Corporate Presentation
FAIR SKY RESOURCES INC.FAIR SKY RESOURCES INC.September 2006September 2006
DRAFT
Fair Sky Resources et al Macleans 12-2
Fair SkyResources Inc
Corporate OverviewCorporate Overview
Fair Sky Resources: Public Alberta based O&G company
TSX-V Trading Symbol "FSK“: ~12,500,000 shares (FD)
25 gross wells (~60% net) to date (~85% success rate)
~600,000 Boes Proven/Producing reserves
~3,000,000 Boes Proven + Probable reserves
F & D costs of ~$7.50/Boe
Additional +20 prospects scheduled for fall 2006/winter 2007
Land base of +150,000 acres developed & potential undeveloped
year round access existing underutilized infrastructure
Fair SkyResources Inc
Growth & StructureGrowth & Structure
Proven Management Team with strong investment backing
Strong Land Position: Balanced Risk, Growth Oriented
Prospect Inventory
Strategic Farmin properties with exploration,
development & exploitation opportunities
Management and Directors Own ~25% of Company
Fair SkyResources Inc
Net Asset Value/ReservesNet Asset Value/Reserves
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NAV
Fair SkyResources Inc
Shares Iss’d Capital
Current Shares Outstanding: ~11,400,000 ~$15,500,000O/S Options: 1,070,000
~12,500,000 (FD)
boes 6:1 equivalent Value
Proven + Probable Reserves: (August 2006) ~3,000,000 boes ~$78,000,000
( 10% disc. Forecast Pricing)
Fair SkyResources Inc
Share CapitalShare Capital
March 2006F & D costs = ~$7.50/bbl P+P (PNG property cost to date ~$21.9M)
NAV = ~$6.25/share
Fair Sky
Resources Inc
Tim R. Kemp, BSc, Founder, Director, President20+ years industry experience: President AC Energy, public company; VP Boyd/PetroSearch, Oil & Gas project management company; Operations Geophysicist , British Petroleum western Canada; 4 years Geophysical field contracting ; Past Chairman CPA Geophysical Committee.
Brent Walter, LL.b, Founder, Director, SecretaryPartner ProVenture Law LLP; practises securities & corporate/commercial law; serves on a number of public & private corporations; Member of Law Societies of Alberta & Saskatchewan, Canadian Bar Association
James Surbey, B Eng/LL.b, Founder, Director
VP Corp. Dev. Birch Cliff Res.; 20+ years industry experience; previously a director or officer of: Maximum Energy Trust, Big Bear Exploration Ltd., Stampeder Exploration Ltd, partner at Howard, Mackie Barristers and Solicitors.
Cameron W. Dow, BA Econ., Founder, Director
Partner Daunheimer & Dow LLP Chartered Accountants. Chartered Accountant Designation in Alberta; Director public and private corporations; prior General Electric, Deloitte and Touche.
Joseph Dow, BA Econ., CFO
Founder & Principal of Dowwest Management Accounting Ltd., Graduated U of A 1978 and is a Certified Management Accountant, 20+ years in Oil & Gas Accounting
Jasmine Smith, BSc. Sr. Manager Administration, Investor Relations & Corporate Finance+10 years experience; BSc. from (U of H); CIRI member, Office Management, Executive Administration, Corporate Finance & Investor Relations
Board of Directors & Key PersonnelBoard of Directors & Key Personnel
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FAIR SKY RESOURCES INC.AREAS OF ACTIVITY
Fair SkyResources Inc
Central Alberta
Central Saskatchewan
Peace River Arch
Utah Energy Property
Salt Lake
CarbondaleCarbondale~100 Sections developed
& undeveloped landsMulti-zones: Viking
& Manville GasLeduc Oil
1.) Crown, Freehold & Farm-in Lands (Canetic & Advantage Trusts)
2.) 4 wells tied in, producing ~ 700mcf/d
3.) +20 additional locations
4.) Under Utilized Facilities
5.) Year Round Access
7-19Prod
15-24Producing
3-11New Drill
1-32New Drill
13-10Producing
8-04Producing
5-24New Drill
Fair SkyResources Inc
WestroseWestrose
Multi-zone Manville GasDown spacing applied for
on Glauconite Gas
1.) 6 section farmin (Advantage Trust)
2.) 2 wells tied in Production ~1.5mmcf/d (~1mmcf/d behind pipe)
3.) Facility upgrading & additional wells being prepared
14-20Prod
4-28New Drilling
8-20Producing
5-24Tested
Fair SkyResources Inc
5-28Cased
1.) Crown & Farm-in Lands (Advantage Trust)
2.) 2 wells tied in Production ~150 bls/d oil
3.) additional program to deliniate drilling locations
Macleans CreekMacleans CreekGilwood Oil Play
~150,000 bls proven reserves~430,000 bls proven+
probable reserves
7-03New Drill
12-02Producing
07-01Producing
06-02Standing
Fair SkyResources Inc
Boundary LakeBoundary LakeHalf-way Gas Zone Initial
1st test well24 hourflow test 5.3mmcf/d
(tie-in fall 2006)
1.) Crown & Farm-in Lands (Advantage Trust)
3.) Purchased with partner June Land Sale $1.0M Parcel
3.) Multi-well program 2006/2007 (4-5 wells) , election on 2nd
well for June/July 2006
4.) +5-10 BCF reserve potential
10-19Testing
5-24New Drill
5-17New Drill
Fair SkyResources Inc
Central Alberta AcquisitionCentral Alberta Acquisition
Fair SkyResources Inc
- Access year round- Net Pay: 10-15m- Aver well:Gas 2.5 Bcf Oil 1.2 MM Bbl
Field production:
+ 2500 boes/d/well
BOEs Production +40M
1.) Purchased multiple sections of undeveloped acreage on Trend
2.) Fair Sky has 33.3% WI
3.) number potential wells: 20
4.) Operations: 2007
Moose JawMoose Jaw
Fair SkyResources Inc
1.) ~100 sections Crown/Freehold exploration & development land
2.) completed ~600 km seismic program
3.) multiple anomolies locatedl
3.) 1 well drilled/logged 5 locations being surveyed & licenced
Multi Shallow Gas Zones & Bakken Oil
(Down spacing onas drainage unit)
Drilled &Cased
Fair Sky Production By Area 2006Fair Sky Production By Area 2006Area; Exit Rate Q2 Q3 Q4 Winter 07
Mcleans Creek (Oil) 150bls/d 125 bls/d 120 bls/d 120 bls/d
Willingdon (Gas) 15 bls/d 15 bls/d 30 bls/d 130 bls/d
Carbondale (Gas & Oil) 135 bls/d 125 bls/d 250 bls/d 450 bls/d
Westrose (Gas) 125 bls/d 60 bls/d 350 bls/d 500 bls/d
Boundary (Gas & Oil) 350 bls/d 700 bls/d
Moose Jaw (Gas & Oil) 400 bls/d*
TOTALS: 425 bls/d 325 bls/d 1100 bls/d 2300 bls/d(85% success)
66% risk 725 bls/d 1500 bls/d
* Moose Jaw production dependent on Facilities
Fair SkyResources Inc
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Estimated Exit Rate 2006(66% Risk)
-Q3 production reflects facility constriction 350 bls: up-grade, pipeline construction completed early 3rd 1/4
Fair Sky Proposed Capex Program to 2006: $20.0MFair Sky Proposed Capex Program to 2006: $20.0M
Area Q3 Q4 Winter 2007 Capital
Mcleans Creek (Oil)
Willingdon (drill 1 well) $0.5M
Carbondale Completion (drill 3 wells) (drill 4 wells) $4.0M
Westrose Completion (drill 2 well) (drill 3 well) $4.5M
Boundary (drill 1 well) (drill 2 well) $5.0M
Moose Jaw (drill 1 wells) (drill 2 wells) $3.0M
New Prospects $3.0M
TOTAL 2 wells 9 wellls 7 wells $20.0M
Fair SkyResources Inc
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Incremental Cash Flow Growth ProjectionIncremental Cash Flow Growth Projection
FAIR SKY MINERALS INC.FAIR SKY MINERALS INC.
Fair Sky has approximately 1,100 mineral claims in Beaver County and Iron County NW of Cedar City Utah
Uranium exploration program underway in Iron County Utah
Strategic properties: Uranium potential in the area
exhibited radiation levels in excess of 10,000 cps with
molybdenum/tin and zinc geochemical anomalies
Former uranium producer, Staats mine to the north of the
property
Area of Mineral ClaimsArea of Mineral Claims
Former uranium producer, Staats mine to the north of the property
Airborne electromagnetic and spectrometric survey carried Spring 2006 large 2 X 2.6 km radioactive anomalie
Large uranium anamoly situated in center of mineral claims
Proposed financing of up to $6.0M @ $0.50/common share being carried out
Fair Sky Resources to become minority shareholder
Fair Sky Resources Suite 860 401-9 Avenue SWCalgary, Alberta, T2P 3C5
Attention: Tim Kemp, Jasmine Smith,President & CEO Sr. Manager Corporate Finance
403.264.5337 403.803.2657
FAX: 403.537.0074 403.537.0074
email: [email protected] [email protected]
Fair SkyResources Inc
ContactsContacts
This presentation may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on
current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational
risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuation, and uncertainties resulting
from the potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
Fair SkyResources Inc
Forward Looking StatementsForward Looking Statements