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Investor Presentation

Investor Presentation.

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Investor Presentation

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  1. Investor Presentation

  2. A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada.  The preliminary prospectus is still subject to completion or amendment.  Copies of the preliminary prospectus may be obtained from GMP Securities L.P., 145 King Street West, Suite 300, Toronto, Ontario, M5H 1J8.  There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

  3. Forward Looking Statements Certain information regarding Torquay Oil Corp. (“the Corporation”) in this presentation including management's assessment of future plans and operations, timing of drilling and tie-in of wells, productive capacity of the new wells and productive capacity from different wells, expected production rates, drilling success rates, dates of commencement of production, may constitute forward looking statements under applicable securities laws and necessarily involve risks including,without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect the Corporation's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward looking statements contained in this presentation are made as at the date of this presentation and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

  4. Experienced Management Team • Brent McKercher - (20 yrs) President & CEO • Glamis Resources; Rock Creek Resources; Star Oil & Gas; Baytex Energy; Corexcana; Inuvialuit Petroleum • Terry McCallum - (12 yrs) Vice President Exploration & COO • Glamis Resources; Markedon Energy; NewGrange Energy; Draig Energy • Darwin Little -(25 yrs) Vice President Finance & CFO • Glamis Resources; Precision Drilling; Saddle Resources; Inuvialuit Petroleum • Steve Irish - (31 yrs) Vice President Land • Triton Energy; Greenbank Energy; Lightning Energy; Canadian Hunter Exploration 4 4

  5. Board of Directors • Harley Winger, Chairman • Allen Emes, Independent Businessman • Mike Seth, Past Chairman and President McDaniel and Associates Consultants • Brent McKercher, President & CEO • Terry McCallum, Vice President Exploration & COO 5 5

  6. Lake Alma Deal Torquay has entered into a farm-in agreement at Lake Alma, SE SK on up to 115 sections of land The Corporation has committed to drill four Hz wells on the Lake Alma lands targeting the Bakken ‘A’ Unit Torquay intends to employ multi-stage frac technology. Lake Alma has multiple productive horizons – Ratcliffe, Midale, Birdbear, Red River and Yeoman 6

  7. Initial Public Offering • Maximum $ 12 000 000 • Minimum $ 10 000 000 • Price $1 000 per unit • Market securities/unit 400 Class A shares & 90 Class B Shares • Minimum Subscription 5 units ($5 000) 7 7

  8. ‘A/B’ Capital Structure • Flow through unit offering of “A & B” shares • Successfully used in Canada by: • Glamis Resources Ltd. • Rock Creek Resources Ltd. • Crescent Point Energy Corp. • Galleon Energy Inc. • Class A shares @ $ 0.25/share • Class B shares @ $10/share • convert into Class A shares pursuant to a predetermined formula 8 8

  9. Investment Advantages • 100% write-off against 2010 income • Participation in start-up company • Minimum investment of $5 000.00 • Seeking listing on TSX-Venture for Class A and Class B Shares • Subject to approval, will be freely tradable stock 9 9

  10. Investor Tax Savings BC AB SK MB ON Flow through component $5,000 $5,000 $5,000 $5,000 $5,000 Top marginal tax rate 43.70% 39.00% 44.00% 46.40% 46.40% Estimated tax savings $2,185 $1,950 $2,200 $2,320 $2,320 Investment at risk $2,815 $3,050 $2,800 $2,680 $2,680 10 • 100% of the Unit is flow-through • 100% is renounced in 2010 10

  11. Glamis Return on Investment • ‘A’ shares: 400@ $0.25 = $ 100 • ‘B’ shares: 90@ $10.00 = $ 900 $ 1,000 BT ($610 at Risk AT) Market value of ‘A’ shares $2.00 Number of ‘A’ shares 1,002(includes 1:4 rights offering and B conversion at $1.79) Unit value $2,004 Return on investment 263% (after tax) 11 11

  12. Lake AlmaProject 12 12

  13. What is the Bakken? The Bakken is a laterally continuous shallow marine silty-sandstone bounded by black marine shales 13 13

  14. Bakken Producing Areas 14 14

  15. Why Lake Alma Anticipated Spud Date Formation Completion Exploration Well #1 May 5, 2010 Bakken “A” Unit Multi-Stage Frac Development Well #2 May 5, 2010 Bakken “A” Unit Multi-Stage Frac Exploration Well #3 June 1, 2010 Bakken “A” Unit Multi-Stage Frac Exploration Well #4 June 1, 2010 Bakken “A” Unit Multi-Stage Frac 15 15

  16. Lake Alma vs. Crescent Point’s Viewfield Reservoir parameters are similar Lake Alma Viewfield 16 16

  17. Why Lake Alma? • Geologically the Bakken “A” Unit is present across farm-out lands • Successful Hz fracs at Flat Lake by Crescent Point • Porosity and thickness comparable with known Bakken pools • Enviable land position (potential to earn up to 115 net sections) 17 17

  18. Where has major industry partner drilled? 16-10/16-11-2-18W2 9-25/16-36-1-17W2 Drilled 2 Bakken Hz’s at Lake Alma 18 18

  19. How do they compare? 19 19

  20. Gas Detection - High gas content is KEY to OIL CHARGED reservoir Lake Alma Flat Lake Scale Change 20 20

  21. Economics (unrisked) • Horizontal Drilling $2.5mm/well • NPV10 $2.00mm/well • Reserves 120,000 bbls/well • IP per well 150 bopd • Royalty Incentive 100,000 bbls/well • Burdens SS: 5-15% on 1/150 • Average oil price (2010) $74.27/bbl • F&D $20.80/bbl • Assumed Netback $50.00/bbl • Recycle Ratio 2.4X 21 21

  22. Work Plan • 105 sections of land (3 Crown Licenses) plus 10 sections of land (Earned Lands) • Will drill 3 horizontals to earn 66.75 sections on the Crown Licenses • Will drill 1 horizontal to earn 5 sections on the Earned Lands • Potential to drill 4 wells per section • Planning to shoot 3D seismic over the western portion of the Crown Licenses 22 22

  23. Contact Information Brent McKercher President & CEO ph 1 403 718 3869 brent@torquayoil.com Terry McCallum Vice President, Exploration & COO ph 1 403 718 3869 terry@torquayoil.com

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