Україна Донбас вугільного басейну

Болгарія Карпатського басейну Балканський

Georgian Basin

Executive summary October 2012

Iskander Energy is a Canadian energy company focused on exploration and development of three distinct assets in Ukraine, in addition to exploring and developing sizeable blocks in Bulgaria and Poland. Our Company is set to benefit from European natural gas pricing which is approximately 5 times the North American price. Each of these countries is heavily dependent on costly energy imports, and each country has substantial incentive to develop indigenous sources of energy in order to enhance energy security and promote economic development with its attendant benefits. These broad economics, coupled with bringing Canadian know-how and technology to a region that is twenty years behind in oil and gas operational practices, is really the core of the opportunity in Eastern Europe. Iskander, with its large land package and world class operations and technical team, is poised to exploit this opportunity.

Ukraine

Iskander has assembled 3 large blocks with our net position of over 1200 sq km (300,000 acres). Iskander is focusing its efforts on shallow (700m-2000m) coal bed methane (CBM) and associated sands to produce natural gas. Ukraine, which has the highest energy intensity use in Europe, is also one of the largest importers of energy. Government policy is focused on reducing energy reliance on Russia, and especially reducing its very substantial energy import costs. Iskander will also benefit from the well-developed pipeline infrastructure in the immediate vicinity of our three license areas.

We expect to complete our first well (to a depth of 1,650m) this month.  Initially, three wells are planned for this year. Following our drilling, we plan to complete and test these three new wells with fracing up to five zones in each of the wells. We are licensing further wells, so if the wells perform as we expect, we can continue our drilling program.

Shell and the Ukrainian government recently announced that Shell won a tender for the Yuzovsky block in Eastern Ukraine. Shell announced that it is targeting Middle Carboniferous tight sands, similar to those found on Iskander’s blocks. Shell is making a $200 million investment based on the belief that these sands are regionally pervasive. Iskander’s blocks are right in the middle of this promising new development frontier.

Bulgaria

Iskander is focusing on conventional assets in the Balkan Basin (South Carpathians). Iskander holds rights to a net 1,430 sq km (350,000 acres) block. The asset has over 60 wells drilled with core and logs available with multiple wells testing 1+ mmcf/day. With pipelines running east-west to the north and south of the property, Iskander will have the ability to put on production from this concession quickly.

The potentially gas bearing shale formation is very thick on our block. We are in discussions with two senior international companies on farming into our shale gas opportunity; in the meantime, we continue to focus on the exploitation of conventional oil and gas potential.

In January 2012, the Bulgarian government implemented a fracing moratorium. A parliamentary committee was established to review the situation and to recommend further steps. The ban on fracing for conventional reservoirs is expected to be eased by early next year and we are hopeful that by mid next year they will also remove the ban on shale gas stimulation, once they have put in place regulations to properly regulate fracing.
In view of the fracing moratorium, we are reprocessing all the existing seismic data over our block in order to evaluate and focus our efforts to develop oil and gas in the most promising areas. We expect to complete the technical evaluation on all of the existing wells and newly interpreted seismic data before the end of this year .

Poland

Iskander has a 24% interest in the Bieszczady block which comprises 3,520 sq km (870,000 acres) in the historically very successful Carpathian oil and gas fairway. Our interest includes that of Eurogas which has ceded control to us. The Polish national energy exploration and development company PGNiG has a 51% operating interest in this block, while Aurelian owns 25%.

An exploration well has been drilled and additional analysis of the block is currently underway.  
Executive is also actively exploring the possibility of selling our 24% interest.

Capital Raising

To date, our Company has raised approximately $45 million. Executive is organizing a consortium of leading Canadian banks and investment companies to lead a brokered pre-IPO raise of $20 million prior to the end of this year. We plan to be ready to IPO on the TSE early in 2013, subject to the market conditions.

Created @ www.weballion.com. All rights reserved.