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PACIFIC PARADYM ENERGY INC.Investor Presentation / Summer 2010
Taber Property
Pacific Paradym has earned a 25% working interest in a mature medium gravity oil property at Taber, in southern Alberta. The company spent $1.6 million to drill complete and tie in 2 wells. The Company now owns an interest in 13 oil wells and a production facility at Taber, from which it is currently producing 27o API oil from the Glauconite Formation at a total rate of approximately 70 barrels of oil per day (gross). The additional 2 new wells are expected to add significantly to this number and should be on production before end of October 2010.
Taber, AlbertaGlauconite Oil Pools, 3D Seismic Coverage
Taber Property
The following time slice at approximately Glauconite level shows the distribution of the oil pools underlying Pacific Paradym’s lands at Taber and the surrounding prospective features. The is 3D seismic coverage over the entire property.
TaberTime Slice at Approximately Glauconite Level
- Current production (gross) 70 barrels a day- Additional production (groos) anticipatedBetween 120 to 160 barrels / day on 2 new wells- Potential upside – drill 1 additional well beforeYear end.-Stimulation programs offset horizontal drillingpotential
Taber Property
The Glauconite reservoir is consistently clean and highly porous and permeable, with permeabilitiesin the 1,000’s of mD. Typical net oil pays range from 2.0-5.0 metres, as illustrated in the logs fromthe well Pacific ParadymTaber 02/12-24-010-16W4/0 (RR 1994-06-01).
The 02/12-24 well encountered an oil water contact at a structurally higher elevation than the rest of the wells in the Taber area, suggesting that there is a stratigraphic or structural break in the reservoir near the 02/12-24 well. This sets up the possibility of drilling further development wells in this area.
Glamis Taber 02/12-24-010-16W4/0Glauconite Formation
Pacific Paradym’s wells at Taber have a long reserve life and have been producing medium gravity oil at a steady rate for several years, as illustrated on the following group production plot.
Taber Property
Tertiary Recovery Potential
The Glauconite pools which Pacific Paradym is currently producing from at Taber are candidates for a tertiary flood scheme such as the Alkaline/Surfactant/Polymer (“ASP”) chemical flood that has been contemplated for the Little Bow property of Masters Energy Inc. (now Zargon Energy Trust). It is believed that the reservoir at Taber is similar in character to the reservoir at Little Bow. The Little Bow property, discovered in 1974, went under waterflood in 1983. Estimated recovery to date is approximately 33%, and ultimate waterflood recovery is estimated to be 41%. With an ASP flood, it is estimated that the ultimate recovery could be increased to 53%-66%.
Another analogous pool currently under ASP flood is Husky’s Taber South (Warner) Pool. Total pool production of 300 bbl/d prior to implementation of an ASP flood in 2006 was increased to over 1,600 bbl/d. Oil cuts in the producing wells increased from 1.7% to 8.0% under the ASP flood.
South of Pacific Paradym’s lands, an ASP flood was initiated in the Taber Glauconite “K” Pool in 2007.
This is a longer term program.
Taber Property
Field Operations
All of Pacific Paradym’s wells at Taber are connected by flow line to a central battery, which is located at 03-24-010-16W4. There are three satellites (at 07-14, 15-14 and 05-24) but no test separators are utilized on this 100% property, so production volumes and charges are for the most part booked to the battery. Pacific Paradym’s battery is located on a L.A.C.T. meter, so sales oil flows directly into Inter Pipeline’s Bow River South Area Pipeline System.
Taber Field Photos
Taber Property
Officers & Directors
Harry Chew, CGA, BBA President/CFO & DirectorD. Paul Andrews DirectorTrent Hunter, P. Eng. MBA DirectorSonny Chew, BA CEO/Corporate Secretary & Director
Notables
• Pacific Paradym has earned a 25% interest in the Taber project from Strategic Oil & Gas by spending $1.6 million on drilling 2 new wells.
• 2 new wells have been drilled and anticipated to be on production by end of October 2010.
•1 new well to be drilled before year end.
•ASP flood program anticipated
•Horizontal drilling option available
•Gross production by year end anticipated to be approx. 300 bopd (net 75 bopd)
• All monies beyond $1.6 million will be spent 75 / 25 by Strategic / Pacific Paradym respectively
Share Capital
Current Share Capital of Pacific Paradym Energy Inc. as @ September 2010 is 60,962,698.
The dilutables are as follows:
Warrants: 6,000,000 @ $0.10 wts. Expire December 19, 2010 (balance: 5,570,000) 5,570,000 $ 557,000
2,200,000 @ $0.10 wts. Expire December 19, 2010 2,200,000 220,000
5,000,000 @ $0.10 wts. Expire February 3, 2012 5,000,000 500,000
15,089,333 @ $0.15 wts. Expire July 26, 2012 27,859,333 $ 3,540,400
Options: Options granted February 15, 2008 1,000,000 $ 100,000
Options granted February 3, 2009 2,000,000 $ 200,000
Options granted April 6, 2010 1,000,000 $ 130,000
4,000,000 $ 430,000
Summary of Reserves and Value
25% Working Interest forPacific Paradym
NPV 10% - $2.1 million (P+P)
August 2010