corporate presentation fair sky resources inc. september 2006 draft fair sky resources et al...

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


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


Net Asset Value/ReservesNet Asset Value/Reserves

0

500

1000

1500

2000

2500

3000

3500

Oct 05 Jan 06 Apr 06 Aug 06

Prov Prod

Prov+Prob

NAV


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)


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

Se

cond

Me

ridia

n

Th

ird

Mer

idia

n

Fo

urt

h M

erid

ian

Fift

h M

erid

ian

Six

th M

erid

ian

T 10T 10T 10T 10T 10

T 20T 20T 20T 20T 20

T 30T 30T 30T 30T 30

T 10T 10T 10T 10T 10

T 20T 20T 20T 20T 20

T 30T 30T 30T 30T 30

T 40T 40T 40T 40T 40

T 50T 50T 50T 50T 50

T 60T 60T 60T 60T 60

T 10T 10T 10T 10T 10

T 20T 20T 20T 20T 20

T 30T 30T 30T 30T 30

T 40T 40T 40T 40T 40

T 50T 50T 50T 50T 50

T 60T 60T 60T 60T 60

T 70T 70T 70T 70T 70

T 80T 80T 80T 80T 80

T 20T 20T 20T 20T 20

T 30T 30T 30T 30T 30

T 40T 40T 40T 40T 40

T 50T 50T 50T 50T 50

T 60T 60T 60T 60T 60

T 70T 70T 70T 70T 70

T 80T 80T 80T 80T 80

T 90T 90T 90T 90T 90

T 100T 100T 100T 100T 100

T 110T 110T 110T 110T 110

T 120T 120T 120T 120T 120

T 20T 20T 20T 20T 20

T 30T 30T 30T 30T 30

T 40T 40T 40T 40T 40

T 50T 50T 50T 50T 50

T 60T 60T 60T 60T 60

T 70T 70T 70T 70T 70

T 100T 100T 100T 100T 100

T 110T 110T 110T 110T 110

T 120T 120T 120T 120T 120

T 100T 100T 100T 100T 100

T 110T 110T 110T 110T 110

T 120T 120T 120T 120T 120

FAIR SKY RESOURCES INC.AREAS OF ACTIVITY


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


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


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


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


Central Alberta AcquisitionCentral Alberta Acquisition


- 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


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


0

200

400

600

800

1000

1200

1400

1600

1800

2000

Q2 Q3 Q4 Q1-07

BBLS/D

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


0

1000

2000

3000

4000

5000

6000

1stQtr

2ndQtr

3rdQtr

4thQtr

1stQtr07

Net $ peryearly 1/4

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]


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.


Forward Looking StatementsForward Looking Statements

corporate presentation fair sky resources inc. september 2006 draft fair sky resources et al...

Documents

alberta director public

years experience bsc

public alberta

office management

years geophysical field

draftfair sky resources

stampeder exploration

b engll