The Petroleum Industry is in HIGH GEAR … HIGH GEAR …

The Petroleum Industry is inThe Petroleum Industry is in

HIGH GEAR …HIGH GEAR …


HIGH GEAR …HIGH GEAR …to explore and drill forto explore and drill for

MORE OIL AND GASMORE OIL AND GAS



MORE OIL AND GASMORE OIL AND GAS• World demand continues to rise dramatically

• Private companies are investing billions of dollars in exploration and drilling programs for new wells

• Governments are investing billions of dollars in joint ventures with private industry



MORE OIL AND GASMORE OIL AND GAS

Increasing oil and gas pricesare creating

EXCITING BUSINESS EXCITING BUSINESS OPPORTUNITIESOPPORTUNITIES

in Canadain Canada

EMPIREEMPIREINTERNATIONAL SERVICE INTERNATIONAL SERVICE

RIGS INC.RIGS INC.

was formed in 2005to take advantage ofthese opportunities.

Global Crude Oil Reserves

CanadaQuick Oil Facts

7th Largest in World Oil Production (projected 4th by 2015)

3rd Largest in World Natural Gas Production

2nd Largest in World Crude Oil Reserves

Source: Canadian Heavy Oil Association

80% of Canada’s spending in the oil and gas industry is in …

ALBERTA

Population:3.3 million

AlbertaOne of 10 Canadian Provinces

Size:660,000 sq. km.(2 x Norway)

Capital City:Edmonton

Largest City:Calgary

Major Attractions:- Banff- Lake Louise- West Edmonton

Mall

Oil Reserves:Truly Immense!

AlbertaA “Business-oriented” Province

Economy:

Alberta produces:70% of all Oil80% of all Natural Gas

in Canada

Government:

Alberta Western CanadaOperating oil wells (Dec. 2007) 32,500 70,000Operating gas wells (Dec. 2007) 96,000 128,600Total operating wells (*source CAPP) 128,500 198,600

Active service rigs (avg/July, 2008) 450 600

(*source CAODC)

The OpportunityThe Opportunity



(*source CAODC)

It takes 4 – 6 days to service a well. If each well is serviced every 2 years (typical), the number of service rigs and crews required are:

~ 880 ~ 1,360




(*source CAODC)

It takes 4 – 6 days to service a well. If each well is serviced every 2 years (typical), the number of service rigs and crews required are:

~ 880 ~ 1,360

Apparently …twice as many service rigs are required

as are available.


Empire International Service Rigs Inc. was formed in January, 2005, to support the petroleum drilling industry.

Empire manufactures and sells equipment to the companies that provide well services (service rig operators).

Empire also refits and repairs existing equipment for gas and oil well operators and drilling contractors.

Empire operates from Edmonton, Alberta, in the heart of Canada’s exploding oil and gas industry. The company is in a perfect position to capitalize on the current worldwide petroleum boom.

The CompanyThe Company

ProductsProducts

Service RigsPump TrucksDoghouse TrailersMud TanksJunk TrucksCombination BuildingsCustom Single Man Cabs

ServicesServices

• Heavy Duty Mechanical• Welding• Electrical• Field Service• Pneumatic Design & Repair• Hydraulic Design & Repair• Inspections• Engineering

FacilitiesFacilities

We started in 2005 with a tiny 500 sq. ft. office and shop.

TODAY …

FacilitiesFacilities

TODAY … 50,000 sq. ft. of office andheavy-duty shop with large yard space.

Our TeamOur Team

DIRECTORSDIRECTORS

ADVISORSADVISORS

John TjeltaPresident

S.O. (Roy) Tjelta, AMAChairman of the Board

Peter Jensen, LLB Victor Leginsky, LLB Ken Lee, CA

SALES TARGETS METfor Year 3 (2007) - $ 5.4 millionin spite of industry slowdown due to Alberta manpower shortage.

Completion of MANUFACTURE OF 2 NEW “SLANT RIGS”featuring several improvements to existing technology.

DESIGN of NEW EQUIPMENT for OFFSHORE RIGSfor markets in North Sea, Gulf of Mexico and Middle East.

JOINT VENTURE PARTNERSHIPS with Chinese oil equipment manufacturers

SALES OFFICE in SOUTH AMERICA

AchievementsAchievements

DIVERSIFICATION – Today’s Key to SuccessDIVERSIFICATION – Today’s Key to Success

GEOGRAPHICAL:USA and Global Petroleum Industry

NON-CONVENTIONAL TECHNOLOGIES:Alberta Oil Sands

COMPLEMENTARY BUSINESS:Industrial Metal Fabrication

PETROLEUM EXPLORATION:Limited Partnership

StrategyStrategy

GEOGRAPHICAL: Global Markets

The world petroleum industry is very healthy

• USA manufacturers operating at capacity

• Excellent opportunities around the world

- Offshore drill and service rigs - Russia, Kazakhstan, Germany,

Pakistan

Empire has active bids out on several international projects.

DiversificationDiversification

ALBERTA OIL SANDS: Ft. McMurray Area

Purchase of 3 active companies

• Mechanical Construction• Engineering Consulting and Design• Crane Services

COMPLEMENTARY BUSINESS: Metal Fabrication

Company specializes in high-tech LASER metal cutting

• would be first in Ft. McMurray area


PETROLEUM EXPLORATION

Formation of Limited Partnership to seek and acquire producing oil and gas wells

• Major oil companies now focus on mega projects• Smaller properties becoming available• Excellent “niche” opportunity• Perfect fit with Empire Group to supply equipment


PETROLEUM EXPLORATION

Formation of Limited Partnership to seek and acquire producing oil and gas wells

• Major oil companies now focus on mega projects• Smaller properties becoming available• Excellent “niche” opportunity• Perfect fit with Empire Group to supply equipment

A new corporate structure will be required for this diversification program.


EMPIRE INTERNATIONAL ENERGY Inc.

To be incorporated in Canada or Norway

Funds to be raised by IPO through European broker(s) for:

• interest in Ft. McMurray group of companies

• financing Norsk Oil and Gas Drilling Fund Partnership

• working capital

New Corporate StructureNew Corporate Structure

Corporate OrganizationCorporate Organization

NorskOil & Gas

Drilling Fund

RaceCrane

RaceEngineering

AquaAlberta Ltd.

ChargerInternational

Metal FabricationInc.

Empire International Service Rigs Inc.

The cornerstone of the Empire Group, formed in Jan./05 to support the petroleum drilling industry.

Manufactures and sells equipment to the companies thatprovide oil and gas well services (service rig operators).

Has met and exceeded sales targets for first 3 years.

Invested substantially in R & D of new technologies -• will reap huge benefits in 2008 and 2009

Recognizes need to diversify for growth and stability.

The Empire GroupThe Empire Group

Charger International Metal Fabrication Inc.

A stand-alone division of Empire International Service Rigs Inc.

Formed to provide CNC (Computer Numeric Controlled) LASER cutting, CNC forming, and welding.

Will be main provider of sheet metal fabrication services to theEmpire Group of companies.

Planning to expand to Ft. McMurray to serve Oil Sands projects.


Aqua Alberta Ltd.

New company formed from purchase of shares and assets of Aqua Industrial Ltd., Race Engineering, and Race Crane

Aqua Industrial Ltd. – a profitable operating company• 20 years in Oil Sands area• Current Sales > $35 million / yr.• Workforce > 250 persons

With new management team and working capital:• Expected Sales in 2011 > $255 million• Est. minimum profit: 15%


Norsk Oil and Gas Drilling Fund

General Partner to seek opportunities to acquire producing oil and gas wells, including those abandoned by major petroleum

companies in favour of “mega-projects”.

Headed by Dr. John Little, who has a successful history spanning over three generations in this area.


Funding from IPO: $25,000,000.00

Application of IPO funds:Purchase of Aqua Industrial Ltd. $ 7,800,000.00Aqua Working Capital $ 4,200,000.00Empire Service Rigs $10,000,000.00

(production line & working capital) Charger Metal Fabrication $ 2,000,000.00

Norsk Drilling Fund $ 1,000,000.00

Total funds required $ 25,000,000.00Brokers Fees $ 3,000,000.00

Total funds to be raised $ 28,000,000.00

Funding RequirementsFunding Requirements

RevenuesRevenues

2008 2009 2010 2011

Aqua 49,000,000 114,500,000 186,300,000

ChargerFrom Aqua

200,000

6,000,000 18,000,000 26,000,000

EmpireFrom Aqua

7,000,000 20,000,000

900,000

25,000,000

5,400,000

46,000,000

8,300,000

Race Eng. 28,100,000 29,800,000 34,400,000

Race Crane

Norsk

Total Sales 7,200,000 104,000,000 192,700,000 301,000,000

Net Profit 10% = 720,000 20% = 20,800,000 22% = 42,394,000 22% = 66,220,000

Norsk Net Profit 0 500,000 1,000,000 3,000,000

Total Net Profit 720,000 21,300,000 43,394,000 69,220,000

Shares issued to date: 13,000,000

Shares issued via IPO @ 3 E: 6,000,000

Total shares outstanding after IPO 19,000,000

Profit projected in 2009 $ 21,300,000

P/E Ratio 1.12

EXCEPTIONAL?

Share StructureShare Structure

New Company

Rapidly growing industry- both domestically and internationally

Huge market opportunity- current shortfall and growing

Forcing growth of company by acquisition- exceeding our expectations

Profitable in first year of operation

Conservative management philosophy

Future opportunities in leasing

SummarySummary

We are in

• the right industry

• the right country, and

• the right province, at

• the right time.

Our immediate objective is a listing on the Oslo Stock Exchange.

• Acquire a Sponsoring Broker• Complete Seed Share Offering• List Empire International Energy Inc. on Oslo Exchange• Raise $28,000,000 through an I.P.O.

to allow continued company growth for the benefit of shareholders

Thank you.

What now?What now?

The Petroleum Industry is in HIGH GEAR … HIGH GEAR …

Documents

Transcript of The Petroleum Industry is in HIGH GEAR … HIGH GEAR …