Sky Hunter Exploration

Sky Hunter Exploration is a Calgary, Canada-based company that provides a valuable exploration tool to oil and gas companies worldwide. Sky Hunter uses proprietary technology to conduct airborne surveys that map microseep data. In turn, this data predicts the presence of pressurized hydrocarbon reservoirs for further exploration, development and production by traditional methods. Piper Navajo 325 CR

Sky Hunter Exploration

How Data is Collected Sky Hunter uses an airplane to fly a gridded survey while employing an air sampling device to record hydrocarbon microseep intensities. The Sky Hunter equipment consists of two computer assisted hydrocarbon measuring devices. These devices are mounted on a small aircraft and flown approximately 100 metres above ground level across the prospective terrain. The flight grid varies in line spacing width based on the detail of sampling required, but maximum line spacing usually is one kilometre. When the field sampling is completed, the raw data is processed by computer and presented in the form of residual anomaly maps, a very similar process to trend surface residual mapping often used in geological subsurface mapping. Each hydrocarbon component is presented on a separate map, which can be crossplotted, or used with other geotechnical data. Sky Hunter Exploration

How Data is Collected The data processing procedure provides a way of recognizing and minimizing the amount of unwanted background "noise" introduced by the physical processes of data gathering. Further, it is designed to provide only anomalous concentrations of various hydrocarbon components, presumably emanating from vertical microseepage, rather than displays of random hydrocarbons commonly present in the atmosphere. The procedure of eliminating background data and unwanted common data employs the use of a baseline cut-off that is consistent throughout the project. Two data channels measure total dry gas and rich gas/oil. Combined mapping often results in the ability to distinguish between oil and gas-prone targets. Sky Hunter Exploration Schematic showing "all terrain" capability and idealized geochemical profiles over discreet oil and gas pools.

What are microseeps? Microseeps are the continuous rapid vertical migration of hydrocarbons from underground reservoirs to the Earth's surface. Sky Hunter Exploration How does microseep surveying compare to seismic? Two-dimensional seismic is an effective and proven tool in locating subsurface geological structures. While seismic can determine the best structural place to drill, it normally cannot predict whether or not the structure is charged with oil or gas. Seismic is a very costly method but its use can be made more cost- effective by using it in combination with geochemical surveys completed over large areas. Sky Hunter's surveying is more cost-effective than a seismic-only program because it can be done over a greater area and, being airborne, there are no terrain limitations.

Sky Hunter Exploration What conditions are necessary for a successful survey? The following conditions must be met for airborne hydrocarbon surveying: Ability to fly 100 metres above ground level Safe flying conditions Avoid flying in rain or strong winds over 40 km/hr The depth of the hydrocarbon reservoirs is not a factor.

REPEATABLE RESULTS Periodically, Sky Hunter’s technology is faced with questions of repeatability. Will the high signal strength areas of a survey continue to show as high signal strength at a different time, or when flown in a different direction? In 2003, Sky Hunter flew a survey along a pipeline route in New South Wales, Australia. Another completely separate survey was flown more than two years later for a parcel of land that overlapped the pipeline route. When the results of each survey are combined, it is evident that hot spots show up in the same areas. Sky Hunter Exploration

PIPELINE SURVEY 2003 Sky Hunter Exploration Image A shows the top 25% of hydrocarbon microseep signal strength for a segment of a pipeline route survey completed in EXPLORATION PERMIT SURVEY DATA COMBINED WITH 2005 DATA Image B shows the top 25% of hydrocarbon microseep signal strength for the overlapping portion of a completely separate survey flown over an exploration license two years later, at a different angle. Image C shows processed data from combining both the 2003 survey (A) and the 2005 survey (B). A B C

Sky Hunter Exploration Level of readiness –Three components to project Information Gap –The following knowledge gaps were identified : The Suitability of Solution –Integrated data

Sky Hunter Exploration Business Case Summary Sky Hunter is a small-sized company (Less than 10) –Acquisition –Extensive Project Impacts –For Sky Hunter - stuff –For sustainable resource development - stuff