presents

Presents

DIRECT INVESTMENT IN OIL AND GAS RESERVES

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

• Most of the World’s Reserves are Nationalized or Held by Sovereigns

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

• Most of the World’s Reserves are Nationalized or Held by Sovereigns

• The US and Canada have Clear and Established Legal Structures to Protect Private Property Rights

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

• Most of the World’s Reserves are Nationalized or Held by Sovereigns

• The US and Canada have Clear and Established Legal Structures to Protect Private Property Rights

• Private Property Rights are Critical to Their Culture and Support Economic and Political Identity

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

Transparency

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

Transparency• Heavily Regulated Industry

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

Transparency• Heavily Regulated Industry

• Oil and Gas Production Reported Publicly

The United States and Canada Allow Private Ownership of Oil and Gas

Resources

Transparency• Heavily Regulated Industry

• Oil and Gas Production Reported Publicly

• Internet Access to Data

Oil and Gas Industry is an Efficient Micro-Economic Business Model

Oil and Gas Industry is an Efficient Micro-Economic Business Model

• The World’s Strongest Economy Sets Market Prices

Oil and Gas Industry is an Efficient Micro-Economic Business Model

• The World’s Strongest Economy Sets Market Prices

• Market Prices Established in New York or London… (No Volume Discounts)

Oil and Gas Industry is an Efficient Micro-Economic Business Model

• The World’s Strongest Economy Sets Market Prices

• Market Prices Established in New York or London… (No Volume Discounts)

• 100% of Supply is Sold… (at Highest Market Prices)

Oil and Gas Industry is an Efficient Macro-Economic Business Model

Oil and Gas Industry is an Efficient Macro-Economic Business Model

• Oil and Gas Reserves have become an International Currency

Oil and Gas Industry is an Efficient Macro-Economic Business Model

• Oil and Gas Reserves have become an International Currency

• US Dollar Denominated

Oil and Gas Industry is an Efficient Macro-Economic Business Model

• Oil and Gas Reserves have become an International Currency

• US Dollar Denominated

• Exchange Traded. (Provides Liquidity) SEC & FTSE Valuation Standards

Oil and Gas Industry is an Efficient Macro-Economic Business Model

• Oil and Gas Reserves have become an International Currency

• US Dollar Denominated

• Exchange Traded. (Provides Liquidity) SEC & FTSE Valuation Standards

• Tangible Asset with Cash Flow

Three Stages of Activity in an Oil Field

Three Stages of Activity in an Oil Field

• Exploration:Very High Risk, Very High Reward

Three Stages of Activity in an Oil Field

• Exploration

• Developmental:Low Risk, High Reward

Three Stages of Activity in an Oil Field

• Exploration

• Developmental

• Reserve Asset: Very Low Risk, Modest Reward

SK & CO Specializes in Developmental Oil and Gas Projects

SK & CO Specializes in Developmental Oil and Gas Projects

• Purchase Existing Production

SK & CO Specializes in Developmental Oil and Gas Projects

• Purchase Existing Production

• Extend Scientific Data

SK & CO Specializes in Developmental Oil and Gas Projects

• Purchase Existing Production

• Extend Scientific Data

• Acquire Additional Acreage

SK & CO Specializes in Developmental Oil and Gas Projects

• Purchase Existing Production

• Extend Scientific Data

• Acquire Additional Acreage

• Commence Developmental Drilling

Return of Investment precedes

Return on Investment

Return of Investment precedes

Return on Investment

• Typical Oil or Gas Well Returns 100% of Investment in 18-24 Months

Return of Investment precedes

Return on Investment

• Typical Oil or Gas Well Returns 100% of Investment in 18-24 Months

• 20 to 30 Years of Production Follows Return of Capital

Return of Investment precedes

Return on Investment

• Typical Oil or Gas Well Returns 100% of Investment in 18-24 Months

• 20 to 30 Years of Production Follows Return of Capital • Remaining Reserves Decline Over Time and Are Valued Accordingly

Unique Financial Model

Unique Financial Model

• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling

Unique Financial Model

• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling

• Minimizes The Use of Capital

Unique Financial Model

• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling

• Minimizes The Use of Capital

• Compounds Returns Without the Risks of Leverage

Summary of Proposal

Summary of Proposal

• Avoid Exploration Risks by Purchasing Existing Production

Summary of Proposal

• Avoid Exploration Risks by Purchasing Existing Production

• Expand Reserves with Developmental Drilling

Summary of Proposal

• Avoid Exploration Risks by Purchasing Existing Production

• Expand Reserves with Developmental Drilling

• Use Reinvestment of Cash Flows to Compound Returns Without Use of Leverage

Summary of Proposal

• Avoid Exploration Risks by Purchasing Existing Production

• Expand Reserves with Developmental Drilling

• Sell Developed Field, (Reserves) to Major Oil Companies

• Use Reinvestment of Cash Flows to Compound Returns Without Use of Leverage

Summary of Proposal

• Avoid Exploration Risks by Purchasing Existing Production

• Expand Reserves with Developmental Drilling

• Sell Developed Field, (Reserves) to Major Oil Companies

• Use Reinvestment of Cash Flows to Compound Returns Without Use of Leverage

• 5 to 7 Year Exit Strategy