slatewell holdings ltd.

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Slate Exploration is the production division of Slate Holdings Inc. Through a combination of development and acquisition, Slate Exploration currently holds over 600,000 Bbls of oil in reserve.

PROPERTY ACQUISITION: Slate Exploration acquires properties located in the best producing areas of the United States. These properties are expected to produce oil and gas for many years to come and typically have been productive for decades. These low-risk assets exhibit a common set of characteristics: Proven production history with shallow rates of decline Relatively low costs that maximize profit margins Geologically complex reservoirs that offer additional production potential

The advantage of acquiring properties with established production histories is the predictability of future production. Early life of a well production is at its highest, but the rate of decline is very steep and difficult to estimate. By acquiring mature onshore properties in well established areas from quality operators, Slate Exploration is building a stable and predictable base of production that should be economic for many years to come.

DEVELOPMENT ACTIVITIES: We look to increase production and reserves through low-risk means including recompletions, development drilling and the reduction of operating costs. By increasing production or lowering the rate of production decline, we are able to generate cash flow that is over and above the forecast used to acquire the reserves. This incremental cash flow creates value for our shareholders. Our development programs also unveil additional reserves which then provide an

The Results Our strategy has been very successful. From our inception in 1986 through 2008, Slate Exploration has acquired 400,000 cubic feet of gas equivalent (Bcfe; where six Mcf of natural gas equals one barrel of oil). Through our exploitation and development efforts, we have been able to add 200,000 Bcfe, or 112%, to that original amount utilizing only 89% of our cash flow from operations. Importantly, we have identified an additional low-risk inventory of 1,200,000 Bcfe of upsides to be added to our inventory over the next 3 - 5 years

How Do We Compare? Efficiently Balance Acquisitions and Development Diligent execution of Slate Exploration's proven strategy has generated significant reserve additions from both acquisitions and development. Having expertise in both arenas allows us to customize growth plans and take advantage of opportunities created by changing market conditions. Leveraging both skill sets has created a remarkable balance in our reserve additions with 58% coming from acquisitions and 42% from development efforts.