Peter’s & Co. Oil and Gas Conference – SEPTEMBER 2005

A Platform for Growth

Overview

TSX symbol: BVI Average daily trading volume (2005): 346,000 Market capitalization: $950 million Shares outstanding:

Basic – 94.9 million Fully diluted – 101.1 million Management / Directors

Basic – 16% Fully diluted – 20%

Strategy

Focus on Canadian Oilsands Growth through the drillbit Maintain a healthy balance sheet

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

5

10

15

20

25

30

35

History of Growth – Production

00 01 02 03 04 00 01 02 03 04

12.4

21.118.7

20.4

26.1

1,828

3,1263,414

4,080

5,795

Production (bbl/day) Production per Share(bbl/1,000 shares)

Average growth rate of 26%/year

Average growth rate of 16%/year

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0

5

10

15

20

25

30

History of Growth – Cash Flow

00 01 02 03 04 00 01 02 03 04

0.10 0.10

0.18 0.19

0.32

5.2 5.6

12.314.1

25.6

Cash Flow ($ millions) Cash Flow per Share ($/share)

Average growth rate of 38%/year

Average growth rate of 26%/year

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

History of Growth – Share Price

00 01 02 03 04

0.93 0.99

2.36

4.15

7.35

Average increase of 53%/year

share price

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

Finding and Development Costs (Proved + Probable)

BVI Industry* BVI Industry*

$4.03

$17.25

$4.65

$11.06

1 year 3 year

Top Quartile Performance

*Source: First Energy Capital Corp. Study for 2004

Recycle Ratio

*Source: First Energy Capital Corp. Study for 2004

BVI Industry* BVI Industry*

3.4

1.2

2.8

1.3

1 year 3 year avg Recycle Ratios Comparable to Gas and Light Oil

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

A Platform for Growth – Production

03 04 05 (E) 07 (E) 09 (E)

bbl/day

Hilda Lake (Orion)SealLloydminster

Over the next five years production is expected to increase from 10,000 bbl/day to 40,000 bbl/day from existing

inventory of projects

Core Oilsands Areas

LLOYDMINSTER

HILDA LAKE (ORION)

SEAL

20,000 bopd potential

20,000 bopd potential

3,000 bopd potential

ALBERTA SASKATCHEWAN

CHIPMUNKNew Area

Peace River Oilsands – Seal

Summary Located in the Peace

River Oilsands 80,000 net acres 9° - 13° API oil High rate horizontal wells

(125 - 350 bbl/day) Established infrastructure

23,000 bbl/day battery 58,000 bbl/day pipeline

50% - 100% WI

PEACE RIVER NORTH

PEACE RIVER

CADOTTE

NORTHERN

CENTRAL

WESTERN

EASTERN

R17

T85

T84

T83

T82

R16 R15 R14W5

Seal – Operating Characteristics

Operating in an oilsands region No steam required No mining

1% royalty until payout Low operating costs

2004 - $5.58/bbl No sand production

F&D costs - approx. $4.00/bbl

0

5

10

15

20

25

30

35

Seal – Exposure to a Large Resource Base

8

14

20

30+

% recovery

800 million barrels of oilHow much of this oil

is recoverable is a key factor in determining the value of the Seal property

Sproule(initial

production)

Sproule(with prod.

history)

LabStudies

WaterfloodPotential

Central Block (76 wells)

Eastern Block (45-50 wells)

Peace River Block (50-80 wells)

Cadotte Block (25-40 wells)

Northern Block (25-40 wells)

Waterflood Potential

2003 2004 2005 2006 2007 2008 2009

Seal – Development Timetable

Cold Lake Oilsands – Orion SAGD

CALGARY

ALBERTA

Summary Located in the Cold Lake

Oilsands Large resource base

Internal estimate of 190 million recoverable barrels

20,000 bbl/day project 25 year life

Established infrastructure 4 heavy oil pipelines

nearby 100% owned

EDMONTON

CNRL(40,000 bbl/day)

Imperial Oil(150,000 bbl/day)

Husky Tucker Lake(30,000 bbl/day)

BlackRockOrion SAGD at Hilda Lake

Orion SAGD – Per Barrel Economics

Operating marginRoyaltiesNatural gas costsOperating costsCapital costs

Wellhead $21.50/bbl

$6.80

Wellhead $39.50/bbl

$2.40

$7.05

$2.75$2.50

$16.78

$5.74

$11.73

$2.75$2.50

Base Case Current Price Environment

Orion SAGD – Commercial Project

Base Case Economics 21% after tax IRR Payout in six years

(Phase 1 and Phase 2) In excess of $1 billion in free BT

cash flowAssumptions: WTI US$30/bbl Differential US$7/bbl Gas price $6/mcf Fx – 0.80 In the current price environment, the

project generates an IRR of 40% and > $3 billion in BT cash flow

WTI ± $1.00 US/bbl

Differential ± $1.00 US/bbl

Gas prices ± $1.00 Cdn/mcf

Capital costs ± 20%

Diluent prices ± $1.00 US/bbl

US / Cdn exchange rate ± $0.01

Steam / oil ratio ± 10%

-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0%

Orion SAGD – Key Economic Drivers

+2.21-1.75

+3.05-2.7

+1.9-1.45

+1.49-1.16

+.9-.9

+.55-.55

+1.2-1.3

Change in IRR (%)

Detailed engineering

B of D approval

Facility construction begins

Drilling / completing wells

Steaming / production begins

Q1 Q2 Q3 Q4

2005 2006 2007

Orion SAGD – Development Timetable

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

New Discovery – Chipmunk(Peace River Oilsands)

Characteristics Located 15 miles from our Seal property 3 successful wells - 960 bbl/day 65,000 gross acres of land acquired 78 reef-like structures identified 55% working interest Talisman Energy is our partner 2005 Activities

$2.5 mm 3D seismic program Test up to 5 reef structuresEASTERN

2005 3D Program

Core Area – Lloydminster

Established heavy oil area 2,000 - 3,000 bbl/day potential 20 wells planned in 2005 Allocate $5 - $10 million of

our capital budget per year for this area

Current Financial Position

Working capital $128 mm Long-term debt – Hedged production none

Financial Philosophies Maintain a strong balance sheet

Minimize the use of debt Maintain exposure to oil prices

Do not hedge production

Capital Requirements / Funding

Use of Capital Expenditure program

over next two years (06-07) $350 - $400 mm

Potential Sources of Capital Existing working capital $128 mm Other sources:

Cash flow from operations $150 - $200 mm Debt $50 - $100 mm Sale of non-core assets $40 - $100 mm Equity

Indicative Heavy Oil Pricing5 yr Average 1st H 2005 Current

WTI $30.92 $51.52 $65.00Lloyd heavy oil differential (9.53) (20.40) (19.00)

$21.39 $31.12 $46.00Converted to Cdn$ $30.07 $37.47 $54.42Diluent costs (6.83) (15.15) (14.78)Transportation (2.00) (2.00) (2.00)Wellhead price (Cdn$) $21.24 $20.32 $37.64% of WTI 47% 32% 48%

Heavy oil differentials and diluent costs are key determinants in realized well-head pricesGenerally, Seal / Orion prices average 45-50% of WTI prices

Differentials / Diluent Prices

2005 effected by wide heavy oil differentials and high diluent costs

0.90 1.56

(0.16)

0.371.607.04

9.67

5.897.79

12.50

Heavy Oil Differential (last 5 years) Diluent Premiums (last 5 years)

18.91

00 01 02 03 04 05YTD 00 01 02 03 04 05YTD

8.62

-2

0

2

4

6

8

10

12

14

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5

10

15

20

Area $ MMSeal 55Orion 20Lloydminster 10Chipmunk 5Other 5Total 95

2005 Activities

Year-end production target of 14,000 bbl/day, 40% increase from 2004

Capital budget recently increased to $95 million

In Summary – A Platform for Growth

Opportunities Seal

Higher recovery rates Waterflood potential Additional discoveries

Chipmunk More Chipmunks

Risks Oil prices Execution (people) Money (financial planning)

This presentation contains forward-looking statements that may be identified by words like “forecast”, “estimated”, “expected” “plans”, “potential”, “targeting” or similar expressions. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in BlackRock’s plans, changes in commodity prices, regulatory changes, general economic, market and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations.

Forward-Looking Statements