CBM Prospect - Piceance Basin - CBM Prospect  Consolidated Oil Well Services E&P Prospects  Fort Worth Basin - Barnett Shale, et al (pending acquisition)  Miskito Basin, Offshore Nicaragua - Cretaceous Carbonates; Lower Eocene IFNY Today Energy Growth Story

  4. Experienced Management Team Strong Board of Directors Production / Reserves  Current Production: Approximately 4 MMcfed (net)  Proved Reserves: 10.8 Bcfe (includes small 2004 acquisition) Essentially all at the Pipeline Field; None at Labarge Approximately 70% Developed  Estimated Value: $27 MM Pretax PV10 (including recent acquisition)  Reserve Engineer: Netherland Sewell (NSAI) Prepared the Reserve Report  Resource Potential: 248 Bcfe at Labarge per NSAI Over 2 Bcfe per 160-Acre Well Location per NSAI  Labarge Development: Partnership Agreement With Schlumberger Recomplete Existing Wells Drill New Wells IFNY: Positioned for Growth Energy Growth Story

  5. Rocky Mountain Exploration & Production Energy Growth Story

  6. Rocky Mountain E&P • Four Rocky Mountain Properties  Wamsutter Arch Pipeline Field  Labarge Field  Sand Wash Basin  Piceance Basin • Operating Status  Pipeline: Producing; Development  Labarge: Development; Exploration  Sand Wash: Exploration (2004-05 Pilot)  Piceance: Exploration (2004-05 Pilot) • Recent Business Developments  Pipeline: March 2004 Acquisition  Labarge: Schlumberger Agreement  Sand Wash: Seeking Farmout Partners  Piceance: Seeking Farmout Partners Labarge Field Pipeline Field Sand Wash North Sand Wash South Piceance Basin Legend Producing and Development Development Exploration Energy Growth Story

  7. Rocky Mountain E&P • Wells Brought On Line in Late 2002 Have Experienced Typical Gas Well Decline Rates • No Workovers or Optimization Work Has Been Performed on Any of These Wells to Date, Only Routine Maintenance Work • The Overall Decline Trend Has Largely Been Arrested in Q1 2004 by (i) the Bringing on Line of 6 Wells Drilled in Late 2003 and (ii) Closing a Small Acquisition • During 2004, We Expect to Increase Production by: - Recompleting Some Wells to Known Gas Sands - Performing Workovers, Frac Jobs, Refracs, etc. - Drilling New Wells - Quickly Bringing on Line New Well Production - Expansion Opportunities Note: Q1 2004 daily production exit rate does not equal the quarter’s average net daily production, which Infinity’s management expects will equal or exceed the fourth quarter of 2003 and is less than the exit rate. Energy Growth Story

  8. Pipeline Field Wamsutter Arch Pipeline Field • Current Position  19,550 Gross Acres / 19,150 Net Acres  98% Average WI  80%+ Average NRI  Recently Added 960 Gross Acres + 2 Wells - 2.1 Bcfe (derived from NSAI report) - $4.3 MM PV10 (derived from NSAI)  Conventional Gas and Oil Play • Resource Potential  Mainly a Proved Reserve Field  7.5 Bcfe of Non-Proved Resource Potential (NSAI est.) • Operations  17 Completed / Producing Wells  Enhancements for Selected Wells in 2004  Up to 2-5 New Wells for 2004  Proved Reserves (12/31/03) (1)(2) - 8.3 Bcfe (10.4 Bcfe with acquisition) - $23 MM PV10 ($27 MM with acquisition 100% Almond & Shallower Recently Relinquished Farmout Acreage Anadarko Patrick Draw Pipeline Field • Based on Netherland Sewell reserve report as of 12/31/03. • Excludes 2.1 Bcfe of proved reserves and $4.3 million of PV-10 value derived from NSAI report. Energy Growth Story

  9. Labarge Field Labarge Field • Current Position  11,730 Gross Acres / 11,199 Net Acres  Options on Approximately 18,000 Acres  95% Average WI  ~80% Average NRI  Recent Agreement With Schlumberger - Working to “Crack the Code” Currently - Complete / Recomplete Existing Wells - Drill New Wells  Believed to be a “Blanket” CBM Play • Resource Potential  Assuming 160-Acre Spacing  Potential Gross Locations: 185  Gross Resource Potential: 248 Bcf (1) • Operations  2 Producing Wells (<100 Mcf per day per well)  3-8 Wells Awaiting Completion or Recompletion  Up to 5-6 New Wells for 2004  Proved Reserves (12/31/03) (1) - None Riley Ridge Pilot Labarge Field Farmout Acreage Thompson Pilot Pinedale Anticline / Jonah Labarge Field Exxon Mobil Tip Top Unit • Netherland Sewell estimated zero proved reserves and 248 Bcf of gross resource potential as of 12/31/03. Energy Growth Story

  10. Sand Wash Basin • Overview  Net Acreage: 112,833  Target: Iles & Lower William Fork Coals  Coal Thickness: Est. 55’  Gas Content: Est. 135 - 235 SCF/ton  Drilling Depth: 2,500’ – 3,000’  ~1.0 Tcfe Unrisked Resource Potential (IFNY estimate)  Seeking WI Partner Sand Wash Basin Prospect Infinity Acreage With Either Deep or Shallow Rights Infinity Acreage Not Expiring in 2004 Routt National Forest Carbon Co. WY CO Phillips Pilot Moffat Co. Routt Co. Infinity Acreage Expiring in 2004 Rio Blanco Co. Energy Growth Story

  11. WY CO Moffat Co. Rio Blanco Co. Piceance Basin • Overview  Net Acreage: 20,020  Target: William Fork & Iles Coals  Coal Thickness: Est. 100’  Gas Content: Est. 200 SCF/ton  Drilling Depth: 1,000’ – 3,000’  ~500 Bcf Unrisked Resource Potential (IFNY estimate)  Pilot to Be Drilled by 11/2005 Piceance Basin Prospect ConocoPhillips Infinity Chevron Texaco Wilson Creek Federal Unit (red border) Evergreen Energy Growth Story

  12. Rocky Mountain E&P • Investment Highlights  10.8 Bcfe of Proved Reserves (mainly Pipeline; includes recent acquisition)  $27 MM of PV10 Value (mainly Pipeline; includes recent acquisition)  Current Net Daily Production of Approximately 4 MMcfed (mainly from Pipeline)  Workovers and “Refracs” of Identified Producing Pipeline Wells in 2004  Drill Up to 2-5 Wells at Pipeline in 2004, Subject to Market & Regulatory Conditions  Continue Working With Schlumberger to Optimize Completion and Recompletion Techniques for Sizeable Resource Base at Labarge: “Crack the Code”  Re-Establish Economic Production at Labarge; Reclassify Reserves as Proved  Drill Up to 5-6 Wells at Labarge in 2004, Subject to Market & Regulatory Conditions  Prepare to Drill Pilot at Sand Wash; Continue Search for Partner  Perform Coring Work; Prepare to Drill Pilot at Piceance; Continue Search for Partner Energy Growth Story

  13. Oilfield Services Energy Growth Story

  14. South Dakota Powder River Basin Gillette Forest City Basin Nebraska Wyoming Salina Basin Colorado Ottawa Kansas Chanute Cherokee Basin Bartlesville Oklahoma New Mexico Anadarko Basin Arkoma Basin Texas Consolidated Oil Well Services, Inc. • Four Service Yard Locations  Bartlesville, OK  Chanute, KS  Ottawa, KS  Gillette, WY • Experience & Services Provided  Nearly 50 Years Experience  Serviced Over 250,000 Wells  Approximately 150 Trucks and 100 Employees  Presence in Major Mid-Continent and Rocky Mountain Gas Basins  Provide Wide Array of Services: - Cementing, Acidizing, Fracturing, Nitrogen Pumping, Production Stimulation, Water Hauling and Other Services • Solid Customer Base  Approximately 400 Customers in 2003  Serving Small and Large E&P Firms  Benefiting from Emerging Plays in Cherokee and Forest City Basins  Benefiting from Rejuvenated Powder River Basin Map of Yard Locations Energy Growth Story

  15. Consolidated Oil Well Services, Inc. Quality Equipment Fleet Serving Customer Needs Pumper / Blender Cement Pumper Frac Trailers (1,350 HP) Blender (50 Bbl / min.) Energy Growth Story

  16. Consolidated Oil Well Services, Inc. • Financial Results Improved Dramatically in 2003 vs. 2002 • Seasonality Primarily Impacts the First Quarter of Each Year • Q4 2003 Effected by M&A Among Customers • We Expect Further Improvement in 2004 vs. 2003 • Preliminary Guidance of $13 - $15 MM of Revenues During 2004 Energy Growth Story

  17. E&P Prospects Energy Growth Story

  18. E&P Prospects • Ft. Worth Basin / Barnett Shale  Along With the San Juan Basin, the Powder River Basin, and the Pinedale Anticline / Jonah Field, the Barnett Shale is One of the Largest Non-Conventional Gas Plays Discovered in the U.S. Over the Past 25 Years  Infinity Has a Letter of Intent (LOI) to Acquire 25,000 Gross Acres in this Play With an Initial 90% Working Interest; Opportunities Exist to Add More Acreage  The LOI Contemplates the Drilling of Four Horizontal Test Wells, Including Three That Target the Barnett Shale • Miskito Basin / Offshore Nicaragua  One of the Least Explored High Potential Basins in the World  Cretaceous Reserves / Production in Area Among the Best in the World  Excellent Nicaraguan Production Contract – Awaiting Final Approvals  Infinity Will Control 1.4 Million Acres  Multi-Billion Barrel Field Potential Based on Regional Analogs Energy Growth Story

  19. Fort Worth Basin Prospect Fort Worth Basin / Barnett Shale • Summary of Infinity Position  25,000 Gross Acres  90% Initial WI  Location: Undisclosed Fort Worth Basin  Targeted Formations: Barnett Shale, et al • Basin Statistics (1)  9.6 Tcf of Gas Produced in Core Area  Barnett Shale Covers Up to 16 Counties  2,000 – 5,000 Additional Wells May Be Drilled in the Field  Production Growth of 30%+ Per Annum Over the Past 4+ Years 275 MMcfd to 900 MMcfd (2)  Largest Gas Producing Play in Texas (2)  DVN, EOG, BR, XTO are Active in Region (2) • Non-Core Areas (2)  Non-Core Area Covers 3,500 sq. mi.  ~17-20 Tcf Recoverable Reserves  3 Recent Horizontal Successes in Johnson Co.  Shallow, Horizontal Drilling Mitigates Risk of Excessive Natural Fracturing and Water  Lease Costs and Royalty Rates Increasing • Source: Report of the Potential Gas Committee, “Potential Supply of Natural Gas – 2002” • Source: Morgan Stanley Equity Research, “Barnett Shale Update – Non-Core Confidence Rises” (4/16/04) Energy Growth Story

  20. Fort Worth Basin Prospect • Investment Highlights  One of the Most Prolific and Prospective Non-Conventional Gas Plays in the U.S.  Our LOI Acreage is in a Relatively Unexplored Portion of the Barnett Shale  Infinity Would Operate With a 90% Initial Working Interest in the Acreage  Infinity’s Partners Have Had a Successful Track Record in the Barnett Shale  Up to Four Horizontal Test Wells in 2004 and 2005, Three Targeting the Barnett Shale  Land Acquisition and Development Costs Remain Attractive in the LOI Acreage Area  Less Operational Seasonality for Infinity Relative to the Rocky Mountain Projects  Ample Number of Drilling and Oilfield Service Providers  Proximity and Likely Availability of Gathering, Processing and Pipeline Infrastructure  Potential for 1-2 Bcf of Gas per Well, if Successful  Expansion Opportunities Would Likely Exist, if Successful Energy Growth Story

  21. Nicaraguan Prospect • Negotiated Position  Total 1,388,989 Acres  Tyra (North) 822,861 Acres  Perlas (North) 566,128 Acres  100% Average WI  85% or Greater Average NRI  Awaiting Final Approvals and Execution • History  No Significant Exploration Activity Since 1978  26 Wells Drilled / 10 With Hydrocarbon Shows  Two Have Tested Measurable Hydrocarbons  Nearby Producer: Shell #1 Perlas / 350 BOPD • Resource Base and Potential  Strong Evidence for Oil Potential  Geology is Very Complex  Proven Source Rock / Hydrocarbons  Several Known Potential Reservoir Rocks  High-Risk / High-Return Exploration  Infinity’s Block Has Multi-Billion Barrel Potential Offshore Nicaragua Concession Energy Growth Story

  22. Nicaraguan Prospect • World Class Cretaceous Analog Fields  Cantarell Complex – Mexico - Discovered in 1979; Cretaceous Fractured Carbonate Reservoir; 2,700’ Thickness - Estimated Ultimate Recovery of Approximately 8 Billion Bbls of Oil - Among Highest Flow Rates in Mexico With Some Wells in Excess of 50,000 BOPD  Reforma Area – Mexico - Upper Jurassic and Cretaceous Fractured Carbonate Reservoirs; 1,200’ Thickness - Estimated Ultimate Recovery of Approximately 7 Billion Bbls of Oil  LaPaz Field – Venezuela - Discovered in 1944; Cumulative Oil Production Through 1992 of 867 MMBbls - Estimated Ultimate Recovery of Approximately 1 Billion Bbls of Oil - Peak Production in 1950 of 160,000 Bbld  Lama Field – Venezuela - Cretaceous Fractured Carbonate Reservoir - Estimated Ultimate Recovery of Approximately 300 MMBbls of Oil  Rubelsanto Field – Guatemala - Discovered in 1974; Cretaceous Fractured Dolomites Reservoir - Estimated Ultimate Recovery of Approximately 25-50 MMBbls of Oil - Peak Production of 7,000 Bbld Energy Growth Story

  23. Nicaraguan Prospect Exploration Plan – Four Two-Year Sub Phases: • Sub Phase I ($2.4 MM: $800K in Year 1 and $1.6 MM in Year 2)  Prepare Environmental Impact Assessment  Define Structural and Depositional Trends, Highlight Areas of Highest Potential  Determine Areas for New 2-D Seismic Data Acquisition  Acquire New 2-D Seismic (shot in 1998 by government) • Sub Phase II  Continue to Generate and Refine Additional Geological Definition  Determine Areas for New 3-D Seismic Data  Acquire 3-D Seismic Data • Sub Phase III  Interpret 3-D Seismic Data  Identify Drilling Locations  Drill Minimum of One Initial Exploration Well • Sub Phase IV  Evaluate Results of Initial Exploration Well  Drill a Minimum of Two Additional Exploration Wells  Evaluate Results of All Exploration Wells Energy Growth Story

  24. Conclusion Energy Growth Story

  25. IFNY: Energy Growth Story • Investment Highlights  Steadily Improving Production from Pipeline  Continuing Development of Emerging Labarge CBM Play With Schlumberger  Expected Increase in Free Cash Flow From Oilfield Service Arm  Expansion Opportunities in Oilfield Services  Addition of New Upside Potential in the Barnett Shale  Continuing Evolution of Potential “World Class” Play in Nicaragua  Pursuing Partnering Arrangements for the Sand Wash and Piceance CBM Projects; Coring Work at Piceance and “5-Spot” Pilots for Both Prospects in 2004 and 2005  Even On a Heavily-Risked Basis, Little or No Value for Considerable Development and Exploratory Upside Energy Growth Story

  26. Energy Growth Story NASDAQ: IFNY

  27. Market & Financial Data  Shares Outstanding: 9.396 MM Shares Includes 1.0 MM Shares Issued in January  Recent Closing Price: $3.71 per Share (April 15, 2004)  Equity Market Cap.: $34.9 MM  Total Enterprise Value: $62.2 MM  Total Debt: $28.0 MM (12/31/03) - $11.2 MM of 7% Convertible Debt ($8.07 strike price) - $2.8 MM of 8% Convertible Debt ($4.88 strike price) - $3.0 MM of Related Party Debt ($1.3 MM repaid in 2004) - $5.5 MM E&P Facility (US Bank; $0.4 MM repaid in 2004) - $5.5 MM Oilfield Service Facility (LaSalle) / Other Debt  Cash: $0.7 MM (12/31/03)  Private Placement: $4.0 MM of Net Proceeds in January 2004 1.0 MM Shares of Common Stock Leading Early-Stage Energy Institutional Investor  Debt Service: 2004 - $1.8 MM 2005 - $2.1 MM (net of $1.7 MM repaid in 2004) 2006 - $8.9 MM 2007 - $11.5 MM 2008 - $0.1 MM IFNY: Positioned for Growth Energy Growth Story

  28. Office Locations 211 W. 14th Street 950 17th St., Suite 800 Chanute, Kansas 66720 Denver, CO 80202 Phone: (620) 431-6200 Phone: (720) 932-7800 Fax: (620) 431-6262 Fax: (720) 932-5409 www.infinity-res.com IFNY: Corporate Information Senior Management Board of Directors Infinity, Inc.Subsidiaries Stanton E. RossJames A. Tuell President and CEO President, Infinity Oil & Gas of Wyoming Jon D. Klugh CFO and Secretary Gerald D. Gentry Vice President of James W. Dean Operations, Infinity VP, Strategic & Corporate Oil & Gas of Wyoming Development Stephen D. Stanfield Chief Operations Officer, Consolidated Oil Well Services, Inc. Stanton E. Ross Chairman; currently President and CEO of Infinity Robert O. Lorenz Director; currently director of Panhandle Royalty Co.; formerly Partner at Arthur Andersen LLP and Audit Division Head and Managing Partner of Oklahoma practice Leroy C. Richie Director; currently director of Kerr-McGee Corp. and J.W. Seligman & Co.; formerly VP Chrysler Corp. and General Counsel of Automotive Operations O. Lee Tawes Director, currently Managing Director of Equity Research at C.E. Unterberg Towbin; formerly Director of Equity Research at CIBC World Markets and Oppenheimer and analyst at Goldman Sachs Professional Firms Auditors: Ehrhardt Keefe Steiner & Hottman PC Reservoir Engineers: Netherland Sewell and Associates Inc. Legal Counsel: Davis, Graham & Stubbs LLP Outside Investor Relations: EnerCom, Inc. Energy Growth Story

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