Slide 1: A fully funded E&P company with an aggressive growth strategy
www.austinexploration.com A fully funded E&P company with an aggressive growth strategy Our mission is to deliver multiple returns on investment for investors through early entry into large resource projects with significant drilling activity Q2 2012 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 managemen
Slide 3: Executive Summary
Executive Summary World Class Word Class World Class Assets Technical Team Commercial Team Colorado Pathfinder Niobrara Mr. Richard Cottee (USA) Chairman of the Board Dr. Mark Hart President & CEO Professor- Colorado School of Mines Texas Birch Eagle Ford Mr. Guy Goudy (USA) Deputy President & Chief
Slide 4: Significant Worldwide Assets
Significant Worldwide Assets Focusing on its highly prospective Niobrara and Eagle Ford Shale assets where multiple wells are planned for the coming months. Continued Engineering focus to increase existing production in Kentucky and Mississippi Niobrara Shale Colorado 40.0mmbbl P50 NI 5101 resource
Slide 5: Austin Exploration - Overview
Austin Exploration - Overview Large Shale Resource Indicates Multiple Return Potential ► Eagle Ford shale in East Texas – 40.0mmbl P50 NI 51-101 resource ► First Eagle Ford vertical well exceeded pre-drill expectations flowing at 95BOEPD ► Niobrara shale in South Colorado – 40.0mmbbl P50 NI 51-101 r
Slide 6: Austin Exploration - Overview
Austin Exploration - Overview Existing Conventional Assets Cover Operational Overheads ► Mississippi & Kentucky assets provide cashflow ► 60 Boe/d average – cashflow covers salaries and operational overheads ► 44% daily production increase Dec. 2011 vs Dec. 2010 ► Additional funds devoted to apprais
Slide 7: Investor Highlights
Investor Highlights Key Considerations Comments Experienced Board and • Richard Cottee recently joined Board as Chairman motivated management • Combined 100 years of experience with Standard Oil Company, Consol Energy, Queensland Oil and team Gas Corporation, Santos, Oil Search, CS Energy, PetroZuat
Slide 8: Corporate Snapshot
Corporate Snapshot Corporate Statistics AKK 12 Month Historical Price Performance Shares On Issue (ASX : AKK) 1.5b Market Capitalisation @ $.03 $ 45m Total Options 1.0b Cash $26m Debt $ Nil Enterprise Value $ 19m USA:OTCQX International ADR Ticker: (1 ADR : 100 common shares) AUNXY Board and Managem
Slide 9: Experienced Board of Directors
Experienced Board of Directors Mr. Richard Cottee, Chairman of the Board Mr. Cottee is the former CEO of the one of Australia’s most successful oil and gas industry growth stories – Queensland Gas Corporation, and Mr. Cottee was CEO of Nexus Energy. He was also previously Managing Director for the U
Slide 10: Experienced Board of Directors
Experienced Board of Directors Mr. Nigel Hartley, Non-Executive Director One of Australia’s foremost oil executive, 20 year veteran with ASX-listed Oil Search ($8.1bl ASX listed company). Mr. Hartley has been involved in raising over US$14 billion for various Oil Search related projects and was inst
Slide 11: Deep U.S. Based Management Team
Deep U.S. Based Management Team Board of Directors ASX & Austin Exploration NY-OTCQX Australia Ltd Listed Austin Exploration U.S.A. Based North America Subsidiary (Aus-Tex) Head of General Manager General Manager General Manager Kentucky Exploration Inc. CFO for Southern U.S. Economic Analysis for K
Slide 12: Niobrara Project
Niobrara Project ► Location – Fremont & Custer County, Colorado T 18-21S, R68-70W – Acreage: 11,560 acres Fairly contiguous acreage with a flat terrain – Primary target: Niobrara formation ► Appraisal Plan – Drill first horizontal well in Q2 2012 and complete in Q3 2012 – Potential for approxima
Slide 13: Niobrara Project
Niobrara Project ► Appraisal, not exploration – Surrounded by proven oil production emanating from Niobrara shale – Evidence of thick Niobrara section, average Niobrara thickness is 560 feet – Evidence of high quality oil (39 API) in drill stem test – Evidence of high resistivity in very thick secti
Slide 14: Targeted Niobrara Horizontal Well Economics
Targeted Niobrara Horizontal Well Economics Individual Well Profile Individual Well Type Curve Initial 600 BOPD 700 Production 600 EUR (gross) 280,000 Bbls Average BOPD 500 Cost Per Well $5,000,000 400 Payout 5 months 300 200 NPV(1) $7 Million 100 IRR +100% 0 1 3 5 7 9 Field Development Data Oil Pri
Slide 15: Eagle Ford Project
Eagle Ford Project ► Location – Burleson county, Texas – Acreage: 5,000 acres – Primary target: Eagle Ford formation – Oil/wet gas window ► Appraisal Plan – Successfully drilled vertical well into the Eagle Ford Shale at 9325 ft with an IP rate of 95 BOPD – Second and third vertical wells to commenc
Slide 16: Eagle Ford Project
Eagle Ford Project ► Appraisal, not exploration – Importantly, located in oil/wet gas window of the play – Interpreted thickness of 300 feet in Eagle Ford formation – Results of 12 nearby wells, all with production, have been analysed by Austin as part of its drill planning – Austin’s first Eagle Fo
Slide 17: Targeted Eagle Ford Horizontal Well Economics
Targeted Eagle Ford Horizontal Well Economics Individual Well Profile Individual Well Type Curve Initial Production 600 BOPD 700 EUR (gross) 264,000 Bbls 600 Average, BOPD Cost Per Well $6,500,000 500 400 Payout 8 months 300 200 NPV $7 Million 100 IRR ~100% 0 1 2 3 4 5 6 7 8 9 10 Field Development D
Slide 18: PEL 105 Cooper Basin Project
PEL 105 Cooper Basin Project ► Location – Cooper Basin, Australia – Acreage: 5,000 acres – Targets: Patchawarra and Tirrawarra formations – Interest: AKK holds a 50% working interest ► Exploration Plan – Pirie 1 well expected to be drilled in 2012 – Joint venture partner Beach Energy Limited to full
Slide 19: Current Producing Assets
Current Producing Assets Kentucky Mississippi Texas •Park City Field •Ellislie •Yolanda •17 gas wells over 900 acres •Adams County, Mississippi •Dimmit County, Texas •Potential for gas gathering control •TD at 6585 ft •36% WI & 27.36% NRI •Securing an extra 800 acres in •Production from Wilcox •Prod
Slide 20: Proven Production Growth
Proven Production Growth ► Significant production growth over short period of time ► Net Austin Exploration Limited average daily production: ~ 60 BOPD as of Dec. 2011 30,000 25,000 Production, Bbls 20,000 15,000 10,000 5,000 0 2010 Qtr 3 2010 Qtr 4 2011 Qtr 1 2011 Qtr 2 2011 Qtr 3 2011 Qtr 4 Produc
Slide 21: 2012 Proposed Drilling Schedule
2012 Proposed Drilling Schedule Drilling Activities Proposed 2012 Drilling Schedule (1) Vertical Well Shale 48% ► Q2 Frac first vertical well in Eagle Ford 52% ► Q2/Q3 Drill and frac second vertical Eagle Ford well ► Q3 Drill and frac third vertical Eagle Ford well ► Q3/Q4 Complete best of first thr
Slide 22: Peer Comparison
Peer Comparison ► A peer comparison highlights the significant value uplift possible for Austin as it proves-up its Eagle Ford and Niobrara Shale Projects Source: Hartleys Research 22
Slide 23: Recap – Investment Highlights
Recap – Investment Highlights ► World class assets. World class technical team. World class commercial team. ► Knowledgeable Board and motivated management team with proven track record and significant US experience. ► Focused on Project 500 to drive shareholder value for next 15 months – The First
Slide 24: Corporate Information
Corporate Information Austin Exploration Limited Auditor Level 1, 160 Queen St. Grant Thornton Melbourne, VIC, 3000 Level 2, 215 Spring Street Australia Melbourne, VIC 3000 (614) 1903 – 5297 Phone (03) 8663 - 6000 (618) 8339 – 7909 Fax www.granthornton.com www.austinexploration.com Aus-Tex Explorati