VOLTAIC STRATEGIC RESOURCES LTD — Investor Presentation 2011

Sep 6, 2011

~~INCREMENTAL OIL and GAS (asx: IOG)~~ Initial Public Offer

GOOD OIL CONFERENCE 7[th] SEPTEMBER 2011

www.incrementaloilandgas.com

1

DISCLAIMER AND IMPORTANT NOTICE

This presentation contains forward looking statements that are subject to risk factors associated It is believed that reflected in these statements are with oil and gas businesses. the expectations reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

2

Incremental Business model

– A producing oil company with a cash flow focus

– We acquire underperforming oilfields and increase production

• Focus is Onshore California

• Five projects:

  • Sheep Springs producing Oilfield

  • Round Mountain producing Oilfield

  • McDonald Anticline development project

  • Guijarral Hills development project

  • Raven Pass exploration project

• We are 100% WI and operate all of our projects

3

Capital Structure

• Formed 2009 as Private Company

• Listed January 2011 after raising $5.3m at 30 cents.

• 459 shareholders

• 135.6m shares (Directors and management 43%) 92.8m unlisted options[1]

• Market cap about $40 million

• NO DEBT

• REVENUE

$6.06 million

• EBITDA

$2.40million

1. Options exercisable at $0.20 on or before 1 November 2014

2. Unaudited annual figures, to year end 2010

4

IOG TEAM

From left:

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Asquith: 20 years CPA. MacDonald: 13 years in Senate, LLB Cronin: No 2 in Woodside (23 years) Stowell: Founder of Anvil and Mawson West, CPA McGann: 40 years geologist worldwide, CPG CFO DIRECTORS

CALIFORNIA M Pet Eng, Over 25 years in California

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The team have done it before...

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SELMO FIELD PROJECTED PRODUCTION PROFILE
5000
•
INCREMENTAL PETROLEUM formed 2005.
4500
4000
•
Raised $61m, bought second largest oilfield in 3500
TURKEY 3000
2500
2000
•
Built production from 1500 bopd to 2000 bopd 1500
1000
•
Commercialized West Turkey Gas 500
0
• Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16 Jan-18 Jan-20 Jan-22 Jan-24
Bought California producing assets
Past Production Re-entries & New Wells
Share Price 10/05 to 02/09
HOSTILE TAKEOVER ATTEMPT 2008 80%
60%
SETTLED MARCH 2009. 40%
20%
TOTAL RETURN OVER 3 YEARS 27% 0%
-20%
-40%
Similar Board formed -60%
INCREMENTAL OIL & GAS (IOG) -100%-80%
Dividend
in JULY 2009
Return on Equity
OSH STO IPM WPL AWE BPT AED STX COE NXS NDO OEL TAP STU AMU SAE ROC AZZ
BOPD
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Why California ?

• Significant bypassed oil left by early producers

• Few mid-sized oil companies operate in California

• Cheap and competitive service suppliers

• Excellent Fiscal regime

The San Joaquin Basin has:

• 10 times Australia’s reserves

• 150% Australia’s production

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Sacramento
Basin
San Joaquin
Basin
Ventura
Basin
Los Angeles
Basin
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Why California ?

– Few mid-sized oil companies operate in California – Excellent Fiscal regime

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Comparison of Fiscal Terms
Turkey
Spain
Argentina
USA
Portugal
G. Mexico
New Zealand
Australia
Peru
Phillipines
Tunisia
Thailand
Colombia
Morocco
Mongolia
China
Indon. Gas
Congo
E. Indonesia
PNG
Vietnam
India Royalty/Tax System
Ivory Coast
Trinidad
EcuadorAlbania Production Sharing Contract
Venezuela
Algeria
Angola Service Agreement
Syria
Myanmar
Egypt
MalaysiaBrunei (Modified from Daniel Johnston & Co., Inc.)
Indonesia
0 10 20 30 40 50 60 70
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Contractor Share of Income Post Gov't Cut & Taxes (%)

Incremental Projects

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• Producing SHEEP SPRINGS
• Producing ROUND MOUNTAIN
•
M [c] DONALD A/C Development
•
GUIJARRAL HILLS Development
•
RAVEN PASS Exploration
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Sheep Springs Oilfield

• 100% owned since January 2010

• Revenue $4-500k/month

• Paid out in cash terms this year

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Sheep Springs Oilfield (2)

Shallow heavier oil (15-17 API) Produced nearby Steam pilot in near future

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Remaining 2P
Reserves of
1.43 MMB
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Round Mountain

• Field has produced 110m barrels

• Shallow, 18-20° API gravity oil

• 100% Working Interest

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Round Mountain, 2011 drilling

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Drilled 4 wells in 2011

All successful Production about 130 bopd CAPEX only $2.7 million Six additional locations

Have acquired 761 acres on trend

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McDonald Anticline

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Produced 22 million barrels Shallow, light oil Multi reservoirs Plan to drill 2011 At least 3 well locations

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Guijarral Hills

• Prolific Oilfield in 1950’s

• Light oil

• 80-100% Working Interest

• Plan to farm down and drill in H1 2012

UNDRAINED POTENTIAL

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Raven Pass

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•
Large structure
•
Flowed light oil in 1942.
Not drilled since
•
Reservoir, seal, trap all
demonstrated
•
All available seismic
purchased
•
200 m barrel potential
•
True wildcat
•
Farmout in progress
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Gross Revenue

IOG Monthly Gross Revenue Chart $ 1.0 m $ 0.8 m $ 0.6 m $ 0.4 m $ 0.2 m $ 0.0 m

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MICROCAPS (<$50m) MONEY RAISED vs MARKET CAPITALISATION

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Source: Oil & Gas weekly

2011 Projected News Flow

• Drill Sheep Springs well

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• Drill Round Mountain vertical well

• Declare after tax profit in first year

• Drill three wells Round Mountain

• Acquire additional projects

• Drill well McDonald Anticline

• Drill two wells Round Mountain

• Raven Pass farmout