Slide 1: Value creation through technical excellence driving world class oil and gas properties
Value creation through technical excellence driving world class oil and gas properties May 2014 1
Slide 2: Disclaimer
Disclaimer Statements made by representatives of Austin Exploration Limited during the course of this presentation that are not historical facts are forward-looking statements. These statements are based on certain assumptions made by the Austin Exploration Limited based on management’s experience a
Slide 3: SPP – Turning Assets into Revenue
SPP – Turning Assets into Revenue Large Asset Base – Niobrara • Source for 2nd oldest oil field in the world – the Florence oil field • Niobrara 2 unconventional well successful – IP 403 B0EP • 11,560acres or approximately 250 wells at 40 acre spacing • Gas processing and sales of heavy gasses to co
Slide 4: SPP – Assets returning revenue
SPP – Assets returning revenue Access to Expertise – Eagle Ford advancing rapidly with Halcón • Operator with proven track record – Niobrara program - Austin named runner-up in the Rocky Mountain Exploration and Production Company of the year – Colorado School of Mines expertise Access to Capital –
Slide 5: Strategic Pathway
Strategic Pathway Conventional Geological and Colorado projects Texas Eagle Ford engineering Niobrara • Mississippi ‘Birch’ expertise ‘Pathfinder’ • Kentucky • Identify • Explore and • 70% Halcon / • Retain 100% undervalued de-risk assets 30% Austin JV own and properties • Self- operated • Halcon $2
Slide 6: US Assets – Map
US Assets – Map Austin Corporate Office East Business Unit Lakewood, CO Office Henderson, KY Pathfinder Niobrara Project Sebree & WW Magnolia Park City Midwest Business Unit Office Florence, CO Commencement Ellislie Bourke 4 Birch Eagle Ford Project South Business Yolanda Unit Office Bastrop, TX Hea
Slide 7: Austin Reserves
Austin Reserves Independent Study Gustavson (Fall 2013) Estimated Ultimate Oil Recovery Oil Resources, Solution Gas Resources, BSCF MMBbl ( Million Barrels) MMBbl (Million Barrels) BSCF(Billion cubic feet) P90 P50 P10 P90 P50 P10 P90 P50 P10 22.20 Birch Prospect 6.140 11.980 22.400 5.940 11.790 24.5
Slide 8: Birch Eagle Ford Prospect
Birch Eagle Ford Prospect - 5040 acres in Burleson County & East Texas Burleson County, Texas Owner Working Net Interest Revenue (WI) Interest (NRI) Identified by Halcón as Austin 30% 22.5% the next Eagle Ford Exploration (AKK) ‘Sweet Spot’
Slide 9: JV’s first horizontal a major success
JV’s first horizontal a major success Halcón reports IP Rate of 1066 BOEPD Halcón Resources Corporation Presentation – March 25 2014
Slide 10: Birch Eagle Ford Prospect
Birch Eagle Ford Prospect Successful USD $54 mil farm-out program completed in 2013: – Halcón Resources – free carried for three 10,000 ft horizontals wells in 2014 . – PetroMax Operating – free carried for one 10,000 ft horizontals well in 2014 – $10M/well Next – Austin required to provide matching
Slide 11: Pathfinder Niobrara Project
Pathfinder Niobrara Project – 100% of 11,560 acres in Fremont & Custer Counties Colorado Proven targets – Niobrara formation – Pierre Shale Exploration success – Well #1 – Successful vertical exploration well – Well #2 successfully drilled with 16 frac stages over a 4100ft horizontal leg – On March
Slide 12: Austin Pathfinder Project - Originally the Florence oil field
Austin Pathfinder Project - Originally the Florence oil field Niobrara formation - the ‘source’ of the Florence oil field – 1860’s Florence became the 2nd oldest oil field in the world – In 1862, oil discovered is good API quality with low water production – The Pierre formation is from the Cretaceo
Slide 13: Pierre Wells in Florence
Pierre Wells in Florence - Adjacent & Contiguous property Pierre wells used in this analysis: – 22 Wells Total • 3 Vertical Wells • 12 Deviated Wells • 7 Horizontal Wells – Satellite imaging analysis while integrating geological structure analysis , subsurface geology, surface geochemistry study and
Slide 14: Niobrara
Niobrara – Gas Gathering & Processing infrastructure underway Agreement with Gas CIG Processing of America Inc. (GPA) in Feb 2014 Industrial – GPA will process and sell the Markets heavy liquid gases (propane, hexane, ethane and butane) – Methane to be sold as pipeline quality gas Processing Plant –
Slide 15: Capital structure
Capital structure Board and Management AKK 12 Month Historical Price Performance Richard Cottee Chairman of the Board Dr. Mark Hart CEO & MD COO and President of AusCo Guy Goudy Petroleum Inc (USA) Dominic Pellicano Non-executive Director Corporate Statistics Shares On Issue (ASX : AKK) 2b Market Ca
Slide 16: SPP Investment Rationale
SPP Investment Rationale Austin’s 20,000 acres across five proven hydrocarbon basins in the US expected to support more than 300 wells Flagship Pathfinder project being de-risked with potential US$40 million funding package from Mizuho. Pathfinder gas processing and sale agreements in place Eagle Fo
Slide 17: Corporate Information
Corporate Information Austin Exploration Limited Auditor Level 9, 575 Bourke St. Grant Thornton Melbourne, VIC, 3000 Level 2, 215 Spring Street Australia Melbourne, VIC 3000 (03) 9606 3888 Phone (03) 8663 - 6000 (03) 9606 3800 Fax www.granthornton.com www.austinexploration.com AusCo Petroleum Inc. S
Slide 18: US Management Team
US Management Team Dr. W. Mark Hart, Chief Executive Officer and Managing Director Dr. Hart has more than 35 years of executive experience across a number of major mining and energy companies, including Standard Oil, Newmont Mining Company, Cyprus AMAX Minerals, and NRG Energy. He has been chairman
Slide 19: US Management Team
US Management Team ON LOCATION – EVERY DAY Mr. Timothy Hart, VP and General Manager for Kentucky Business Unit As the VP and General Manager for Kentucky, Tim Hart is responsible for the performance and development of Austin Exploration’s Kentucky Exploration, LLC business unit which includes approx