Redcliffe Stallion

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Redcliffe Stallion
Dynamics of Amalgamation TSE-V REL.A /
REL.B www.redcliffe.ca
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Presentation Guidelines

• This Corporate Presentation may include
  forward-looking statements including opinions,
  assumptions, estimates and expectations of future
  production, cash flow and earnings. When used in
  this document, the words "anticipate," "believe,"
  "estimate," "expect," forecast, "intent,"
  "may," "project," "plan", potential, "should"
  and similar expressions are intended to be among
  the statements that identify forward-looking
  statements. Forward-looking statements are
  subject to a wide range of risks and
  uncertainties, and although the Company believes
  that the expectations represented by such
  forward-looking statements are reasonable, there
  can be no assurance that such expectations will
  be realized. Any number of important factors
  could cause actual results to differ materially
  from those in the forward-looking statements
  including, but not limited to, the volatility of
  oil and gas prices, the ability to implement
  corporate strategies, the state of domestic
  capital markets, the ability to obtain financing,
  changes in oil and gas acquisition and drilling
  programs, operating risks, production rates,
  reserve estimates, changes in general economic
  conditions and other factors.

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Presentation Program

• Redcliffe Exploration Ltd.
• Formation
• Drilling Activity
• Stallion Energy Ltd. Acquisition
• Deal terms
• Metrics
• Properties
• Redcliffe Exploration Inc.
• Pro-Forma
• Growth Drivers

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Corporate Transactions
Redcliffe Exploration

Stallion Energy
Redcliffe Exploration Inc.
February 28/07
Redcliffe Energy (Private)
May, 2007
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Redcliffe Exploration Ltd.

• TSE V Listed
• A Shares REL.A 1.40/share
• B Shares REL.B 3.40/share
• IPO Listed Sept. 12, 2006
• Cash Assets YE 2006 - 9.0 million
• Redcliffe Energy Joint Venture
• Drilling 2006 13/15, 11 Gas, 2 Oil
• Announced Acquisition of Stallion Energy Ltd.
  November 21, 2006
• Includes 2 re-entries

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Management

• Daryl H. Connolly President CEO
• George Gramatke VP Finance CFO
• John Andersen VP Exploration
• Brent Dube VP Operations
• Bruce Hall VP Land
• Geoff Upitis, John Kuhn, Colette Holfeld, Kevin
  MacInnis, Amanda Rebec

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Board of Directors

• Daryl Connolly CEO, Redcliffe (REX)
• Don Cowie JOG Capital (REX)
• Glenn Hockley Ind. Bus. (Stallion)
• James Rawls Rawls Corp. (REX)
• Mike W. Seth McDaniels (REX)
• Uldis Upitis Lotus Res. (REX)
• Harley Winger Burstall Winger (REX)

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CurrentREXPropertyActivity
ALBERTA
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2006 Drilling

• Prospect Area
• Pembina
• Wapiti
• Highvale
• Leaman
• Gold Creek
• Harmattan
• Ferrier
• Subject to successful completion operations

• Wells Result
• 6 4 Gas/ 2 Oil
• 2 1 Gas
• 1 1 Gas
• 2 2 Gas
• 2 1 Gas
• 1 1 Gas
• 1 1 Gas

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Prospects Pembina Area

• Multizone Cretaceous Jurassic
• 6 locations re-entry 2006
• Targets 100,000 bbls or 1 bcf per well
• Target IPs 75 bopd or 1,000 mcfpd
• To date 6/6

Pembina 1-18 100 bopd
Breton 3-29 1,000 mcfpd
Crystal 2-6 1,700 mcfpd
Minnehik/Buck Lake 6-12 completing 6-16
testing 6-9 500 mcfpd (off map)
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Prospect - Pembina

• Nordegg oil discovery
• W.I. 22.5
• IP 100 bopd
• Acquired 2 sections at Crown sale 75
• 2007 Follow-ups

1-18 Nordegg Oil Well 100 boepd
2007 Locations
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Terms of Transaction

• 13.50 million shares REL.A and 8.0 million Cash
• Valued at 1.30/sh.
• Transaction value 25.55 million
• Land Tax Pools (5.60) million
• Stallion renamed Redcliffe Exploration Inc.
  (REI)
• Parameters
• Production 64,000/27,000 per boepd
• Reserves 18.35 per boe Proven
• 16.50 per boe 2P
• After deduction of land and tax pool valuation
• Current/Closing Productive Capability
• Based upon internal reserve evaluation

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Stallion Energy Ltd.

• Private Incorporated 2004
• Production Current 300 boepd
• Tie-ins 400 boepd
• Reserves PLA (Aug. 1/06)
• P 84.8 mbls 2,039 mmcf 424.6 mboe
• 2P 167.9 mbls 4,378 mmcf 897.5 mboe
• Working Capital 600k (Sept. 30)
• Tax Pools 55 million
• Includes ORR at Leaman

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Proforma REI

• Production at Closing (02/07)
• Stallion 300 boepd 400 boepd tie-ins
• Redcliffe 150 boepd 100 boepd tie-ins
• Total 450 boepd 500 950 boepd
• Growth Drivers
• Drilling 25 wells planned in 2007
• JV Land Access Redcliffe Energy
• Gold Creek Area Major Discoveries

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ALBERTA

• Stallion
• Property
• Additions

Gold Creek
Pine Creek
Leaman
Gilby
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Joint Wildwood Area
Conoco F/I

• Good Synergy with existing Redcliffe lands
• Lower Mannville gas production
• 4 firm locations on existing joint lands
• Developing new opportunities in area

16-16
6-20
Redcliffe Lands
16-6
13-18
Stallion Lands
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Leaman - ConocoPhillips Farm In

• Lower Manville gas targets
• Cased 6-20 as potential gas well
• 37.5 W.I.
• Earned 8 sections
• 5 more potential locations being evaluated

ConocoPhilips Farm In
Potential Locations
6-20 Earning Well Cased
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Pine Creek - Stallion

• Nordegg/Gething play
• Recent completion at 6-36
• Recent Nordegg well completion at 7-3 tested
  3,000 mcfpd
• Spud 14-35 in March 2007
• Target reserves 1-2 bcf, production rates 1-2
  mmcfpd

Recent Completion 7-3
14-35 Location
6-36 Gas Well Pipelining
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Prospects Elmworth/Wapiti Area

• Multi-zone oil gas targets
• Core area focus
• Synergy to Stallion Gold Creek property
• Est. cum. 150,000 bbls or 2-3 bcf per well
• Est. IP 120 bopd or 1,000-2,500 mcfpd

Elmworth
Wapiti
Gold Creek
Wapiti South
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2007 Locations Wapiti Area

• Drilling/deal focus 2007
• Wapiti 5 locations
• Increase exposure through trades (Progress deal),
  Crown sales and farm-ins.
• Long life reserves
• Year round access

Locations
Locations
Gold Creek
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Gold Creek

• Lower Cretaceous and Triassic gas and oil targets
• 5-2 Discovery well
• 3D Seismic over northern block
• Farm in to Devon and Husky
• Operated by Fairmount Energy
• 4-11 and 13-25 gas wells

4-11 Gas Well
5-2 Oil Well
13-25 Gas Well
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Gold Creek- Gas Discoveries

• 5-2 oil well - capable 60-100 boepd
• 4-11 gas well - tested 3,400 mcfpd and 240 bopd
• 13-25 gas well - tested Zone-1 3,500 mcfpd and
  150 bopd, Zone-2 3,500 mcfpd and 250 bopd
• Combined W.I. 30 - 40

4-11 Gas Well 3,400 mcfpd 240 bopd
5-2 Oil
13-25 Gas Well Zone-1 3,500 mcfpd 150
bopd Zone-2 3,500 mcfpd 250 bopd
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Gold Creek 2007 Drilling

• 4-6 Wells planned for 2007
• 3 D seismic control
• Acquiring additional 3D coverage
• Focus on expanding acreage position
• Increase processing capacity to accommodate new
  drilling

Locations
Locations
Location
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Redcliffe At Closing

• Redcliffe Exploration Inc. (REI.A)
• Production 450 boepd
• Awaiting Tie-in 500 boepd
• Net Working Capital (3.0 million)
• 2007 Capital Budget 15-20 million
• Undeveloped Lands 15,100 net acres
• Proposed Wells 25 wells
• Preliminary Estimate. Total bank lines 7.5
  million.
• Includes JV lands with Redcliffe Energy Ltd.

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Capital Structure

• Closing February 28, 2007
• Market Capitalization 40 million
• TSX-V Symbol REI.A, REI.B
• Class A Shares 23,800,000
• Class B Shares 1,140,250
• Ownership A Shares 43.3 Redcliffe
• Ownership B Shares 100 Redcliffe

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2007 Growth Drivers

• Gold Creek (4 wells - 500 boepd)
• Wapiti (4 wells - 650 boepd)
• Pembina Program (17 wells - 1000 boepd)
• REL Merger (400 boepd)
• New Exploration Opportunities
• Synergistic Acquisitions
• Based upon un-risked production potential of
  2,000 mcfpd plus liquids
• Based upon un-risked production potential of
  1,000 mcfpd

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Redcliffe Energy Relationship

• Private company incorporated Sept./05
• Raised 13.6 million privately Dec./05
• 2006 Activity
• Acquired Medicine River oil property
• Drilled 3/3 gas wells
• Generated extensive prospect inventory
• Formed Redcliffe Exploration Ltd.
• Provided management services
• Provided initial prospect inventory
• 50/50 on all new prospects effective Sept/06
• Combination
• Will explore merger of entities Q2/07
• Production 90 boepd Tie-ins 300 boepd

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Summary - Redcliffe

• Acquisition of Stallion
• Accretive NAV and CF/share
• Adds 700 boepd with drilling Upside
• Merger with Redcliffe Energy (private)
• Adds 400 boepd
• Increase land and prospect base
• 2007 Drilling Program
• Up to 25 wells
• Significant value/production exposure
• 2007 Opportunity
• Prospect exposure/acquisitions

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Production Growth
REL.A (250 boepd)

SEL (700 boepd)
Redcliffe Exploration Inc.
2007 Opportunities
2007 Drilling
Redcliffe Energy (400 boepd)
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Redcliffe Exploration Inc.
TSE-V REI.A, REI.B An Emerging Junior
www.redcliffe.ca