VOLTAIC STRATEGIC RESOURCES LTD — Investor Presentation 2016

Sep 25, 2016

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ABN 66 138 145 114

20 Howard Street Perth WA 6000

PO Box Z5207 St George’s Terrace Perth WA 6831

www.incrementaloilandgas.com ASX Code: IOG

Tel: 08 6144 0590 Fax: 08 6144 0593

ASX Announcement/Media Release

26 September 2016

CANARY NETWORKS INVESTOR FORUM PRESENTATION

Incremental Oil and Gas Limited (ASX: IOG) advises that John Whisler, Managing Director will be making a presentation to the Canary Networks Investor Forum in Sydney on Thursday 29[th] September. The Company presentation is attached.

ENDS

For further information please contact:

Australia – USA – Simon Adams, CFO John Whisler, Managing Director Email: sadams@i-og.net Email: jwhisler@i-og.net Phone: +61 (0)8 6144 0590 Phone: +1 (720) 763-3183 Mobile: +61 (0)439 845 435 Web site: www.incrementaloilandgas.com Twitter: @IncrementalOG

About the Company:

Incremental Oil and Gas Ltd is an USA onshore focused oil and gas exploration and production company. The Company’s strategy is to identify and acquire low risk, underperforming oil and gas fields and apply modern technology and expertise to increase production and enhance hydrocarbon recovery, while increasing net cash flow to grow the business.

Incremental has a portfolio of oil and gas producing projects in Wyoming, Colorado and California, USA.

Incremental is the operator of the Silvertip (WY), Florence (CO), Sheep Springs (CA) and Round Mountain (CA) Fields with 100% of the working interest and NRI’s between 78.5 - 87.5%.

CRP02 28 Investor Presentation Sep2616

Investor Presentation September 2016

ASX: IOG Slide 1

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Business Strategy
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Experience has taught us that mature, long-lived oil and gas assets provide the best opportunities for dependable value. We focus on assets with optimization upside, recompletion potential, and exploration opportunities. Growth of reserves enhance investor value.

Acquire Develop Grow & Enhance & Explore increase production rates, Long-lived oil & gas workovers, cash-flow and producing assets with recompletions, and optimization upside drilling reserves

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The Assets
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Western United States

750 BOEPD: Percentage by Field

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Sheep
Springs &
Round
Mountain,
CA 13%
Silvertip,
WY Silvertip,
WY 80%
Florence, CO
Florence,
CO 7%
Sheep
Springs &
Round
Mountain,
CA
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Stack Pay Development Silvertip
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T
T
Shallow P
Gas P
P
P
P
P
T
P
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• 10 stacked formations

 6 shallow gas

 4 oil/NGLs/gas

• Currently producing from 7 formations

• 2017 test remaining 3 formations

• Targeting 3+ BCFG in 2016 recompletions

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Targeting 3+ BCFG 2016
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• Original Reserves EUR of 125 MMCF/well (independent party reserve report as of Jan. 2016)

• ~ 100-150 MCFd IP

• US$7 million future net cash flow

• Recent Recompletion: 1.2 MMCFd IP from 42-4F shallow gas formations (September 2016)

• Payout less than 3 weeks (< $35K CAPEX)

• Infrastructure in place – immediate cash flow

• 15 additional recompletions planned targeting shallow gas in Q4-2016

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• Additional recompletions to be performed in 2017

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Stack Pay Development 2017
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Silvertip PDNP & New Drill Wells
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• Explore development potential in unproven stacked pay formations in current wellbores

• Lance

• Ft. Union

• Recomplete wells in proven shallow gas formations in current wellbores

• Meeteetse

• Mesaverde

• Virgelle

• Drill 4 wells to further develop stacked pay step outs

• 2 wells permitted

• 2 wells identified – permitting in progress

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Gas Price Outlook
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$3.40
$3.20
$3.00
$2.80
$2.60
$2.40
$2.20
$2.00
2016 2017 2018 2019 2020 2021
NYMEX Natural Gas forward curve from August 1, 2016
$/MMBtu
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Growth Strategy
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Stage 1 – Optimized and streamlined legacy assets to 190 BOEPD

Stage 2 – Acquired Silvertip – increased company production to ~540 BOEPD

• Phase I Workover Program – increased company production to ~750 BOEPD

In Progress

• Phase II Workover Program – projected company production to ~1,000 BOEPD

Stage 3 – Acquire asset with target of 800+ BOEPD – projected company production to 1,800 BOEPD

• Implement development program – projected company production to 2,100 BOEPD

Stage 4 – Acquire mid-sized exploration/development asset

• Implement intensive drilling campaign

• Target company production 5,000 BOEPD (oil weighted)

• Begin distribution of dividends

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Actively Growing Asset Portfolio
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• Acquire assets that represent significant value

 Vast U.S. industry network

 Intimate knowledge of the U.S. oil and gas industry

• Skilled negotiations with proven success

 Reputation for extensive due diligence to purchase the right asset

• Review several deals per week

 Currently performing due diligence on multiple opportunities

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Corporate Overview

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Oil & Gas Experts
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• Optimize and exploit long-lived, conventional onshore US oil and gas fields

• Strong technical team with engineering, geology, land, legal, and financial expertise

• Extensive experience in 6 U.S. basins with over 200 wells drilled and completed

• Total Management industry experience over 70 years

• Total non-executive director experience over 75 years

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The best places to exploit oil and gas are in fields where it’s already been found.

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Dedicated to Investor Value
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• Ambitious U.S. team dedicated to:

• Acquiring low-risk unidentified-value oil and gas assets at competitive prices

• Increasing profitability and value from the assets

• Growing reserves through a combination of recompletions and the drill bit

• Implemented strategies for company growth and long-term success

• Utilize conventional low cost U.S. bank debt as part of funding strategy for growth

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We Create Value
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 Focus on low-cost, high-return opportunities

• Acquire fields below fair market value

• Focused investment is used to increase company value

2016 Combined 1P Reserves: 1730 MBOE

Silvertip, WY Purchase, workovers, and re-completions

2015 Combined 1P Reserves: 467 MBOE

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Track Record of Success
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 Significant experience in building successful ground floor E&P companies

• Design, develop and divest of exploratory and mature fields

• Achieved high return on investments

 2.30 ROI for mature oil field; sold for $42 million

 2.81 ROI for 140 well exploratory field; sold for $220 million

 Exceptional ROI for corporation; sold for $170 million after 3 years

 High ROI on exploratory field; sold for $90 million

 1.0 ROI on international oil field (Turkey) with ~8% dividend yield; sold for A$80 million

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Reserves and Production
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82% 18% NET Total 1P Reserves by Category Effective January 1, 2016 PDP PDNP
	MBOE	SS & RM	Florence	Silvertip	Total
	Proved Developed Producing (PDP)	336	122	962	1,420
	Proved Developed Not Producing (PDNP)	-	-	309	309
	Total 1P Reserves	336	122	1,271	1,729

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Market Summary
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Capital Market Summary

Shareholder Distribution

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Exchange: trading symbol ASX: IOG Share Price (22 Sept 2016) A$0.042 Market Capitalization A$8M US$6M Ordinary shares on issue[1 ] 201,834,580 Options on issue[2] 5,400,000

1. Shares on issue after allotment of all shares from August Placement

2. 5,000,000 exercisable at A$0.1485 before 27 July 2018 and 400,000 exercisable at A$0.07 before 26 May 2017

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Financial Summary
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Per BOE1 (H1 2016)	**Revenue2 **	Royalties and Prod’n tax	Field Operating **Costs3 **	Netback/ Gross Profit Margin
Silvertip, Wyoming	$17	($6)	($6)	$5 / 30%
SS4& RM4, California	$35	($10)	($8)	$18 / 50%
Florence, Colorado	$32	($10)	($11)	$11 / 34%

Revenue and expenditure in the table above relates to the period from January to June 2016

1. Barrel of Oil Equivalent (BOE) assumes conversion of gas at a rate of 6Mcf of gas to 1 Bbl Oil and 42 gallons of NGL to 1 Bbl Oil

2. Avg. price received per barrel of oil or barrel of oil equivalent after refinery marketing deduction

3. Silvertip operating costs per barrel based on BOE across oil, natural gas and natural gas liquids

4. SS - Sheep Springs field; RM - Round Mountain field

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Experienced Leadership – Board & Team
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Mark Stowell

Non-Exec Chairman B.Bus C.A.

John Whisler Managing Director B.Sc. Eng/PSY

Gerry McGann Non-Exec Technical Director B.Sc. (Hons)

Matt McCann Non-Exec Director J.D.

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A chartered accountant and corporate finance background and has been involved in public company management for over 20 years including significant experience in the natural resources and energy sectors. Founder and director of Incremental Petroleum, second largest oil production company in Turkey through to takeover by US based oil company.

More than 25 years experience in the U.S. oil and gas industry with a broad range of skills including drilling and completions engineering, exploration and field development, strategic business planning, and extensive A&D knowledge. Extensive hands on field experience prior to becoming VP of Operations at Petrogulf (20012008) and CEO of Delek Energy (2008-2011).

Over 40 years experience in the upstream oil and gas industry as a petroleum geologist. With Occidental Petroleum, he increased production in Oman from 32K to 52K BOPD in 3 years. He was a founder and Managing Director of Incremental Petroleum, where he managed the second largest oil production company in Turkey.

More than 20 years of experience in the legal and energy sectors. He was Senior VP at Sandridge Energy (2005-2007) and CEO of Transatlantic Petroleum (2009-2011). He led Transatlantic from a junior explorer to a significant international producer in 2 years.

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Experienced Leadership – Board & Team
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Simon Adams

CFO/ Co. Sec. B.Bus., M. Acc.

Jennifer Cadena VP Land and Legal J.D.

Will Duggins Senior Geologist B.Sc., M.S. Geo

Bill Woodward Comptroller B.Sc.B.A. Econ & Mgmt

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Over 20 years of experience with multiple ASX listed companies in various sectors including energy, agribusiness, resources and property. Part of management team responsible for significant business growth and diversification of public companies.

Extensive experience aiding international companies develop U.S. assets. She has considerable legal experience in the oil and gas sector in the areas of contracts, land use, regulatory, administrative proceedings and litigation.

Considerable geological experience in petrophysical analysis, sequence stratigraphy, seismic interpretation, core interpretation, and production integration with geological models.

More than 25 years experience in oil and gas financials, with emphasis in accounting, regulatory and tax compliance. He has considerable experience in Federal and Indian production reporting, division orders, and is skilled with modern accounting software packages.

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Contacts
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Denver, CO
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Perth, AU
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JOHN WHISLER

Managing Director Email - jwhisler@i-og.net Telephone - +1 720-763-3183

SIMON ADAMS

Chief Financial Officer Email - sadams@i-og.net Telephone - +61 (0)8 6144 0590 or +61 (0)439 845 435

www.incrementaloilandgas.com

Twitter: @IncrementalOG

Linkedin: https://www.linkedin.com/company/incremental-oil-and-gas-ltd

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Disclaimer – Forward Looking Statements
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This presentation has been prepared by Incremental Oil and Gas Ltd (“Incremental”).

This presentation may contain certain statements that may be deemed forward-looking statements. Forwardlooking statements reflect Incremental’s views and assumptions with respect to future events as of the date of this presentation and are subject to a variety of unpredictable risks, uncertainties, and other unknowns that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Actual and future results and trends could differ materially form those set forth to various degrees, many which are beyond our ability to control or predict. Some of the risk and other factors that could cause results to differ materially include but are not limited to: industry conditions, including fluctuations in commodity prices; governmental regulation of the oil and gas industry, including environmental regulation; economic conditions in the US and globally; geological, technical and drilling results; predicted production and reserves estimates; operational delays or unanticipated operating event; physical, environmental and political risks; liabilities inherent in oil and gas exploration, development and production operations; fiscal and regulatory developments; stock market volatility; industry competition; availability of capital at favourable terms.

Given these uncertainties, no one should place undue reliance on these forward-looking statements attributable to Incremental, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this presentations sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All references to dollars, cents or $ in this presentation are to American currency (US$), unless otherwise stated.

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