Exploring America s Last Energy Frontier

Transcription

1 Exploring America s Last Energy Frontier

2 True North's Harriet Point prospect is estimated to contain 300 to 500 million barrels of oil.

3 THE COMPANY About Us Oil and gas exploration has been a part of the history of the Cook Inlet Basin for nearly 150 years. True North Energy Corp. is a publicly traded independent Oil and Gas exploration company with headquarters in Houston, Texas and an exploration office in Anchorage, Alaska. True North Energy was founded with the specific aim of securing and developing a vast portfolio of Oil and Gas properties in "America's Last Energy Frontier - Alaska". The company has exclusive Oil and Gas rights to 22,000 acres of prime land in the Oil & Gas rich Cook Inlet region, which has been for years a major production area for Alaska. Shell has been one of the major driving forces in the Cook Inlet. The Cook Inlet, located in the southern part of the state, has witnessed a new found exploration frenzy as major players such as ConocoPhillips, Chevron-Unocal and Forest Oil have aggressively built up large acreage positions. True North Energy also has the exclusive Oil and Gas rights to 10,000 acres of prime land in the North Slope of Alaska. British Petroleum, one of the North Slope's major exploration companies and operators has stated that there could be potential gas reserves in excess of 35 trillion cubic feet (35 TCF). Other major players, such as Italy's national energy company, ENI SpA, put total net reserves of their exploration blocks in the North Slope in excess of 170 million barrels of oil. The US Geological Survey (USGS) conducted in 1998 stated that certain areas of the North Slope contain between 7.7 billion and 11.8 billion barrels of oil. In the May 2006 National Geographic article on Alaska's North Slope, it is stated that there may be up to 48 billion barrels of oil waiting to be tapped into. True North Energy is poised and positioned aggressively in the Cook Inlet and the North slope of Alaska ready to begin exploration of its' 32,000 acres of prime Oil and Gas land holdings. Oil and gas exploration has been a part of the history of the Cook Inlet Basin for nearly 150 years. The first historical references are found in early reports from Russian explorers in the 1850's, who observed oil seeps on the Iniskin Peninsula on the west side of lower Cook Inlet. In the early 1900's, the first attempt at commercial oil exploration in Cook Inlet took place with the drilling of six exploration wells between 1900 and 1906, with out commercial success. Exploration continued through out the Cook Inlet Basin for the next 50 years with out success until the late 1950's, when commercial oil was finally discovered. The Cook Inlet's geology is complex and its producing reservoirs are fractured with impermeable faults, which most believe could be hiding many pockets of oil. True North's independent geologists believe the prospect, which is called the Harriet Point may hold 300 to 500 million barrels of oil. The company has now engaged a team of geologists and geophysicists, led by geologist Jerry Hodgen, advisor to the Department of Geology at the University of Kansas and a veteran of Alaska oil & gas exploration, to evaluate this prospect using current seismic interpretation software. True North also intends to engage a blue chip Oil service firm to write a second and final evaluation report. True North Energy Corp. trades on the NASDAQ OTC BB under the ticker symbol: TNEN. Alaska is currently a hotbed for new oil and gas exploration activity 3

4 EXPLORATION AND PRODUCTION True North plans to establish strong cash flow within the next six to eight months by drilling up to four low-risk development wells in Texas and Louisiana and prove up reserves in Alaska within the following 24 months. 3

5 MANAGEMENT Management Team John I. Folnovic Chief Executive Officer Mr. Folnovic has over 20 years of senior experience in the oil and gas industry. Among his credentials, Mr. Folnovic was a senior manager for BP Amoco Exploration where he led a multidisciplinary team consisting of geologists, engineers, operations and administration staff in developing thermal heavy oil assets producing 30,000 bpd of bitumen and an annual capital budget of $200 million. He also played an instrumental role in managing the Company's assets through the sale from BP Amoco to Canada Natural Resources for $1 billion CDN. During his tenure as a senior operations manager with BP Amoco, Mr. Folnovic directed operations on a portfolio of assets that produced 300 MMSCFD of gas, with revenue of $250 million and operating budget of $50 million. Over the past 6 years, Mr. Folnovic has acted in the capacity of senior industry adviser, overseeing operations with budgets ranging from $60M-$90M for several major operators including Dominion Energy Canada, Sunmatrix Petroleum Corp., Myexecutive Inc. and Petrodell Energy Inc. Max Pozzoni Chief Financial Officer Max Pozzoni has been actively involved in the oil and gas industry for the past decade, working first for industry consulting titan, Schlumberger Oilfield Services in North and South America. He has a proven track record of starting successful oil and gas companies, including Falcon Natural Gas Corp., which has secured a $20 million financing facility and can now count several producing wells in Texas and Louisiana. He has worked in the past with investment bank Lehman Brothers, Inc in New York and London. Max Pozzoni holds a BSc degree in International Business from the University of Kansas and a MBA from the prestigious London Business School in London, England. Anthony Zelen VP Corporate Communications Anthony Zelen's vast investor relations experience is a strong asset to the management of True North Energy Corp. Anthony's professional career began as an investor relations specialist in Three years later Anthony was instrumental in the creation of Mindshare Communications, a full service investor relations firm with a diverse client base in the oil and gas, mining, alternative energy and technology industries. His business activities within the venture capital arena enabled Anthony to establish an invaluable network of accredited investors, angel investors and investment banking contacts throughout North America, Western Europe and Asia. Anthony holds a Bachelor of Arts in Economics and Political Science from Simon Fraser University. Industry price levels for crude oil continues on an upward trend in CRUDE OIL PRICES from 1986 to 2006 Dollars per barrel

6 EXPLORATION AND PRODUCTION Exploring America True North s Alaska Prospects True North Energy Corp is strategically positioned in two of Alaska s premier oil and gas districts, the Cook Inlet and North Slope region. True North s leases in the Cook Inlet comprise the Harriet Point prospect and the North-South Beluga prospect strategically located around the ChevronTexaco - ConocoPhillips owned giant Beluga River Gas Field (900+ Billion Cubic Feet of cumulative gas production). The Harriet Point The Harriet Point Prospect Block is composed of 17,166 contiguous acres in three separate Alaska state lease parcels that cover both onshore and offshore properties along the western coastline of Redoubt Bay. Potential oil reserves in place, based on the interpreted configuration of the reservoir seismic, were estimated to be over 300 million barrels. The proposed test well drilling depth is expected to be approximately 4,600 feet. North and South Beluga These two prospects comprise a total of 5,811 acres adjacent to the Beluga River Gas Field. The Beluga River Gas Field (BRU) is at a mature stage of development. The field is jointly owned by ConocoPhillips, Chevron Texaco and the Municipal Light and Power of Anchorage. The field has already produced over 900 Billion Cubic Feet of gas and has proven reserves exceeding 400 Billion Cubic Feet. Proposed test wells in True North s leases aim to prove additional gas reserves around the BRU field. North Slope True North s leases in the North Slope comprise four 2,500 acres units (10,000 acres total) of on-shore and off-shore targets, adjacent to ExxonMobil s Beaufort Sea s exploration leases. True North s prospects are located west of British Petroleum s giant Prudhoe Bay production unit. When discovered in 1968, the Prudhoe Bay field had proven reserves of 25 billion barrels of oil, 10 of which have already been produced. The Prudhoe Bay field is the largest oilfield in North America and the 18th largest field ever discovered worldwide. $25 biilion have already been invested in the development of the field that is jointly owned by British Petroleum, ExxonMobil and ConocoPhillips. 46 Trillion Cubic Feet of Gas (26 of which classified as recoverable) remain in place. 6

7 EXPLORATION AND PRODUCTION s Last Energy Frontier 7

8 EXPLORATION AND PRODUCTION Alaska oil and gas 8

9 A recent article in National Geographic on Alaska s North Slope estimates that there may be up to 48 billion barrels of oil waiting to be tapped into.

10 KEY PLAYERS Key Players in Alaska Royal Dutch Shell plc NYSE: RDS.A & RDS.B Market Cap: $469.6 B Shell is a global group of energy and petrochemical companies. Shell operates in over 140 countries and territories, employing approximately 109,000 people worldwide. Beginning almost 50 years ago, Shell operated continuously in Alaska until Shell was one of the most prominent explorers in the frontier basins of Alaska, as well as being an operator and major producer in Cook Inlet. Shell re-entered Alaska in Exxon Mobil Corporation NYSE: XOM Market Cap: $ B Exxon Mobil is focusing on securing the legislative and fiscal framework to pursue the natural gas resources of Prudhoe Bay in Alaska. Exxon Mobil's Alaska Project is massive and complex. The Alaska Project will involve nearly 1,700 miles of 52-inch pipe just to the border of Alberta, Canada, and will be capable of handling 4 to 5 billion cubic feet per day (GCFD) of natural gas. Exxon Mobil's Arctic activities are not just about commercializing onshore gas, however. The company also has interests in various exploration blocks. BP plc NYSE: BP Market Cap: $ B British Petroleum has transformed growing from a local oil company into a global energy group, employing over 100,000 people and operating in over 100 countries worldwide. BP Exploration (Alaska) Inc. is second only to Russia in terms of known oil and gas resources in the company's global portfolio. As of Jan. 1, 2005, BP Alaska's net cumulative oil production had reached 5.7 billion bbls which is coincidentally equal to the remaining proved and non-proved reserve base. BP is Alaska's number-one investor with over $1.5 billion spent on its Alaska business. BP Exploration Alaska (BPXA) has a percent interest in the North Slope's recoverable natural gas resources, which is approximately 46 trillion cubic feet (35 TCF) of gas. Chevron Corporation (Unocal) NYSE: CVX Market Cap: $ B Chevron is one of the largest integrated energy companies in the world. Headquartered in San Ramon, California, and conducting business in approximately 180 countries, the company is engaged in every aspect of the oil and natural gas industry. With the addition of former Unocal employees, the company's global work force stands at approximately 53,000 employees. (excluding about 6,000 service station employees). In 2005, Chevron produced more than 2.5 million barrels of oil equivalent per day, with approximately 70 percent of the volume occurring outside the United States and in more than 20 different countries. Since Unocal's first discovery of natural gas onshore in Alaska in 1959, Unocal has had a strong commitment to its operations in Alaska. Offshore operations began following acquisition of drilling rights in the Cook Inlet in Unocal operates 10 platforms in the Cook Inlet off the southern Alaska coast and 6 of 14 producing gas fields. Of the 30 established fields or units in the Cook Inlet, Unocal has an interest in 16 and is the designated operator for 15. Unocal's Alaskan assets also include a working interest in two North Slope fields: the Endicott Field (Unocal 10% working interest) and the Kuparak Field (Unocal 4.95% working interest). These two fields produce 20,000 barrels per day of oil net to Unocal. Conoco Phillips NYSE: COP Market Cap: $96.2 B ConocoPhillips (ConocoPhillips) is an international, integrated energy company. Headquartered in Houston, Texas, ConocoPhillips operates in more than 40 countries. The company has approximately 38,000 employees worldwide and assets of $160 billion. 10

11 ENI SpA NYSE: E Market Cap: $45 B Eni S.p.A. is an Italy-based company engaged in activities covering the oil, natural gas, electricity generation, engineering, construction and petrochemicals industries. Its Exploration and Production of oil and natural gas division has operations in Italy, Africa, the North Sea and the Gulf of Mexico, as well as in Latin America, Australia, the Middle and Far East and the Caspian Sea. In the exploration and production sector, Eni holds a number of offshore explorations licences, in the Gulf of Mexico, mostly in waters more than 200 meters deep. Eni's share of the oil and gas production in the USA averaged about 44 thousand barrels of oil equivalent per day (boe/d). In August 2005 Eni acquired the Alaskan assets of US independent Armstrong Oil & Gas, comprising 104 exploration leases along Barrow Arch, in the North Slope, Northern Alaska. Total net reserves of the exploration blocks are anticipated in excess of 170 million barrels of oil. Anadarko Petroleum Corporation NYSE: APC Market Cap: $24.8 B Anadarko Petroleum Corporation is an oil and gas exploration and production company. Major areas of operations are located in the United States, primarily in Texas, Louisiana, the mid-continent region and the western states, Alaska and in the deep waters of the Gulf of Mexico, as well as in Canada and Algeria. It actively markets natural gas, oil and natural gas liquids (NGLs) and owns and operates gas-gathering systems in its core producing areas. Anadarko is one of the largest independent oil and gas exploration and production companies in the world. Assets - Over $20 billion. No. 314 on the "Fortune 500" list for It produced 158 million barrels of oil equivalent (BOE) in billion BOE of proved reserves as of year end Pioneer Natural Resources Co. NYSE: PXD Market Cap: $5.43 B Pioneer Natural Resources Company is an independent oil and gas exploration and production company with operations in the United States, Argentina, Canada, Equatorial Guinea, Nigeria, South Africa and Tunisia. The Company explores for, develops and produces oil, natural gas liquid (NGL) and gas reserves. The Company has exploration and development opportunities and/or oil and gas production activities in the Gulf of Mexico, the onshore Gulf Coast area and in Alaska, and internationally in Argentina, Canada, Equatorial Guinea, Nigeria, South Africa and Tunisia. Pioneer Natural Resources is a large U.S. independent exploration and production company with a long history of successful drilling, efficient development and cost-conscious operations, adding value for its shareholders and employees. With total proved reserves equivalent to 6.1 trillion cubic feet of gas, or 1 billion barrels of oil. Pioneer's expertise encompasses onshore, deepwater and shallow water environments. Swift Energy Co. (Aurora Gas Alaska JV Partner) NYSE: SFY Market Cap: $1.28 B Houston-based Aurora Gas announced the company has entered into a joint venture with Swift Energy Company to explore for oil and gas on Aurora's acreage in the Cook Inlet of Alaska. The companies plan to commence exploration activities immediately with the drilling of the Endeavour-1 well on Aurora's Endeavour Prospect on the Kenai Peninsula. Aurora has increased its leasehold position in the last year from approximately 125,000 acres to approximately 140,000 acres at year-end Current gas production is running between 16 to 20 MMCFPD from 12 wells in 5 fields, all located on the west side of Cook Inlet. 11

12 Houston HQ 1200 Smith Street 16th Floor Houston, TX Tel: Fax: Anchorage Exploration Office