Baron Energy — Investor Presentation (June 2015)
22 slides from Baron Energy's investor presentation, Jun 12, 2015
Slide 1: Baron Energy, Inc. Investor Presentation
Baron Energy, Inc. Investor Presentation June 12, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained herein regarding future expectations, access to public capital markets, plans for acquisitions and dispositions, oil and gas reserves, exploration, development, production and pricing may be regarded as "forward-looking statements" within the m
Slide 3: Company Overview
Company Overview Baron Energy, Inc. (TKR: BROE) is an independent petroleum company engaged in the acquisition, development, and production of crude oil and natural gas in North America. We leverage the substantial experience of our management team to acquire, operate, and grow a portfolio of low-ri
Slide 4: Investment Highlights
Investment Highlights Seasoned and incentivized management team 35 years industry experience on average 40% ownership creates shareholder alignment Significant asset base in place 8,000+ acres; 100% operated; 75-100% working interest Multi-year development drilling inventory; 50-year res
Slide 5: Company Overview
Company Overview HQ in San Marcos, Texas Pink Sheets: BROE Common shares outstanding (est): 132 million/15 million float Current price (6/12/15): $0.10/share 3 month average volume: 5,975 shares/day 52 week range: $0.02 - $0.15/share Current Market Cap: $13.2 million Total Debt (est)
Slide 6: Management Team
Management Team • 35 years of oil and gas experience including 18 years with a major oil company and 14 years as owner/operator Ronnie L. Steinocher, P.E. • Extensive experience in drilling, engineering, production operations, Chairman, President and CEO business development, and general management
Slide 7: Board of Directors
Board of Directors Ronnie L. Steinocher, P.E. | Chairman, President and CEO 35 years of oil and gas experience; 18 years with a major oil company; 14 years as owner/operator Extensive experience in drilling, engineering, production, business development, and general management BS in Architectu
Slide 8: Current Status Company-Wide
Current Status Company-Wide Baron operates 100% of all properties 75-100% WI (working interest) ownership; 56-77% NRI (net royalty interest) 225 BOEPD gross / 150 BOEPD net; 90% oil 16 producers; 2 SWD wells 8,106 acres gross Multi-year drilling inventory Reserve life > 50 Years 6/12/2
Slide 9: Production Focus Areas
Production Focus Areas N TEXAS HQ San Marcos County of Operations 6/12/2015 www.baronenergy.com 9
Slide 10: Oil and Gas Reserves
Oil and Gas Reserves Category Crude Oil Natural Gas Total PV-10 (Bbls) (Mcf) (Boe) PDP 252,368 279,917 302,353 $5,430,895 PDNP 123,270 124,074 145,426 $2,047,158 PUD 893,626 739,144 1,025,616 $9,969,410 Total Proved 1,269,264 1,143,135 1,473,395 $17,447,463 Probable 1,114,114 114,079 1,134,485 $8,90
Slide 11: Production and Projected
Production and Projected Production and Projected 900 800 Drilling Program to begin in July 2015 700 to ramp-up production 600 Gross BOEPD 500 Frio 400 County Taylor 300 County 200 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2014-2015 1) Production at end of Q 2) 3-4Q projections based on current capex and drilli
Slide 12: 2015 Targets
2015 Targets Continue development of properties 3-4Q Execute ramp-up in production Become fully SEC compliant; trade on the OTC exchange Complete audited financials; complete SEC filings Complete divestment of non-core properties Sell by year-end (pending market conditions) Maintain cu
Slide 13: Frio County, South Texas
Frio County, South Texas 100% operated properties 89-100% WI/64.15%-77% NRI Gross 153BOPD/170 MCFPD/180 BOEPD (134 BOEPD net) 14 producers; 90% Oil 7,497 gross acres; 8 producing leases Multi-year drilling inventory – Multiple production targets (Olmos Sand, San Miguel, Austin Chalk, Eag
Slide 14: Austin Chalk Section
Austin Chalk Section Austin Chalk has three productive zones: B-1, 5,150’ Top of Chalk B-2, and Lower Chalk Upper Chalk B-1 Upper Chalk B-2 Lower Chalk 5,500’ Base of Chalk Eagle Ford Shale 6/12/2015 www.baronenergy.com 14
Slide 15: First Horizontal Recompletion
First Horizontal Recompletion • December 2014 Baron’s first horizontal recompletion in the Austin Chalk • 96% WI; Baron operated • 2,800’ lateral • Drilling rigs must be capable of drilling 5,000’ plus lateral wells • 67 possible future new wells and recompletions identified • > 50 year reserve life
Slide 16: Production Systems
Production Systems • Horizontal wells IP at 100-500 BOPD • 50,000 to 150,000 BO EUR per lateral • Large pump jacks are required to move substantial volumes of fluid • Both single lateral and dual lateral wells 6/12/2015 www.baronenergy.com 16
Slide 17: Taylor County, Central Texas
Taylor County, Central Texas 100% operated properties 75% WI/54.75% NRI Gross 25-30 BOPD gross / 14-16 BOPD net 2 producers; 1 SWD; 100% Oil 609 contiguous acres; 2 producing leases Possible future well locations – Flippen Sand Formation at 2,900’ – 10-acre spacing – Open hole completion
Slide 18: Taylor County, Central Texas
Taylor County, Central Texas • Shaffer Leases, Taylor County, Texas • Baron operated with 75%WI • Shallow oil wells with long-lived production • Field has been on production for more than 40 years • A number of future in-field drilling locations on 10 acre spacing; 3 permitted for drilling • Open ho
Slide 19: Acquisition Focus Area
Acquisition Focus Area Baron Energy, Inc. HQ in San Marcos, Texas 6/12/2015 www.baronenergy.com 19
Slide 20: Austin Chalk Trend
Austin Chalk Trend • Baron is focused on the Austin Chalk trend • Future acquisition priorities & preferences would be on trend in the Austin Chalk 6/12/2015 www.baronenergy.com 20
Slide 21: Acquisition Criteria for Producing Properties
Acquisition Criteria for Producing Properties Operated properties only; prefer 100% WI Current production > 200 BOEPD per project Focus on oil production Less than 10,000 feet well depth Multiple pay zones Upside via drilling, recompletions, and horizontal wells Long-term production li
Slide 22: Company Contact
Company Contact Baron Energy, Inc. 300 S. C.M. Allen Parkway, Suite 400 San Marcos, Texas 78666-2278 Phone: 512-392-5775 Fax: 512-392-7238 info@baronenergy.com www.baronenergy.com 6/12/2015 www.baronenergy.com 22