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Presentation Transcript
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A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada.  The preliminary prospectus is still subject to completion or amendment.  Copies of the preliminary prospectus may be obtained from GMP Securities L.P., 145 King Street West, Suite 300, Toronto, Ontario, M5H 1J8.  There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
forward looking statements
Forward Looking Statements

Certain information regarding Torquay Oil Corp. (“the Corporation”) in this presentation including management's assessment of future plans and operations, timing of drilling and tie-in of wells, productive capacity of the new wells and productive capacity from different wells, expected production rates, drilling success rates, dates of commencement of production, may constitute forward looking statements under applicable securities laws and necessarily involve risks including,without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect the Corporation's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward looking statements contained in this presentation are made as at the date of this presentation and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

experienced management team
Experienced Management Team
  • Brent McKercher - (20 yrs) President & CEO
    • Glamis Resources; Rock Creek Resources; Star Oil & Gas; Baytex Energy; Corexcana; Inuvialuit Petroleum
  • Terry McCallum - (12 yrs) Vice President Exploration & COO
    • Glamis Resources; Markedon Energy; NewGrange Energy; Draig Energy
  • Darwin Little -(25 yrs) Vice President Finance & CFO
    • Glamis Resources; Precision Drilling; Saddle Resources; Inuvialuit Petroleum
  • Steve Irish - (31 yrs) Vice President Land
    • Triton Energy; Greenbank Energy; Lightning Energy; Canadian Hunter Exploration

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board of directors
Board of Directors
  • Harley Winger, Chairman
  • Allen Emes, Independent Businessman
  • Mike Seth, Past Chairman and President McDaniel and Associates Consultants
  • Brent McKercher, President & CEO
  • Terry McCallum, Vice President Exploration & COO

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lake alma deal
Lake Alma Deal

Torquay has entered into a farm-in agreement at Lake Alma, SE SK on up to 115 sections of land

The Corporation has committed to drill four Hz wells on the Lake Alma lands targeting the Bakken ‘A’ Unit

Torquay intends to employ multi-stage frac technology.

Lake Alma has multiple productive horizons – Ratcliffe, Midale, Birdbear, Red River and Yeoman

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initial public offering
Initial Public Offering
  • Maximum $ 12 000 000
  • Minimum $ 10 000 000
  • Price $1 000 per unit
  • Market securities/unit 400 Class A shares & 90 Class B Shares
  • Minimum Subscription 5 units ($5 000)

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a b capital structure
‘A/B’ Capital Structure
  • Flow through unit offering of “A & B” shares
  • Successfully used in Canada by:
    • Glamis Resources Ltd.
    • Rock Creek Resources Ltd.
    • Crescent Point Energy Corp.
    • Galleon Energy Inc.
  • Class A shares @ $ 0.25/share
  • Class B shares @ $10/share
    • convert into Class A shares pursuant to a predetermined formula

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investment advantages
Investment Advantages
  • 100% write-off against 2010 income
  • Participation in start-up company
  • Minimum investment of $5 000.00
  • Seeking listing on TSX-Venture for Class A and Class B Shares
  • Subject to approval, will be freely tradable stock

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investor tax savings
Investor Tax Savings

BC AB SK MB ON

Flow through component $5,000 $5,000 $5,000 $5,000 $5,000

Top marginal tax rate 43.70% 39.00% 44.00% 46.40% 46.40%

Estimated tax savings $2,185 $1,950 $2,200 $2,320 $2,320

Investment at risk $2,815 $3,050 $2,800 $2,680 $2,680

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  • 100% of the Unit is flow-through
  • 100% is renounced in 2010

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glamis return on investment
Glamis Return on Investment
  • ‘A’ shares: 400@ $0.25 = $ 100
  • ‘B’ shares: 90@ $10.00 = $ 900

$ 1,000 BT ($610 at Risk AT)

Market value of ‘A’ shares $2.00

Number of ‘A’ shares 1,002(includes 1:4 rights offering and B conversion at $1.79)

Unit value $2,004

Return on investment 263% (after tax)

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what is the bakken
What is the Bakken?

The Bakken is a laterally continuous shallow marine silty-sandstone bounded by black marine shales

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why lake alma
Why Lake Alma

Anticipated Spud Date Formation Completion

Exploration Well #1 May 5, 2010 Bakken “A” Unit Multi-Stage Frac

Development Well #2 May 5, 2010 Bakken “A” Unit Multi-Stage Frac

Exploration Well #3 June 1, 2010 Bakken “A” Unit Multi-Stage Frac

Exploration Well #4 June 1, 2010 Bakken “A” Unit Multi-Stage Frac

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lake alma vs crescent point s viewfield
Lake Alma vs. Crescent Point’s Viewfield

Reservoir parameters are similar

Lake Alma

Viewfield

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why lake alma1
Why Lake Alma?
  • Geologically the Bakken “A” Unit is present across farm-out lands
  • Successful Hz fracs at Flat Lake by Crescent Point
  • Porosity and thickness comparable with known Bakken pools
  • Enviable land position (potential to earn up to 115 net sections)

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where has major industry partner drilled
Where has major industry partner drilled?

16-10/16-11-2-18W2

9-25/16-36-1-17W2

Drilled 2 Bakken Hz’s at Lake Alma

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gas detection high gas content is key to oil charged reservoir
Gas Detection - High gas content is KEY to OIL CHARGED reservoir

Lake Alma

Flat Lake

Scale Change

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economics unrisked
Economics (unrisked)
  • Horizontal Drilling $2.5mm/well
  • NPV10 $2.00mm/well
  • Reserves 120,000 bbls/well
  • IP per well 150 bopd
  • Royalty Incentive 100,000 bbls/well
  • Burdens SS: 5-15% on 1/150
  • Average oil price (2010) $74.27/bbl
  • F&D $20.80/bbl
  • Assumed Netback $50.00/bbl
  • Recycle Ratio 2.4X

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work plan
Work Plan
  • 105 sections of land (3 Crown Licenses) plus 10 sections of land (Earned Lands)
  • Will drill 3 horizontals to earn 66.75 sections on the Crown Licenses
  • Will drill 1 horizontal to earn 5 sections on the Earned Lands
  • Potential to drill 4 wells per section
  • Planning to shoot 3D seismic over the western portion of the Crown Licenses

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contact information
Contact Information

Brent McKercher

President & CEO

ph 1 403 718 3869

brent@torquayoil.com

Terry McCallum

Vice President, Exploration & COO

ph 1 403 718 3869

terry@torquayoil.com

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