Peter’s & Co. Oil and Gas Conference – SEPTEMBER 2005

1. Peter’s & Co. Oil and Gas Conference – SEPTEMBER 2005 A Platform for Growth

2. Overview • TSX symbol: BVI • Average daily trading volume (2005): 346,000 • Market capitalization: $950 million • Shares outstanding: • Basic – 94.9 million • Fully diluted – 101.1 million • Management/Directors • Basic – 16% • Fully diluted – 20%

3. Strategy • Focus on Canadian Oilsands • Growth through the drillbit • Maintain a healthy balance sheet

4. 00 00 01 01 02 02 03 03 04 04 History of Growth – Production Production per Share(bbl/1,000 shares) Production (bbl/day) 5,795 26.1 Average growth rate of 26%/year Average growth rate of 16%/year 21.1 4,080 20.4 18.7 3,414 3,126 12.4 1,828

5. 00 00 01 01 02 02 03 03 04 04 History of Growth – Cash Flow Cash Flow per Share ($/share) Cash Flow ($ millions) 25.6 0.32 Average growth rate of 38%/year Average growth rate of 26%/year 0.19 14.1 0.18 12.3 0.10 0.10 5.6 5.2

6. Average increase of 53%/year History of Growth – Share Price share price 7.35 4.15 2.36 0.99 0.93 00 01 02 03 04

7. Top Quartile Performance Finding and Development Costs (Proved + Probable) 3 year 1 year $17.25 $18.00 $16.00 $14.00 $11.06 $12.00 $10.00 $8.00 $4.65 $6.00 $4.03 $4.00 $2.00 $0.00 BVI Industry* BVI Industry* *Source: First Energy Capital Corp. Study for 2004

8. Recycle Ratios Comparable to Gas and Light Oil Recycle Ratio *Source: First Energy Capital Corp. Study for 2004 3 year avg 1 year 3.4 2.8 1.3 1.2 BVI Industry* BVI Industry*

9. A Platform for Growth – Production • Over the next five years production is expected to increase from 10,000 bbl/day to 40,000 bbl/day from existing inventory of projects bbl/day Hilda Lake (Orion)SealLloydminster 03 04 05 (E) 07 (E) 09 (E)

10. Core Oilsands Areas ALBERTA SASKATCHEWAN SEAL 20,000 bopd potential New Area CHIPMUNK 20,000 bopd potential HILDA LAKE (ORION) 3,000 bopd potential LLOYDMINSTER

11. Peace River Oilsands – Seal Summary • Located in the Peace River Oilsands • 80,000 net acres • 9° - 13° API oil • High rate horizontal wells (125 - 350 bbl/day) • Established infrastructure • 23,000 bbl/day battery • 58,000 bbl/day pipeline • 50% - 100% WI PEACE RIVER NORTH T85 NORTHERN CADOTTE T84 PEACE RIVER WESTERN T83 CENTRAL EASTERN T82 R17 R16 R15 R14W5

12. Seal – Operating Characteristics • Operating in an oilsands region • No steam required • No mining • 1% royalty until payout • Low operating costs • 2004 - $5.58/bbl • No sand production • F&D costs - approx. $4.00/bbl

13. Seal – Exposure to a Large Resource Base % recovery • 800 million barrels of oil • How much of this oil is recoverable is a key factor in determining the value of the Seal property 30+ 20 14 8 Sproule(initial production) Sproule(with prod. history) LabStudies WaterfloodPotential

14. Seal – Development Timetable Central Block (76 wells)Eastern Block (45-50 wells)Peace River Block (50-80 wells)Cadotte Block (25-40 wells)Northern Block (25-40 wells)Waterflood Potential 2003 2004 2005 2006 2007 2008 2009

15. CNRL(40,000 bbl/day) Imperial Oil(150,000 bbl/day) Husky Tucker Lake(30,000 bbl/day) BlackRockOrion SAGD at Hilda Lake Cold Lake Oilsands – Orion SAGD Summary • Located in the Cold Lake Oilsands • Large resource base • Internal estimate of 190 million recoverable barrels • 20,000 bbl/day project • 25 year life • Established infrastructure • 4 heavy oil pipelines nearby • 100% owned ALBERTA EDMONTON CALGARY

16. Orion SAGD – Per Barrel Economics Operating margin Royalties Natural gas costs Operating costs Capital costs Wellhead $39.50/bbl $16.78 Wellhead $21.50/bbl $5.74 $6.80 $2.40 $11.73 $7.05 $2.75 $2.75 $2.50 $2.50 Base Case Current Price Environment

17. Orion SAGD – Commercial Project Base Case Economics • 21% after tax IRR • Payout in six years (Phase 1 and Phase 2) • In excess of $1 billion in free BT cash flow Assumptions: • WTI US$30/bbl • Differential US$7/bbl • Gas price $6/mcf • Fx – 0.80 • In the current price environment, the project generates an IRR of 40% and > $3 billion in BT cash flow

18. Orion SAGD – Key Economic Drivers WTI ± $1.00 US/bblDifferential ± $1.00 US/bblGas prices ± $1.00 Cdn/mcfCapital costs ± 20%Diluent prices ± $1.00 US/bblUS/Cdn exchange rate ± $0.01Steam/oil ratio ± 10% -1.75 +2.21 -2.7 +3.05 -1.45 +1.9 -1.16 +1.49 -.9 +.9 -.55 +.55 -1.3 +1.2 -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% Change in IRR (%)

19. Orion SAGD – Development Timetable Detailed engineeringB of D approvalFacility construction beginsDrilling/completing wellsSteaming/production begins Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007

20. New Discovery – Chipmunk(Peace River Oilsands) Characteristics • Located 15 miles from our Seal property • 3 successful wells - 960 bbl/day • 65,000 gross acres of land acquired • 78 reef-like structures identified • 55% working interest • Talisman Energy is our partner • 2005 Activities • $2.5 mm 3D seismic program • Test up to 5 reef structures 2005 3D Program EASTERN

21. Core Area – Lloydminster • Established heavy oil area • 2,000 - 3,000 bbl/day potential • 20 wells planned in 2005 • Allocate $5 - $10 million of our capital budget per year for this area

22. Current Financial Position • Working capital $128 mm • Long-term debt – • Hedged production none Financial Philosophies • Maintain a strong balance sheet • Minimize the use of debt • Maintain exposure to oil prices • Do not hedge production

23. Capital Requirements/Funding Use of Capital • Expenditure program over next two years (06-07) $350 - $400 mm Potential Sources of Capital • Existing working capital $128 mm • Other sources: • Cash flow from operations $150 - $200 mm • Debt $50 - $100 mm • Sale of non-core assets $40 - $100 mm • Equity

24. Indicative Heavy Oil Pricing 5 yr Average 1st H 2005 Current WTI $30.92 $51.52 $65.00 Lloyd heavy oil differential (9.53) (20.40) (19.00) $21.39 $31.12 $46.00 Converted to Cdn$ $30.07 $37.47 $54.42 Diluent costs (6.83) (15.15) (14.78) Transportation (2.00) (2.00) (2.00) Wellhead price (Cdn$) $21.24 $20.32 $37.64 % of WTI 47% 32% 48% • Heavy oil differentials and diluent costs are key determinants in realized well-head prices • Generally, Seal/Orion prices average 45-50% of WTI prices

25. 00 01 02 03 04 05YTD 00 01 02 03 04 05YTD Differentials/Diluent Prices • 2005 effected by wide heavy oil differentials and high diluent costs Diluent Premiums (last 5 years) Heavy Oil Differential (last 5 years) 20 14 18.91 12 15 10 8.62 12.50 8 9.67 10 6 7.79 5.89 4 7.04 1.60 1.56 0.90 5 2 0.37 0 (0.16) 0 -2

26. 2005 Activities • Year-end production target of 14,000 bbl/day, 40% increase from 2004 • Capital budget recently increased to $95 million Area $ MM Seal 55 Orion 20 Lloydminster 10 Chipmunk 5 Other 5 Total 95

27. In Summary – A Platform for Growth Opportunities • Seal • Higher recovery rates • Waterflood potential • Additional discoveries • Chipmunk • More Chipmunks Risks • Oil prices • Execution (people) • Money (financial planning)

28. Forward-Looking Statements This presentation contains forward-looking statements that may be identified by words like “forecast”, “estimated”, “expected” “plans”, “potential”, “targeting” or similar expressions. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in BlackRock’s plans, changes in commodity prices, regulatory changes, general economic, market and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations.