Investor Presentation April 2012 Private and ... - Oil Reserve Inc.

Investor PresentationApril 2012Private and ConfidentialInvestor Presentation 2009

Forward Looking StatementExcept for statements of historical fact, this information summary contains certain "forward-looking information" withinthe meaning of applicable securities law. Forward-looking information is frequently characterized by words such as"plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certainevents or conditions "may" or "will" occur.Forward-looking statements such as the estimates of reserves or resources, the references to Oil Reserve Inc.’s (“OilReserve” or the “Company”) exploration program and drilling program and capital expenditures relating to, and timingof, such programs are based on the opinions and estimates at the date the statements are made, and are subject to avariety of risks and uncertainties and other factors that could cause actual events or results to differ materially fromthose anticipated in the forward-looking statements.There are uncertainties inherent in forward-looking information, including factors beyond Oil Reserve’s control, and noassurance can be given that the programs will be completed on time, on budget or at all. In addition, there arenumerous uncertainties inherent in estimating reserves or resources, including many factors beyond Oil Reserve’scontrol, and no assurance can be given that the indicated level of reserves or the recovery thereof will be realized. OilReserve undertakes no obligation to update forward-looking information if circumstances or management's estimates oropinions should change except as required by law.The reader is cautioned not to place undue reliance on forward-looking statements.This information statement is confidential. The contents are not to be reproduced or distributed to the public or press.The information contained herein, while obtained from sources which are believed to be reliable, is not guaranteed as toits accuracy or completeness and confers no right to investors. The information contained herein may be amended.This information statement is for information purposes only and does not constitute an offer to sell or a solicitation tobuy the securities referred to herein in any jurisdiction.1

Proven Team With Successful Track Record• Oil Reserve Inc. (“Oil Reserve” or the “Company”) is a private oil resource company with 918sections (25.5 townships) of 100% owned land in the Carbonate trend in northern Alberta.– Other companies operating in the region include: Laricina Energy Ltd., OSUM Oil Sand Corp.,Shell Canada, Tamm Oil and Gas Corp. and Strata Oil and Gas.• Oil Reserve is the latest venture by the founder of several successful companies which havegenerated significant value for shareholders:– Anglo Potash (formerly TSX-V:AGP)– Oil Sands Quest (AMEX:BQI)– Synenco Energy (formerly TSX:SYN)• The Company’s philosophy and strategy is to:– Focus on heavy oil resource plays.– Accumulate sizeable and contiguous high interest land positions.– Exploit management’s significant expertise in heavy oil and horizontal multi-stage fracturingtechnologies.– Strategically and selectively drill prospects to de-risk land positions.– Maintain operational control over the pace and timing of development.2

Management Team• Todd MontgomeryChairman and Chief Executive Officer– Founder and former President and CEO of Anglo Potash Ltd. (formerly Anglo Minerals Ltd.)• staked a significant land position in potash• partnered with BHP initially then sold to BHP in July 2008 for $285 million• Anglo Potash’s share price went from $0.25 to $8.15 in just over two years– Founded in 1999 and served as President and COO of Synenco Energy Inc., an oil sands developmentcorporation with operations in northern Alberta.• staked a significant land position in oil sands then partnered with a Chinese National Oil Company, Sinopec• market capitalization touched $1 billion• Total E&P Canada acquired 94% of Synenco Energy for $480 million in April 2008– Founded Oilsands Quest, an oil sands company in northern Saskatchewan.• staked oil sands properties• market capitalization touched $1 billion• presently trades on NYSE / Amex: BQI with a market capitalization of around $200 million• Frank van der VlietVice President of Exploration– Over 35 years of oil and gas exploration and geological experience.– Credited with discovering over 50 million barrels of oil equivalent in the Western Canadian Sedimentary Basin.– Anglo Canadian Oil / Tectonic Energy / Brigdon Resources / Morrison Petroleum– BSc Geology / Petroleum Technology Diploma3

Carbonate Triangle• The Carbonate Triangle is a large bitumen andheavy oil bearing area that was under the radaruntil 2006, when Shell paid $465 million for88,576 hectares, or an average of $5,246 perhectare.CarbonateTriangle• The Carbonate Triangle is estimated to containas much as 12 to 15% of the viscous oil inAlberta.• Many are calling the carbonates the“next oil sands”.4

Carbonate Heavy Oil Resource• Over 50% of the world's oil and gas reserves and most giant fields arehosted by carbonate formations– Heavy oil and bitumen in carbonate formations are found in over 16 giant fieldsand 11 countries worldwide• Over 500 billion barrels of bitumen are contained within several carbonatereservoirs in Alberta5

Oil Reserve Prospects• Athabasca Heavy Oil Area– Grosmont– Nisku• Peace River Heavy Oil Area– Debolt– Elkton– Shunda– PekiskoOil Reserve Lands ΟPekisko Vertical Prod. ΟDebolt Horizontal Prod. Ο6

Land – Peace River• Carbonate zones include:– Debolt– Elkton– Shunda– Pekisko• 297 Sections– 8.25 Townships– 190,080 Acres9

Geology – Peace RiverWell Log – OIL RESERVE NSTAR15-35-89-23W5– Debolt Net Pay: 33m (green highlights)– Elkton Net Pay: 9.2m (yellow highlights)Management’s estimates are based on publically available dataand are not National Instrument 51-101 compliant. For internaluse only.11

Engineering – Peace RiverSummary of Manning and Seal area resources on ORI LandsDebolt, Elkton and Pekisko FormationsResource ClassLow Estimate Best Estimate High Estimate(Mstb) (Mstb) (Mstb)Prospective Resources (Debolt/Elkton) 15,440.0 30,750.0 59,570.0Unrecoverable 1,710,062.0 2,789,313.0 4,571,963.0Total Undiscovered PIIP 1,725,502.0 2,820,063.0 4,631,533.0Table taken from page 2 of the Resource Study written for Oil Reserve Inc. entitled, “Mississippian Carbonates Peace River Arch,Alberta” dated January 15, 2012. Prepared by L. Kis, P. Eng., & L. J. Machula P. Geol. of AJM Deloitte.13

Grosmont Prospect• The Grosmont Carbonate is one of the largest untapped reservoirs inWestern Canada and is estimated to contain over 400 billion barrels oforiginal oil in place.– The Nisku, Debolt and Shunda formations are estimated to contain 130 billionbarrels of original oil in place.• Early test work conducted by other companies in the area over the last fewyears have yielded very encouraging results:– Oil recovery factors are up to 60%.– In a field trial, injection of solvent resulted in cold flow bitumen.– Karsts and vugs in the reservoir result in very high porosity (15 – 16%) (i.e.,more bitumen in place) and also provide very high permeability (up to 10Darcies).14

Geological ComparisonLand MapCarbonate Bitumen Trend MapNiskuSubcropGrosmontSubcropGrosmontSubcropNiskuSubcrop15

Land - AthabascaGrosmont Platform OutlineMap adapted from Buschkuehle & Grobe, circa 2000 and re-created frompage 48 of the Resource Study written for Oil Reserve Inc. entitled,“Grosmont Formation Athabasca, Alberta” dated June 30, 2011. Preparedby L. Kis, P. Eng., & L.J. Machula, P. Geol. of AJM Deloitte.16

Land - Athabasca• Carbonate zones include:– Grosmont– Nisku– Leduc• 621 Sections– 17.25 Townships– 397,440 Acres17

Geology - AthabascaGrosmont Isopach– Contour Interval 20mManagement’s estimates are based on publically availabledata and are not National Instrument 51-101 compliant. Forinternal use only.18

Geology - AthabascaGrosmont Gross Pay– 2012 Drill Locations– 2011 Drilled Locations:• 12-1 and 1-24-72-17W4Management’s estimates are based onpublically available data and are not NationalInstrument 51-101 compliant. For internal useonly.19

Geology - AthabascaWell Log – OIL RESERVE NIXON1-24-72-17W4– Grosmont Gross Pay: 77m– Thickness: 130mManagement’s estimates are based on publically available dataand are not National Instrument 51-101 compliant. For internaluse only.20

Geology - AthabascaCross Section - Grosmont Porosity (green highlights)– OIL RESERVE NIXON 1-24 (1 st well) plus surrounding wells.Management’s estimates are based on publically available data and arenot National Instrument 51-101 compliant. For internal use only.21

Geology - AthabascaCross Section - Grosmont Porosity (green highlights)– Laricina Saleski Pilot Wells with OIL RESERVE NIXON 1-24 (3 rd well).Management’s estimates are based on publically available data and arenot National Instrument 51-101 compliant. For internal use only.22

Geology – AthabascaMcMGrosmont23

Engineering – AthabascaSummary of Athabasca area resources on ORI LandsGrosmont FormationResource ClassLow Estimate Best Estimate High Estimate(Mstb) (Mstb) (Mstb)Prospective Resources 13,342.0 40,903.0 125,400.0Unrecoverable 3,053,069.0 7,757,850.0 19,709,044.0Total Undiscovered PIIP 3,066,411.0 7,798,753.0 19,834,444.0Table taken from page 2 of the Resource Study written for Oil Reserve Inc. entitled, “Grosmont Formation Athabasca, Alberta” datedFebruary 1, 2012. Prepared by L. Kis, P. Eng., & L. J. Machula P. Geol. of AJM Deloitte.24

Achievements and Goals• 2011 Achievements:– Identified significant heavy oil resource prospects in the Carbonate Triangle ofAlberta.– Raised 28 million capital.– Aggressively built land position on oil prospects.– Drilled 3 wells: 1 at Peace River and 2 at Athabasca.• 2012 Goals:– Financing– Begin second round of vertical and test hole (coring) drilling.– Update independent NI 51-101 resource study.– Liquidity event.– Additional drilling and SAGD pilot projects.25

Investment Highlights• Proven Management Team– Early investors of the management team’s previous companies have realizedsignificant capital gains.• Early Mover Advantage– This opportunity will disappear as the Grosmont continues to be technologicallyvalidated.• Compelling Valuation– The Company has acquired 918 sections (25.5 townships) of 100% owned landwith multiple heavy oil prospects, on the Carbonate trend.26

Purchaser’s RightsPURCHASER'S RIGHTSGeneralThis Presentation may be considered an "offering memorandum" within the meaning of applicable securities laws in certainjurisdictions. In such jurisdictions, purchasers are provided with two general types of rights both of which are more fully describedbelow: (1) Two Day Cancellation Right; and (2) Statutory Rights of Action in the Event of a Misrepresentation.AlbertaSecurities legislation in Alberta provides that when an offering memorandum is delivered to an investor to whom securities aredistributed in reliance upon the "minimum amount investment" prospectus exemption provided in Section 2.10 of NI 45-106 (the"Minimum Amount Exemption"), the right of action described below is applicable.If an offering memorandum contains a misrepresentation when a person purchases a security offered by the offering memorandum,the purchaser has, without regard to whether the purchaser relied on the misrepresentation, a right of action for damages againstthe issuer, every director of the issuer at the date of the offering memorandum and every person who signed the offeringmemorandum, or a right of rescission against the issuer. If the purchaser elects to exercise a right of rescission against the issuer,the purchaser has no right of action for damages.Where a misrepresentation is contained in an offering memorandum, no person or company is liable if the person or companyproves the purchaser had knowledge of the misrepresentation: The amount recoverable is limited to the price at which the securitieswere offered under the offering memorandum. The defendant is also not liable for damages that the defendant proves do notrepresent the depreciation in value of the security as a result of the misrepresentation.27

Purchaser’s RightsIn the case of an action for rescission, an action may not be commenced more than 180 days from the day of the transaction thatgave rise to the cause of action. In the case of an action for damages, an action may not be commenced more than the earlier of180 days from the day the plaintiff first had knowledge of the facts giving rise to the cause of action or three years from the day ofthe transaction giving rise to the cause of action.SaskatchewanResidents of Saskatchewan who purchase the Common Shares offered in connection with this Presentation have the followingrights:1. Two Day Cancellation Right – A purchaser may cancel the agreement to purchase Common Shares by sending theCompany written notice no later than midnight on the 2 nd business day following the date the agreement is signed.2. Statutory Rights of Action in the Event of a Misrepresentation – If there is a misrepresentation in the Presentation andCommon Shares offered in connection with it are purchased, the purchaser will be deemed to have relied on themisrepresentation, if it was a misrepresentation at the time of purchase, and the purchaser will have a right of action fordamages or rescission against the Company. A purchaser will also have a right of action for damages against:(a)(b)(c)every promoter and director of the Company at the time this Presentation or any amendment to it was sent ordelivered to the purchaser;every person or company whose consent has been filed with the Presentation or amendment to it but only withrespect to reports, opinions or statements that have been made by them;every person who or company that, in addition to those persons referenced in subparagraphs (a) and (b) above,signed the Presentation or any amendment to it; and28

Purchaser’s Rights(d)every person who or company that sells the Common Shares on behalf of the Company in connection with thisPresentation or any amendment to it.If a purchaser elects to exercise his or her right to cancel the agreement to purchase the Common Shares (rescission), thepurchaser will not have a right of action for damages against the Company or any other person named in paragraph 2 above.A purchaser intending to rely on the rights described above must do so within strict time limitations. An action to cancel theagreement (rescission) must be commenced within 180 days following the date the agreement is signed. An action for damagesmust be commenced within the earlier of:(a)(b)one year after the purchaser first had knowledge of the facts giving rise to the cause of action; andsix years after the date of the transaction that gave rise to the cause of action.In the case of an action for damages, the defendant will not be liable for all or any part of the damages that it proves does notrepresent a depreciation in value of the Common Shares as a result of the misrepresentation relied upon and in no case will theamount recoverable in any action exceed the price at which the Common Shares were offered to the purchaser in connection withthis Presentation.There are various defenses available to the persons or companies against which a purchaser has a right of action. In particular,there is a defense if a purchaser had knowledge of the misrepresentation when the securities were purchased.29

Purchaser’s RightsManitobaResidents of Manitoba who purchase Common Shares offered in connection with this Presentation have the following rights:1. Two Day Cancellation Right – A purchaser may cancel his or her agreement to purchase the Common Shares offered inconnection with this Presentation by sending the Company a notice no later than midnight on the 2 nd business dayfollowing the date the agreement to buy the Common Shares was signed.2. Contractual Rights of Action in the Event of a Misrepresentation – If there is a misrepresentation in this Presentation orany amendment to it and the Common Shares offered in connection with it are purchased, the purchaser is deemed tohave relied on the misrepresentation, if it was a misrepresentation at the time of purchase, and the purchaser has a rightof action for damages or rescission against the Company.If a purchaser elects to exercise his or her right to cancel his or her agreement to purchase the Common Shares (rescission), thepurchaser will not have a right of action for damages against the Company or any other person named in paragraph 2 above.In the case of an action for damages, the defendant will not be liable for all or any part of the damages that it proves does notrepresent a depreciation in value of the Common Shares as a result of the misrepresentation relied upon and in no case will theamount recoverable in any action exceed the price at which the Common Shares were offered to the purchaser in connection withthis Presentation.This right of action for misrepresentation is available to a purchaser without regard to whether a purchaser relied on themisrepresentation. However, it is a defense to the action if the purchaser had knowledge of the misrepresentation when he or shepurchased the Common Shares.30

Purchaser’s RightsA purchaser intending to rely on the rights described above must do so within strict time limitations. An action to cancel theagreement (rescission) must be commenced within 180 days after the agreement to purchase the Common Shares was signed. Anaction for damages must be commenced within the earlier of 180 days after learning of the misrepresentation and 3 years after theagreement to purchase the Common Shares is signed.OntarioResidents of Ontario who purchase Common Shares offered in connection with this Presentation have the following rights:1. Two Day Cancellation Right – A purchaser may cancel his or her agreement to purchase the Common Shares offered inconnection with this Presentation by sending the Company a notice no later than midnight on the 2 nd business dayfollowing the day the agreement to buy the Common Shares is signed.2. Rights in the Event of a Misrepresentation – In the event that this Presentation, together with any amendments heretodelivered to a purchaser before the issue of Common Shares to him or her, contains a misrepresentation and it was amisrepresentation at the time of purchase of the Common Shares, the purchaser will be deemed to have relied upon themisrepresentation and will, as provided below, have a right of action against the Company for damages or, while still theowner of the Common Shares, for rescission, in which case, if the purchaser elects to exercise the right of rescission, thepurchaser will have no right to an action for damages against the Company; provided that:(a)(b)the right of action for rescission or damages will be exercisable by the purchaser if he or she gives notice to theCompany that such purchaser is exercising this right, not later than 180 days after the date on which the initialpayment was made for the Common Shares;the Company will not be liable if it proves that the purchaser purchased the Common Shares with knowledge ofthe misrepresentation;31

Purchaser’s Rights(c)(d)in the case of an action for damages, the Company will not be liable for all or any portion of these damages thatit proves does not represent a depreciation in value of the Common Shares as a result of the misrepresentationrelied upon; andin no case will the amount recoverable in any action exceed the price at which the Common Shares were soldto the purchaser.Unless otherwise provided in the Securities Act (Ontario), an action to enforce a right created by the Securities Act (Ontario) or itsregulations must not be commenced more than:(a)(b)in the case of an action for rescission, 180 days after the date of the transaction that gave rise to the cause ofaction, orin the case of an action other than an action for rescission, the earlier of:(i)(ii)180 days after the purchaser first had knowledge of the facts giving rise to the cause of action, orthree years after the date of the transaction that gave rise to the cause of action.This statutory right to sue is available to a purchaser without regard to whether the purchaser relied on the misrepresentation.However, there are various defences available to the persons or companies that a purchaser has a right to sue. In particular, thereis a defence if the purchaser had knowledge of the misrepresentation when he or she purchased the securities.32

Purchaser’s RightsAdditional LimitationsThe rights mentioned above may not be available for a purchaser that is:(a)(b)(c)(d)(e)(f)a Canadian financial institution, meaning either:an association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative creditsociety for which an order has been made under section 473(1) of that Act; ora bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union,caisse populaire, financial services cooperative, or league that, in each case, is authorized by an enactment ofCanada or a province or territory of Canada to carry on business in Canada or a jurisdiction of Canada;a Schedule III bank, meaning an authorized foreign bank named in Schedule III of the Bank Act (Canada);the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act(Canada); ora subsidiary of any person referred to in the preceding paragraphs, if the person owns all of the voting securitiesof the subsidiary, except the voting securities required by law to be owned by the directors of the subsidiary.PURCHASERS MAY HAVE RIGHTS IN ADDITION TO THOSE DESCRIBED HEREIN. FOR FURTHER INFORMATION ABOUTSUCH RIGHTS, PURCHASERS SHOULD CONSULT A LAWYER.33

Directors/Contact InformationDirectors• Todd Montgomery• Frank van der Vliet (proposed)• Brent Walter, LLB• Mason Douglas, MBA, JD (proposed)Contact Information• Todd MontgomeryChairman and Chief Executive Officer– (403) 294-5713– rgodin@proventurelaw.com• Frank van der VlietVice President of Exploration– (403) 616-7954– frankv@oilreserveinc.ca34