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Huntington Exploration Inc. (HEI.V) Stable Production, Low Cost Oil Weighted Portfolio February 2013.

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Presentation on theme: "Huntington Exploration Inc. (HEI.V) Stable Production, Low Cost Oil Weighted Portfolio February 2013."— Presentation transcript:

1 Huntington Exploration Inc. (HEI.V) Stable Production, Low Cost Oil Weighted Portfolio February 2013

2 Management Team Robert J Verhelst (B.A.) President & Chief Executive Officer Previously 11 years senior management experience (partner, director, officer, RR) in several Western Canadian based Brokerage firms including 6 years as President and CEO of a US (FINRA) regulated foreign broker dealer. Three years regional and national management team at CIBC. 5 years combined experience at the Alberta Securities Commission and Vancouver Stock Exchange. Elizabeth More (P Geol) Vice President Exploration Previously V/P Exploration Angle Energy, V/P Exploration Flagship Energy, Encal Energy, Altana Exploration, Gulf Canada Resources J Timothy Bowes(MBA) Vice President Land & Business Development Previously President North American Oil & Gas, V/P Corp Finance Yorkton Securities, Manager Land Numac Energy

3 Board of Directors Steve Harding (P Geol) President and CEO of Contact Exploration, previous VP EnCana, Chief Geoscientist at Husky Oil and Gas Michael Binnion (CA) President and CEO of Questerre Energy Corp., previous President of Terranex and President/CEO of Flowing Energy Roger McMechan (P Eng) Chief Operating Officer of Iskander, previous Executive VP and Director at Winstar Resources Ltd and Sr. Manager at PetroCanada Hubert Marleau (B Sc Econ) President and Co-founder of Palos Capital Corporation, previous Executive level of Nesbitt Thomson Inc. and Levesque Beaubien Inc.

4 Huntington Overview – Oil and Gas Portfolio Huntington – a recapitalized Co. New Board elected Mandate to place new oil and gas assets into the Company New assets secured March 2012 Poised for growth - oil and gas projects acquired. Huntington’s asset base: Legacy assets – light oil W4 AB Crown land sales – Deep Basin gas W5 AB PrivateCo asset acquisition – gas & heavy oil AB Economics of all Huntington projects are favourable

5 Capital Structure Current Shares Issued and Outstanding89,904,987 Options Outstanding @ $.108,600,000 Shareholders Warrants exercisable @ $.1059,750,000 Proforma Fully Diluted share structure158,254,987

6 Huntington – Acquisition Highlights Oil and gas portfolio secured in central Alberta in Q1 2012 Low entry cost, low risk 60 boe/d current production, low declines land base: net 36 sections >95% undeveloped ; year round access Oil/liquids weighted projects Low risk drill inventory - low API gravity oil drill ready oil prospects with seismic coverage Recompletions on existing gas wells plus new drills 2P Reserves: Liquids 226.2 MSTB Gas 2421 MMCF 2P NPV @10% $8,332,000 * *Reliance Engineering Group Ltd Reserve Report completed March 1, 2012 Warwick – base production Calgary Edmonton W5W4

7 ALBERTA Edmonton Calgary Huntington’s core focus areas are: Atlee/Bindloss (heavy oil) Wizard Lk (gas) Pine Creek (liquids rich gas) Pine Ck W5 Wizard Lk W4 Atlee/Bindloss W4 Huntington’s Core Areas

8 W. Canada Basin plays – top tier RoR for W4 heavy oil projects (risked half cycle)

9 Warwick: Mannville Producing Gas Asset Producing gas well (50% WI) 2D controlled drill location – Viking/Sparky Warwick - Glauc gas storage Shallow Multi-zone sand reservoirs Production from Mannville stacked sands at 700m depth Recompletion potential exists in uphole sands from two WI wells Colony, Sparky, Viking targets Low cost to drill, complete and tie in 2 sections at 50% WI, non-op Existing Production Highlights One well produces 60 BOE/day EUR range 0.5 – 1.5 BCF per well Operating costs ~$5/boe Vertical Well Forecast* Capex D&C$500,000 IRR65% NPV 10$643,000 EUR1240 MMcf IP750 mcf/day * $3.25 AECO, CDN $

10 Atlee property - Ellerslie Oil Prospect Land and 3D seismic coverage HEI land base 9.5 sections at 100% WI and 7.0 sections at 50% WI HEI operates 16.5 contiguous gross sections > 95% undeveloped land Offsetting Crown land available Year round drilling 3D seismic coverage Huntington land – Ellerslie rights

11 Atlee property - Ellerslie Oil Prospect 3D Amplitude map – Ellerslie sand porosity Ellerslie reservoir Target reservoir at 1025m depth; 3D seismic coverage (24 km2) shot in 2010 has identified several potential drill locations Analogue production immediately west Vertical IP rates 40 b/d - no frac 11-12 degree API oil OOIP 5.3MMBbls/half section; Significant in place oil resource Pools have 4 - 8 infill locations; inventory 15+ locations proposed initial well locations channel cut/trap features Vertical Well Forecast* Capex D&C$550,000 IRR57% NPV 10$472,000 EUR 54 Mboe IP40 bopd * $60/bbl flat price, CDN $

12 Bindloss property - Glauconitic Oil Prospect Glauconitic sand reservoir Reservoir at 800m depth; 3-5m net pay, > 20% porosity HEI operates 8.5 gross sections at 100% WI Vertical wells define channel trend; low risk drills supported by available 2D seismic Analog production in immediate area with IP rates > 40 b/day no frac, 13 degree API oil Ellerslie channel sands secondary target Huntington land – Glauconite rights Cum 69,855 Bbls Cum 38,482 Bbls Cum 19,477 Bbls Horizontal Well Forecast* Capex$1,000,000 IRR50% NPV 10$1,300,000 EUR88,000bbl IP80bbl/d * $60/bbl flat price, CDN $ Mannville well control shown proposed re-entry / drill locations

13 Wizard Lake property – Mannville resource gas prospect Upper Mannville sand reservoirs Regionally extensive, liquids rich gas-charged sands up to 31m gross thickness Extensive 3D seismic coverage is available Excellent application for horizontal drilling HEI operates 3 gross sections at 100% WI Ample processing and infrastructure 10-12 BCF/section with potential for 4HZ/section Additional acreage in area to be acquired in2013; Room to grow land holdings at low cost 6-32: Mannville production IP 1.7Mmcf/d target zone Upper Mannville channel Net Pay >9% porosity (m) Horizontal Well Forecast* Capex$1,800,000 IRR73% NPV 10$1,700,000 EUR340Mboe IP2Mmcf/d * $3.25 AECO,$CDN, 22 Bbls / 1Mmcf liquids

14 Pine Creek W5 property – gas prospects Bluesky Resource and High Impact Leduc opportunity Bluesky production map * $3.25 AECO, CDN $ 50 Bbls/1Mmcf liquids Bluesky Reservoir Excellent Bluesky opportunity de- risked by offsetting industry HZ wells IP 4-6 MMCF/day with NGL’s Reservoir continuity over Huntington’s land Leduc Reservoir 50 bcf Leduc anomaly identified from industry 3D on 100% WI lands Horizontal Well Forecast - Bluesky* Capex$5,000,000 IRR100% NPV 10$6,829,000 EUR860 Mboe IP4Mmcf/d + NGL Location of Leduc anomaly on industry 3D seismic

15 NI 51-01 Reserve Report as at Mar 1 2012 Reserves identified at Atlee, Provost, Warwick and Pine Creek properties

16 Forward Looking Statements Disclaimer This presentation contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements"). In particular, this presentation contains forward looking statements pertaining to the following: business plans and strategies; the 2012/13 capital budget; the potential exploration success; expectations regarding the ability to raise capital and to add to reserves through exploration and development; and treatment under governmental regulatory regimes. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Huntington Exploration and its shareholders. Forward-looking statements are based on Huntington Exploration current beliefs as well as assumptions made by, and information currently available to, Huntington Exploration concerning anticipated financial performance, business prospects, strategies, regulatory developments, future commodity prices, future production levels, the ability to obtain equipment in a timely manner to carry out exploration activities, the ability to market natural gas successfully to customers, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through exploration activities. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. These factors include, but are not limited to risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, risks may not be insurable and reserves estimates. The forward-looking statements contained in this presentation are made as of the date hereof and Huntington Exploration does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward looking statements contained herein are expressly qualified by this cautionary statement.

17 Appendix

18 SE Alberta Cretaceous plays Huntington W4 properties area

19 Atlee property - Ellerslie Oil Prospect Type log: Ellerslie channel sand Ellerslie channel sand Perforated, no frac CUM 1,264 Bbls oil Mid-Mannville channel sand Secondary target zone GR – Neutron density porosity GR – SP resistivity Vertical well Ellerslie is a seismically identified oil resource > 5MM Bbls OOIP – 320 ac (1/2 section) 15% sand porosity cutoff – 6m net pay

20 GR - Neutron density por. SP - resistivity Glauconitic sands Perforated, no frac CUM 43,978 Bbls oil Atlee property - Ellerslie Oil Prospect Type log: Glauconitic sands 15% sand porosity cutoff Vertical well Prolific oil production from vertical wells in immediate area

21 Atlee property - Economics & Reserves Vertical Well Forecast* Capex$550,000 IRR57% NPV 10$472,000 EUR 54 Mboe IP40 bopd * $60/bbl flat price, CDN $ Significant oil resource in place Superior economics with heavy oil drilling program

22 Bindloss property - Glauconitic Oil Prospect Type log : Glauconitic sand Glauconitic sand target zone GR - Neutron density porosity 3.5m net pay 15% cutoff GR – SP resistivity 02/6-12-22-5W4 - Vertical well Type well in section 12 – HEI 100% WI Cum 38,482 Bbls oil

23 Bindloss property - Glauconitic Oil Prospect Type log : Glauconitic sand Glauconitic sand target zone GR - sonicGR – SP Elog vertical well in section 12: 100% WI Cum 19,477 Bbls oil; final rate 8 bopd Abd pressure 7900 SITP (Nov 2003) 8700 BH pressure, 13.8 degree API oil 11-12-22-5W4 - Vertical well 15% sand porosity cutoff Sonic log

24 Bindloss property - Economics & Reserves * $60/bbl flat price, CDN $ Significant oil resource – ¼ section Superior economics with heavy oil drilling program Horizontal Well Forecast* Capex$1,000,000 IRR50% NPV 10$1,300,000 EUR88,000bbl IP80bbl/d

25 Wizard Lake property – Mannville production HEI Wizard Lake 6-32-48-27W4 Mannville gas production - cum gas 0.125 BCF

26 Wizard Lake property – Mannville production HEI Wizard Lake 6-32-48-27W4/4 Mannville gas production IP 1.7 Mmcf/day - cum gas 0.125 BCF Mid-Mannville channels 31m gross pay > 6% porosity Top channel perf’d in 2007: 1348-50m Excellent HZ drilling candidate Glauconite equivalent sand 11m gross pay > 6% porosity Excellent HZ drilling candidate SP-Induction Lower CH 6% por. GR – ND por. Sample description : 9-32 offset well – Mid-Mnvl SS Fine-coarse grained sands, oil/condy stained Upper CH Glauc equiv

27 Wizard Lake property - Mannville Economics & Reserves * $3.25 AECO flat price used Horizontal Well Forecast* Capex$1,800,000 IRR73% NPV 10$1,700,000 EUR340Mboe IP2Mmcf/d Significant gas resource – ½ section Original gas-In-Place calculations


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