Sleeping Giant Project Primer

1. Sleeping Giant Gas Project
Primer
North Dakota, USA
June 2014
Tim Hoops
Managing Director
tim.hoops@strata-x.com
www.strata-x.com

2. Disclaimer Statement
Forward-Looking Statements
This summary contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements
regarding the use of proceeds. These forward-looking statements are based on certain key expectations and assumptions, including assumptions regarding the
general economic conditions in USA and globally, industry conditions in USA and the operations of the Company. These factors and assumptions are based upon
currently available information and the forward-looking statements contained herein speak only as of the date hereof. Although the Company believes the
expectations and assumptions reflected in the forward-looking statements are reasonable, as of the date hereof, undue reliance should not be placed on the forward-looking
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statements as the Company can give no assurances that they will prove correct and because forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated
or implied in the forward-looking statements. These risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company;
global economic conditions; risks associated with the oil and gas industry; commodity prices and exchange rate changes; operational risks associated with exploration,
development and production operations; delays or changes in plans; specific risks associated with the ability to execute production sharing contracts, ability to meet
work commitments, ability to meet the capital expenditures, estimated size of any seismic features and whether additional geosciences work will progress to defining
drillable locations; risk associated with stock market volatility and the ability of the Company to continue as a going concern. The Company assumes no obligation to
update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements, except as
required by securities laws. (Additional information identifying risks and uncertainties is contained in filings of the Company with Canadian securities regulators).
Disclaimer
This summary shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation
or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any
state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable
exemption from the registration requirements of such Act or laws.
In addition, the Company makes not representation or warranty, express or implied, in relation to, and no responsibility or liability is or will be accepted by the
Company or its directors, officers, shareholders, partners, employees or advisers as to or in relation to the accuracy or completeness of the information, statements ,
opinions or matters (express or implied) arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or
oral information or opinions provided now or in the future to any interested party or its advisers.
Cautionary Statement: Undiscovered Resources, OOIP and BOE
Undiscovered Hydrocarbon-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in
accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered or that, if discovered, it will be economically
viable or technically feasible to produce. Original-Oil-in-Place (equivalent to Discovered Petroleum Initially in Place), also known as ‘discovered resource’, is defined as
that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of OOIP includes
production, reserves and contingent resources; the remainder is defined as unrecoverable. The terms “barrels of oil equivalent” or “boe” may be misleading,
particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 mcf) to one barrel (1 bbl) is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

3. Large Biogenic Gas Potential at shallow depths
Large Structural accumulation
Excellent reservoir properties
Analog field has reserves of 157 Bcf EUR(1), 640,000 Mcf per well on 160 ac spacing,
Multiple markets between $4 and $5.75/Mcf
120,000 net acres, leased under favorable terms
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Executive Summary Sleeping Giant Gas Project
Map Ref: USGS
(1) Report dated 18 May 2010 by Mr. Walt King, registered Colorado Petroleum Engineer, for the benefit of
White Eagle Exploration, Inc. the seller of the Sleeping Giant Gas Project to Strata-X.

4. 4
Elements Needed for a Commercial Biogenic Gas Accumulation
Required Geologic Element Sleeping Giant Geologic Attributes
Reservoir – Can be thought of as a storage
tank and is measured in units of porosity or
the amount of void space available to store
natural gas
Upper Cretaceous Niobrara Formation with
porosity up to 40% (excellent storage
capacity)
Structure – Geologic surfaces that are higher
than the surrounding areas and often act to
accumulate hydrocarbons as they migrate
upward.
Well established structural high covers an
area approximately 2500 sq. km.
Seal – Geologic interval that is impermeable
and allows the migrating hydrocarbons to be
trapped in a reservoir.
Ardmore bentonite - a well recognized zone
that is know to trap hydrocarbons through the
region.
Hydrocarbon Source – Formation that
originally generated the hydrocarbons.
Sometimes this can be within or in
juxtaposition to the reservoir and sometimes it
is located some distance away.
High Total Organic Carbon (TOC) within the
Niobrara formation and allows for a very
simple generation and migration pathway
from the source to the reservoir.
All geologic elements are present in Sleeping Giant

5. 5
Reservoir – Niobrara Formation and equivalents
Production from similar aged
formations in Saskatchewan and
Alberta exceeds 70 Tcf(1)
Production from Colorado, Kansas
and Nebraska exceeds 1 Tcf from
over 2,500 wells
Upper Cretaceous formation
similar to Niobrara extend over
3,000 km in front of the Rockies
(1) National Energy Board,
Canada’s Energy Future 2013 –
Energy Supply and Demand

6. 6
Reservoir – Niobrara Formation Chalk and Marlstones
The Niobrara is a chalky
marlstone that is made up
calcium carbonate coccoliths
formed from single cell algae
At shallow depths these fossils
remain uncrushed by the
overburden and result in
outstanding porosity up to 40%
Chalk is similar to While Cliffs of Dover
Microscopic view of coccoliths

7. 7
Structure – Regional Mapping
Utilizing over 150 data points
combined with geophysical
measurements delineate the
2,500 km2 regional structure
Indication of natural
fracturing on structure
Magnetic Basement Map

8. 8
Source – Niobrara Marlstones
•Cores in the area show the
Niobrara to be very
organically rich.
•TOC values over 7 have
been recorded in the
immediate area
•Avg. TOC values of 4.5
•Values greater than 2
considered favorable

9. 9
Indication of gas in the Niobrara
• Gas has been tested down dip on flank of structure
•Gas shows on mudlogs
• Gas odor
• Crackling of samples – gas escaping
• Gas indication on electric well logs
Gas flare from regional
off-structure test
• Other geologic factors
•Good Total Organic Carbon measured in
Niobrara and adjoining shales
• Indication of natural fracturing on structure
•Extensive regional seal provides effective
barrier for entrapment

10. 10
Shallow Exploration Target Formations
Primary exploration target - Niobrara
• Approximate depth of 1,300 feet
Secondary exploration targets:
• Pierre
• Greenhorn/Belle Fourche
•Mowry Shale
•Muddy
Yellow = Sandstone
Gray = Shale
Blue= Carbonate
Red = Source Rocks
and Actual and
Potential Reservoirs
Williston Basin Cretaceous
Petroleum System
Primary Target
(Rohweder #1-11 to test)
Secondary Target
(Rohweder #1-11 to test)
Secondary Target
Secondary Target
Rohweder #1-11 will test the Pierre,
Niobrara, Carlile and Greenhorn Fm.
Secondary
Target

11. •Colorado, Kansas, Nebraska
• > 2,500 producing wells
• Ultimate reserves over 1.5 Tcf
•Same geologic conditions as the Sleeping
Giant area
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Niobrara – Analog Area
Niobrara
Analog - Beecher Island Economics
• Over 100 Bcf produced to date(1)
• Estimated EUR of 157 Bcf (2)
•Approximately 20,000 acres(2)
•EUR/well = 640,000 Mcf at 160 ac spacing(2)
Beecher Island
(1) Colorado Oil and Gas Conservation Commission website, www.cogcc.state.co.us, production database
accessed 12 June 2014.
(2) Report dated 18 May 2010 by Mr. Walt King, registered Colorado Petroleum Engineer, for the benefit of
White Eagle Exploration, Inc. the seller of the Sleeping Giant Gas Project to Strata-X.

12. 12
Analog – Beecher Island Type Curve (1)
Mcf/Month
Wells are typically stimulated with 100,000 pounds of sand
with nitrogen assist
(1) Report dated 18 May 2010 by Mr. Walt King, registered Colorado Petroleum Engineer, for the benefit of
White Eagle Exploration, Inc. the seller of the Sleeping Giant Gas Project to Strata-X.

13. 13
Analog - Beecher Field: Economic Assumptions (1)
$USD/Mcf
Reserves per well: .64 Bcf per 160 acres
Spot Price: $4.62
(Forward Strip
Jun 17, 2014)
Capital Costs: $250,000/well $.39
Royalty expense: 17.5% $.81
Tax: zero first 2 years,
$.10 thereafter
$.05
Lease Op Costs: USD $750/mo $.21
Transportation/Market Expense: $.65
Net Back: $2.51/Mcf
Economics Assumed at 640,000 Mcf EUR per well @ 160 acres spacing
(1) Report dated 18 May 2010 by Mr. Walt King, registered Colorado Petroleum Engineer, for the benefit of
White Eagle Exploration, Inc. the seller of the Sleeping Giant Gas Project to Strata-X.

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Project Summary
• Large Regional Structures controlling potential shallow gas accumulation
•Multiple Exploration targets shallow gas and deeper oil
•Gas produced from flanks of structure
• Primary Target Niobrara Fm.- Extensive producer of natural gas
• Strong Analog – Beecher Island, Yuma Colorado
• Geologic factors present for significant accumulations
•Rohweder #1-11 located on Beaver Creek Prospect,
1 of 26 identified structures
•Best Estimate of Size: 18,000 ac
•Number of Potential Locations: 112 (@ 160 spacing)

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Supplemental Material

16. 16
Definitions
In this document, the abbreviations set forth below have the following meanings:
Oil and Natural Gas
Bbl barrel
Bbls barrels
Mbbls thousand barrels
MMbbls million barrels
Mcf thousand standard cubic feet
MMcf million standard cubic feet
Bcf billion cubic feet
TCF trillion cubic feet
Other
Hydrocarbon Index- measure of the hydrogen richness of the source rock, and when the kerogen type is known it can be used to
estimate the thermal maturity of the rock.
OOIP – Original Oil in Place.
Permeability – the ability or measurement of a rock’s ability to transmit fluids.
Porosity – percentage of pore volume or void space or that volume within rock that can contain fluids.
Reservoir Rock – refers to a subsurface pool of hydrocarbons contained in porous or fractured rock formations.
Rock Eval – is used to identify the type and maturity of organic matter and to detect petroleum potential in sediments.
Source Rock - refers to carbon bearing rocks from which hydrocarbons have been generated or are capable of being generated.
Tmax -highest temperature incurred by a Source Rock, generally higher temperatures equates to larger hydrocarbon generation.
Total Organic Carbon (TOC) – amount of carbon in a geological formation, mainly Source Rocks.