SYMBOLS “MAH” TSX-V “MKSEF” OTCQB WWW.MARKSMENENERGY .COM ajnesbitt@marksmenenergy.com Making Our Mark Using New Technology in Ohio Energy 1
DISCLAIMER The material contained in this presentation is provided solely for your general knowledge and is not intended to be a comprehensive review of all matters and developments concerning Marksmen Energy Inc. or its affiliates. Marksmen Energy Inc. has taken all reasonable care in producing the information contained in this presentation. This information may still contain technical or other inaccuracies, omissions, or typographical errors, for which Marksmen Energy Inc. assumes no responsibility. Marksmen Energy Inc. makes no representation or warranty regarding, and assumes no responsibility for, the use, validity, accuracy, completeness, reliability or currency of any claims, statements or information in this presentation. Forward-looking statements are within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget"," scheduled ” , “ estimates ” , “ forecasts ” , “ intends ” , “ anticipates ” or “ does not anticipate ” , or “ believes ” , or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects the Company ’ s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the actual results of drilling and exploration being equivalent to or better than anticipated or historical results and future costs and expenses being based on historical costs and expenses, adjusted for inflation. Forward- looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the natural resources industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. Barrel of Oil Equivalent Where amounts are expressed on a barrel of oil equivalent ( “ BOE ” ) basis, natural gas volumes have been converted to a BOE at a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent. This conversion ratio is based upon an energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at the wellhead. 2
“ The Best Place to Look for Oil is Where it ’ s Already Been Found. ” 1890: LIMA- INDIANA OIL FIELD, OHIO-THE WORLD'S LARGEST OIL FIELD
LEADER IN OHIO CORPORATE OBJECTIVE: Be the leader in Trenton-Black River, Cambrian Knox, and Horizontal Clinton Sandstone oil and gas production in Ohio. INCREASE MARKET CAPITALIZATION: Increase from current $10,000,000 to $50,000,000 to $100,000,000. LIST IN THE U.S. AND FUTURE IPO: Marksmen is listed “ MAH ” - TSX-V in Canada and trading as “MKSEF” on the OTCQB in the U.S. In the future the corporation plans to list on a major U.S. exchange. 4
OHIO OIL & GAS FIELDS 235,000 Shallow, Wildcat Wells 5,816 Small Operators 5
MARKSMEN'S EXCITING NEW OHIO CLINTON SANDSTONE REENTRY/RE-COMPLETION PROGRAM WILL START IN 2019 The Clinton Sandstone formation is the largest most expansive producing formation in Ohio producing an estimated 250 million barrels of light gravity crude oil from some 50,000 wild cat wells. In mid September, 2019 Marksmen entered into a joint venture agreement with a local operator (and owner of oil and gas leasehold interests and hundreds of old vertical wells) to develop, and earn a majority interest in oil and gas leases and wells in north central Ohio, in the most prolific Clinton Sandstone light oil reservoir. In the 1970's many joint venture wells were drilled (that would cost today +$750,000) to 7500 feet, cased, equipped with tubing, pumps, flow lines and tanks and produced the Rose-Run formation. When drilling through 4500 feet to 4590 feet, the wells encountered some 90 feet of Clinton Sandstone oil and gas reservoir. The Clinton Sandstone was not produced and was left as "bypass pay". Marksmen as operator of all activities (without having to incur any drilling or equipping and producing costs) will re-enter up to 40 of these these existing cased wells and re-complete, hydraulically stimulate and produce the bypass pay Clinton Sandstone reservoirs. The cost to re-complete each well is minimal and is estimated to be between $85,000 and $100,000 and it is expected to take approximately four weeks to bring each well into commercial production. Studies of older, surrounding, Clinton Sandstone producing wells confirms that on average the wells produced $1,400,000 oil and gas at $55/BOE (please see page 7). Initial production rates are expected to be 25-30 BOD. The high demand 40 API light sweet crude is purchased by refineries at the well storage tanks and Marksmen receives WTI pricing with no costs whatsoever for transportation. With this program underway, Marksmen will actively pursue additional re-entry opportunities to follow up on technical analysis that it’s Ohio team has completed. 6
NEW MARKSMEN CLINTON FORMATION TARGET RECOMPLETION WELLS ("+") SURROUNDED BY VERTICAL CLINTON WELLS WITH PRODUCTION AVERAGING +$1,400,000 @ $ 55/BOE $ 1,940,000 $ 1,900,000 $ 554,000 $1,050,000 Oil $955,000 Natural Gas $ 1,100,000 + Reentry Candidate $ 2,310,000 $2,170,000 $1,220,000 $1,140,000 $1,000,000 $1,940,000 $$2,490,000 $1,720,000 $1,700,000 $1,200,000 $2,060,000 $520,000 $1,300,000 $947,000 $1,100,000 $602,000 7
CLINTON SANDSTONE DRILLING Although new to the Clinton Sandstone three companies have recently undertaken horizontal drilling programs with numerous wells being drilled. The Clinton Sandstone is virtually undeveloped with horizontal drilling. Studies indicate that old wildcat vertical wells recovered only 3-5% of the oil in place in the Clinton reservoirs, where they were drilled. Further, it is believed that a horizontal well will recover the same amount of oil as would 12 to 15 vertical wells. With its new joint venture, Marksmen in 2020, plans to initiate a horizontal drilling program in historic, prolific light oil producing areas of the Clinton Sandstone formation. VERTICAL DRILLING OPPORTUNITIES Marksmen will utilize its Ohio 3D Seismic and drilling experience and technologies to develop new joint venture drill locations for new vertical wells in historically prolific areas for Rose Run formation light oil. 8
3 YEAR TARGET PRODUCTION RATES AND REVENUE Cumulative Revenue after Expenses 2019 - 2022 Production Growth Over Four Year Program 40 Re-entry Wells 11 Horizontal Wells 80000000 4000 70000000 3500 60000000 3000 Barrels per Day 50000000 2500 40000000 2000 30000000 $ USD 1500 20000000 1000 10000000 0 500 Re-entry Horizontal Combined 0 Q4 2019 2020 2021 2022 Cumulative Revenue after Expenses Year Recompletes Horizontals Combined 2019-2022 Production Growth Revenue After Expenses 40 Re-Entry Wells 40 11 Horizontal Wells 35 4000 30 3500 $ Millions USD 25 3000 Barrels Per Day 20 2500 2000 15 1500 10 1000 5 500 0 0 Q4 2019 2020 2021 2022 Q4 2019 2020 2021 2022 Year Year 9 Re-entry Horizontal Combined Re-entry Horizontal Combined
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