Click your left mouse button or an arrow button if present, to advance the slide. At any time you may press ESC to Quit the presentation 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. Previous 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 DRK:TSX.V INVESTING IN NORTH AMERICA DRK:TSX.V INVESTING IN NORTH AMERICA DRK:TSX.V INVESTING IN NORTH AMERICA Click on any menu item or just click anywhere on the screen to advance to the next slide DRK:TSX.V INVESTING IN NORTH AMERICA MAIN MENU Click on any menu item or just click anywhere on the screen to advance to the next slide 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 Previous 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 Previous DRK:TSX.V INVESTING IN NORTH AMERICA Previous DRK:TSX.V INVESTING IN NORTH AMERICA 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 DRK:TSX.V INVESTING IN NORTH AMERICA 3D SEISMIC AREA MAP OF THE PROPERTY Newcastle Oil Refinery Just 5 miles (15 min.) from LAK Ranch Property DRK:TSX.V INVESTING IN NORTH AMERICA 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 DRK:TSX.V INVESTING IN NORTH AMERICA 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 DRK:TSX.V 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 INVESTING IN NORTH AMERICA WHAT IS FOUND UNDERGROUND DRK:TSX.V INVESTING IN NORTH AMERICA 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 DRK:TSX.V INVESTING IN NORTH AMERICA WHAT IS FOUND UNDERGROUND Newcastle Sand Formation DRK:TSX.V 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 INVESTING IN NORTH AMERICA 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 Previous DRK:TSX.V INVESTING IN NORTH AMERICA 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. DRK:TSX.V INVESTING IN NORTH AMERICA Previous 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 . DRK:TSX.V INVESTING IN NORTH AMERICA Previous Continuous Steam Injection Program INITIAL DEVELOPMENT – 2005/2006 DRK:TSX.V INVESTING IN NORTH AMERICA 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 DRK:TSX.V INVESTING IN NORTH AMERICA 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 DRK:TSX.V Approximately 135 total wells drilled with 115 being producer wells INVESTING IN NORTH AMERICA QUALITY OF OIL BEING PRODUCED High Quality oil Characteristics Pore Spaces Horizontal Producer Well 1-P DRK:TSX.V INVESTING IN NORTH AMERICA QUALITY OF OIL BEING PRODUCED: High Quality Oil Characteristics DRK:TSX.V 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 Previous DRK:TSX.V INVESTING IN NORTH AMERICA 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 Previous DRK:TSX.V INVESTING IN NORTH AMERICA Gross Production & Number of Wells 1,856 977 375 18 Wells YEAR ONE 52 Wells YEAR TWO BOPD No. of Wells Previous DRK:TSX.V INVESTING IN NORTH AMERICA 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) Previous DRK:TSX.V INVESTING IN NORTH AMERICA 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 Previous DRK:TSX.V INVESTING IN NORTH AMERICA Previous DRK:TSX.V INVESTING IN NORTH AMERICA Why Derek? No exploration risk in Newcastle Sandstone Expandable Reserves & Production on Per Share Basis Safe & Desirable North American Location Previous DRK:TSX.V INVESTING IN NORTH AMERICA 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 Previous DRK:TSX.V INVESTING IN NORTH AMERICA 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. DRK:TSX.V INVESTING IN NORTH AMERICA 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. DRK:TSX.V 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. DRK:TSX.V INVESTING IN NORTH AMERICA 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. Previous DRK:TSX.V INVESTING IN NORTH AMERICA Aerial View of the Property Previous Zoom in of Aerial View of Above Ground Facilities Previous On-Site Pump Jack Previous Above Ground Facilities (Bateman’s Engineered) Previous First Phase of Vertical Injector Development Previous Cased & Insulated Piping to Run 365 Days a Year Previous Oil Storage Tanks Previous 12 Well Program Initiated Previous 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 Previous 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 INVESTING IN NORTH AMERICA Previous DRK:TSX.V INVESTING IN NORTH AMERICA Mission Statement DRK:TSX.V 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 Press ESC to Exit