Canada

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Canadas Oil SandsPeak Oil Insurance Policy or
Ultimate Crude OilInvestment Opportunity?

• Derek Gates, CFAFounder
• Sustainable Oil Sands Sector Index TM

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Presentation Disclaimer

• This presentation is for information purposes
  only and is not intended to, and should not be
• construed to, constitute an offer to sell or the
  solicitation of an offer to buy any securities.
• This presentation may contain forward-looking
  statements relating to future events or future
• performance. In some cases, forward-looking
  statements can be identified by terminology such
  as
• statements representing SWM Ltd. expectations or
  beliefs concerning, among other things, future
• results and various components thereof affecting
  the economic performance of the SWM
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  placed on these forward-looking statements which
  are
• based upon SWMs assumptions and are subject to
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• which may cause actual performance and financial
  results in future periods to differ materially
  from
• any projections of future performance or results
  expressed or implied by such forward-looking
• statements. Accordingly, readers are cautioned
  that events or circumstances could cause results
  to
• differ materially from those predicted.
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• investment, tax or legal advice. Any person
  accepting delivery of this presentation
  acknowledges
• the need to conduct their own thorough
  investigation before considering any investment
  decision.
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  Management can be found on the company website
• (www.SWMindex.com )
• All figures in Canadian funds unless otherwise
  indicated.

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Recent Trends in Crude Oil Prices

• The recent bull run is significantly ahead of my
  call for 180/bbl oil by 2016
• 3 year average price is now over 60 US
• Many Wall Street analysts continue to project
  long term crude oil prices in the 55 to 60
  range and expect a huge supply reaction to the
  current high prices

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Source Sustainable Wealth Management Ltd.,
Bloomberg
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IEO2006 vs. IEO2005 World Oil Prices
History
Projections
IEO2006
IEO2005
Recent Upward Shift in Future Expected Crude Oil
Prices
Source EIA, IEO2006
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Global Energy Demand Trends

• Crude Oil, Natural Gas and Coal represent the
  bulk of global energy demand now and well into
  the future
• Crude oil demand only slightly moderated after
  the 25 time run up in the 1970s (from 1.35 to
  35)
• Alternative sources are not expected to reduce
  our dependency on the primary fossil fuels

Source Sustainable Wealth Management Ltd., IEA
reports
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World Marketed Energy Use by Fuel Type, 1980-2030
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Global Oil Sector Outlook

• Global demand for crude oil was 84.6 Million
  barrels/day in 2006 and has been growing by 2.2
  per year since 2002 (IEA)
• Global supply for crude oil was 85.1 Million
  barrels/day in 2006 and is growing by 1.2 per
  year since 2002 (IEA)
• Producing oil wells are depleting by 4 to 6 per
  year (ExxonMobil annual report)
• Exploration and Development costs for crude oil
  are over 30,000 US per boe/day, oil sands
  projects are in the 65,000 to 100,000 range

Source Sustainable Wealth Management Ltd., IEA
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Projected Global Oil Supply and Demand
Source SWM Estimates, ExxonMobil estimates, IEA
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New Oil Requirements
Source Sustainable Wealth Management Ltd.
projections
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Based on 30,000 US per boe/day Finding and
Development Costs
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Global Oil Reserves

• Global oil reserves are concentrated in just a
  few countries
• There are 192 countries that consume oil, 30
  produce some oil and only 17 can export more than
  500,000 barrels/day
• Of the 10 largest oil reserves in the world, 9
  are controlled by national oil companies or
  protectionist governments

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Global Oil Reserves by Country(Proven Reserves
only)
Source Sustainable Wealth Management Ltd., IEA
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Lack of Investment Opportunities

• Currently, US Energy companies reinvest only a
  portion of their profits into finding and
  developing more production and reserves, the
  majority of profits are used for dividends and
  share repurchases
• Most of the worlds known oil reserves are
  inaccessible to corporate private investors
• Focus will shift to unconventional sources such
  as shale oil in the US and oil sands in Canada
• Exploration and Development costs will continue
  to climb and create a floor price of at least 55
  for oil
• Companies will demand and get abnormally high
  rates of return on new capital investments

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Planned Oil Sands Production Growth to 2020
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Canada will surpass Saudi Arabia

• Canada has the worlds second largest oil
  reserves in the world, 174 Billion barrels of
  proven and over 305 Billion barrels of proven and
  probable reserves
• Geopolitically stable and the largest crude
  exporter to the US (16 of all US imports)
• Oil companies are all independently owned
• Established industry which is open to foreign
  investment

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US Crude Oil Supply and Demand Forecast
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Investing in a Post Income Trust / Royalty Rate
Increase Environment

• Oil Sands companies will soon become Canadas
  best cash flow investments
• Price Appreciation potential and dividend growth
  will become the dominant investment trend by
  2011. MA will also help drive prices up.
• Oil Sands companies provide great diversification
  from interest sensitive cash flow investments
  like bank and utility stocks
• Oil Sands producers still get an attractive
  royalty tax regime until all capital costs are
  recovered and crude oil prices will soon exceed
  royalty rate maximums

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The Five Key Factors Summary
Source Sustainable Wealth Management Ltd.
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Recent Trends in Canadian Oil Sands Investments

• Market pullbacks are shallow and short lived
• Natural gas (input cost) are not rising as fast
  as crude oil prices, great for profit margins
• New proposed tax rules on income trusts
  eliminates an attractive exit strategy for the
  sector
• New Alberta royalty tax rates will cap the upside
  once a project reaches breakeven however higher
  crude oil prices and lower corporate taxes will
  offset the effect

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Oil Sands Index vs. SP/TSX Energy vs. WTI (Cdn)
Over 147 higher vs. Energy Benchmark And 179
higher vs. WTI in 40 months
Source Sustainable Wealth Management Ltd.,
Bloomberg
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Comparison to Existing Energy Indices
As of Oct 31, 2007 Oil Sands Sector Index (SOSSI) SP/TSX Capped Energy Index
Return since June 30, 2004 260.2 112.5
Year to Date Return 21.2 10.8
of Companies 15 64
Top Ten Holdings ( of Total Value) 81.7 72.6
Largest Position 11.7 14.6
Smallest Position 3.1 0.1
of Index Assets in Income Trusts 16.3 3 out of 15 22.0 27 out of 64
Oct 31, 2007 prices Source Sustainable Wealth
Management Ltd
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Best Performing ETF during Bull Markets
Source Sustainable Wealth Management Ltd.,
Thomson
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Most Conservative ETF during Bear Markets
Source Sustainable Wealth Management Ltd.,
Thomson
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Investment Timing is Attractive
Source Bloomberg
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Contact Information
Derek Gates, CFA, CIM, CFP, FCSI President
CIO Sustainable Wealth Management Ltd. 222 16th
Ave NE, Suite 224 Calgary Alberta T2E
1J8 www.swmindex.com 403 454-0881 Direct
Line 403 454-0884 Fax