2015 july investor presentation

Photo © 2014 John Bayler

› Growing Production Profile

› Low Cost/High Margin Oil

› Accelerating Drill Programme

› Multiple Price catalysts

Strata X Energy Investor Roadshow

Tim [email protected]

ASX: SXATSX: SXE

July 2015

mailto:[email protected]

Strata-X Energy Ltd. TSX:SXE ASX:SXA

2 Forward Looking Statements

These factors are not, and should not be construed as being, exhaustive. In addition, information relating to "reserves" or " resources" is deemed to be forward-lookinginformation, as it involves an implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in thefuture. The forward-looking information contained in this presentation are expressly qualified by this cautionary statement. The Company does not undertake any obligation topublicly update or revise any forward-looking information after the date of this presentation to conform such information to actual results or to changes in the Company’sexpectations except as otherwise required by applicable Canadian securities legislation.

Certain information contained in this presentation constitutes “forward-looking information” within the meaning of applicable Canadian securities legislation. The use of any ofthe words "anticipate", "continue", "estimate", “intend”, “potential”, "expect", "may", "will", "project", “proposed”, "should", "believe" and similar expressions are intended toidentify forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors thatmay cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this presentation may contain forward-lookinginformation attributed to third party industry sources. The Company believes that the expectations reflected in such forward-looking information are reasonable but noassurance can be given that these expectations will prove to be correct and such forward-looking information included in this presentation should not be unduly relied upon.Such information speaks only as of the date of this presentation or such other date indicated herein.

• expectations regarding growth of the Company;• the timing and location of drilling or other operational activities;• oil and natural gas production estimates and targets;• oil and natural gas production levels and sources of their growth;• estimates of resource potential of targets, including without limitation, statements

regarding BOE/d production capabilities;• quantity of reserves and resources relating to the Company and its assets and its

value;• capital expenditure programs and estimates relating to timing, cost and cash flow

generation related to these programs;

• size of the Company’s oil and natural gas reserves and resources;• the performance characteristics of the Company’s oil and natural gas properties;• projections of market prices for oil and natural gas and exploration, development

and production costs;• supply and demand for oil and natural gas;• expectations regarding the ability to raise capital and continually add to reserves

through exploration and development and, if applicable, acquisitions;• treatment under governmental regulatory regimes and tax laws, and;• the use of financing funds by the Company.

• timing and ability of the Company to obtain all necessary environmental andregulatory approvals relating to operations;

• the recoverability of the Company’s oil and natural gas reserves and resources;• interest rates;• exchange rates and the futures prices of oil and natural gas;• operating and capital costs;

• the Company’s ability to generate sufficient cash flow from operations and toaccess capital markets to meet its future obligations;

• the Company’s ability to attract and retain qualified personnel;• the ability of the Company to successfully market its oil and natural gas products

and the continuing strong demand for oil and natural gas; and• stability of general economic and financial market conditions;

With respect to forward-looking information contained in this presentation, the Company has made assumptions regarding, among other things:

In particular, this presentation contains forward-looking information pertaining to the following:

• volatility in market prices for oil and natural gas;• liabilities inherent in oil and natural gas operations;• uncertainties associated with estimating oil and natural gas reserves and resources;• risks and uncertainties associated with the Company's oil and natural gas and

development program;• competition for, among other things, capital, acquisitions of reserves, undeveloped

lands and skilled personnel;• incorrect assessments of the value of acquisitions and exploration and development

programs;• adverse claims made in respect of the Company’s properties or assets;• failure to engage or retain key personnel;• geological, technical, drilling and processing problems, including the availability of

equipment and access to properties;• risks and uncertainties relating to hydraulic fracturing and the enactment of, or

changes to, regulations and legislation in relation to hydraulic fracturing;

• imprecision in estimating capital expenditures and operating expenses;• the expiry of leases and the loss of drilling prospect due to the expiry of leases;• fluctuations in foreign exchange interest rates and stock market volatility;• general economic and business conditions in North America and elsewhere;• environmental risks and hazards;• risks inherent in the exploration, development and production of oil and natural gas

which may create liabilities to the Company in excess of the Company’s insurancecoverage, if any;

• uncertainties associated with changes in legislation including, but not limited to,changes in income tax laws and to oil and natural gas royalty frameworks;

• ability to obtain regulatory approvals;• risks and uncertainties associated with liquidity and capital resources and

requirements; and• other factors referenced at “Risk Factors’ in the Company’s prospectus.

The Company's actual results could differ materially from those anticipated in such forward-looking information as a result of the risk factors set forth below and in theCompany’s annual information form dated September 25, 2014:


3 Strata-X Energy is a TSX.V / ASX dual listed company

Largest Shareholders

TSX.V Shares: 57,238,623

ASX Listed CDIs: 99,346,354

Total Shares: 156,584,977

Incentive Options: 6,570,000 (ave .33)

Market Cap: (Assumes AUD$0.10) AUD$15.6 million

Cash Position: (31-3-15) AUD$1.83 million

Overheads: USD$96,000/month

52 week High: AUD$0.295

52 week Low: AUD$0.085

Current: AUD$0.11

Ron PrefontaineChairman

10%

Tim HoopsManaging Director

7%

JP Morgan 9%

Production: 75 bopd

Reserves:Resources:

1.37 mmbbl (2P)1

113 mmbbl Prospective Resource2

ASX disclosure note - 5.28.2 - The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

1) Petroleum Reserve figures are from a report prepared by Chapman Petroleum Engineers Ltd (1 April 2015) following analysis of the available technical data including the geological and geophysical interpretation presented to them by Strata-X, information from relevant nearby wells or analogous reservoirs and the proposed program for the project. Information originally appeared in the news release by the Company dated 6 April 2015 (DS-3). Include Petroleum Reserves state in the Company's FYE 2014 Petroleum Reserves Report. See Disclaimer at the end of this presentation.2) Prospective Resources figures are from reports prepared by Chapman Petroleum Engineers Ltd (May 2014) and AWT (Strata-X prospectus 2013) following analysis of the available technical data including the geological and geophysical interpretation presented to them by Strata-X, information from relevant nearby wells or analogous reservoirs and the proposed program for the project. (DS-1, 2) See Disclaimer at the end of this presentation.


4 BACKGROUND – ILLINOIS BASIN

› Major Resource for WWII effort

› Over 155,000 wells drilled

› 4.3 Billion barrels recovered to date

› 20% PIIP typically recovered from primary methods

› Significant resource available

“Our story is about economic recovery rather than wildcat exploration”

“It is about recovery of the By-Passed Pay”

› We have cherry picked 40,000 acres

› We have an integrated data set

› In the past, the combination of historic sub $2 per barrel oil price and inadequate drilling techniques left considerable oil behind. We call this opportunity “By-Passed Pay”

› The opportunity arises from better oil prices, better drilling and extraction techniques

BY-PASSED PAY

Strata-X focus area

Map Ref: USGSTwo pillars of attack:

› Shallow – Conventional Vertical wells› Deeper – Horizontal wells


5 SHALLOW PROGRAMME

Blue Spruce Discovery

Continue Development of 1.2 million barrel field (P2 Reserves)1

Drill 1 Development Wells

After a thorough geological review of the following prospects, which review was similar to that undertaken on the Blue Spruce project prior to drilling, the Company aims to achieve the following results on new vertical Illinois prospects.

Red Oak Prospect – Drill Potential 2.9 mmbbl gross resource3

- 1.0 mmbbl Prospective Resource net

Maple Prospect – Drill Potential 1.6 mmbbl gross resource3

- .9 mm Prospective Resource net

Aimed outcome post this drilling, with success3: Increase 2P Reserves – adding 1 to 2 mmbbl 2P3

Increase Production to ~150 bopd

Increase NPV (10%disc) to USD$100 to $150mm

1) DS-3 (See Disclaimer at the end of this presentation)2) DS-1, DS-2 (See Disclaimer at the end of this presentation)3) Resources and Prospective Resource figures are from an internal report prepared by Mr. Timothy Hoops, CEO/President of Strata-X Energy Ltd. dated 12 May 2015 following analysis of the available technical data including the geological and geophysical interpretation, information from relevant nearby wells and analogous reservoirs and the proposed program for the project, resource figures shown are gross to the prospect which includes lands not currently leased by the Company. Guidance to increase in 2P reserves was generated by risking the chance of discovery on the resource from the internal report. Prospective Resource figures net to the Company (Best Estimate) for the Red Oak Prospect are 2.9 mmbbl. and Maple is 900 mbbl. (DS-5). For additional information see Disclaimer at the end of this presentation.

ASX disclosure note - 5.28.2 - The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

What we have Done and Intend to Do

Intend to Boost Reserves Ahead of Production


6 SHALLOW PROGRAMME FEATURES

› Low Cost

› High Margin

› First Mover Advantage

› Infrastructure

› High Success Rate

› Apply New Technology in Identification

› Application of enhanced recovery Methods

› Waterflood

› Polymer flood

Programme to deliver significant Growth in Reserves

12 prospects identified by proprietary data set developed by Strata-X

Blue Spruce already successful with 1.28mmbbl 2P Reserves


7 DEEPER PROGRAMME

› What we have achieved already

› Confirmed first Horizontal Success

› Proof of Concept Confirmed

› 300 bopd Initial Production

› Prospective Resources to be proven

~ 23.6 mmbbl (net recoverable)2

› What we intend to do

› 4,500 ft vertical August 2015

› 4,000 ft lateral horizontal – 1st. Qtr. 2016

› Basis for the future

› Production to increase with optimized drilling and completion

› Reserve certification

Concept Proved: Reserves to Increase and Production to Follow

Workover Rig on Burkett 5-34HOR

1) DS-3 (See Disclaimer at the end of this presentation)2) DS-1, DS-2 (See Disclaimer at the end of this presentation)


8

5-98 BOPD

OCM

368 MBO

4-28 BOPD

Gas

236 MBO

Numerous O, G & OCM

16-70 BOPD

60-199 BOPD

G & OCM

G & OCM

OCM

First 7 stage stimulated ‘Proof of concept’ wellreached over 300 bopd

First appraisal well:15 stage stimulated

horizontal well,8 mile step out

DEEPER PROGRAMME - FEATURES

› Established Large Oil Accumulation

• Over 100 historical wells define the field

• >1 billion bbl PIIP 1

• 236 mmbbls PIIP net to Strata-X acreage 1

• 23.6 mmbbls Prospective Resource recoverable net

The Upside Case is Compelling: Concept Proved, Optimization Underway

› First ‘proof of concept’ reaches over 300 bopd

› Confirmed commercial oil recoveries

› Drilling techniques employed were successful

Phase 1 – Proof of Concept - Completed

› Expect better results from first appraisal well

• Longer lateral, thicker reservoir, higher pressure

› Large step out from initial well (~8 miles)

› Will allow for reclassification of reserves

Phase 2 – Optimization Late - July 2015

› Continuous Drilling Program

• Certification of Reserves

• Costs efficiencies

Phase 3 – Development and Exploitation

1) DS-1, DS-2 (See Disclaimer at the end of this presentation)

Phase 2

Phase 1

Approx. 6 mi


9 Illinois Basin Pathways

We Expect to Deliver Reserves Growth and Production

Blue Spruce Red Oak Maple

› First well – Success

› 2P – 1.2mmbbls discovered2

› Next drilling beginning Aug 2015

› 2nd Prospect Test

› Aimed result to discover 1.0 million barrel Prospective Resource3

› 3rd Prospect Test

› Aimed result to discover .9 million barrel Prospective Resource 3

Shallow Conventional – “By-Passed Pay” Oil Fields

Burkett 5-34HOR Next Raccoon Creek Lateral

› First ‘proof of concept’ horizontal test reached over 300 bopd

› Expect better results from Raccoon Creek appraisal well

› Drill vertical Raccoon Creek pilot hole to test regional extent of Lingle oil field

› 2x longer then Burkett 5-34HOR

› Drill Horizontal to improve on initial results

› Contingent on pilot well results

Deeper Horizontal Lingle Oil Field – 23.6 mmbbls net Prospective Resource1

1) DS-1, DS-2 (See Disclaimer at the end of this presentation)2) DS-3 (See Disclaimer at the end of this presentation)3) DS-5 (See Disclaimer at the end of this presentation)


10 Illinois Basin – Opportunity

Multiple Opportunities for Self Funded Growth Within 1 year

Planned Potential

Drill

Production

Test

Production

Drill Production

ProductionDrill

ProductionDrill

› Near-term development drilling › Targeted 2P reserve increase › 70% historical success rate› Nearby infrastructure capable of handling additional through-put

July Aug Sept Beyond

Shallow – ‘By-Passed Pay’

Blue Spruce #1

Blue Spruce #2

Maple

Red Oak

Deeper Horizontal Lingle Oil Field

Horizontal Burkett 5-34HOR

Vertical Raccoon Creek


11 ILLINOIS BASIN - ELEMENTS FOR SUCCESS IN PLACE

› Current valuation very low

› Production likely to rise

› Reserves likely to rise

› NPV valuation likely to rise

› Active drilling program, near term, moving forward, providing price catalysts

Share Price

› Proven Leadership Team

› Large Land Base – First Mover

› Multiple Targets and Multiple Horizons

› Low Finding Costs

› Performance to Date

› In-house ‘Intellectual Property’

• Extensive geologic data set

• Large digital data base

Company

Low Risk – High Margin Opportunity


12 SUMMARY

“The combination of historic economic thresholds and inadequate drilling and completion methods is what we term “By-Passed Pay” and it creates the opportunity for the company in the Illinois Basin.

Tim Hoops “Stockhouse Magazine”

This opportunity brought to you by the Chairman with proven success with the formation of Arrow Energy ($3.6 billion) and Bow Energy ($550 million)


13 Definitions

1P = Proven Reserves

2P = Proven + Probable Reserves

BBL = Barrels

MMBBL = Million Barrels

BOPD = Barrels of Oil per Day

PIIP = Petroleum Initially In Place

NVP = Net Present Value

Waterflood = water is injected into the reservoir, usually to increase pressure and thereby stimulate production

Proven Reserves = reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being recoverable under existing economic and political conditions, with existing technology

Probable Reserves = reserves which are estimated to have a better than 50% chance of being technically and economically producible


14 DisclaimersDS-1 The information in this Presentation that relates to Prospective Resources that was originally prepared and published by AWT International dated 18 December 2012. The information was published in Strata-X Energy Ltd’s “Prospectus 2013” (available online at www.strata-x.com), as part of the Companies 2013 Australia Securities Exchange Initial Public Offering. It is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of Doug Barrenger (“JORC Competent Person”) employed by AWT International and is independent of Strata-X Energy Ltd. At the time of the Prospectus 2013 issuance Doug Barrenger was an employee of AWT International and a member of the Petroleum Exploration Society of Australia (PESA) amongst other professional petroleum organizations. AWT International consented to the inclusion of the information as it originally appeared. As of the issuance of this document Strata-X Energy Ltd management is not aware of any material information that would change the results of the AWT International report as published in the Prospectus 2013. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated using the deterministic method. The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. Figures stated were pro-rated as of 31 May 2015 to the Company’s current leasehold/tenement interest.

DS-2 The information in this Presentation that relates to Prospective Resources that was originally prepared and published by Chapman Petroleum Engineers Ltd. and dated 21 March 2014 and published on Strata-X Energy Ltd’s website in a News Release dated 24 March 2014 to meet the Company’s ongoing disclosure requirements (available online at www.strata-x.com). It is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of Charles Moore, employed by Chapman Petroleum Engineers Ltd. and is independent of Strata-X Energy Ltd. At the time of the Chapman Petroleum Engineers Ltd. report dated 21 March 2014, Charles Moore was an employee of Chapman Petroleum Engineers Ltd. and a registered Professional Engineer in the Province of Alberta, Canada amongst other professional petroleum organizations. Chapman Petroleum Engineers Ltd. and Charles Moore consented to the inclusion of the information as it originally appeared. As of the issuance of this document, Strata-X Energy Ltd management is not aware of any material information that would change the results of the Chapman Petroleum Engineers Ltd. report as published in the this presentation. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated using the deterministic method. Figures stated were pro-rated as of 31 May 2015 to the Company’s current leasehold/tenement interest.

DS-3 The information in this Presentation that relates to Reserves Report that was originally prepared and published by Chapman Petroleum Engineers Ltd. and dated 1 April 2015 and published on Strata-X Energy Ltd’s website in a News Release dated 6 April 2015 to meet the Company’s ongoing disclosure requirements (available online at www.strata-x.com). It is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of Charles Moore, employed by Chapman Petroleum Engineers Ltd. and is independent of Strata-X Energy Ltd. At the time of the Chapman Petroleum Engineers Ltd. report dated 1 April 2015, Charles Moore was an employee of Chapman Petroleum Engineers Ltd. and a registered Professional Engineer in the Province of Alberta, Canada amongst other professional petroleum organizations. Chapman Petroleum Engineers Ltd. and Charles Moore consented to the inclusion of the information as it originally appeared. As of the issuance of this document, Strata-X Energy Ltd management is not aware of any material information that would change the results of the Chapman Petroleum Engineers Ltd. report as published in the this presentation. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated using the deterministic method. Figures stated were pro-rated to the Company’s current leasehold/tenement interest.

DS-4 Prospective Resource information cited in this Presentation for the vertical well economics are Prospective Resources, per an independent third party report effective 2 October 2014 (“Report”) from Chapman Petroleum Engineering Ltd. (“Chapman”) who's author, Charles Moore, a registered Professional Engineer in the Province of Alberta, Canada, consented to the inclusion of the information as it originally appeared and information relating to the Prospective Resource is based on, and fairly represents, information and supporting documentation prepared by Strata-X and reviewed by Charles Moore. There is no certainty that stated resources will be commercially viable to produce any portion of the resources. The Report reviewed only Prospective Resources as the project is not sufficiently developed to assign Contingent Resources or additional Petroleum Reserves to it. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated, using the deterministic method. Forecasted figures were derived using forward commodity strip pricing, regional drilling, completion and production expenditures and applicable production taxes. Strata-X is the title holder of the tenement/leases held covering the Copper Mountain Oil Project which were subject to the Report.

DS-5 Resource and Prospective Resources information cited in this Presentation for the Oak and Maple projects are gross resources and guidance projections for future expected reserves are per an internal Strata-X Energy Ltd report dated 12 May 2015 who's author, Timothy Hoops CEO/President of Strata-X Energy and is an employee thereof, is a member of the American Association of Professional Geologist’s, consents to the inclusion of the information as it appears and information relating to the resource and Prospective Resource is based on, and fairly represents, information and supporting documentation prepared by Strata-X. There is no certainty that stated resources or any Prospective Resources will be commercially viable to produce any portion of the resources. The Report reviewed only gross resources as the project is not sufficiently developed to assign additional Prospective Resources or Contingent Resources or additional Petroleum Reserves to it other than stated herein. Resource figures shown are gross to the identified structure and do not represent Strata-X’s net interest. Prospective Resource figures net to the Company economic interest (Best Estimate) for the Oak Prospect are 1.0 mmbbl. and Maple is 900 mbbl. The Report was generated following analysis of the available technical data including the geological and geophysical interpretation, information from relevant nearby wells and analogous reservoirs and the proposed program for the project, some general resource figures shown are gross to the prospect which includes lands not currently leased by the Company. Guidance to increase in 2P reserves was generated by risking the chance of discovery on the resource from the internal report. Strata-X expects to explore the resources and prospective resources in the report between 2015 and 2017. Hydrocarbon marketing and infrastructure related thereto are commonplace in the area and available to the Company; at this time the Company does not expect the exploration of this project will require burdensome environmental permits. In the report, Strata-X gave consideration to both geological and commerciality factors. The geological factors include the four main geological components of a petroleum system needed for commercial production, source rocks available to generate hydrocarbons, reservoir rocks to accumulate hydrocarbons, a stratigraphic or structural trapping mechanism with a seal to hold hydrocarbons and a mechanism and proper geological timing allowing for hydrocarbons to migrate into the trap. For the best estimated Prospective Resources the Report reviewed approximately 21 net tenements/leases held by the Company with individual owners covering the Company’s net economic interest with each tenement/lease having a range of expiration dates, royalties and other provisions.

2015 july investor presentation

Investor Relations

forwardlooking information

certain information

natural gas reserves

natural gas expectations

companys oil

targets oil

natural gas production

companys expectations