Investor Presentation

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TURNKEY EP INC.

• Investor Presentation
• R. M. (Bob) Tessari, CEO
• Michael A. Lynch-Blosse, SR VP ED
• October 08

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TURNKEY EP BUSINESS MODEL
A Unique Company Applying Casing Drilling
Technology to Create Value

• As an Exploration and Production Company to
  access reserves located in reservoirs that have
  proven difficult or uneconomical to drill with
  conventional drilling methods
• As a Drilling and Completion Contractor earning
  profit from drilling and completing difficult
  wells for oil and gas operators and Participating
  in selected projects where casing drilling
  technology provides an advantage

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TURNKEY EP (TKY) OVERVIEWCompetitive Edge -
Casing Drilling Technology Proven Oil Gas
Experience

• Operational base Onshore Gulf Coast S. Texas
  S. Louisiana
• 4 Casing drilling rigs/crews To depths of
  14,000
• 310 Wells successfully drilled using casing
  drilling technology
• Exit 08 w/net est. production of 484 BOPD and
  2,365 MCFPD
• Control 23,400 potential acres in prolific
  producing trends
• 96 Full-time employees including office field
  personnel
• Professional staff average 26 years oil gas
  experience

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CASING DRILLING vs. CONVENTIONAL DRILLING

• Conventional Drilling
• (using drill pipe)

• Casing Drilling
• (pump-in/reverse-out tools)

Trip time 1,000/hour Trip time
15,000/hour

• ADVANTAGES OF CASING DRILLING
• Reduce lost circulation
• Eliminate casing strings
• Improve well control
• Improve borehole stability
• Time savings (up to 50)
• Improve production flow rates
• Improve personnel safety
• Reduce rig HP/equipment requirements

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TURNKEY EP AREAS OF OPERATION

• Company Focus
• Field redevelopment projects
• Low - moderate risk exploration

Clear Creek Hurricane Creek
Louisiana
Forestar 1
Cockfield Trend
Bourque 1
Valjean Richard 1
Texas
Iver 1
Vieman 1
Cailouet Heirs 1
Mio / Frio / Vicksburg Trend
Turnkey-Operated Projects Participation
Wells Focus Trends
Magnolia City
Bruni Mineral Trust
Lefevre
Loma Vieja
Lobo / Wilcox Trend
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EP PARTICIPATION WELLS PERFORMANCE

• Location Well Name
  NRI(BPO) NRI(APO) Net Cost
  (MM) Status
• Louisiana Bourque 1 5.25
  4.20 0.20
  PA
• Louisiana Forestar 1 34.07
  25.55 1.77
  Install facility (250 BOPD)
• w/offset locations
• Louisiana Iver 1
  19.80 19.80 0.85
  PA
• Louisiana Caillouet Heirs 1 7.20
  5.40 0.63
  Testing (over 150 pay)
• w/offset
  locations
• Louisiana V. Richard 1 12.46
  11.10 0.57
  Drilling w/shows
• S. Texas Vieman 1 18.51
  13.88 1.36
  Drilling

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FORESTAR 1 WELL Cowpen Creek Field, Beauregard
Ph., Louisiana 700 Acres, 25.55 NRI (APO)

• Wilcox objectives
• Casing drilling overcomes drilling problems
• Test 170 BOPD from upper Wilcox
• Multiple offset opportunities
• Deeper Wilcox Sands non-commercial tests
  could improve in updip offset locations

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CAILLOUET HEIRS 1 WELL Valentine Field,
Lafourche Ph., Louisiana 414 Acres Leased (2,534
Acre AMI), 5.4 NRI (APO)

• 3-D Seismically defined structure
• Over 150 log pay section from cased hole logs
• Well waiting on test
• Large AMI multiple offset potential

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VIEMAN 1 WELL Danbury Prospect, Brazoria Co.,
Texas 805 Acres, 13.88 NRI (APO)

• Vieman 1 currently drilling
• 216 Acre closure at Frio Anomalina 2 Sand
• TKY Vieman 1 location higher on structure than
  Humble Vieman 1
• Estimated reserves in place - TBD
• Estimated recovery (2 wells) - TBD
• Secondary objective in Frio S Sand - could add
  project reserves increase production rate
• Anticipated production rate - TBD

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VALJEAN RICHARD 1 WELL Branch, Acadia Ph.,
Louisiana 600 Acres, 11.1 NRI (APO)

• Well currently logging
• Significant gas shows
• 3-D Seismically defined structure

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LOMA VIEJA FIELD REDEVELOPMENT PROJECT, Zapata
Co., Texas Wilcox R, S and T Sands 1,250
Acres, 100 WI, 73 NRI
R Sand

• Project Summary
• R Sand PUD 1/- BCF
• S Sand anticipated PUD - TBD
• T Sands underdeveloped due to formation damage
  from overbalanced drilling by original operator
• Estimated reserves in place from existing wells -
  TBD
• Underbalanced casing drilling is the key to
  unlocking field potential

3-D Seismic Structure - R Sand
S Sand
T Sands
Initial Well Multi-Well Drilling Program
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CLEAR CREEK FIELD REDEVELOPMENT PROJECT5,300
Acres, 100 WI, NRI 73.5

• Cockfield Zones (9,000)
• 5 Wells drilled
• One re-entry
• 2 Currently producing (3 zones)
• 4 Waiting on reservoir study results
• Net production 80 BOPD/100 MCFD
• Reservoir Study by Schlumberger at Texas AM
• By-passed primary potential
• Secondary recovery potential
• Targeted completion December 08
• Wilcox Zones (12,000)
• New 3-D seismic shot
• Good prospect identified

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CLEAR CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
Louisiana5,300 Acres, 100 Working Interest, NRI
73.5

• Wilcox Zones (12,000)
• New 3-D seismic shot in 2008
• Good prospect identified
• On trend with Wilcox production

Turnkey Hurricane Creek Farmin
2.8 MMBO
Wilcox Prospect 60 on Turnkey Acreage
Analog Fields and Recoveries
4.9 MMBO
Seismic Structure Top of Wilcox
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CLEAR CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
Louisiana5,300 Acres, 100 Working Interest, NRI
73.5
Dip Line
Dip Line
3-D Seismic Structure - Top Wilcox
Cockfield
Top Wilcox
Strike Line
Strike Line
Well-Defined Structure 350 Acre Structural
Closure on Trend with Wilcox Production
Cockfield
Top Wilcox
Top Wilcox
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CLEAR CREEK FIELD REDEVELOPMENT
PROJECT Beauregard Allen Parishes,
Louisiana Multiple Cockfield Reservoirs
Cockfield - Type Log
Secure Trusts 1 Lola Gimnick

• Project Summary
• Clear Creek Field discovered 1953 (12.3 MMBO)
• Historical development focused on A Reservoir
  only
• Other Cockfield Reservoirs are underexploited
• 5 Wells drilled, 1 re-entry
• 2 Producing wells (3 producing zones)
• 4 Wells waiting on results of reservoir study
• A Reservoir tests 6 to 11 oil cut 3000
  psi

Top Cockfield
1st Cockfield
2nd Cockfield
3rd Cockfield
4th Cockfield
Cockfield A
Cockfield A-1
Cockfield B
Cockfield B-1
Cockfield B-3
Cockfield A Sand Amplitude
Cockfield B-5
Cockfield C
New 3-D seismic will help to define by-passed
Cockfield potential secondary recovery in A
Reservoir
Proven Productive in Clear Creek Field
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CLEAR CREEK FIELD REDEVELOPMENT
PROJECT Beauregard Allen Parishes,
Louisiana Schlumberger Simulation Model

• Schlumberger Reservoir Modeling/Simulation Study
  Status
• Study progressing well preliminary results
  encouraging
• Modeling phase nearing completion beginning
  simulation work
• Anticipate completion before year-end

Structure Map Top A Sand

• Completed Work
• Petrophysics sums to production performance
• Geologic static model A and A-1 Sands
• Eclipse simulation input ready
• Summary to Date
• Reservoir simulation in progress
• Nearing field-wide history match
• Oil produced (back to early 1950s)
• Reasonable recovery factor established
• Anticipated Results
• Define areas for primary recovery PUD
  locations
• Evaluate ideal waterflood design options

3-D Grid A and A1 Sands
A Sand Petrophysical Modeling
Schlumberger Modeling Output
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CLEAR CREEK FIELD EP STRATEGY GOING FORWARD

• Complete Schlumberger Reservoir Study
• Confirm PUD locations primary recovery
• Evaluate secondary recovery potential
• Design waterflood pilot program
• Bring in a partner to initiate waterflood pilot
• Partner will pay 50 sunk costs to date
• Drill Cockfield PUD Locations
• High-grade locations using new 3-D seismic
• Target multiple reservoirs
• Drill Wilcox Prospect on a Carried Basis

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HURRICANE CREEK FIELD REDEVELOPMENT PROJECT
Beauregard Allen Parishes, Louisiana 3200
Acre Farm-In, Unitized, 100 Working Interest,
NRI 76.5

• Targeted Reservoir Cockfield Doornbos Sand
  (8,300)
• First well drilled in January 08
• Gross production 200 BOPD and 10 BWPD
• Second well drilled September 08
• Tested 60 BOPD and 5 BWPD
• Casing drilling minimizes formation damage
• Each well drilled earns 160 acres
• Each earning well sets up multiple PUD locations

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HURRICANE CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
LouisianaDoornbos Sand Structure and Completions
Cockfield Type Section

• Hurricane Creek Field discovered in 1948 ( 11
  MMBO)
• Doornbos Reservoir initially not primary
  producer
• Low resistivity, low contrast pay - 100 gross
  thickness
• Doornbos reservoir - est. original oil in place
  up to 60 MMBO
• Doornbos reservoir production - 2.6 MMBO
• Turnkey position - 3,200 acres (yellow outline)

Bancroft Sand
Doornbos Reservoir
UBHC Sand
LBHC Sand
Historical Doornbos Completions
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HURRICANE CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
LouisianaDoornbos Sand Structure and Drainage
Turnkey McPherson 1
Turnkey McPherson 1 Drilled and Completed 08

• Gross production rate 200 BOPD, 4-5 BSW
• Less formation damage with Casing Drilling
• Net estimated reserves potential - TBD

Perfs
Doornbos Reservoir

• Drainage areas existing wells (green)
• Most Doornbos wells drainage 20 acres
• Typical well recovery 75-100 MBO
• Typical production rates 30-70 BOPD
• Many Doornbos completions stimulated
• Good producers down dip on structure
• Only one other existing Doornbos producer

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HURRICANE CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
LouisianaDoornbos Plan Of Development
Centralized Drilling Pads
McPherson 2 - Completing
McPherson 1

• Advantages Of Pad Drilling
• No flow lines required in swampy area
• Gas shared between wells for gas lift
• Reduced operating costs
• Only one production facility per pad instead
  of individual well facilities
• Unitized so production can be managed by a
  single lease

Recovery - MBO
Initial Potential - BOPD
Green Estimated Drainage Area - Doornbos
Producers
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HURRICANE CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
LouisianaDoornbos Plan of Development - Phase l
- Drill to Earn
McPherson 2
McPherson 1

• Phase l Development
• Drill To Earn farmin terms
• Initial well (McPherson 1) earned 40 acres
• Second well (McPherson 2) earned remainder of
  160 acres
• Subsequent wells earn 160 acres per well
• Must drill every 180 days

160 Ac.
160 Ac. Earned
160 Ac.
160 Ac.
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HURRICANE CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
LouisianaDoornbos Plan of Development - Phase ll
- PUD Locations
McPherson 1
McPherson 2
PUD

• Phase ll Development
• Successful wells generate offset PUD locations
• PUD locations based on 20 acre development
• Infill drilling field-wide

PUD
PUD
PUD
PUD
PUD
PUD
PUD
PUD
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HURRICANE CREEK FIELD REDEVELOPMENT
PROJECTBeauregard Allen Parishes,
LouisianaDoornbos - Full Phase I Development and
Potential

• Phase I Development Drill 3 to 5 wells from
  each pad to earn farmout acreage
• Initial well on pad to be drilled vertically to
  test all Cockfield objectives
• Directional drilling will expose wellbore to
  more reservoir better recoveries
• Phase II Development Infill drilling for
  Doornbos and other Cockfield Reservoirs

Area (Within Green Circle) Produced 1.6 MMBO
From Doornbos Reservoir

• Phase I Net Potential (Production/Reserves)
• 25 Wells _at_ up to 100 BOPD
• 25 Wells _at_ up to 150 MBO

Centralized Drilling Pad and Facilities
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HURRICANE CREEK FIELD EP STRATEGY GOING FORWARD

• Monitor production from first two wells
• Start new multi-well pad development January 1,
  09
• Drill 3 to 5 wells from each new pad
• Earn maximum acreage with new wells (160
  ac./Well)
• Commence Phase ll, infill development drilling
• Cost per well is 2.0 million completed through
  tanks

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TURNKEY EP INC. EVALUATION Before Recent
Discoveries

US (000) Reserves as of Dec.
31, 07 24,085 Unevaluated properties at
cost 9,254 4 Drilling rigs 30,000 Net current
assets (as of 6/30/08) 14,162 Debt (as of
6/30/08) (11,454) Value 66,047 Shares
outstanding 24,188 Value per share
2.73 PV 10,
constant pricing, total proved plus 50 probable
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ANTICIPATED PRODUCTION-(NET TO TKY) Exiting 2008
Field/Well Status BOPD MCFPD
Non-operated P 50 50
Clear Creek P 80 100 Hurricane
Creek P 200 0 Caillouet Heirs
1 C 25 E 860 E Forestar
1 C 60 E 60 E Vieman 1 D
65 E 925 E V. Richard 1
D 4 E 370 E
Total 484 E 2,365 E
P-Producing C-Completing D-Drilling
E-Estimated
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BUDGETED CAPEX (First Half 2009)

• Project Capex (Millions)
• 5-Hurricane Creek wells _at_ 2.0 million
  10.0
• Seismic 1.0
• Participation wells (3 wells) 2.5
• Forestar 2
• Caillouet 2
• Vieman 2
• General working capital 1.5
• Total 15.0

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ESTIMATED POTENTIAL PRODUCTION ADDITIONS (NET)
FROM NEW CAPEX Ending 06/09
Field/Well (09) BOPD MCFPD Hurricane Creek (5)
500 0 Caillouet Heirs 2 25
860 Forestar 2 60 60 Vieman
2 65 925 Additional
production 650 1,845 Prior
production (08) 484 E 2,365 E Total
production (mid 09) 1,134 4,210
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CAUTIONARY STATEMENTS

• This presentation contains forward-looking
  statements including expectations of future
  production and components of cash flow and
  earnings. Investors are cautioned that
  assumptions used in the preparation of such
  information may prove to be incorrect. Events or
  circumstances may cause actual results to differ
  materially from those predicted, a result of
  numerous known and unknown risks, uncertainties,
  and other factors, many of which are beyond the
  control of Turnkey. These risks include, but are
  not limited to the risks associated with the oil
  and gas industry, commodity prices and exchange
  rate changes. Industry related risks could
  include, but are not limited to operational
  risks in exploration, development and production,
  delays or changes in plans, risks associated to
  the uncertainty of reserve estimates, health and
  safety risks including, without limitation,
  blowouts and spills, and the uncertainty of
  estimates and projections of production, costs
  and expenses. The risks outlined above should
  not be construed as exhaustive. Investors are
  cautioned not to place undue reliance on any
  forward-looking information. Turnkey undertakes
  no obligation to update or revise any
  forward-looking statements.

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