Tuscany Energy Ltd New · OTC:TSCAF
Tuscany Energy Ltd New — Tuscany Energy — Investor Presentation (November 2011)
30 slides from Tuscany Energy Ltd New's investor presentation, November 2011
Slide 1: Tuscany Energy Ltd. November 2011
Tuscan ry ENERGY LTD. TSXV: TUS NOVEMBER 2011
Slide 2: Overview
Overview Tuscany is an oil-focused junior, with significant growth planned from repeatable, horizontal oil development drilling. FINANCIALLY SOUND No debt, $7.5 mm available capital (incl. $0.9 mm cash) SOLID PRODUCING ASSETS 130 boepd 450 boepd 1,000 boepd June 2011 Exit 2011 (94% oil) Exit 2012 (9
Slide 3: Vision
Vision To deliver substantial growth and value for Tuscany shareholders by adhering to a focused approach to oil drilling. Commodity focus: Heavy Oil Geographic focus: Evesham/Lloydminster Capital focus: Balance sheet integrity TSXV: TUS November 2011 - 3-
Slide 4: Corporate Overview
Corporate Overview CAPITAL STRUCTURE Substantial Shares outstanding 124 million management Market cap @ $0.13 $16mm ownership stake… Mgmt./Directors 37% SOURCES OF FUNDING Available Capital $7.5 million Debt free, with including: ----------------- significant capital Cash $ 0.9 million Liquid invest
Slide 5: Experienced leadership
Experienced leadership MANAGEMENT BOARD OF DIRECTORS Robert Lamond CEO & Chairman Robert Lamond (chairman) Czar, Orbit Dave Bennington John McLeod COO & Director Donald K. Clark Heritage Roger Hume Donald K. Clark VP Ops. & Director Czar, Orbit John McLeod Brad Perry CFO Glen Phillips Sharon, Corrid
Slide 6: Tuscany's path to growth
Tuscany’s path to growth CURRENT PRODUCTION 324 boepd, 94% oil 1.35 mmboe 2P reserves 2011 CORE DEVELOPMENT ASSETS Evesham: 5 new horiz. oil wells drilled July-Sept 2 new horiz. oil wells to drill Q4-11 Macklin: 1 new horiz. oil well drilled Q3-11 2 new horiz. oil wells to drill Q4-11 OTHER PROJECTS
Slide 7: Q3-11 results
Q3-11 results Q3-11 operational & financial results: Production: 313 boepd (quarterly avg.) 94% oil Cashflow: $750,000 (9 months $1.4 mm) Earnings: $594,000 (9 months $0.2 mm) Working Capital: $856,000 * (no debt) * Excluding liquid investments TSXV: TUS November 2011 - 7-
Slide 8: Asset overview
Asset overview Tuscany’s oil assets are concentrated in the Evesham/Lloydminster corridor, an area prolific with heavy oil discoveries. TSXV: TUS November 2011 - 8-
Slide 9: Core assets: Evesham & Macklin
Core assets: Evesham & Macklin Tuscany lands Wells that produced oil from Dina, Cummings, or Ellerslie zones. DINA OIL FOCUS AREAS Evesham Macklin TSXV: TUS November 2011 - 9-
Slide 10: Core assets: Evesham & Macklin
Core assets: Evesham & Macklin Well logs show comparable oil pay across Tuscany’s properties and nearby producing fields. TSXV: TUS November 2011 - 10-
Slide 11: Evesham
Evesham Evesham is Tuscany’s key growth asset, with 10 horizontal wells drilled and 2 more planned for Q4-11, targeting heavy oil. Tuscany 60% WI & operator 400 bopd gross from 11 horiz. Dina wells drilled to date 3D seismic & geological control Water disposal system active and controlled by Tuscany
Slide 12: Evesham
Evesham TSXV: TUS November 2011 - 12-
Slide 13: Evesham
Evesham WELL COST $1.0mm drill/equip (no frac needed) RESERVES 75,000 bbls oil (2% royalty on 37k) PRODUCTION 85 bopd IP, 50 bopd yr 1 avg. McDaniel report Dec 2010 - 14 proven/probable locations - 59 contingent locations - Contingent resource of 2.63 mmbbl, net to Tuscany (vs. 1.25mmboe total curre
Slide 14: Evesham
Evesham 2011 DRILLING PLANS FUTURE POTENTIAL 6 horiz. wells drilled in 2011 73 potential horiz. locations 1 horiz. well to drill Q4-11 using 50 metre spacing TSXV: TUS November 2011 - 14-
Slide 15: Macklin
Macklin Acquired in 2010, Tuscany sees Macklin as an Evesham-type heavy oil opportunity; recently drilled well producing 100 bopd. Tuscany 55% WI & operator Two producing wells & three shut-in Dina horizontal oil wells 3D seismic & geological control Water disposal system active, controlled by Tusca
Slide 16: Macklin
Macklin Drilling at Macklin 92/7-28-39-27W3, with production tanks in foreground. TSXV: TUS November 2011 - 16-
Slide 17: Macklin
Macklin First new horizontal well doing 100 bopd; two offsetting horizontals now drilling. First new HZ oil well drilled summer 2011; on-stream 100 bopd. Drilled second new HZ well in Q4-11; currently drilling third new HZ. Acquired adjacent land in October, and subsequently shot 2 square miles of 3
Slide 18: Other Oil Prospects
Other Oil Prospects Numerous oil opportunities are in various stages of technical work ahead of drilling SASKATCHEWAN 2 Birdbear plays (Evesham, Senlac) 1 Dina play (Winter) 1 multizone play (Meota) 2 Shaunavon plays (Gull Lake, Chambery) ALBERTA 4 Lloydminster plays (Morgan, Islay, Sec 7-48-1W4, Ll
Slide 19: Lloydminster oil plays
Lloydminster oil plays Tuscany’s four prospects near Lloydminster all have wells with bypassed pay. Tuscany lands Bypassed oil pay in Lloydminster zone TSXV: TUS November 2011 - 19-
Slide 20: Lloydminster - Sec 7-48-1W4
Lloydminster - Sec 7-48-1W4 Adjacent to producing heavy oil wells, with bypassed pay on vertical logs; new horizontal well drilled Summer 2011. Tuscany 55% WI Geological control & partial 3D seismic New HZ well drilled summer 2011; testing now. TSXV: TUS November 2011 - 20-
Slide 21: Lloydminster - Morgan
Lloydminster - Morgan Two abandoned vertical wells with bypassed oil pay. First horizontal to drill in 2012; success sets up 31 additional locations. Tuscany 55% WI First horizontal well to drill 2012 Bypassed oil pay in Lloydminster zone TSXV: TUS November 2011 - 21-
Slide 22: Lloydminster - Islay
Lloydminster - Islay Abandoned vertical well with bypassed oil pay. Drilling first horizontal in 2012; success sets up 31 additional locations. Bypassed oil pay in Lloydminster zone Tuscany 55% WI (20% now, farming in on additional 35%) Shooting 3D seismic now Horizontal well to drill 2012 TSXV: TUS
Slide 23: Winter
Winter Key well on Tuscany lease has bypassed pay in Dina. Plan to drill a horizontal well. Tuscany HZ locations Tuscany 55% WI Plan to drill a HZ Bypassed oil pay well in 2012. in Dina zone TSXV: TUS November 2011 - 23-
Slide 24: Evesham - Birdbear
Evesham - Birdbear 3 wells with bypassed Birdbear pay on Tuscany lease, offsetting NuVista Birdbear play with 160bopd avg. horizontal IP rates. Bypassed Birdbear pay in vertical wells Tuscany HZ locations Tuscany 50% WI 7 potential HZ locations NuVista HZ locations (Sept. ’11 presentation) Drill 201
Slide 25: Reserves upside potential
Reserves upside potential Tuscany’s Dec. 2010 reserves report evaluated only 18 oil locations; the company’s extensive oil inventory remains largely unbooked. UNBOOKED LOCATIONS Booked per McDaniel per mgmt. locations: report Dec ‘10 estimates Evesham 14 59 73 Macklin 15 Lloyd - Morgan 32 Lloyd - Is
Slide 26: 18 month activity plan
18 month activity plan June 2011 Exit 2011 (target) Exit 2012 (target) 130 boepd 450 boepd 1000 boepd 80% oil 94% oil 97% oil 2011 CAPEX 2012 CAPEX (indicative) Evesham 7 horizontal wells Evesham 10 horizontal wells Macklin 2 horizontal wells Macklin 3 horizontal wells 3 horizontal reactivations Llo
Slide 27: Why Tuscany?
Why Tuscany? Tuscany is poised for significant growth, with a solid balance sheet and an active horizontal oil drilling program to capture the value of the company’s large heavy oil opportunity base. FINANCIALLY SOLID EXTENSIVE OIL SOUND PRODUCING ASSETS OPPORTUNITY BASE June 2011 Exit 2011 No debt
Slide 28: Forward Looking Statements
Forward Looking Statements This presentation contains a summary of Management’s assessment of historical, financial and operating results and should be read in conjunction with the annual report and consolidated financial statements of the Company, other information filed in regards to each company
Slide 29: Forward Looking Statements
Forward Looking Statements Basis of Presentation The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a
Slide 30: For further information, please visit: www.TuscanyEnergy.com
For further information, please visit: www.TuscanyEnergy.com Suite #1800 633 – 6th Avenue S.W. Calgary, AB T2P 2Y5 Tel: (403) 269-9889 TSXV: TUS Fax: (403) 269-9890
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