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Disclaimer
This document includes forward-looking statements. Forward-looking
statements include, but are not limited to, the continued advancement of
Derek Oil & Gas Corporation’s LAK Ranch project. When used in this
document, the words “potential”, “plan”, ”could”, “estimate”, “expect”,
“intend”, “may”, “should”, and similar expressions are intended to be among
the statements that identify forward-looking statements. Although Derek
believes that their expectations reflected in these forward-looking statements
are reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with these
forward-looking statements. Important factors that could cause actual results
to differ from these forward-looking statements include the potential that
Derek’s LAK Ranch project will experience technological and mechanical
problems, geological conditions in the reservoir may not result in commercial
levels of oil and gas production, and other risks.
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DRK:TSX.V
INVESTING IN NORTH AMERICA
Introduction to Derek Oil & Gas Corporation:
Corporate
Structure & Overview
Projects – North America
Financial Status & Potential
Investment opportunities
Management & Board of Directors
Contact Information
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INVESTING IN NORTH AMERICA
DRK:TSX.V
INVESTING IN NORTH AMERICA
DRK:TSX.V
INVESTING IN NORTH AMERICA
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DRK:TSX.V
INVESTING IN NORTH AMERICA
DRK:TSX.V
INVESTING IN NORTH AMERICA
Company Profile
Oil Exploration, Development & Production Company
 Canadian based
 North American Property/Assets
Public Company
Trading Board: TSX Venture Exchange
Ticker Symbol: DRK
Share Structure (as at November, 2010)
Issued & Outstanding: 99,606,251
Fully Diluted: 134,990,251
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DRK:TSX.V
INVESTING IN NORTH AMERICA
Derek Oil’s Prime Property
Town of Newcastle & Wyoming Refinery
LAK Ranch Pilot Plant
3D Seismic Area
2880 Acres or
4.5 sq. miles
Burlington Northern Railway
Total Property Area
8000+ Acres
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3D SEISMIC AREA MAP OF THE PROPERTY
Town of Newcastle & Wyoming Refinery
more info
LAK Ranch Pilot Plant
more info
3D Seismic Area
2880 Acres or
4.5 sq. miles
Burlington Northern Railway
Total Property Area
8000+ Acres
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3D SEISMIC AREA MAP OF THE PROPERTY
Newcastle Oil Refinery
Just 5 miles (15 min.) from LAK Ranch Property
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3D SEISMIC AREA MAP OF THE PROPERTY
Prime Property Asset

8000 + Acres

Prolific Powder River Basin


Safe & Desirable North
American Location
Excellent Access & Services
SURFACE FACILITIES
Features of Surface Facilities
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SURFACE FACILITIES
Surface Facility Features

Bateman’s Engineered

Plant handles up to 2,000 bopd

Two new 50 MM BTU Generators

Housed in new building

Natural gas pipeline supplies the
steam generator
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
Complete heater treater plant

27 MM BTU Old Steam Generator

Tank battery for oil storage

Water treatment plant for generator

Water supply contract in place
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WHAT IS FOUND UNDERGROUND
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WHAT IS FOUND UNDERGROUND
Blue Sky Hydrocarbon Potential
The following are the Multiple oil potential
horizons identified in the 3D seismic
survey:
1)
Newcastle Formation: over 50MM
barrels OIP, 50%+ recoverable
1)
Lower Alluvial
2)
Upper Marine
2)
Fall River
3)
Minnelusa

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WHAT IS FOUND UNDERGROUND
Newcastle Sand Formation
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
12 Well drill program completed 2007

Depths from surface to 1,600 feet

Comprised of 2 porous zones: upper marine
and lower alluvial

Initial development in lower alluvial sand

Average porosity: 25%

Average permeability: 500~1,000 MD

Average oil saturation: 60-65%

Need additional steam from new 50 MM BTU
generators to put wells on production
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NEW STEAMING STRATEGY
NEW UPDIP INJECTION STRATEGY
Pilot injectors: 3 producer to injector conversions require 900 BDS.
1-P injectors: 3 existing will require 600 BDS.
Steam soak 8 producers at 1.5 cycles/year requires 600 BDS.
STEAM REQUIREMENT FOR NEW UPDIP INJECTOR PLAN: 2100 BDS
OLD 5 SPOT PATTERN INJECTION STRATEGY
Pilot injectors: 4 injectors/pattern design requires 1200 BDS
1-P injectors: 2 up dip design requires 600 BDS
Steam soak 8 producers at 2 cycles/year requires 400 BDS
STEAM REQUIREMENT FOR 5 SPOT PATTERN INJECTOR PLAN : 2200
BDS
CURRENT AVAILABLE STEAM CAPACITY ~2500 BARRELS/DAY
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DEREK OIL & GAS CORPORATION
FUTURE PLANS:
1. Include 1-P lateral in our 12 well pilot expansion
2. Utilize the full horizontal lateral potential (only heel area,1/3 of lateral is being heated). This
has been determined by our fiber optic temperature results from ex-SAGD injector 2-I lateral
that is along side the 1-P lateral (~30’).
3. Return idle well 2-I (ex SAGD injector) to producer status. Produce 2-I and utilize the fiber
optic temperature to determine productivity in the toe area. Suspect well(s) were drilled out of
zone. The 1-P well will be shut-in while producing 2-I.
4.
Note when steam stops production drops and when steam returns production returns.
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LAK PILOT PRODUCTION 2007/2008
DEREK
& GAS
CORP
DEREK
OIL &OIL
GAS
CORPORATION
1000
1000
* Low er PC pumps on 6 w ells.
* RTP 101 and 102.
Shut in 102 due to 200+ F
October 2007
Start steam soak on 303& 203
December 15, 2007
Steam Injection
100
100
* Start 8 w ells on production
* Start 4 w ell steam injection * Steam soak 101 w /10,000 bbls
August 2007
September 2007
BDW
of steam.
Oct 31 to Nov 27
BDO & BDS
10
10
1
1
8/1
8/10
8/19
8/28
9/6
9/15
9/24
10/3 10/12 10/21 10/30 11/8 11/17 11/26 12/5 12/14 12/23
1/1
1/10
1/19
1/28
2/6
FUTURE PLANS:
1.
Steam cycle soak all producers in conjunction with continuous steam injection. Wells are still cold after 4
months of continuous steaming. Flow line temperature from all active producers range from 50 to 80 F.
2.
Alter the steam drive configuration from a pattern to line drive with the uppermost row to consist of
continuous injectors.
3.
The Newcastle structure consists of a ~35° north to south dip. With this type of geology we need to utilize
gravity as our ally by heating the reservoir up dip and capturing mobile liquids down dip. We will use our 3
existing up dip wells and add 3 new wells as the up dip injector row .
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Continuous Steam Injection Program
INITIAL DEVELOPMENT – 2005/2006
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INITIAL DEVELOPMENT
Steam Flood Program
The Process:

Inject steam into perforated vertical
injector wells

Steam heats reservoir to decrease oil
viscosity

Oil & water moves through permeable
channels

Oil & water is pumped to the surface &
separated using heater treater facility
Production Projection:

Increased oil production to levels of 25
barrels/day from 12 well program
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THE 12 WELL PROGRAM
Producer 3
Producer 4
Future Development
Short Term – 1 Year

Producer 1

Observe steam flow & production increase
from pilot phase development & newly drilled
12 well program.
Producer 2
Central
Augment cash flow
through increased oil
Injector
production & re-invest
into further
development

Continuous interpretation of $1.1 Million
USD 3D Seismic survey
Mid Term – 3 Years

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Approximately 135 total wells drilled with 115
being producer wells
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QUALITY OF OIL BEING PRODUCED
High Quality oil Characteristics
Pore Spaces
Horizontal Producer Well 1-P
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QUALITY OF OIL BEING PRODUCED:
High Quality Oil Characteristics
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
Low Paraffin

Low Sulphur content: <0.5%

Pricing at $12.00 USD deduct to
“West Texas Intermediate (WTI)”
grade

Medium weight (average 19 API
gravity)

Oil characteristics suitable for Jet
Fuel
INVESTING IN NORTH AMERICA
OIL & WATER SEPARATION PROCESS
OIL & WATER SEPARATION PROCESS
The Separation Process
OIL & WATER SEPARATION
The Separation Process

Produced fluids flow to the “Heater
Treater” where oil & water
(produced fluids) are separated

Produced fluids flow to their
respective storage tanks

Oil is sold to purchaser and water
is processed for disposal
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Projected Net Back
WTI
$60
$80
Sale Price of Oil
$48.00
$68.00
State Taxes
($6.43)
($9.11)
Royalties
($6.96)
($9.86)
Cost of Steam
($9.80)
($9.80)
Other Operating Costs
($3.50)
($3.50)
Net Back Per Barrel
$21.31
$35.73
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Gross Production & Number of Wells
1,856
977
375
18 Wells
YEAR ONE
52 Wells
YEAR TWO
BOPD
No. of Wells
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100 Wells
YEAR THREE
FAQ’s

Derek’s fiscal year = May 1st to April 30th

Cash on Hand – $50,000

NPV (discounted 10%) = $98,380,000

Burn Rate – $90,000/month

Debt – $1.5 million

Recent Trade Range $0.03- 0.055

Insider & 9 Institutional Holdings: 54%
( 54,502,495 shares)
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Derek’s Public & Financial Documents
Please visit: www.sedar.com to view all
publicly filed documents including annual &
quarterly statements

Or Call: 1.888.756.0066
For immediate follow up on the most current
information

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Why Derek?

No exploration risk in Newcastle
Sandstone

Expandable Reserves & Production on
Per Share Basis

Safe & Desirable North American
Location
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For a brief bio of our directors & management, please click on any of the names below
Mr. Barry C. J. Ehrl
President, C.E.O. &
Director
Dr. Eike Hamer
Director
Mr. Robert Hurkmans
Chief Operating Officer
Mr. John Lush
Director
Mr. Greg Amor, CA Chief
Financial Officer
Director
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To Picture Gallery
CLOSE
Mr. Barry C. J. Ehrl
President, C.E.O. & Director
Barry is a founder of Derek Oil & Gas Corporation with over 35
years of experience working with public companies in the oil & gas
sector.
Barry is an entrepreneur who has held several senior management
positions in public companies and has been successful in raising
millions of dollars in capital to fund the exploration & development
of projects in North America & internationally.
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CLOSE
Dr. Eike Hamer, MBA
Director
Dr. Hamer holds a Phd in Economics and a Masters in Business Administration
(MBA) from the University of Rostock in Germany with extensive studies at the
University of Bonn and the University of Osnabrück. Dr. Hamer is current
publisher of "Wirtschaft aktuell". Wirtschaft aktuell is a news letter providing
background information on political and economic developments in Europe.
The publication was formerly based in Zurich Switzerland and is now attached
to the "Mittelstandsinstitut Niedersachsen". The Middelstandsinstitut
Niedersachsen was founded more than 30 years ago and is one of the most
prestigious research institutes for entrepreneurs globally. Dr. Hamer is a
member of the executive board of the "Deutsche Mittelstandsstiftung", a well
known foundation in Germany and is the current CEO of ELUX Wealth
Management, an investment advisory corporation.
With the addition of Dr. Eike Hamer on the Derek Board of Directors, the
Company will strengthen its presence, knowledge and corporate development
strategies in European markets.
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INVESTING IN NORTH AMERICA
CLOSE
Mr. John Lush
Director
John is an international executive with over 35 years of
experience in the oil and gas sector. He is currently President of
Petroval Pte Ltd. (Singapore), a company specializing in the sales
and marketing of crude and refined oil products.
With extensive experience gained working in three continents in
executive positions with BP, Phibro Energy and Neste, John
brings international exposure and years of expertise in the oil
industry to the Derek board of Directors.
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Mr. Robert Hurkmans
Chief Operating
Officer
CLOSE
Bob has recently joined the Derek Management Team after spending the past seven years
with Occidental Petroleum Corporation ("Oxy") as a Production and Drilling Engineer with
their successful Elk Hills project and newly acquired Mukhaizna heavy oil field project. He
has over 37 years experience in the oil industry and specializes in improving the
drilling/production economics of tertiary recovery projects (with an emphasis on steam
soak/flood technology) such as Derek's LAK Ranch project. Bob has worked on thermal
projects in California (Midway Sunset, Belridge/McKittrick, Cymric, Kern River/Kern Front,
Santa Maria/Cat Canyon, Arroyo Grande and the Brea/Yorba Linda). He was on a thermal
horizontal drilling/completion team for Shell Oil Co and drilled over 150 wells in California.
Bob designed and drilled/completed the first thermal horizontal producer for Oxy USA that
resulted in more than doubling the production as compared to the best vertical producer.
He was instrumental in reducing drilling costs and overall capital and operating costs on the
Midway Sunset project by up to 30%. He won the ARCO Award for reducing drilling costs at
Midway Sunset, the Shell Oil Company Award for coil tubing/slimhole drilling at
Belridge/McKittrick and was a finalist for the Occidental Engineering Excellence Award in
2001 and 2003 for applying large HF/HCl acid treatments on horizontal wells at Elk Hills,
California.
Mr. Greg Amor, CA
Chief Financial Officer
Director
CLOSE
Greg is a Chartered Accountant with 19 years
experience with the resource industry. He has held
senior management positions with numerous public
resource companies.
He has raised $20 plus million in financing for public
companies.
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Aerial View of the Property
Previous
Zoom in of Aerial View of Above
Ground Facilities
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On-Site Pump Jack
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Above Ground Facilities (Bateman’s Engineered)
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First Phase of Vertical Injector Development
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Cased & Insulated Piping to Run 365 Days a Year
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Oil Storage Tanks
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12 Well Program Initiated
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The Crew
TANK FARM
Heat Exchanger and Treatment Plant
Steam Generator
Building
Generator #2
HORIZONTAL WELL #1-P
Head Office:
US Site Office:
Suite 502 1281
West Georgia St.
Vancouver, BC
Canada V6E 3J7
Tel.: 604-331-1757
Fax: 604-669-193
Toll Free: 1-888-756-0066
P.O. Box 823
32 Tub Town Rd.
Newcastle, Wyoming
USA 82701
Transfer Agent:
Computershare Trust Company
Of Canada
2nd floor ,510 Burrard St.
St., Vancouver, BC
Canada V6C 3B9
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DRK:TSX.V
Auditors:
PriceWaterhouseCoopers
Address: Vancouver, BC
Canada
Lawyers:
Tupper, Johnson & Yeadon
1710-1177 West
Hastings St. Vancouver, BC
Canada V6E 2L3
www.derekoilandgas.com
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Mission Statement
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
Derek Oil & Gas Corporation (Derek) has a corporate
mission to become a mid-tier energy producer within five
years.

This mission is to be accomplished through exploration,
development and production from its oil & gas assets in
North America.
INVESTING IN NORTH AMERICA
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