Moneta Overview Presentation - Innovative Energy Consulting ...

Presentation to
Potential Partners/Customers
March 09June 2005
Page 1

Disclaimer
This presentation is confidential and for authorized use only. Under no circumstances are its
contents to be reproduced or distributed to the public, media or potential investors without written
authorization. The information contained herein, while obtained from sources believed to be
reliable, is not guaranteed as to its accuracy or completeness. This disclosure contains certain
forward looking statements that involve substantial known and unknown risks and
uncertainties, that are beyond management's control. No assurances can be given that any of
the events anticipated by the forward looking statements will transpire or occur, or if any of them
do so, what benefits will be derived therefrom. This presentation is for general background
information purposes only and does not constitute an offer to sell or a solicitation to buy the
securities referred to herein.
March 09 Page 2

Moneta Energy Services Ltd.- Capital Partners
Yorktown Partners LLC, et al (62% ownership)
Large private equity firm based in New York, NY
Managed by Bryan Lawrence
Current fund, Yorktown Energy Partners VI LP
Has approx $2.7 Billion under management in six funds
Energy Investment focus
BNP Paribas (18% ownership)
International Bank based in France
6 th largest bank in the world
World leader in Gas Marketing / Energy sector
Management (20% ownership)
March 09 Page 3

Moneta Energy Services Ltd.
Canadian based natural gas services company
Focused on developing/acquiring infrastructure
assets – initially targeting underground storage and
strategic pipelines
Commercial capability to both market capacity and to
trade around such assets
Offers energy management solutions including price
risk management, storage, transportation, physical
logistics and financial options to complement
underground storage optimization
March 09 Page 4

Moneta Energy Services Ltd.
Moneta Energy Services Ltd
Unregulated Assets
(Canada))
Midstream sector of gas
industry
Generate leasing revenue at
market rates for services
Extract full value with gas
trading competencies
Marketing/Trading
(North America)
Relationship marketing
Asset capacity and services
Physical & financial trading
Credit facility
Monetize price volatility
Capture basis opportunities
March 09 Page 5

Moneta Energy Services Ltd.
Unregulated Assets
Underground Gas Storage
Salt & reservoir storage
Develop green field
Acquire brown field
Optimize on a profit
sharing basis
Lease capacity from 3 rd
parities
Commercial & technical
optimization
Partnerships with
producers & utilities
Strategic Gas Pipelines
Develop green field
headers
Acquire brown field interprovincial
lines
Contract capacity
Capture pipeline to
pipeline arbitrage
opportunities
Partnerships
March 09 Page 6

Moneta Energy Services Ltd.
Marketing/Trading
Marketing Gas Storage
Asset Optimization Trading
Development & marketing
of market based storage
services
Manage physical & financial
risks
Innovative deal structuring
Manage credit risk
Commercial operations
Commodity trading –
financial & physical
Optimization of unused &
unleased storage capacity
associated with operated
storage facilities
Value capture of storage
capacity leased from 3 rd
parties
Monetize price spreads &
volatility
March 09 Page 7

Moneta Energy Services Ltd - Mission Statement
Balanced Asset/Merchant company
Provide innovative services to natural gas industry of
western Canada & Ontario
Tailor made value propositions to Utilities, E&P
companies, midstream companies and large end
users
Enhance the value of natural gas related storage and
pipeline assets
Commercially astute and capable of marketing assets
and trading commodities (physical & financial)
March 09 Page 8

Moneta Energy Services Ltd - Core Competencies
Natural gas marketing/trading around equity assets
and contracted capacity on pipelines & storage
Underground gas storage commercial development &
optimization
New business development – unregulated midstream
assets
Identify and improve underperforming assets
Monetize price volatility
March 09 Page 9

The Natural Gas Storage Opportunity
Unprecedented storage prices in North America
The monetization of gas price volatility utilizing natural gas storage has
become both sophisticated and transparent
WCSB storage now sees the entire North American gas market
dynamics
The general drivers for maximizing value from storage assets located in
Alberta have been demonstrated
Excess pipeline capacity
Nova acts as a header to all of Alberta
There is a liquid trading hub with a responsive electronic trading platform
Other synergies exist vis-à-vis the innovative application of salt cavern
gas storage services
High cycle salt/low cycle depleted reservoir synergies
Natural gas/NGL synergies
March 09 Page 10

Gas Storage Trends in North America
Preferential development of salt cavern storage over
depleted reservoir storage
Unregulated market based storage adds significant
more value to storage owner than does regulated
storage
Surplus pipeline interconnection capacity has
increased value of supply region based storage
Re-structuring and overhauling utility owned storage
is a niche opportunity that adds tremendous value
Regulators are starting to embrace market based
storage rates
March 09 Page 11

Gas Storage Trends in Alberta
Commercial value of market based storage rates are
increasing due to gas market conditions and
elimination of infrastructure congestion
New players emerging – Riverstone acquisition of
EnCana’s storage business
Rationalization from old producer owned model to a
more commercial one that better fits this sector of the
gas industry in this era
Bold expansions (TCPL’s Edson and EnCana’s
Countess facilities)
Alberta Government and petroleum industry
continues to embrace storage
March 09 Page 12

Moneta Energy Services Ltd - Operating Environment
Declining gas supply from Western Canada
Volatile gas prices
Growing E&P activity in BC & SK
Embracing market based gas storage in ON
Alberta attempts to maintain competitive advantage
Rationalization of underground gas storage assets across
Canada
Export gas pipeline load factors continue to decline thereby
increasing inter-regional capacity and connectivity between
WCSB and other regions of North America
March 09 Page 13

Moneta Energy Services Ltd - Business Philosophy
Win/win approach
Partnerships
Challenge the status quo business model
Add value through innovation & timely
execution
Primary focus on underground gas storage
and related infrastructure/commercial
activities
Facts are friendly
March 09 Page 14

Bios of the Moneta Team
March 09June 2005
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Moneta Energy Services Team
Rex H. Kary, President and CEO
Rex founded Continental Energy Marketing Ltd., one of Alberta’s first independent gas marketing
companies in 1989.
Grew the company organically from the initial seed capital of $150,000 and a line of credit of $250,000
Sold Continental to PanEnergy Marketing and led the Canadian operation to a tripling of revenues to
over $1 billion in 14 months.
Investors in Continental received a return of capital in 2 yrs and 10 times return on capital in 6 years
Rex pioneered many innovative contracts designed to meet customers specific needs, be they
producers, LDCs, pipelines or regulators
Managed the business with strict credit and trading policies, resulting in no business losses from bad
debt or from unauthorized trading
Developed an industry leading gas management system that was fully integrated , and is still in use
today
Recognised as an expert in this field and was invited to speak at many industry forums and instruct at the
University of Calgary
Rex applied his extensive corporate experience to the provision of entrepreneurial financial services
related to transaction restructuring and innovative financing through Kary Financial Services
Since June 2003, Rex has directed his energy to building Moneta Capital Partners Ltd. as Managing
Partner.
In January 2006, Rex orchestrated the transfer of the assets of Moneta into an Limited Partnership, and
has focused on building Moneta Energy Services
March 09 Page 16

The Moneta Energy Services Team cont’d
Bob Tomes, CA, CFO
Bob is a seasoned financial executive with over 25 years of diverse business building and leadership
experience including: M&A, corporate financing, treasury management, strategy and business
development, financial reporting, budget modeling, compliance and Board secretary responsibilities.
As CFO for an oil & gas software development and professional services company, as well as a seismic
data processing company, Bob has extensive public company experience.
Bob spent 9 years inside TELUS where he gained significant experience in banking, treasury, credit and
cash management, including establishing a $400M Commercial Paper program.
He has also managed the in-house cash, up to $500M per day, and foreign currency needs for
Richardson Greenshields prior to their sale to RBC DS.
Bob also has start up company experience thru the creation and growth of Tripeze.com, an e-commerce
online travel business, that was sold to Sears Canada and became Searstravel.ca
Brad Johns
Brad has been in the technology sector for over 17 years and has been instrumental in taking technology
companies from their incubation to their growth stages and on to successful exits.
As Vice President of Launchworks he helped raise $70M and managed the fund to an exit where the
shareholders saw a excellent return on their investment.
The last several years has seen Brad focusing his efforts on technology and service opportunities in the
oil & gas sector.
His experience on both the operational and financial sides of business provides him with the background
required to manage the challenges associated with startup growth
Brad was President of Infotech and is currently a director of Industrial Evolution Inc. and Evoco Inc.
March 09 Page 17

The Moneta Energy Services Team cont’d
Glen Gill
Glen has 28 years of energy industry experience, primarily related to various sectors in the natural gas
industry.
Founded the first producer owned and unregulated gas storage facility in Canada - the AECO facility at
Suffield. This allowed AEC to prosper under an extended low price period for Alberta natural gas.
Has been involved with gas storage projects throughout North America and Australia and was a
commercial advisor to Riverstone in the recent acquisition of EnCana’s North American gas storage
business.
Over the past 14 years he has held executive positions with a number of companies (Enron, BHP,
Allgas, Forcenergy Australia, & Nova Scotia Power) and has provided consulting services to companies
in Canada, the USA and Australia.
Has published numerous articles and papers related to natural gas and storage and has spoken at many
conferences in Canada and Australia.
Linda Wiebe
Linda has five years of industry experience with Continental Energy Marketing Ltd. where she managed
the gas operations team (8 employees) in the transport of natural gas throughout Alberta, B.C.,
Saskatchewan, and Eastern Canadian pipeline systems as well as several U.S. pipelines.
was responsible for Regulatory permitting, compliance, and reporting, and provided operational
information inputs to risk, accounting, contracts, IT, and marketing, and actively participated in the
development and implementation of various internal information systems.
developed and managed excellent relations with external operational contacts including shippers,
pipeline/storage staff, marketers, regulatory personnel, end-use customers, producers, and developed
and optimized internal operational processes and coordination / communication with counterparts.
March 09 Page 18

Moneta Energy Services Team Cont’d
Vaughan Torrie, Trading & Optimization
Vaughan has 4 years of trading, marketing and analyst experience in the energy sector.
Most recently, Vaughan spent 2 years at UBS Commodities Canada as an Energy Marketer of natural
gas and power to a multitude of producers, end-users and utilities throughout Canada and parts of the
U.S. Also as part of his duties at UBS, Vaughan was responsible for trading and optimization of the
natural gas storage portfolio consisting of 5PJ of leased storage capacity.
Prior to UBS, Vaughan was an Electricity Trader and Alberta Power Market Analyst at EPCOR. He
was responsible for managing the company’s Alberta electricity position via trading of physical and
financial products throughout Western Canada and the Western U.S.
March 09
Page 19

North America Underground Gas Storage (“UGS”)
92.6 Bcf/d max deliverability
• 66% consuming region
• 34% supply region
March 09 Page 20

Historical Growth of UGS Capacity in North America
Average Age of US gas storage facilities is 35 years old
LDC’s in Canada; Pipelines & LDC’s in USA
Independents in USA
Producers in Canada
March 09 Page 21

Historical UGS Development in Canada
90 Bcf (Countess &
Edson Facilities)
March 09 Page 22

March 09June 2005
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