Light Oil Exploration Williston Basin Saskatchewan, Canada Corporate Presentation Q1 2015
Forward Looking Statements This presentation includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, Saturn Minerals Inc. s continued advancement of its minerals exploration, development and production programs. When used in this presentation, the words potential, anticipate, forecast, believe, estimate, expect, may, project, plan and similar expressions are intended to be among the statements that identify forward-looking statements. Saturn Minerals Inc. expressly warns readers not to rely on the information herein for investment or other related purposes. Accordingly, any use of this information is at their own risk and without the liability to Saturn Minerals Inc. The information contained herein is not, and under no circumstances is to be construed as either a public or a private offer or solicitation to purchase securities in the capital stock of Saturn Minerals Inc. The reader is referred to his/her professional investment advisor regarding investing or related decisions respecting the securities of Saturn Minerals Inc. 2
Presentation Outline 1) Management 2) The Williston Basin: Central & Southern 3) The Williston Basin: Northern 4) The Williston Basin: Northern Projects 5) Northern Projects: Exploration Model 6) Northern Projects: Economic Model 7) SEP-71, Bannock Creek Project 8) SEP-72, Little Swan Project 9) First Nations 10) Coal Asset 11) Corporate Structure 3
1) Management Executive President & CEO: Stan Szary, BA Director: Stefan Szary, BA Director: Will Elston CFO: Scott Davis, CPA Advisory Board: Marlene Lumberjack, LLB Dedicated Consultants Petroleum Geophysics: Chris Barton, P. Geo Petroleum Geology: Craig Boland, P. Geo Petroleum Landman: Curt Maxwell, P. Land Exploration Consultant: Steve Noakes, BA 170 years of combined experience in oil & gas exploration, discovery & development 4
2) The Williston Basin The Williston Basin is a succession of sedimentary rocks which contain some of the world s largest reserves of oil, gas and coal. Recoverable oil in the basin exceed 24 billion barrels of oil*. Thanks to the Williston, by 2011 Saskatchewan had passed Alberta in light oil production and in 2012 North Dakota passed Alaska in light oil production. * Continental Resources **See next page Current production is predominantly from the central and southern parts of the basin, and Benteck Energy has estimated that only 15% of the Williston has been adequately explored. Total basin production is currently near 1 million barrels a day, and projected to surpass 2 million barrels a day over the next several years**. 5
2) The Williston Basin: Central & Southern Light Oil Production & Projection: 2008 2025 Oil fields Projected 2,000,000 Barrels per day* * North Dakota Dept. of Mineral Resources * North Dakota Pipeline Authority * North Dakota Industrial Commission * Continental Resources Only 15% of the basin has been adequately explored for oil & gas. Barrels per day 1,000,000 800,000 600,000 400,000 200,000 0 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 2014 --------------------------- 2020 6
3) The Williston Basin: Northern Oil fields exploring the northern Williston Basin 376,000 acres of oil & gas rights early evidence of total petroleum systems conventional oil prospects = Saturn project area = oil fields 7
3) The Williston Basin: Northern Saturn lands are composed of two blocks lands were acquired in 2011 after establishing compelling evidence of a Petroleum System in place 376,000 total acres of oil & gas rights Project area magnified Oil fields 376,000 acres of Petroleum & Natural Gas rights in the Northern Williston Basin 8
4) The Williston Basin: Northern Projects SEP-72 Bannock Creek 120,000 acres SEP-71 Little Swan 250,000 acres Northern Basin SEPs are the largest oil & gas permits issued by the Saskatchewan government and are specifically designed to encourage oil exploration in undeveloped areas of the province Permit Type: Special Exploration Permit, SEP Title: P & NG rights from surface to basement Title Life: 5 years, extendable to 8 Current Title Year: Year 4 Annual Rental: $0.25 per hectare After Year 8: Eligible for conversion to production lease (can also be done at any time before) Central Basin 9
5) Northern Projects: Exploration Model At least 7 known Williston Basin oil & gas reservoirs exist in the northern Williston. Each of these reservoirs are known to produce commercial quantities of oil & gas in the central and southern part of the basin. Well bores that have historically penetrated these reservoirs in the northern Williston show excellent reservoir characteristics, including oil stain in core samples. Oil prospects in the northern Williston are multi-stack targets, offering potential oil production from multiple formations. Shallowest Pay Zones Devonian reservoirs: Souris River and Winnipegosis Formations Ideal reservoir parameters All intervals containing reservoir quality rock also contain oil staining Middle Pay Zones Upper Ordovician reservoirs: Red River (Yeoman) Formation Excellent reservoir parameters: porosity up to 20%, thickness of 25 m Existing Red River oil pools at: Tyvan, Saskatchewan (71 million barrels in place) Chapleau Lake, Saskatchewan (26 million barrels in place) Montmarte, Saskatchewan (26 million barrels in place) Deepest Pay Zones Cambrian reservoirs: Winnipeg Formation: Icebox Sands and Deadwood Sands Excellent reservoir parameters: porosity up to 27%, thickness of 25 m 10
5) Northern Projects: Exploration Model Oil already shown to be present in middle pay zones In late 2010, a wildcat well was drilled south of Saturn lands by a Nordic Oil & Gas based on a single strike line of 2D seismic. The well penetrated the Red River (Yeoman) formation and was reported a flow of 62 bpd of 33 API light oil with a 44% water cut. The well is still standing but the single seismic line did not establish closure and the well was watered out. Previous deep tests have confirmed reservoir rock in the Winnipeg and Red River formations, and the Nordic well demonstrates light oil within the system. Northern Basin Middle Pay Zones: Red River Oil Pools Central Basin Red River (Yeoman) Formation: Chapleau Lake pools (26 million barrels in place) Tyvan pools (71 million barrels in place) Montmarte pools (26 million barrels in place) 11
5) Northern Projects: Exploration Model Exploration Model & Objective MODEL: The Red River play types that have been prosperous in southeastern Saskatchewan should extend considerable distances to the north, as well as throughout central Saskatchewan. OBJECTIVE: Identify traps in along potential migration paths and drill test them 12
6) Northern Projects: Economic Model Tyvan pool 13
6) Northern Projects: Economic Model Chapleau Lake pool 14
6) Northern Projects: Economic Model Montmarte pool 15
6) Northern Projects: Economic Model 16
7) SEP-72, Bannock Creek Project 17
7) SEP-72, Bannock Creek Project Partner: Jaguar Resource Inc. Ownership: Saturn: 50% Jaguar: 50% EP-72 Bannock Creek 120,000 acres Terms: Working interest Jaguar: Murray Swanson Don Wright Corbin Blume Former executive team of Reliable Energy Managed company from 0 to +1100 BPD production (Williston Basin) Successful sale to Crescent Point Energy for $97 million (2012) Access: Year-round 18
7) SEP-72, Bannock Creek Project FIRST SEISMIC PROGRAM - OBJECTIVE Find something 2012 seismic line 19
7) SEP-72, Bannock Creek Project FIRST SEISMIC PROGRAM RESULT A large structure at Winnipeg Sandstone/Basement & Devonian Duperow/Souris River intervals with significant faulting resembles the Tyvan Oil Pool 2012 seismic line 20
7) SEP-72, Bannock Creek Project SECOND SEISMIC PROGRAM - OBJECTIVE Expand on structure, establish closure 2012 seismic line 2013 seismic lines 21
7) SEP-72, Bannock Creek Project SECOND SEISMIC PROGRAM - RESULT 2013 seismic shows further shows structure at Winnipeg Sands/Basement and Devonian Duperow/Souris River intervals with significant faulting that increasingly resembles the Tyvan oil pool, structure is 1,980 acres in size 2012 seismic line 2013 seismic lines Winnipeg/Basement- Structural-highs- Devonian-Duperow/Souris- River-Structural-Highs- SECOND SEISMIC PROGRAM - RESULT A new structure is also identified, but requires additional seismic to confirm closure in all directions 1,920-acre anticlinal target 22
7) SEP-72, Bannock Creek Project SECOND SEISMIC PROGRAM - OBJECTIVE Confirm closure on 1,980 acre target Expand on second structure, establish closure 2012 seismic line 2013 seismic lines 2014 seismic lines 23
8) SEP-71, Little Swan Project 26
8) SEP-71, Little Swan Project Partners: Jaguar Resource Inc. Bayhorse Silver Inc. Ownership: Saturn: 25% Bayhorse: 25% Jaguar: 50% EP-71 Little Swan 250,000 acres Terms: Jaguar: Working interest Bayhorse: Farm In Bayhorse Farm-In: $50,000 non-refundable deposit (paid) 500,000 shares of Bayhorse (pending TSXV approval) $150,000 1 st payment (pending TSXV approval) $200,000 2 nd payment (90 days after TSXV approval) $200,000 3 rd payment (180 days after TSXV approval) $230,000 in seismic survey cost (by Jan 30, 2015) Following all above payments, Bayhorse s 25% will be a working interest. Access: Winter only 27
8) SEP-71, Little Swan Project Outline(of( Airborne( Survey( Line-4:-14.75km- 2015-Program- Li;le-Swan-Lands- contain-253,920- acres- Deeper-Pool- Tests-- 28
9) First Nations Since 2009, Saturn has worked in tandem with the Saulteaux and Cree First Nations of eastern Saskatchewan and western Manitoba to establish a healthy working relationship and ongoing dialogue related to resource development in their Traditional Territories. A direct result of this approach has been the co-founding of Inowending Exploration & Development Corp., a private company jointly-owned by Saturn and a consortium of First Nations bands from the project area to facilitate First Nation participation in any exploration success. Inowending provides a platform through which success in exploration can be translated into an existing positive dialogue to ensure that First Nations interests are incorporated from the very beginning of each project. 29
10) Coal Asset Since 2011 Saturn has also made three significant coal discoveries in its project area, including an 89 metre thick continuous coal seam beginning at 12 metres depth Coal quality ranges up to 10,300 BTU and is approximately 8 km from active two separate rail lines visit www.saturnminerals.com for more info 30
11) Corporate Structure Share Capital Structure Market capitalization: Total shares outstanding: Total warrants outstanding: Total options outstanding: $19.1 million 116.4 million 13.3 million 13.1 million Debt: Ownership Basic Fully Diluted nil SMI vs. TSX Venture (1 year) Insiders & Management: 8.0% 15.4% EU Institutional: 17.0% 23.0% NA Institutional: 3.0% 6.0% Retail (NA & EU) : 72.0% 55.6% Notes Information as of Oct 31, 2014 Institutional & Regional Ownership based on internal estimates NA Retail Insiders & Management EU Institutional NA Institutional EU Retail 31
www.saturnminerals.com Suite 312 744 West Hastings Street Vancouver, BC V6K 1A5 +1 604 685 6989 32