April 2010

Flare Gas Monetization

Greg Loewen, President & CEO

BURNING GAS is BURNING CASH!

2

The Problem

The problem is many companies are burning

their valuable resources.

$$$$$RGT

TURNING GAS into CASH!

New Saskatchewan Flaring

Guidelines

Requires flare gas conservation by Jan

2011. 3

The Problem

Why will operators change?

We want to help companies that burn the gas they produce from oil wells turn their resources into

revenue.

The Solution - Rich Gas Transportation (RGT)

Transport the gas from the source to a plant, pipeline, or end user.

Scaleable, portable and uses conventional oilfield equipment.

Oil Well Solution Gas

Gas Plant

3RD party Transport

UnloadingFacility

4

LoadingFacility

Install our proprietary skid mounted Loading Facility.

Load the container. Use 3rd party transport

to take it to the Gas Plant.

Unload the container and then return it to the wellsite to be filled again.

Currently gas is being flared.

Flare Gas Market

N. America

Canada

Sask

320 mmcf/day$470 MM/yr

130 mmcf/day

$180 MM/yr

50 mmcf/day$75 MM/yr

Worldwide flare gas 15,000 mmcf/dayOUR GOAL

5% of Canada Market in 3 Yrs

$6 MM/Yr

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2.4 million tonnes of

Carbon Credit potential per

year from flared gas in Canada

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Producer

pipelines

The Competition

Cost

Revenue

Rich Gas Transportation provides the best combination of cost and revenue

generation.

+

_

Betterflare

stacks

Status

quo

RGT

Remove liquids& burn

methanePower

Generation• Capstone Tech

• AGRI

Some of the competition falls off the table right away because of regulatory

changes.

In most cases, the gas is being flared because pipelines are not economic.

Power only works if the gas can be used as fuel

and the electrical demand is in the same

location as the gas.

Our Process

Local engineering expertise.

Compression partner with market presence and equipment to handle flare gas.

7

RGT3 x Volume4 x Heat

Content

W. Claire proprietary RGT process uses the unique characteristics of flare gas to make the transport economical.

The Approach to Market

Initially, sell direct to Saskatchewan producers flaring gas from oil wells.

W. Claire has signed a Letter of Intent

with PetroBakken Energy Inc. to implement a field demo of our

process on one of their well sites.

Compared to Alberta, there are more opportunities in Saskatchewan because of the significant flare

volumes, limited infrastructure, high activity levels, and proposed new

flaring regulations.

Once established, we will channel sell through compression and/or

equipment suppliers.

Direct to Large Producers

8

Business Model

9

WCE Breakeven Point

Currently producer is making no revenue from flaring the gas.

Capturing the gas can generate significant revenues. Up to 60% of the revenue is from the liquids in the gas.

*150 mcf/d Well, 70 bbls/mmcf Liquids, after royalties and processing fees

Now $3/mcf $4/mcf $5/mcf$0

$1

$2

$3

$4

$5

$6

$7

$8Potential Revenue per mcf with Different Gas

Prices

Revenue from LiquidsRevenue from Gas

Gas Price

Revenue p

er

mcf

WCE Proposed Fees

Business ModelGas Plant

Monthly Fee + $/Volume shipped

MARGIN = 48%

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Producer

$1.00 Revenue

$0.75 to$0.90W. Claire will charge the

producer a flat monthly fee and a fee based on the volume

shipped.

For every dollar of revenue the producer receives (after

royalties and plant processing fees), $0.75 to $0.90 goes to W.

Claire for these fees.

Business Model

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Typical System (thousands)

Well Revenue*/year $340

W. Claire Fees $306

W. Claire Exp $148

W. Claire Profit $158

Capital $425

Payout <3 years

Economics for a typical system installed at a wellsite. Added benefit not included in the revenue is increased oil

production as a result of installing compression on the wellsite and reducing the wellbore pressure.

*150 mcf/d Well, $4 Gas Prices, 70 bbls/mmcf Liquids, after royalties and processing fees

The Forecast

  Year 1 Year 2 Year 3 Year 4 Year 5

Number of Wells 15 30 40 50 60

Yearly Well Revenue* $5.1 $10.2 $13.6 $17.0 $20.4

Yearly W. Claire Share $4.6 $9.2 $12.3 $15.4 $18.4

Yearly W. Claire Expenses $2.9 $4.8 $6.1 $7.5 $8.8

Yearly W. Claire Profit $1.7 $4.4 $6.1 $7.9 $9.6

*150 mcf/d Well, $4 Gas Prices, 70 bbls/mmcf Liquids, after royalties and processing fees

Millions except wells

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Will ramp up quickly after field demo. 2000+ Bakken wells in SE Sask and many more thousands

to drill. Estimate 100+ sites could use system now and 50+ more

new sites per year. Expansion will come through lease financing and equity

offerings.

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First 15150

mcf/d projects

500 mcf/d project

Milestones

5 mmcf/d project

2011

Private offering

$1.0 million

Growthoffering

$3 million

Growth offering

$15 million

2010

Present

F & Foffering

$0.5 million

Demodesign

Field demo

Growth thruLease

Financing

2012

Previous offering used for demo design. Current offering used to construct a field demonstration of

process to be on stream by June 2010.

Sign LOI with

PetroBakken

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Management

Greg Loewen, President & CEO 29 years in industry. Company start-up experience.

Contract

Robin Westin, V.P. Finance & CFO Transportation company experience. Worked for several start-ups.

Don Fraser, CNG Consultant 17 years compressed gas bulk transport

experience.

The People

Board of Directors

John Mroch, Executive Chairman 35 years in industry. Several prior company start-ups.

Ray Gertz 26 years of running his own company. Director of two other public companies.

Greg Loewen

Jay Zammit Corporate Secretary. Partner at Burstall Winger.

Will add to our board right away and to technical staff as operations ramp up.

The Deal

Current offering is for $1 Million.

Money in:Founders $340 thousandFamily and friends 780 thousandOther assets 220 thousand

Coming Govt. grants 700 thousandTotal $2.0

million

Government R&D funding conditionally approved - IRAP and SR&ED.

Breakdown of spending:

Intellectual property protection $150 thousandField demo in SE Sask 650 thousand Marketing, G&A 200 thousand

Total $1.0 million

15

Design the Product

Calculate a Forecast We Have The Team

To Sum Up

Offering - $1 Million

We need your help to take our company to the next step.

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$6 MM

3 YEAR FORECAST

RGT

Identify the Problem Provide a Solution The Market

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W. Claire Energy Corporation401, 100 – 4th Avenue SW

Calgary, ABCanada T2P 3N2

Phone: 403-452-7787

Mr. Greg Loewen, President & CEOgreg@wclaire.com

www.wclaire.com

Contact

GAS to CASH!