strata-x energy 2015 september- good oil conference

› Key Management in Denver head office› Low Cost / High Margin light Oil› Multiple Price Catalysts› New Technology on Proven Fields › 100% Strata-X Owned› Potentially Explosive Growth

THE NEXT WAVE IN THE ILLINOIS BASIN

Tim [email protected]

TSX.V: SXEASX: SXA

Themes

Strata-X Energy Ltd. TSX:SXE ASX:SXA2

Strata-X Energy is a TSX.V / ASX dual listed company

Major Shareholders

TSX.V Shares: 57,238,623

ASX Listed CDIs: 109,657,604

Total Shares: 166,895,227

Incentive Options: 6,570,000

Market Cap: (Assumes AUD$0.07/share) AUD$10 million

Cash Position: AUD$1.6 million

52 week High: AUD$0.36

52 week Low: AUD$0.06

Current: AUD$0.06

Ron PrefontaineChairman

10%

Tim HoopsManaging Director

JP Morgan Resource Fund

7%

9%

Production: 75 bopd

Reserves:Resources:

1.37 mmbbl (2P)1

113 mmbbl Prospective Resource2

ASX disclosure note - 5.28.2 - The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

1) Petroleum Reserve figures are from a report prepared by Chapman Petroleum Engineers Ltd (1 April 2015) following analysis of the available technical data including the geological and geophysical interpretation presented to them by Strata-X, information from relevant nearby wells or analogous reservoirs and the proposed program for the project. Information originally appeared in the news release by the Company dated 6 April 2015 (DS-3). Include Petroleum Reserves state in the Company's FYE 2014 Petroleum Reserves Report. See Disclaimer at the end of this presentation.2) Prospective Resources figures are from reports prepared by Chapman Petroleum Engineers Ltd (May 2014) and AWT (Strata-X prospectus 2013) following analysis of the available technical data including the geological and geophysical interpretation presented to them by Strata-X, information from relevant nearby wells or analogous reservoirs and the proposed program for the project. (DS-1, 2) See Disclaimer at the end of this presentation.


Key Management with operations capability

› Colorado School of Mines: BSc. in Geol. Engineering

› U of Colorado: MSc. In Global Energy Management

› 36 years petroleum industry experience, 20+ years director of ASX listed company

Tim HoopsManaging Director/President

› 34 years experience with Amoco, EnCana and others

› MS and PhD in Geology from Colorado School of Mines

› Registered Petroleum Landman

› BBA in Banking and Financial Economics from University of North Dakota

Dr. Ira PasternackVP of Exploitation

David HettichCFO/VP of Land


Why is Strata-X in the Illinois Basin?

Significant light oil resources remain and can be exploited profitably

› 4.3 Billion barrels recovered to date

› Most oil produced at sub $2 per barrel so higher threshold flow rates were required

› Most wells drilled over 50 years ago using inadequate drilling and completion methods

› Only 20% PIIP typically recovered from primary methods

› Royalties only 15% with low production and transportation costs

› Strata-X is using new technology to:

“Develop a large conventional resource play and enhance recovery of ‘by-passed pay’ oil fields”

(1) ISGS accessed 2/20/14 www.isgs.Illinois.eduPhotos from: (R) Library of Congress: Farm Security Administration and

(L) Illinois State Geological Survey


Illinois Basin Key Attributes

› Cherry picked 100% of ~40,000 net acres

› Immediate multi-well program targets additional low risk “By-Passed Pay” oil field discoveries which can be developed profitability at oil prices as low as $25/bbl1

› Existing infrastructure – 30 days discovery to production

› Low Cost – Shallow – Turnkey drilling

› New technology applied to known oil fields

› Comprehensive technical and land databases

Low Cost High Margin Low Risk

Strata-X focus area

Map Ref: USGS

1. Type Well economics figures are from reports prepared by Chapman Petroleum Engineers Ltd (October 2, 2014) following analysis of the available technical data including the geological and geophysical interpretation presented to them by Strata-X, information from relevant nearby wells or analogous reservoirs and the proposed program for the project. This information originally appeared in a Company News Release dated 2 October 2014. (DS-4) See Disclaimer at the end of this presentation.


Strata-X Targeting multiple light oil Plays

› Lingle Formation

• 500 square mile stratigraphicallytrapped accumulation

• > 1 billion barrels PIIPDD

• First ‘Proof of concept’ lateral completion reached 300 bopd

• Next lateral appraisal with improved completion method should do much better

Multiple Targets

› Middle Miss

• Vertical drilling approach

• Large stratigraphically trapped accumulations

• Total size??

• To be appraised while drilling to Lingle

› Aux Vases Formation

• ‘bypassed pay’ oil fields

• Nil or primary historical oil recoveries

• Vertical water/polymer floods

• First well proves 1.2 mm bbls

• 12 similar projects identified

Aux Vases Fm.Over 400 MMBLS produced.Discrete near shore sand barrier/bars that need pressure maintenance

Middle MissCan expand pay portfolio by

completing tighter rock than

had been previously

attempted

Lingle Fm.Large regional light oil

accumulation


Low risk ‘bypassed pay’ Oil fields – Water/polymer Flood Projects

› More than 10,000 wells have been drilled in the prospect area, most 50+ years ago using primitive techniques

› ~1.5 billion barrels have been produced in the immediate area.

› Many accumulations were either never produced or only primary production due to prevailing sub $2/bbl oil prices

› Primary target is light oil filled Aux Vases –discrete near shore sandstones

› Requires pressure support for higher oil recovery of 40% to 60%

› Strata-X’s First Attempt is successful• 1.28 mmbbl 2P Reserves net to Strata-X1

• Anticipate 600 bopd peak waterflood production1

• $53.4 mm NPV (10% disc, before tax)1

• 12 additional follow-up projects identified with comparable attributes

New Techniques New Technologies New Production

1) DS-3 (See Disclaimer at the end of this presentation)

Aux Vases Producing Fairway – 400 million barrels

Strata-X Acreage Area


5-98 BOPD

OCM

368 MBO

4-28 BOPD

Gas

236 MBO

Numerous O, G & OCM

16-70 BOPD

60-199 BOPD

G & OCM

G & OCM

OCM

First 7 stage stimulated ‘Proof of concept’ wellreached over 300 bopd

First appraisal well:15 stage stimulated

horizontal well,8 mile step out

The Lingle is a Large Light oil Resource

› Established Large Oil Accumulation

• Over 100 historical wells define the field

• >1 billion bbl PIIP 1

• 236 mmbbls PIIP net to Strata-X acreage 1

• 23.6 mmbbls Prospective Resource recoverable net

The Upside Case is Compelling: Concept Proved, Optimization Underway

› First ‘proof of concept’ reaches over 300 bopd

› Confirmed commercial oil recoveries

› Drilling techniques employed were successful

Initial Proof of Concept - Completed

› Expect better results from first appraisal well

• Longer lateral, thicker reservoir, higher pressure

› Large step out from initial well (~8 miles)

› Will allow for reclassification of reserves

First appraisal well – August 2015

› Continuous Drilling Program

• Certification of Reserves

• Costs efficiencies

Development and Exploitation

1) DS-1, DS-2 (See Disclaimer at the end of this presentation)

Appraisal

Proof of concept

Approx. 6 mi


Improved Flows Rates Expected from First Appraisal Well

› Drill and Case < $2 million

› Perf and Plug vs Sliding Sleeve

› Frac vs Acid Wash

Higher Reservoir Pressure should yield much better flow rates


Strata-X de-risking it’s 100% owned Illinois Basin Projects

We Expect to Deliver Reserves Growth and Production

Blue Spruce Red Oak Maple

› First well – Success

› 2P – 1.2mmbbls discovered2

› Next drilling beginning June 2015

› 2nd ‘bypassed oil pay’ test

› Aimed result to discover 3 mmbbl3

› 3rd ‘bypassed oil pay’ test

› Aimed result to discover 1.6 mmbbl3

Aux Vases – “By-Passed Pay” Oil Fields

Burkett 5-34HOR Current Raccoon Creek Lateral

› First ‘proof of concept’ horizontal test reached over 300 bopd

› Expect better results from Raccoon Creek appraisal well

› Drill vertical Raccoon Creek pilot hole prove oil and to determine reservoir and pressure data in 8 mile step out

› 2x lateral, 2x stages, much better completion method than Burkett 5-34 HOR

› Expect improved results

Lingle Oil Field – 23.6 mmbbls net accumulation1

1) DS-1, DS-2 (See Disclaimer at the end of this presentation)2) DS-3 (See Disclaimer at the end of this presentation)3) Figures are Company generated guidance only and do not represent Reserves or Resources.


What Strata-X has Achieved

› Significant Ground Positions – Strategic 100% of 40,000 net acres

› Land and technical first mover advantages

› Confirmed first “By-Passed Pay” Oil Field

• 1.2 mmbbl net oil1

• 12 additional follow-up projects with comparable attributes

• Water/polymer floods to enhance production

› Confirmed first Horizontal Success

• Significantly de-risked project

• 300 bopd Initial Production

• Better completion method on appraisal well

• Prospective Resources to be proven ~ 23.6 mmbbl (net recoverable)2

› Basis for the future

• Resources to increase

• Production to increase

Concept Proved: Reserves to Increase and Production to Follow

Workover Rig on Burkett 5-34HOR

1) DS-3 (See Disclaimer at the end of this presentation)2) DS-1, DS-2 (See Disclaimer at the end of this presentation)


Illinois Basin – Elements for Success in Place

› Proven Leadership and Management Team

› Large land base to develop with multiple light oil targets

› Multiple Light Oil Targets

• Low Risk “By-Passed Pay” oil fields – 12 similar projects identified - each aiming to result in 1+ million bbls net2 discoveries, water/polymer floods could double this

• Large resource with Lingle Oil Field Project - 236 million barrels Prospective Resource PIIP net1 in Illinois Basin

• Applying new methods in old areas to optimise field developments

• Fast payback – even at current oil prices

› Performance to date• Established large land holding

• First mover advantages - significant technical and land database

• Commercial oil found on each test to date

Elements in Place for Success

In Summary, a Great, Well Leveraged Opportunity

1) DS-1, DS-2 (See Disclaimer at the end of this presentation)2) Figures are Company generated guidance only and do not represent Reserves or Resources.


Forward Looking Statements

These factors are not, and should not be construed as being, exhaustive. In addition, information relating to "reserves" or " resources" is deemed to be forward-lookinginformation, as it involves an implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in thefuture. The forward-looking information contained in this presentation are expressly qualified by this cautionary statement. The Company does not undertake any obligation topublicly update or revise any forward-looking information after the date of this presentation to conform such information to actual results or to changes in the Company’sexpectations except as otherwise required by applicable Canadian securities legislation.

Certain information contained in this presentation constitutes “forward-looking information” within the meaning of applicable Canadian securities legislation. The use of any ofthe words "anticipate", "continue", "estimate", “intend”, “potential”, "expect", "may", "will", "project", “proposed”, "should", "believe" and similar expressions are intended toidentify forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors thatmay cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this presentation may contain forward-lookinginformation attributed to third party industry sources. The Company believes that the expectations reflected in such forward-looking information are reasonable but noassurance can be given that these expectations will prove to be correct and such forward-looking information included in this presentation should not be unduly relied upon.Such information speaks only as of the date of this presentation or such other date indicated herein.

• expectations regarding growth of the Company;• the timing and location of drilling or other operational activities;• oil and natural gas production estimates and targets;• oil and natural gas production levels and sources of their growth;• estimates of resource potential of targets, including without limitation, statements

regarding BOE/d production capabilities;• quantity of reserves and resources relating to the Company and its assets and its

value;• capital expenditure programs and estimates relating to timing, cost and cash flow

generation related to these programs;

• size of the Company’s oil and natural gas reserves and resources;• the performance characteristics of the Company’s oil and natural gas properties;• projections of market prices for oil and natural gas and exploration, development

and production costs;• supply and demand for oil and natural gas;• expectations regarding the ability to raise capital and continually add to reserves

through exploration and development and, if applicable, acquisitions;• treatment under governmental regulatory regimes and tax laws, and;• the use of financing funds by the Company.

• timing and ability of the Company to obtain all necessary environmental andregulatory approvals relating to operations;

• the recoverability of the Company’s oil and natural gas reserves and resources;• interest rates;• exchange rates and the futures prices of oil and natural gas;• operating and capital costs;

• the Company’s ability to generate sufficient cash flow from operations and toaccess capital markets to meet its future obligations;

• the Company’s ability to attract and retain qualified personnel;• the ability of the Company to successfully market its oil and natural gas products

and the continuing strong demand for oil and natural gas; and• stability of general economic and financial market conditions;

With respect to forward-looking information contained in this presentation, the Company has made assumptions regarding, among other things:

In particular, this presentation contains forward-looking information pertaining to the following:

• volatility in market prices for oil and natural gas;• liabilities inherent in oil and natural gas operations;• uncertainties associated with estimating oil and natural gas reserves and resources;• risks and uncertainties associated with the Company's oil and natural gas and

development program;• competition for, among other things, capital, acquisitions of reserves, undeveloped

lands and skilled personnel;• incorrect assessments of the value of acquisitions and exploration and development

programs;• adverse claims made in respect of the Company’s properties or assets;• failure to engage or retain key personnel;• geological, technical, drilling and processing problems, including the availability of

equipment and access to properties;• risks and uncertainties relating to hydraulic fracturing and the enactment of, or

changes to, regulations and legislation in relation to hydraulic fracturing;

• imprecision in estimating capital expenditures and operating expenses;• the expiry of leases and the loss of drilling prospect due to the expiry of leases;• fluctuations in foreign exchange interest rates and stock market volatility;• general economic and business conditions in North America and elsewhere;• environmental risks and hazards;• risks inherent in the exploration, development and production of oil and natural gas

which may create liabilities to the Company in excess of the Company’s insurancecoverage, if any;

• uncertainties associated with changes in legislation including, but not limited to,changes in income tax laws and to oil and natural gas royalty frameworks;

• ability to obtain regulatory approvals;• risks and uncertainties associated with liquidity and capital resources and

requirements; and• other factors referenced at “Risk Factors’ in the Company’s prospectus.

The Company's actual results could differ materially from those anticipated in such forward-looking information as a result of the risk factors set forth below and in theCompany’s annual information form dated September 25, 2014:


Disclaimers and Definitions

1P = Proven Reserves

2P = Proven + Probable Reserves

bbl = Barrels

mmbbl = Million Barrels

bopd = Barrels of Oil per Day

PIIP = Petroleum Initially In Place

NPV = Net Present Value

Waterflood = water is injected into the reservoir, usually to increase pressure and thereby stimulate production

Proven Reserves = reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being recoverable under existing economic conditions, with existing technology

Probable Reserves = reserves which are estimated to have a better than 50% chance of being technically and economically producible

DS-1 The information in this Presentation that relates to Prospective Resources that was originally prepared and published by AWT International dated 18 December 2012. The information was published in Strata-X Energy Ltd’s “Prospectus 2013” (available online at www.strata-x.com), as part of the Companies 2013 Australia Securities Exchange Initial Public Offering. It is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of Doug Barrenger (“JORC Competent Person”) employed by AWT International and is independent of Strata-X Energy Ltd. At the time of the Prospectus 2013 issuance Doug Barrenger was an employee of AWT International and a member of the Petroleum Exploration Society of Australia (PESA) amongst other professional petroleum organizations. AWT International consented to the inclusion of the information as it originally appeared. As of the issuance of this document Strata-X Energy Ltd management is not aware of any material information that would change the results of the AWT International report as published in the Prospectus 2013. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated using the deterministic method. The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. Figures stated were pro-rated as of 31 May 2015 to the Company’s current leasehold/tenement interest.

DS-2 The information in this Presentation that relates to Prospective Resources that was originally prepared and published by Chapman Petroleum Engineers Ltd. and dated 21 March 2014 and published on Strata-X Energy Ltd’s website in a News Release dated 24 March 2014 to meet the Company’s ongoing disclosure requirements (available online at www.strata-x.com). It is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of Charles Moore, employed by Chapman Petroleum Engineers Ltd. and is independent of Strata-X Energy Ltd. At the time of the Chapman Petroleum Engineers Ltd. report dated 21 March 2014, Charles Moore was an employee of Chapman Petroleum Engineers Ltd. and a registered Professional Engineer in the Province of Alberta, Canada amongst other professional petroleum organizations. Chapman Petroleum Engineers Ltd. and Charles Moore consented to the inclusion of the information as it originally appeared. As of the issuance of this document, Strata-X Energy Ltd management is not aware of any material information that would change the results of the Chapman Petroleum Engineers Ltd. report as published in the this presentation. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated using the deterministic method. Figures stated were pro-rated as of 31 May 2015 to the Company’s current leasehold/tenement interest.

DS-3 The information in this Presentation that relates to Reserves Report that was originally prepared and published by Chapman Petroleum Engineers Ltd. and dated 1 April 2015 and published on Strata-X Energy Ltd’s website in a News Release dated 6 April 2015 to meet the Company’s ongoing disclosure requirements (available online at www.strata-x.com). It is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of Charles Moore, employed by Chapman Petroleum Engineers Ltd. and is independent of Strata-X Energy Ltd. At the time of the Chapman Petroleum Engineers Ltd. report dated 1 April 2015, Charles Moore was an employee of Chapman Petroleum Engineers Ltd. and a registered Professional Engineer in the Province of Alberta, Canada amongst other professional petroleum organizations. Chapman Petroleum Engineers Ltd. and Charles Moore consented to the inclusion of the information as it originally appeared. As of the issuance of this document, Strata-X Energy Ltd management is not aware of any material information that would change the results of the Chapman Petroleum Engineers Ltd. report as published in the this presentation. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated using the deterministic method. Figures stated were pro-rated to the Company’s current leasehold/tenement interest.

DS-4 Prospective Resource information cited in this Presentation for the vertical well economics are Prospective Resources, per an independent third party report effective 2 October 2014 (“Report”) from Chapman Petroleum Engineering Ltd. (“Chapman”) who's author, Charles Moore, a registered Professional Engineer in the Province of Alberta, Canada, consented to the inclusion of the information as it originally appeared and information relating to the Prospective Resource is based on, and fairly represents, information and supporting documentation prepared by Strata-X and reviewed by Charles Moore. There is no certainty that stated resources will be commercially viable to produce any portion of the resources. The Report reviewed only Prospective Resources as the project is not sufficiently developed to assign Contingent Resources or additional Petroleum Reserves to it. Figures shown reflect Strata-X’s economic interest (US Dollars) net of royalty or other burdens and were generated, using the deterministic method. Forecasted figures were derived using forward commodity strip pricing, regional drilling, completion and production expenditures and applicable production taxes. Strata-X is the title holder of the tenement/leases held covering the Copper Mountain Oil Project which were subject to the Report.

strata-x energy 2015 september- good oil conference

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