Body Copy font is Verdana set at 32 in white A Focused Play on the Caney & Woodford Shales Oil & Gas...

Body Copy font is Verdana set at 32 in white

A Focused Play on the

Caney & Woodford Shales

Oil & Gas Investment Symposium – Small CapsPalm Beach, Florida

8 February 2005


• As a consequence of this success was one of Australia’s top performing stocks in 2004

OFF TO A FLYING START

• Newly formed to exploit conventional formations and unconventional Caney & Woodford Shales in Oklohoma

• IPO in Australia in July 2004 to take advantage of specific investor interest there

• First drilling program of 8 wells produced 100% success rate with surprisingly strong conventional discoveries

• Initial indications from testing Caney & Woodford Shales are highly encouraging – the next Barnett ?


A STRONG & FOCUSED PLAY

• A new 20-25 well drilling program about to commence – Tomahawk 100% working interest owner

• Options to participate as 100% working interest owner on 5,000 acres

• Options to participate 50/50 on further 15,000 acres

• Option to buy local gas gathering system

• Well supported by Australian investors


Snell-Heirs Project


• Revenue already exceeds administration costs

SUCCESS TO DATE

Snell–Heirs project

• 2 producing wells acquired

• 8 wells drilled to date - all discoveries

• Next 6 wells coming into production over next 4 - 6 months

• First 4 wells producing already circa 1,700mcfg/day


SNELL-HEIRS PROJECT

• Conventional gas play with multiple shallow formations

• Unconventional gas play - Caney Shale & Woodford Shale

• Oil potential in shallow formations

• 100% working interest

• Shallow (4,000 feet) relatively inexpensive wells

• 5 separate options, each to participate in 1,000 acres – potential for up to 125 wells in coming years


AREA OF MUTUAL INTEREST


UNCONVENTIONAL

WELL

CONVENTIONAL FORMATIONS STATUS

Feet Hydrocarbons

Formations Feet Hydrocarbons

Snell Heirs

6-1384 7 205

105

23

42

28

7

3

3

4

200

198

220

211

Caney Frac’d, producing 50-60 mcfg/day.Frac water returning, 2-3 months before flow rates determined.

Snell Heirs

7-13Snell Heirs

8-13Snell Heirs

2-19

Snell Heirs

3-19

Caney frac’d, producing 50-60 mcfg/day.Frac water returning, 2-3 months before flow rates determined.Woodford Shale to be perforated early February.

Caney frac’d, currently returning frac water, 2-3 months before flow rates determined.

To be dually completed in Woodford and Caney. Currently producing 400-500 mcfg/day from Woodford only.

Caney Frac’d, producing 200 mcfg/day.Frac water returning, 2-3 months before flow rates determined.


UNCONVENTIONAL

WELL

CONVENTIONAL FORMATIONS STATUS

Feet Hydrocarbons

Formations Feet Hydrocarbons

Snell Heirs

4-1336 3 195

40

98

45

84

5

6

3

6

213

Caney, Woodford Frac’d, Frac water returning, 2-3 months before flow rates determined.

Snell Heirs

1-20Snell Heirs

4-19Snell Heirs

5-19

Snell Heirs

9-13

Caney frac’d, producing 450-750 mcfg/day.

Offset well to Snell Heirs 2-19 & producing 500 mcfg/day from Gilcrease.

Savannah Sandstone perforated and acidized,Production potential will be fully evaluated in coming weeks.

Offset well to Snell Heirs 3-19 & producing 300 mcfg/day from Red Fork.


EXPLORATION DRILLING BLOW OUT


DRILLING ON SNELL-HEIRS PROJECT


THE BUSINESS CASE

• Caney & Woodford Shale similarities to successful Barnett Shale

• Based on stable gas prices not linked to oil price

• Snell-Heirs gas attracts a premium up to 25%, high BTU

• Rapid return on investment


Parameter Barnett Shale

Geologic Age Mississippian

Thickness 200-300 feet

Depth 7,000-8,000 feet

Reservoir rock Organically-rich shale bituminous, calcareous

Total Organic Carbon 4.5% average

Vitrinite Reflectance Ro% = 1.00 to 2.00

Gas Shows on mud logs

Strong

Average Porosity Neutron/Density 15%

Resistivity Moderate to High

Gamma Ray Hot, highly Radioactive

Treatment Very large slick water and sand fracture treatments

Gas in Place SCF/ton 50-60 plus SCF/Ton

Production History Well Established

Caney Shale

Mississippian

130-150 feet

3300-3600 feet

Organically-rich shale bituminous, calcareous

4.95% in Snell #4-13

Ro%=1.44 Snell #4-13

Strong to Very Strong

Neutron/Density 15%

Moderate to High

Hot, highly Radioactive

Testing and evaluating acid treatments and slick water & sand fracture treatments

50-250 SCF/Ton

Very Early Stages


PRODUCTION AT SNELL-HEIRS PROJECT


ROBUST PROJECT ECONOMICS

• Successful well drilled, completed and bought into production for <$US.450m

• Offset wells accelerate production

• Completion to production in 120 days

• A 500mcfg/day well @ $US6/mcfg = circa $US.750m annual revenue

• Minimal capex with payback circa 7 months

• Minimal General & Administration costs < $US.400k p.a.


THE NEXT 12 MONTHS

• Continued production from 5 Snell-Heirs wells in production

• Progressively bring the other 5 completed wells into production

• Drill 20 to 25 wells during calendar 2005

• Potential to drill horizontal wells

• Production flow rates will be established on portfolio of up to 30 wells within 12 months


Well Analysis

Production – 500mcfg/day

Gas Price - $US6 + 20% premiumGross Daily Revenue $US3,600 Operating costs ($US300) Taxes ($US500) Royalties ($US900)Net daily back $US1,900

Annual net return per well $US700,000Cost of completed well $US450,000

Payback 235 days


CAPITAL STRUCTURE

Shares Options

On Issue 49.250 19.482

Escrowed to 2006 (15.841) (16.982)Tradable 33.409 2.500

• Average weekly volume since listing of .750m shares

• $US50m market capitalization at current share price of $US1.05

• Number of shareholders doubled to +820 since listing

• Top 20 shareholders control +50%


WHAT MAKES TOMAHAWK DIFFERENT?

• Multiple target formations = reduced exploration risk

• Experienced operator = reduced completion risk

• Access to extensive infrastructure = rapid path to revenue

• Tight capital structure = drilling results go straight to share price

• Acreage to allow drilling 2 wells a month for 5 years

• Enormous revenue potential, every successful well = $US.750m revenue p.a. = no shareholder dilution


INVESTING IN TOMAHAWK

• Listed on main board of Australian Stock Exchange (ASX)

• Accounting Standards and Corporate Governance requirements on ASX in line with major western exchanges

• Most major US brokerages have access to ASX

• Recent independent research from major Australian brokerage (with office in New York) available today

• Office in Australia is more than happy to assist with enquiries


FOR FURTHER DETAILS

Investor Relations OperationsAustralian Office US OfficeTony Brennan Rick HolcombChairman Executive DirectorE: [email protected]

E:[email protected]: +61 8 9267 4210 T:318 673 8285F:+61 8 92674210 F:318 673 8288

Body Copy font is Verdana set at 32 in whiteA Focused play on the

Caney & Woodford Shales

Body Copy font is Verdana set at 32 in white A Focused Play on the Caney & Woodford Shales Oil & Gas...

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