TARBLASTERTARBLASTER

PRESENTENTION OF TARBLASTER PRESENTENTION OF TARBLASTER AND ITS TECHNOLOGY FOR ”DRY” AND ITS TECHNOLOGY FOR ”DRY” RECOVERY OF OIL FROM OIL SANDRECOVERY OF OIL FROM OIL SAND

• Incorporated by 70 shareholders from Norway, Sweden, Germany, Switzerland, USA and Canada

• Number of issued shares 10.000.000

• CEO Olav Ellingsen (www.industrikontakt.com)

The company subcontract its other needs such as accounting, auditing, financial advisors and legal assistance from case to case.

• Board of Directors:

• Lawyer Morten Borch, Oslo• Marketing investigator Bjarte S. Ellingsen, Oslo• Bankier Fritz T. Wegmann, Switzerland• PhD geologist Gemma Keany, Bergen• Engineer Olav Ellingsen, Florø

TARBLASTER ASTARBLASTER AS

DIFFERENT QUALITIES OF OILDIFFERENT QUALITIES OF OIL

SOURCES API (*)Light conventional oil: 31-45Medium heavy oil: 22-30Heavy oil: 10-22Extra heavy oil <10Bitumen - oil from Tar sand after extraction 8-12

In addition huge amounts of oil shale containing non liquid hydro carbons. After extraction of the shale oil, it will have an API of about 25-30 API.

(*) American Petroleum Institute measure of specific gravity. In general: As lighter oil as higher API.

CRUDE OIL PRICES VS API (*)

18

3847

72 73

$0

$10

$20

$30

$40

$50

$60

$70

$80

Bitumennetback

CAN

HeavyHardisty

CAN

Bow River CAN

Brent Blend WTI

API 8 API 12 API 25 API 40API 38

(*) American Petroleum Institute measure of specific gravity. In general: As lighter oil as higher API. Prices pr 30. aug-2007

STEPS TO INCREASE VALUE OF TAR SAND (*)

$30

$44

$72

$0,00

$10,00

$20,00

$30,00

$40,00

$50,00

$60,00

$70,00

$80,00

Athabasca Bitumen

Dilbit Syntetic crudeoil (SCO)

Blending

Cost

(adding

light oil)

Upgrading

API 10-12 API 20-22 API 45-49

$14

$28

(*) Source: Corporate presentation Syneco.com

Oil Price

Conventional oil reserves and new discoveries (supply) to replace them are rapidly declining

Global demand for the supply and production of oil will continue to increase despite lower replacement of reserves

Heavy oil will increasingly need to be processed (upgraded) into synthetic crude to replace shrinking conventional supply

Source: Office of Naval Petroleum and Oil Shale Reserves;

U.S. Dept of Energy

Source: EIA and Raymond James Estimates & Analysis

GLOBAL CONVENTIAL OIL SUPPLIESGLOBAL CONVENTIAL OIL SUPPLIES AND DEMAND MARKETAND DEMAND MARKET

TAR SAND TAR SAND

Natural occurring Natural occurring deposits of a deposits of a mixture of heavy mixture of heavy oil and sandoil and sand

World’s greatest World’s greatest deposits (85%) in deposits (85%) in Alberta, CanadaAlberta, Canada

10% < 75 m depth, 10% < 75 m depth, surface miningsurface mining

LOCATION OF CANADA TAR SAND DEPOSITS

ALBERTA OIL SAND PROJECTS

ALBERTA OIL SAND PROJECTS

OIL SAND OPERATORS

STATISTIC FOR TAR SANDSTATISTIC FOR TAR SANDIN ALBERTA, CANADAIN ALBERTA, CANADA

Total volume in place 1,7-2,5 trillion barrels Total recoverable (probable)335 billion barrels Surface mining proven reserves 35 billion barrels Other methods proven reserves 98 billion barrels Present production 1,1 million bbl/day Projected production 2010 2,0 million bbl/day Projected production 2015 4,0 million bbl/day (*) Tar sand moved per bbl 2,0 ton Water consumption per bbl 430 liter (if no recycling) Number of leases in Alberta 2.800

(*) At this production level it will take about 100 years to empty the proven reserves

OIL SAND MININGOIL SAND MINING

In oil sands In oil sands mining, a mix of mining, a mix of oil and sand is oil and sand is removed from removed from just below the just below the surface using surface using trucks and trucks and shovels.shovels.

THE MINING AND UPGRADING PROCESS

UPGRADING/CRACKINGEXISTING EXTRACTION TECHNOLOGY

The extracted oil is upgraded to a synthetic crude prior to refining

PROBLEMS CONNECTED PROBLEMS CONNECTED EXISTING TECHNOLOGYEXISTING TECHNOLOGY

High consumption of water (40 million liter pr High consumption of water (40 million liter pr 100.000 barrels of oil produced)100.000 barrels of oil produced)

Water polluted with small amount of oil and finesWater polluted with small amount of oil and fines

High level of energy consumption – Natural gas High level of energy consumption – Natural gas main energy sourcemain energy source

High output of CO2 emissionHigh output of CO2 emission

Huge capital investmentsHuge capital investments

Heavy oil which must be upgraded or mixed with Heavy oil which must be upgraded or mixed with light oil prior to refininglight oil prior to refining

TEST UNIT

Test unit under construction at SINTEF, Trondheim

MAIN LAY OUT TARBLASTER 2000

THE BENEFITS OF THE TARBLASTER TECHNOLOGY

Low energy consumption

Self-sustained with energy by combustion of low value energy (the most heavy part of the oil)

Reduced CO2 emission

No water consumption

Extraction and upgrading oil sand in one operation

Reduce capital investments about 80%

Easy to scale up

Increased value of oil by:• Increased API FROM 8 to 25 (*)• Reduce sulphur and metal content

(*) Proved API 18, but believe it will be possible to reach

API 25 by an add on process

EXPECTED RESULTS EXPECTED RESULTS MATERIAL INITIAL

APIUPGRADED

APICOMMENTS

Atabasca tar sand (bitumen)

8-10 18-25 1 w% coke in tailingsTemperature 350-400 CPressure 1,1 barSulphur reduction 50-60%Metal reduction 90-95%

TARBLASTER LOGISTICS

COPARISON PAYBACK TIMECOPARISON PAYBACK TIME (1)(1)

Synenco (2) TarBlaster

Investments (3): 8 400 000 000 USD Investments (4): 375 000 000 USD

Capacity pr day 114 500 Barrels Capacity pr day 50 000 Barrels

Capacity pr year 41 220 000 Barrels Capacity pr year 18 000 000 Barrels

Oil price API 45 72 USD Oil price API 25 50 USD

Blending price -14 USD Blending price 0 USD

Net sale price 58 USD Net sale price 50 USD

Gross cash flow pr year 2 390 760 000 USD Gross cash flow pr year 900 000 000 USD

Gross year of payback 3,5 Years Gross year of payback 0,4 Years

(1) On a gross level meaning not included operational- and financial cost or tax(1) On a gross level meaning not included operational- and financial cost or tax(2) Source: presentation on Synenco.com (2) Source: presentation on Synenco.com (3) Reduce with USD 2,3 billion in assumed payment of land lease(3) Reduce with USD 2,3 billion in assumed payment of land lease(4) Included investment in fuel trucks and front loaders (USD 100 mill)(4) Included investment in fuel trucks and front loaders (USD 100 mill)

NET PAYBACK TIME NET PAYBACK TIME TARBLASTER 50 TARBLASTER 50

Investments (1): 375 000 000 USD

Capacity pr day 50 000 Barrels

Capacity pr year 18 000 000 Barrels

Oil price API 25 50 USD

Cost pr barrel (2) -20 USD

Tax 25% -7,5 USDUSD

Net sale price 22,5 USD

Net cash flow pr year 405 000 000 USD

Net year of payback 0,9 Years

(1)(1) Included investment in fuel trucks and front loaders (USD 100 mill)Included investment in fuel trucks and front loaders (USD 100 mill)(2)(2) Included USD 1,25 pr barrel in license fee to Tarblaster AS Included USD 1,25 pr barrel in license fee to Tarblaster AS and USD 2 pr barrel in and USD 2 pr barrel in

land leaseland lease

NET PAYBACK TIME NET PAYBACK TIME TARBLASTER 10-ADD ONTARBLASTER 10-ADD ON

Investments (1): 44 000 000 USD

Capacity pr day 10 000 Barrels

Capacity pr year 3 600 000 Barrels

Oil price API 25 50 USD

Cost pr barrel (2) -10 USD

Tax 25% -10 USDUSD

Net sale price 30 USD

Net cash flow pr year 108 000 000 USD

Net year of payback 0,4 Years

POTENTIAL INCOMEPOTENTIAL INCOMEFOR TARBLASTERFOR TARBLASTER

If we assume:

• An oil producer will pay and build a 50.000 unit for it’s own risk• Tarblaster AS receive a % in license fee based on gross

improved value of the oil created by the unit

% of gross value creation (*) 1 % 3 % 5 %

USD pr barrel: 0,25 0,75 1,25

Income per year in million USD: 3,8 11,3 18,8

Income per year in million NOK: 21,9 65,8 109,7

(*) 300 days of operation per year, API rise from 10 to 25 and the gross value of oil rise from 25 to 50

BUSINESS IDEA

Tarblaster’s mission is to develop, refine and commercialize a revolutionary and highly beneficial technology, which offers substantial economic benefits to clients engaged in the extraction of oil from oil sand and oil shale. Income will be based on:

• 1. License income from licensors.• 2. Licenses and sale of R&D results and new findings.

GOALS

Create substantial economical profit for the owners within 3 years

Build a low cost test unit that proves the concept Show scalability of TarBlaster Make commercial deals with large international

oil producers and/or oil service companies

STRATEGY

Tarblaster AS will have a small and Tarblaster AS will have a small and efficient organisation, and will outsource efficient organisation, and will outsource functions when needed. The technology functions when needed. The technology will be licensed or sold at the point when it will be licensed or sold at the point when it gives optimal pay back for the gives optimal pay back for the shareholders.shareholders.

PROJECTED CAPITAL REQUIREMENTPROJECTED CAPITAL REQUIREMENT

(IN(IN MILL NOK)MILL NOK)

2 006 2 007 2008 2009

1 Phase 1 - verification 0,5

2 Phase 2 - mass and energy and operation TB 2,7 12

3 Phase 3 – engineering TB 2000 and operation TB 11

BUDGET 2008 AND 2009 BUDGET 2008 AND 2009 (IN(IN 1000 NOK)1000 NOK)

2 008 2 009 Total

1 OPERATING COSTS      

1.1 Company operation 3792 5 839 8 860

1.2 Production and testing 7800 5 000 12 800

Total expenses 11592 10 839 21 660

3 FINANCING      

3.1 Tax funn grants  300 3 246 3 546

3.2 Innovation Norway 1 000 1 000

3.3 Equity share issue 5 400  5 400

3.4 Risk loan 9 500 9 100 18 600

Total 16 200 12 346 27 618

EXIT/SHAREHOLDER EARNINGS

Sale of the entire company.Sale of the entire company. Sale of the IP rights for one of the Sale of the IP rights for one of the

applicable markets. applicable markets.  Listing on the SMB-list in Oslo.Listing on the SMB-list in Oslo. Licensing of the technology to Licensing of the technology to

different markets, dividend to the different markets, dividend to the shareholders.shareholders.