Voltaic Strategic Resources Limited · ASX:VSR
Voltaic Strategic Resources — Incremental Oil and Gas — Investor Presentation (May 2012)
24 slides from Voltaic Strategic Resources's investor presentation, May 2012
Slide 1: Investor Update May 2012
INCREMENTAL OIL and GAS (asx: IOG) INVESTOR UPDATE MAY 2012 www.incrementaloilandgas.com 1
Slide 2: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and chan
Slide 3: Incremental Business Model
Incremental Business model – A producing oil company with a cash flow focus – We acquire underperforming oilfields and increase production – Focus is Onshore USA – Florence producing oilfield, Colorado (100% WI) – Round Mountain producing oilfield (100% WI) – Sheep Springs producing oilfield (100% W
Slide 4: Oil and Gas projects, California & Colorado, USA
id Gas, California & Colorado, USA eae Ana NEBRASKA g J Colorado Springs Florence Field Legend @ Project Location - California @ Project Location - Colorado
Slide 5: New Acquisition Florence Oilfield
NEW ACQUISITION FLORENCE OILFIELD DENVER 5
Slide 6: Florence field background
Second oldest field in the world Drilled first in 1862 1000 Shallow wells drilled 15m barrels produced Produces from fractured shale 1800- 3600’ deep Revitalised by seller in last 4 years Av 700 bopd over last 2 years 6
Slide 7: Florence Field
FLORENCE FIELD • 21 Producing wells • High initial rates and quick payout • Light, sweet crude (WTI-$7) • Wells inexpensive, simple • Wells located from 3D seismic • Wells can decline quickly • No water production, low opex • IOG has over 20,000 acres leased • 100% WI, av 80% NRI 7
Slide 8: Florence Production
FLORENCE PRODUCTION Florence Quarterly Production 1000 20 900 18 800 16 700 14 Average BOPD 600 12 # of Wells 500 10 400 8 300 6 200 4 100 2 0 0 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 8 Average Daily Production (BOPD) # of Wells Drilled
Slide 9: Well costs have come down substantially
Well costs have come down substantially 9
Slide 10: Pierre FM Potential
PIERRE FM POTENTIAL • Excellent quality 3D seismic over nearly all the lease • Fracture zones clearly visible and mappable on seismic • At least 30 anomalies remain undrilled • Will need to drill to maintain production • First three wells planned for Q3 2012 • We have a world class team in developin
Slide 11: Niobrara is the source of much of the DJ basin's oil
Cross Creek (Niobrara): Drilling Niobrara: IP 75 BOEPD Bear Project 17 wells permitted, held confidential Silo Field Florence 68 horizontals IP 500-2000 BOPD H&T Ranch (Niobrara) IP 75 BOEPD West Grover / Fury Field Recent wells at 600 BOPD managed rate NIOBRARA “D” Wattenberg Field PDC buys Niobrar
Slide 12: Florence Funding
Florence Funding • Purchase price US$12.25m • Settlement 29 June • IOG receive net revenue from May 1 (estimate $2.6m for May & June) – $2m cash from reserves – Debt funding from large bank 12
Slide 13: IOG Capital Structure
IOG Capital Structure • Formed 2009 as Private Company • Listed January 2011 after raising $5.3m at 30 cents. • 459 shareholders • 135.6m shares (Directors and management 43%) 92.8m unlisted options1 • Market cap about $35 million • NO DEBT 2010 2011 REVENUE $6.06m $7.72m EBITDA $2.40m $3.04m 1. Opt
Slide 14: IOG Team
From left: IOG TEAM Adams: 20 years Accountant. MacDonald: 13 years in Senate, LLB USA Cronin: No 2 in Woodside (23 years) M Pet Eng, Stowell: Founder of Anvil and Mawson West, CA Over 30 years McGann: 40 years geologist worldwide, CPG experience CFO DIRECTORS
Slide 15: Incremental Projects, California
Incremental Projects, California • Producing ROUND MOUNTAIN • Producing SHEEP SPRINGS • VENTURA Development • McDONALD A/C Development • RAVEN PASS Exploration 15
Slide 16: Round Mountain
Round Mountain Smoot 5 Smoot 6 Drilled 6 wells in 2011 All successful Production about 90 bopd Six additional locations 16
Slide 17: Sheep Springs Oilfield
Sheep Springs Oilfield STILL PRODUCING 120 BOPD. LOW OPEX Remaining 2P Reserves of 1.43 MMB 17
Slide 18: Ventura Project
Ventura Project Area produced over 160 million barrels Very thick oil columns West Mountain inadequately developed Drilling in Q3 18
Slide 19: McDonald Anticline
McDonald Anticline Produced 22 million barrels Shallow, light oil Multi reservoirs Plan to drill 2012 At least 3 well locations 19
Slide 20: Raven Pass
Raven Pass • Flowed light oil in 1942. Not drilled since • Reservoir, seal, trap all demonstrated • 200 m barrel potential • True wildcat 20
Slide 21: Gross Revenue
Gross Revenue IOG Monthly Gross Revenue $ 1.0 m $ .8 m $ .6 m $ .4 m $ .2 m $ .0 m 21
Slide 22: Microcredit Project Santa Paula
Microcredit Project First Rotary Microcredit project in Santa the developed world. Paula $230k pilot project, IOG supported with $10k 80% hispanic population >20% unemployment 22
Slide 23: Microcaps: Money Raised vs Market Capitalisation
MICROCAPS (<$50m) MONEY RAISED vs MARKET CAPITALISATION Source: Oil & Gas weekly
Slide 24: 2012 Projected News Flow
2012 Projected News Flow • Complete Florence Deal • Drill 1-2 wells, Round Mountain…June • Drill 1-2 wells, Ventura Project …..Q3 • Drill 3 wells, Florence Field…….. Q3 • Drill 2-3 wells, McDonald Anticline • Declare another after tax profit
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