Bpi Energy Holdings Inc · OTC:BPIGF
Bpi Energy — Merger or Acquisition (March 2008)
23 slides from Bpi Energy's merger presentation, Mar 19, 2008
Slide 1: Illinois Basin Opportunity
B Pil ENERGY Illinois Basin Opportunity
Slide 2: Forward-Looking Statements
Some of the statements contained in this document may be deemed to be forward-looking in nature, outlining future expectations or anticipated operating results or financial conditions. Such forward- looking statements are subject to known and unknown risks, uncertainties and other factors that could
Slide 3: Opportunity Overview
BPI Energy, Inc. ("BPI") has retained Tristone Capital (U.S.A.), Inc. ("Tristone") exclusively to provide financial and transaction advisory services for a corporate merger or sale process or other strategic transaction BPI Energy is a growing natural gas company focused on coalbed methane developme
Slide 4: Company Overview
Company Overview American Stock Exchange listing: BPG $19.1MM* Market Cap 73.6MM* shares outstanding 132,266* average daily volume (3 months) Management and directors own 11% Balance sheet $11.5MM of debt and $2.6MM of cash at 1/31/08 $1.7MM cash balance as of 3/10/08 * As of 03/14/08 Net Reserves a
Slide 5: Why Illinois Basin CBM?
Black Warrior 20 Tcf Why Illinois Basin CBM? Significant resource potential (OGIP estimates of 21 TCF - Warlick International; North American Unconventional Natural Gas Report 2006) Two commercially successful CBM fields in the basin with Jericho producing ^ 1,500 MCFED and Delta producing ^ 760 MCF
Slide 6: Illinois Basin - Underexploited Resource
Greater Green River 314 Tcf Wind River 6 Tcf Powder River 39 Tcf Uinta 10 Tcf San Juan 84 Tcf Piceance 99 Tcf Forest City / Cherokee 7 Tcf Illinois 21 Tcf Northern Appalachian 61 Tcf Central Appalachian 5 Tcf Black Warrior 20 Tcf Raton 10 Tcf Illinois Basin - Underexploited Resource ~ 60,000 square
Slide 7: Illinois Basin - Geologic Footprint
Illinois Basin - Geologic Footprint High Volatile B and C Bituminous Coal - most desirous coal can be found in as many as 9 discrete zones Optimal Coal Quality Lignite Sub-Bituminous Bituminous Anthracite Powder River San Juan Raton Illinois Central Appalachian Illinois Basin Penn. Coals Danville He
Slide 8: Illinois Basin - A Significant CBM Province
Source: Netherland Sewell & Associates & BPI Illinois Basin - A Significant CBM Province Coal Basin or Deposit Coal Rank Typical Depth (feet) Typical Net Coal (feet) Typical Gas Content (SCF/ton) Typical Well Spacing (acres) In-situ Density (g/cm3) Avg. Well Production (Mcfd) Illinois Hvb/c 500 22 7
Slide 9: Well Economics
Well Economics Typical Illinois Basin Well Typical Well Economics Investment: $201 M NPV (10%): $232 M Internal Rate of Return: ~37 % EUR: 208 MMCF Gas Price: $7.00/MMBTU Based on 160-acre spacing Months
Slide 10: Delta Project
= Ooo Delta Project
Slide 11: Delta Project - Producing Acreage
Delta Project - Producing Acreage 10,000 acres (100% WI, 92% NRI) 127 producing wells, 2 SWDs, 2 POWs Processing capacity of 1.5 MMcf/d Multiple producing horizons 95 Wells Drilled, Completed & Tied- In as of 7/31/07 30 Wells Drilled, Completed & Tied- In as of 12/10/07 6 Wells Drilled, Completed &
Slide 12: Delta Production
Delta Production Gas Water Wells Gas Rate (Mcfd) / Well Count Water Rate (Bwpd) Pipeline Shut-in NRU Start-up New Compressor 0 100 200 300 400 500 600 700 800 900 1,000 6/1/2004 8/1/2004 10/1/2004 12/1/2004 2/1/2005 4/1/2005 6/1/2005 8/1/2005 10/1/2005 12/1/2005 2/1/2006 4/1/2006 6/1/2006 8/1/2006 1
Slide 13: Delta Field Performance
Delta Field Performance Forecast based on Internal BPI Reserve Report Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec AVG. Production (MCF) 19,382 20,688 21,514 22,414 25,509 25,083 28,063 28,098 30,249 30,743 33,179 34,191 33,798 35,630 35,136 36,974 28,791 Daily Production (MCFPD)
Slide 14: Delta Field Forecast
Delta Field Forecast Forecast based on Internal BPI Reserve Report Net Production - Total Summary Unrisked 0 500 1,000 1,500 2,000 2,500 3,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 PDP PDNP PUD Forecast Actual Net Production (MCFEPD) Assumptions Operating Costs F
Slide 15: Eastern Illinois Basin
Eastern Illinois Basin Eastern Illinois Basin vs. Western Basin Thicker coals Improved gas saturation Permeabilities being studied 19,000 acres under lease/option and still acquiring 2,000,000 potential acres in main fairway 10 Prospects Looking for Jericho field (1,500 MCFPD) analogs Recent acreage
Slide 16: Type Curve Comparison
Type Curve Comparison Delta Well Peak Rate: 19 MCFPD Yrs to Peak: 5 EUR: 125 MMCF Eastern Basin Well Peak Rate: 53 MCFPD Yrs to Peak: 1.6 EUR: 208 MMCF 2 thickest coals in Delta field are mined out but exist in Eastern Basin Improved gas saturation in Eastern Basin Higher Permeability
Slide 17: Eastern Illinois Basin Assumptions
Eastern Illinois Basin Assumptions Net Acreage 19,000 Core Wells 2 Pilot Wells 1 Development wells 119 EUR Per Well 208 MMCF Development Well Cost ($M) $201 Peak Rate 52 MCFEPD Time to Peak 2 years Single well payout 2.6 years PV10 per well ($M) $232 Core to Pilot 6 mos. Pilot to development 12 mos.
Slide 18: Eastern Basin Pro-Forma Performance
Eastern Basin Pro-Forma Performance * Assumes 19,000 acre field development with 160 acre spacing Mo. 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6 Mo. 7 Mo. 8 Mo. 9 Mo. 10 Mo. 11 Mo. 12 Mo. 13 Mo. 14 Mo. 15 Mo. 16 AVG. Production (MCF) 1,132 3,472 5,832 10,790 13,235 16,748 20,054 22,687 26,899 29,357 34,689 40,
Slide 19: Undeveloped Acreage Overview
Undeveloped Acreage Overview Northern Illinois Basin Largely unevaluated acreage block with high potential Two 10-well pilot programs conducted in 2006-2007 with results currently being evaluated Western Illinois Basin Four test wells currently being evaluated Northern Project 366,000 acres Western
Slide 20: Income Statement
Income Statement - FYE 7/31 ($ in 000's, except per share data) 2006A 2007A 1H 2008A Oil & Gas Revenues 1,126 $ 1,204 $ 756 $ Other Revenues - - - - - - Total Revenues 1,126 1,204 756 LOE - Recurring 971 1,164 714 LOE - Nonrecurring - - 444 - - G&A 5,199 6,592 2,732 Stock Based Compensation 1,377 1,
Slide 21: Balance Sheet
Balance Sheet - FYE 7/31 Historical and Current Balance Sheet ($ in 000's, except per share data) 2005A 2006A 2007A Q2 08 Current Assets Cash 7,252 $ 19,279 $ 11,292 $ 2,578 $ Other 58 270 2,642 1,556 Total Current Assets 7,310 19,549 13,934 4,134 Net PP&E 15,110 29,241 26,189 33,199 Restricted Cash
Slide 22: Recent CBM Transactions
Recent CBM Transactions Notable CBM Transactions 2006-2007 Date Buyer Seller Reserve Value $MM $/MCFE $/MCFED Proved Reserves BCFE Daily Production MCFEPD R/P Basin Nov-07 Quest Resources Corporation Pinnacle Gas Resources Inc 96 $ 3.71 $ 9,897 $ 25.9 9,700 8 Powder River Sep-07 Penn Virginia Corpor
Slide 23: World Class Team
World Class Team M ANAGEMENT T EAM T ECHNICAL T EAM J IM A ZLEIN , P RESIDENT & CEO · Carried BPI from concept to exploration to developme nt phase · 20 years of international project development and m anagement experience J IM C RADDOCK , COO · Over 25 years of industry experience · Formerly Chief
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