Axp Energy Limited · ASX:AXP

Axp Energy — Fremont Petroleum — Investor Presentation (June 2017)

20 slides from Axp Energy's investor presentation, June 2017

  1. Slide 1: Developing Colorado's Next Major Oilfield

    Developing Colorado’s Next Major Oilfield

  2. Slide 2: FPL – Oil & Gas Production & Development Company

    FPL – Oil & Gas Production & Development Company Operate in Fremont County CO – Florence Oilfield Fremont Petroleum Corporate Headquarters Florence, CO. USA Overview 2 Miles from Florence Oil Field Shares on issue (ASX:FPL) 197 million Total # Shareholders 1383 Enterprise Value (EV) $8.5 million 52

  3. Slide 3: Largest Producer in Fremont County - 26 Producing Wells

    Largest Producer in Fremont County - 26 Producing Wells • Field supports 500 additional well locations June 2017 3

  4. Slide 4: Hands On Management Team --> Very Low Cost Development

    Hands On Management Team --> Very Low Cost Development  Only ASX listed company that has exclusive access to its own suite of drilling equipment  Manage & operate all equipment internally  No daily rental fees  Vertical well costs of ~US$500,000 per well  Profitable at $30/Barrel WTI  We Contr

  5. Slide 5: FPL & The Florence OilField

    FPL & The Florence OilField 12,000 BOPD in 1905  Red section (old field) - 15,000 acres  Has produced 16.4MBO THE CANON CITY EMBAYMENT  Max Production 12,000 BOPD – early 1900’s (DJ Basin)  Field abandoned – more drilling success in other fields in CO  Vertical Fractures – could not locate  Dr

  6. Slide 6: The Profit Stage of Our Business Cycle!

    The Profit Stage of Our Business Cycle! Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Acquisition Exploration Development & Production Complete Complete Complete Complete In Progress We Are HERE Cost ($) High Risk Low June 2017 6

  7. Slide 7: Aggressive Drilling Schedule to Commence in June

    Aggressive Drilling Schedule to Commence in June  Drill 47 wells in the next 5 years starting in June Drilling plan Year: Wells drilled: Cumulative wells drilled: 2017 3 3 2018 8 11 2019 12 23 2020 12 35 2021 12 47 June 2017 7

  8. Slide 8: Well Economics – Net Revenue to Fremont

    Well Economics – Net Revenue to Fremont Self Funding Position USD $ Millions June 2017 8

  9. Slide 9: Single Well Economics

    Single Well Economics One of the lowest cost producers in the Industry – Base case well pays back in 6 months NPV & IRR Calculations IP (BOPD) 90 135 360 **Potential Economics based on nearby production **Assumed Drilling costs = USD$500k/well NPV ($US Millions) 1.002 1.76 5.543 **Royalty = 25%, Sev

  10. Slide 10: Florence Oil Field – Then and Now

    Florence Oil Field – Then and Now 1890 Then:  Production of circa 12,000 BOPD  Cumulative production of circa 16.5 million barrels  Drilling with horse and cart – very shallow depths  No modern science or mature drilling techniques  Approximately 8,000 acres Now: 2017  Highly advanced drilling

  11. Slide 11: Significant Amounts of Oil Remain in the Field

    Significant Amounts of Oil Remain in the Field Well Drilled in 1900 Well Drilled in 2017 Oil production  Florence oil field was largely abandoned due to lack of technology.  Vertical fractures are hard to drill into without knowing where they are. 2000’  Early success rates for drilling were Oil

  12. Slide 12: Applying Technology Works

    Applying Technology Works 3D Seismic Applied 1400 BOPD  From 2008-2011 3D Seismic was used to identify the Pierre fracture systems  During this time 22 successful wells in a row were dilled averaging 135 BOPD  Total Field production during this time was 1400 BOPD June 2017 12

  13. Slide 13: Fremont has the region's most experienced geologist

    Fremont has the the region’s most experienced geologist 21 Adjacent Pierre Wells - 2015 Production Data Well Well Type IP Date Initial Production Cumulative Production (2015) Apache Vertical Oct-08 46 10,030 Dolly Varden Vertical May-10 30 14,995 Elliot Ness Vertical May-11 248 27,325 Averages 108.0

  14. Slide 14: We Know Where the Fractures Are!

    We Know Where the Fractures Are! High definition 3D seismic accurately locates high density fracture networks Seismic Analysis Identifies SubSurface Fractures 3D seismic vibe trucks on location at Pathfinder June 2017 14

  15. Slide 15: We Know Where the Oil Is!

    We Know Where the Oil Is! Highly sophisticated surface geochemistry analysis identifies oil under the surface New Well Location Bird 13-18 Patented GorTex Membrane filled with a granular absorbent material  Membranes buried 3’ below surface  Peak red areas show Pierre oil signatures seeping throug

  16. Slide 16: Four Wells Drilled, Field De-risked and Extension Proved

    Four Wells Drilled, Field De-risked and Extension Proved C11/12 HZ Magellan Marco Polo Columbus  Producing Oil & Gas  IP 98 BOPD  Flaring Gas  Flaring Gas  IP 403 BOEPD  Pierre  Pierre  Pierre  Niobrara  Deviated  Deviated  Deviated  Horizontal  SRA Maturity  SRA Maturity  SRA Maturi

  17. Slide 17: Field Extension Confirmed Through Source Rock Analysis

    Field Extension Confirmed Through Source Rock Analysis Source Rock Analysis conducted by Weatherford Labs shows the kerogen maturity increasing as we move from East to West across the field. June 2017 17

  18. Slide 18: Validation from Gustavson & Associates

    Validation from Gustavson & Associates Independent Study Results Third party Resource & Reserves Calculations 100 Million Barrel Oil Potential Summary of reserves and projected cash flow Reserves Category Net oil Net Gas NPV10 (Mbl) (MMCF) (thousands $US) Proved (1P) 327.27 0.00 2,214.86 Proved + Pr

  19. Slide 19: Business development opportunity

    Business development opportunity Today  $8M Market Cap The future  100 BOPD  Cash flow positive  $80K/Month Revenue  > 1000 BOPD  Proven Oil Resource  > $1M/Month Revenue  Proven Process  Self Funding Development  Competent Management June 2017 19

  20. Slide 20: Contact Details & Disclaimer

    Contact Details & Disclaimer __________________________________________ Fremont Petroleum Corporation, Ltd. USA Headquarters 113 North Santa Fe Florence, Colorado USA 81226 P: (719) 784 7616 Australian Office Suite 302, Level 3 17 Castlereagh Sydney NSW 2000 Australia P: + 61 2 9299 9580 F: + 61 2 9

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