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  1. Click your left mouse button or an arrow button if present, to advance the slide. At any time you may press ESC to Quit the presentation

  2. 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.

  3. Introduction to Derek Oil & Gas Corporation: • Corporate Structure & Overview • Projects – North America • Financial Status & Potential • Investment opportunities • Management & Board of Directors • Contact Information

  4. DRK:TSX.V INVESTING IN NORTH AMERICA

  5. DRK:TSX.V INVESTING IN NORTH AMERICA

  6. Corporate Overview Financial Overview Projects Management 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

  7. MAINMENU Corporate Overview Financial Overview Projects Management 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

  8. CORPORATE OVERVIEW Corporate Overview

  9. Company Profile Oil Exploration, Development & Production Company • Canadian based • North American Property/Assets Public Company • Trading Board: TSX Venture Exchange • Ticker Symbol: DRK Share Structure (as at November, 2010) • Issued & Outstanding: 99,606,251 • Fully Diluted: 134,990,251 Previous

  10. Derek Oil’s Prime Property LAK Ranch Pilot Plant Town of Newcastle & Wyoming Refinery 3D Seismic Area 2880 Acres or 4.5 sq. miles Burlington Northern Railway Total Property Area 8000+ Acres DRK:TSX.V INVESTING IN NORTH AMERICA

  11. Project Details PROJECTS Previous

  12. 3D SEISMIC AREA MAP OF THE PROPERTY 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

  13. 3D SEISMIC AREA MAP OF THE PROPERTY Newcastle Oil Refinery Just 5 miles (15 min.) from LAK Ranch Property DRK:TSX.V INVESTING IN NORTH AMERICA

  14. 3D SEISMIC AREA MAP OF THE PROPERTY Prime Property Asset • 8000 + Acres • Prolific Powder River Basin • Safe & Desirable North American Location • Excellent Access & Services

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

  16. SURFACE FACILITIES Surface Facility Features • Bateman’s Engineered • Plant handles up to 2,000 bopd • Two new 50 MM BTU Generators • Housed in new building • Natural gas pipeline supplies the steam generator • Complete heater treater plant • 27 MM BTU Old Steam Generator • Tank battery for oil storage • Water treatment plant for generator • Water supply contract in place DRK:TSX.V INVESTING IN NORTH AMERICA

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

  18. WHAT IS FOUND UNDERGROUND Blue Sky Hydrocarbon Potential The following are the Multiple oil potential horizons identified in the 3D seismic survey: • Newcastle Formation: over 50MM barrels OIP, 50%+ recoverable • Lower Alluvial • Upper Marine • Fall River • Minnelusa DRK:TSX.V INVESTING IN NORTH AMERICA

  19. WHAT IS FOUND UNDERGROUND Newcastle Sand Formation • 12 Well drill program completed 2007 • Depths from surface to 1,600 feet • Comprised of 2 porous zones: upper marine and lower alluvial • Initial development in lower alluvial sand • Average porosity: 25% • Average permeability: 500~1,000 MD • Average oil saturation: 60-65% • Need additional steam from new 50 MM BTU generators to put wells on production DRK:TSX.V INVESTING IN NORTH AMERICA

  20. NEW STEAMING STRATEGY • NEW UPDIP INJECTION STRATEGY • Pilot injectors: 3 producer to injector conversions require 900 BDS. • 1-P injectors: 3 existing will require 600 BDS. • Steam soak 8 producers at 1.5 cycles/year requires 600 BDS. • STEAM REQUIREMENT FOR NEW UPDIP INJECTOR PLAN: 2100 BDS • OLD 5 SPOT PATTERN INJECTION STRATEGY • Pilot injectors: 4 injectors/pattern design requires 1200 BDS • 1-P injectors: 2 up dip design requires 600 BDS • Steam soak 8 producers at 2 cycles/year requires 400 BDS • STEAM REQUIREMENT FOR 5 SPOT PATTERN INJECTOR PLAN : 2200 BDS • CURRENT AVAILABLE STEAM CAPACITY ~2500 BARRELS/DAY Previous

  21. DEREK OIL & GAS CORPORATION • FUTURE PLANS: • Include 1-P lateral in our 12 well pilot expansion • Utilize the full horizontal lateral potential (only heel area,1/3 of lateral is being heated). This has been determined by our fiber optic temperature results from ex-SAGD injector 2-I lateral that is along side the 1-P lateral (~30’). • Return idle well 2-I (ex SAGD injector) to producer status. Produce 2-I and utilize the fiber optic temperature to determine productivity in the toe area. Suspect well(s) were drilled out of zone. The 1-P well will be shut-in while producing 2-I. • Note when steam stops production drops and when steam returns production returns. Previous MAIN MENU

  22. DEREK OIL & GAS CORPORATION • FUTURE PLANS: • Steam cycle soak all producers in conjunction with continuous steam injection. Wells are still cold after 4 months of continuous steaming. Flow line temperature from all active producers range from 50 to 80 F. • Alter the steam drive configuration from a pattern to line drive with the uppermost row to consist of continuous injectors. • The Newcastle structure consists of a ~35° north to south dip. With this type of geology we need to utilize gravity as our ally by heating the reservoir up dip and capturing mobile liquids down dip. We will use our 3 existing up dip wells and add 3 new wells as the up dip injector row. Previous MAIN MENU

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

  24. INITIAL DEVELOPMENT Steam Flood Program • The Process: • Inject steam into perforated 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 • Production Projection: • Increased oil production to levels of 25 barrels/day from 12 well program DRK:TSX.V INVESTING IN NORTH AMERICA

  25. 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 drilled 12 well program. • Augment cash flow through increased oil production & re-invest into further development • Continuous interpretation of $1.1 Million USD 3D Seismic survey Mid Term – 3 Years • Approximately 135 total wells drilled with 115 being producer wells DRK:TSX.V INVESTING IN NORTH AMERICA

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

  27. QUALITY OF OIL BEING PRODUCED: High Quality Oil Characteristics • Low Paraffin • Low Sulphur content: <0.5% • Pricing at $12.00 USD deduct to “West Texas Intermediate (WTI)” grade • Medium weight (average 19 API gravity) • Oil characteristics suitable for Jet Fuel DRK:TSX.V INVESTING IN NORTH AMERICA

  28. OIL & WATER SEPARATION PROCESS MAIN MENU

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

  30. OIL & WATER SEPARATION The Separation Process • 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

  31. Financial Overview Previous

  32. Projected Net Back WTI $60 $80 Sale Price of Oil $48.00 $68.00 State Taxes ($6.43) ($9.11) Royalties ($6.96) ($9.86) Cost of Steam ($9.80) ($9.80) Other Operating Costs ($3.50) ($3.50) Net Back Per Barrel $21.31 $35.73 Previous

  33. Gross Production & Number of Wells Previous

  34. FAQ’s • Derek’s fiscal year = May 1st to April 30th • Cash on Hand – $50,000 • NPV (discounted 10%) = $98,380,000 • Burn Rate – $90,000/month • Debt – $1.5 million • Recent Trade Range $0.03- 0.055 • Insider & 9 Institutional Holdings: 54% • ( 54,502,495 shares) Previous

  35. 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

  36. Investment Opportunity Previous

  37. Why Derek? • No exploration risk in Newcastle Sandstone • Expandable Reserves & Production on Per Share Basis • Safe & Desirable North American Location Previous

  38. Board of Directors & Senior Management BOARD OF DIRECTORS For a brief bio of our directors & management, please click on any of the names below Mr. Barry C. J. Ehrl President, C.E.O. & Director Dr. Eike Hamer Director Mr. John Lush Director Mr. Robert Hurkmans Chief Operating Officer Mr. Greg Amor, CA Chief Financial Officer Director Previous To Picture Gallery MAIN MENU

  39. 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.

  40. Board of Directors Dr. Eike Hamer, MBADirector • Dr. Hamer holds a Phd in Economics and a Masters in Business Administration (MBA) from the University of Rostock in Germany with extensive studies at the University of Bonn and the University of Osnabrück. Dr. Hamer is current publisher of "Wirtschaft aktuell". Wirtschaft aktuell is a news letter providing background information on political and economic developments in Europe. The publication was formerly based in Zurich Switzerland and is now attached to the "Mittelstandsinstitut Niedersachsen". The Middelstandsinstitut Niedersachsen was founded more than 30 years ago and is one of the most prestigious research institutes for entrepreneurs globally. Dr. Hamer is a member of the executive board of the "Deutsche Mittelstandsstiftung", a well known foundation in Germany and is the current CEO of ELUX Wealth Management, an investment advisory corporation.With the addition of Dr. Eike Hamer on the Derek Board of Directors, the Company will strengthen its presence, knowledge and corporate development strategies in European markets.

  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. Senior Management Mr. Robert HurkmansChief Operating Officer CLOSE Bob has recently joined the Derek Management Team after spending the past seven years with Occidental Petroleum Corporation ("Oxy") as a Production and Drilling Engineer with their successful Elk Hills project and newly acquired Mukhaizna heavy oil field project. He has over 37 years experience in the oil industry and specializes in improving the drilling/production economics of tertiary recovery projects (with an emphasis on steam soak/flood technology) such as Derek's LAK Ranch project. Bob has worked on thermal projects in California (Midway Sunset, Belridge/McKittrick, Cymric, Kern River/Kern Front, Santa Maria/Cat Canyon, Arroyo Grande and the Brea/Yorba Linda). He was on a thermal horizontal drilling/completion team for Shell Oil Co and drilled over 150 wells in California. Bob designed and drilled/completed the first thermal horizontal producer for Oxy USA that resulted in more than doubling the production as compared to the best vertical producer. He was instrumental in reducing drilling costs and overall capital and operating costs on the Midway Sunset project by up to 30%. He won the ARCO Award for reducing drilling costs at Midway Sunset, the Shell Oil Company Award for coil tubing/slimhole drilling at Belridge/McKittrick and was a finalist for the Occidental Engineering Excellence Award in 2001 and 2003 for applying large HF/HCl acid treatments on horizontal wells at Elk Hills, California.

  43. Mr. Greg Amor, CAChief Financial Officer Director Senior Management CLOSE Greg is a Chartered Accountant with 19 years experience with the resource industry. He has held senior management positions with numerous public resource companies. He has raised $20 plus million in financing for public companies.

  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

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