VOLTAIC STRATEGIC RESOURCES LTD — Investor Presentation 2011

Mar 2, 2011

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

EXCELLENCE IN OIL and GAS March 1[st] 2011

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www.incrementaloilandgas.com

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DISCLAIMER AND IMPORTANT NOTICE

This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are 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.

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Incremental Business model

– A producing oil company with a cash flow focus

– We acquire underperforming oilfields and increase production

– Focus is Onshore California

• Four projects:

  • Sheep Springs producing Oilfield

  • Round Mountain development project

  • Guijarral Hills development project

  • Raven Pass exploration project

• We operate all of our projects

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Capital Structure

• Formed 2009 as Private Company

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

• 110.5m shares (Directors and management 42%)

• 92.8m unlisted options[1]

• Market cap about $40 million

• $5m CON notes (July 2011, 20 cents)[2]

• REVENUE

6.06 m[3]

• EBITDA

• 2.40m[3]

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

2. Bearing interest at 10%, may be redeemed at face value or converted at $0.20 per share and mature on 2 July 2011. 3. Unaudited annual figures, to year end 2010

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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
BOPD
OSH STO IPM WPL AWE BPT AED STX COE NXS NDO OEL TAP STU AMU SAE ROC AZZ
Return on Equity
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Similar Board formed INCREMENTAL OIL & GAS (IOG) in JULY 2009

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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

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–
Excellent Fiscal regime
The San Joaquin Basin has:
•
10 times Australia’s reserves
•
150% Australia’s production
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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

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Why California ?

• Significant bypassed and undeveloped oil reserves left by early producers

• Few mid-sized oil companies, the innovators in the oil business, operate in California

• Cheap and competitive service suppliers

• Excellent Fiscal regime

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DRILLING WORKOVER CEMENTING LOGGING UNITS
RIGS RIGS TRUCKS
BAKERSFIELD 75 200 400 150
AUSTRALIA 10 15 40 25
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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

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Royalties 5-10% lower
than Texas
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Incremental Projects

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• PRODUCING SHEEP SPRINGS

• •SHALLOW ROUND MOUNTAIN

• •HIGH PRODUCTIVITY GUIJARRAL HILLS

• •RAVEN PASS Exploration

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Daily Field Production
300
Sheep Springs Oilfield
250
• 200
100% owned since January 2010
150
•
Revenue $500k/month
100
•
4 Undeveloped reservoirs 50
0
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
BOPD GAS BOEPD
BOEPD
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Daily Field Production
300
Sheep Springs Oilfield
250
• 200
100% owned since January 2010
150
•
Revenue $500k/month
100
•
4 Undeveloped reservoirs 50
0
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
BOPD GAS BOEPD
BOEPD
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Sheep Springs Oilfield (2)

H &P #2 drilled 3 weeks ago Targeted deepest know reservoir, light oil 24’ pay of excellent shows To be tested in coming weeks Many shallow zones to also test

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Sheep Springs Oilfield (3)

Shallow heavier oil (15-17 API) Produced nearby Steam pilot in H1 2011

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Round Mountain

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Field has produced 110m barrels
°
•
Shallow, 18-20 API gravity oil
•
100% Working Interest
•
Production in the total RM oilfield now 8000 bopd
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SMOOT 1, Round Mountain

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Sand
•
To gather data
•
>550’ shows
•
Over 100’ of net pay
•
Cores and high tech logs
•
Testing in coming weeks
•
Will form basis of full
development plan
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Oil
Show Pay
100 ft
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Guijarral Hills

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• Prolific Oilfield in 1950’s

• Light oil

• 80-100% Working Interest

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Guijarral Hills (cont)

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• Potential for high rates

• Still acquiring leases. Plan to drill mid year WAS NEVER PRODUCED IN 1950’s

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WAS NEVER
PRODUCED IN 1950’s
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Raven Pass

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• Flowed light oil in 1942. Not drilled since

• • 200 m barrel potential

• • True wildcat

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Unrisked Reserves and Resources

	PROJECT 2P/2C RESERVES MMB SOURCE SHEEP SPRINGS 2.82P RPS, certified ROUND MOUNTAIN 4.12C RIGEL GUIJARRAL HILLS 1.82C RIGEL

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Projected 12 Month News Flow

• Drill Sheep Springs well

• Drill Round Mountain vertical well

• Declare after tax profit in first year

• Drill two wells Round Mountain

• Re-enter old well Guijarral Hills

• Drill two wells Round Mountain

• Drill new well Guijarral Hills (optional)

• Raven Pass seismic

• Acquire additional projects

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