Noble Royalties, Inc.

Transcription

1 Noble Royalties, Inc. { America s Leader for Private Royalty Ownership

2 Welcome } For over a century, sophisticated investors have understood the benefits of More Diversification Means Reduced Portfolio Risk royalty ownership. Since 1997, Noble Royalties, Inc. has specialized in acquiring and managing Stocks Bonds royalty properties with proven production histories and the potential for growth. As of October 2008, the company has completed 72 acquisitions with invested assets approaching $1 Billion. We are an energy company that does NOT drill or operate. Real Estate / REITs Noble Royalties, Inc strives to create value through extensive fundamental research and proven access to high quality deal flow. Our goal is to deliver consistent and attractive risk adjusted investment properties. Royalties generate Typical Asset Allocation monthly income with low correlation to many asset classes including equities, debt and real estate. Noble Royalties, Inc. provides an alternative for those seeking exposure in the energy sector. Stocks Bonds Energy Royalties Real Estate / REITs Rebalanced Asset Allocation (Income Producing Energy Royalties) Alternative assets, by their nature, tend to be less efficiently priced than traditional marketable securities, providing an opportunity to exploit market inefficiencies through active management. David Swenson, President of Yale Endowment

3 Noble Royalties At a Glance > Why Invest? Serves Both 1031 and Cash Investors You can exchange out of brick and mortar real estate into oil and gas royalties. Superior Monthly Cash Flow Average annual yields of 8 15%. Non-Leveraged Offerings Our properties are 100% equity and not subject to banking or finance risks. Non-Correlated Asset Class Oil and gas properties historically exhibit no correlation to typical debt and equity markets. Portfolio Diversification Thousands of producing wells can diversify your portfolio into energy without the risks and liabilities often associated with drilling programs. Investor Goals Increase Yield without Increasing Risk Investment Portfolio Diversification Long Term Income Capitalize on Generally Rising Energy Prices Rebalancing of Hard Assets Investor Suitability Suitability standards, which may vary by state, include: Accredited Investors Only (as defined in Rule 501(a) of Regulation D under the Securities Act) No Capital Calls Receive monthly revenue checks, never an invoice for maintenance or repairs. Investor Independence All owners receive direct assignment into each property and have individual control over exit strategy. > Our Properties. We only acquire proven, producing assets. Engineered reserves of 30+ years. Large tracts of undeveloped acreage for future development. Geographic and operational diversification. Noble Royalties offerings provide access to institutional quality assets without instituitional minimums. Scott Noble, CEO Noble Royalties, Inc.

4 Proven Track Record. 18% 2008 Weighted Average Return to Investors Portfolio of All Noble Royalties Offerings 16% 14% 12% 10% 8% 6% Bond-Like Stability with Equity-Like Returns 4% 2% 0% Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Accounting Month 10 Year Treasury Noble Royalties Portfolio A Surging Industry Sector. Commodity Prices Began Rising as the Market Converted to a Demand-Driven Model $150 $30 $140 $130 $120 Supply-Driven Pricing Demand-Driven Pricing $27 $24 Nymex Crude Oil $110 $100 $90 $80 $70 $60 $50 $40 $21 $18 $15 $12 $9 Nymex Natural Gas $30 $6 $20 $10 $3 $0 $0 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Oil Natural Gas

5 Stringent Acquisition Criteria. Noble Royalties utilizes acquisition teams in Dallas and Houston with over 100 years of collective experience in the oil and gas industry. We have leveraged this combined knowledge to develop extremely high standards for the properties that we will acquire. In addition, our analyses are verified by third-party engineering firms in an attempt to ensure quality investments. > High Well Count Our acquisitions are typically comprised of hundreds or thousands of producing wells. This allows for risk diversification and reduces the impact of depletion that can hurt the performance of smaller properties with concentration risks or low well count. > Long Reserve Life Global Demand is steadily increasing. Noble seeks to acquire Royalty Interests into producing properties with several decades of potential remaining reserves. Detailed engineering on each property helps us target a long-term stream of royalty income to investors. MOEBD Industry Outlook Oil & Gas Demand/Supply World Demand Existing Field Decline ~ 4-6% Existing Production Required New Production > Undeveloped Acreage In addition to acquiring Royalty Interests involving currently producing wells, Noble also acquires Royalties on surrounding undeveloped acreage. This allows our investors to benefit from the capital expenditures of the owners and operators of the Working Interest, who drill new wells, develop additional reserves and increase production on the property at their expense and at no cost to us. > World Class Operators From Exxon Mobil to Chesapeake Energy, Kinder Morgan to Chevron Texaco, Noble acquires only in areas managed by the country s top oil and gas producers Source: Exxon Mobil

6 Private Royalties Advantages. Cumulative Royalty Interests Offered $1,000,000,000 $900,000,000 $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $784.2 MM $628.4 MM $511.5 MM $940.1 MM $200,000,000 $198.5 MM $100,000,000 $60,000,000 $72.6 MM $30,000,000 $15,000,000 $23.4 MM $17.1MM $37.1 MM 200, [11] 2001 [10] 2002 [7] 2003 [5] 2004 [6] 2005 [10] 2006 [5] 2007 [6] 2008 [7] 150, , , ,000 91,720 60,000 47,271 30,000 15,000 13,180 21,084 Cumulative Royalty Interests In Wells On Properties 8,000 8,113 4,000 2,000 3,361 5,268 1, Consistent and Timely Offerings Medina Properties / $21,360,632 Aurora Properties / $15,920,900 03/07 07/07 11/07 12/07 Concord Properties / $40,327,310 Gladstone Properties / $51,849,950

7 Why Noble is Different. > Noble Royalties Advantages vs. Other Royalty Interest Programs Proven Track Record: 72 Offerings $980+ Million Funded 11 Years in the Industry Stringent Acquisition Criteria Only Top 10% of U.S. Wells Diversification Thousands of Wells Large Undeveloped Acreage Proven Production History with 3rd Party Engineering Verification World Class Diversified Operators > Noble Royalties Advantages vs. Working Interest Programs Proven, Producing Wells Not a Guessing Game Consistent Returns A Check Received Every Month No Tort, Environmental or Operational Expenses / Liabilities Many Different Operators Spread Across Multiple Geographic Areas No Capital Calls, Ever > Noble Royalties Advantages vs. Debt / Equity Markets Non-Correlated to Market Volatility within Other Asset Classes Direct Ownership in Energy Not a Partnership or Shares Non-Leveraged Yield (No Credit Risk) Equity-Like Returns at One-Fourth the Risk Natural Hedge Against Inflation Armstrong Properties / $26,700,000 Monarch Properties / $14,025,000 05/08 09/08 03/08 07/08 Ambrose Properties / $14,436,500 Ironwood Properties / $23,203,703

8 Come Visit Us at Our Corporate Headquarters TM For more information, please contact us today. Noble Royalties, Inc N. Dallas Parkway, Suite 900 Addison, Texas office facsimile This document and the materials contained in it are neither an offer to sell nor a solicitation of an offer to buy any security in any state or jurisdiction. Current and past performance is not a guarantee of future performance or returns Noble Royalties, Inc.