Axp Energy Limited · ASX:AXP
Axp Energy — Austin Exploration — Investor Presentation (February 2012)
23 slides from Axp Energy's investor presentation, Feb 20, 2012
Slide 1: Austin Exploration Limited Investor Presentation Announcement
Austin Exploration Limited ACN 114 198 471 Listed on the Australian Securities Exchange (“AKK”) and the OTC-QX International in the USA (AUN-XY) For Immediate Release The Manager 20 February 2012 Companies Announcements Officer Australian Stock Exchange Electronic Lodgement INVESTOR PRESENTATION Aus
Slide 2: Austin Exploration Limited
Austin Exploration Limited A highly leveraged 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 February 2012
Slide 3: 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 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 Niobrara Shale Colorado 40.0mmbbl P50 NI 5101 resource Eagle Ford Shale East Texas 42.6mmbl P50 NI 5101 resource Austin Exploration Limited Asse
Slide 5: Austin Exploration - Overview
Austin Exploration - Overview Large Shale Resource Indicates Multiple Return Potential • Eagle Ford shale in East Texas – 42.6mmbl P50 NI 51-101 resource • Niobrara shale in South Colorado – 40.0mmbbl P50 NI 51-101 resource • High working interests provide maximum leverage and control as well as fle
Slide 6: Investor Highlights
Investor Highlights Investment Rationale Comments Concentrated footprint in US, • Approximately 150 ~ 300 well locations in the U.S. focused on prolific Eagle Ford • Eagle Ford and Niobrara – Top 2 of 3 unconventional oil resources in North and Niobrara shales America High quality oil resources and
Slide 7: Corporate Snapshot
Corporate Snapshot Corporate Statistics AKK 12 Month Historical Share Price Performance Shares On Issue (ASX : AKK) 637m 0.05 90.0 Closing Price (A$) Million Shares Daily Volume Traded On-Market Daily Close Price Market Capitalisation @ $.037 $ 23.5m 80.0 Total Options 449m 0.04 70.0 Cash $2.5m 60.0
Slide 8: Experienced Board of Directors
Experienced Board of Directors Mr. Richard Cottee, Chairman of the Board (effective 22 March 2012) 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 M
Slide 9: Deep US Based Management Team
Deep US Based Management Team Board of Directors ASX & Austin Exploration NY-OTCQX Australia Ltd Listed U.S.A. Based Austin Exploration Subsidiary North America (Aus-Tex) Kentucky Exploration Inc. Kentucky Exploration Kentucky Business Unit North West Business Unit South Business Unit LLC (JV 50%) D
Slide 10: 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 11: 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 section
Slide 12: Targeted Niobrara Horizontal Well Economics
Targeted Niobrara Horizontal Well Economics Individual Well Profile Individual Well Type Curve Initial Production 600 BOPD 700 600 EUR (gross) 280,000 Bbls Average BOPD 500 Cost Per Well $5,000,000 400 300 Payout 5 months 200 NPV (1) $7 Million 100 0 IRR +100% 1 3 5 7 9 Oil Price Sensitivity ($/BO W
Slide 13: 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 • First vertical well (Krueger #1) successfully drilled to 9,325 feet • Second and third vertical wells to commence Q2 2012 and all will be teste
Slide 14: 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 Ford
Slide 15: Targeted Eagle Ford Horizontal Well Economics
Targeted Eagle Ford Horizontal Well Economics Individual Well Profile Individual Well Type Curve Initial Production 600 BOPD 700 600 EUR (gross) 264,000 Bbls Average, BOPD 500 Cost Per Well $6,500,000 400 300 Payout 8 months 200 NPV $7 Million 100 0 IRR ~100% 1 2 3 4 5 6 7 8 9 10 Oil Price Sensitivi
Slide 16: 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 spud Q2/3 2012 • Joint venture partner Beach Energy Limited to fully fu
Slide 17: 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 • TD at 6585 ft • 36% WI & 27.36% NRI control • Production from Wilcox • Produce natural gas and oil
Slide 18: Proven Production Growth
Proven Production Growth 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 Production growth Cumulative Production • Significant production growth over short period of time • Net Austin Exploration Limited average daily prod
Slide 19: 2012 Proposed Drilling Schedule
2012 Proposed Drilling Schedule Proposed 2012 Drilling Schedule (1) Drilling Activities Shale Vertical Well Horizontal Well • Q2 Frack first vertical well in Eagle Ford (2) 48% • Q2 Drill and frack second vertical Eagle Ford well 52% • Q2/Q3 Drill and frack third vertical Eagle Ford well • Q3 Comple
Slide 20: Long Term Outlook
Long Term Outlook Base Case High Case Projected 2012 2013 2014 2015 2016 2017 Projected 2012 2013 2014 2015 2016 2017 Revenue Revenue Colorado 4.80 31.84 65.74 103.39 134.73 175.13 Colorado 5.24 34.74 71.72 112.79 198.76 325.23 Texas 2.80 28.14 61.78 88.52 119.86 149.72 Texas 2.80 30.25 67.12 96.33
Slide 21: 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 Austin 20 Exploration
Slide 22: Recap – Investment Highlights
Recap – Investment Highlights ► Substantial exposure to Niobrara and Eagle Ford development; positive results are expected from multiple wells over coming months ► Stable long life, oil weighted development with numerous repeatable drilling opportunities per 51-101 independent analysis conducted in
Slide 23: Corporate Information
Corporate Information Austin Exploration Limited Level 1, 160 Queen St. Melbourne, VIC, 3000 Australia (614) 1903 – 5297 Phone (618) 8339 – 7909 Fax www.austinexploration.com Aus-Tex Exploration Inc. Transfer Agent 7985 W. 16th Ave. Computershare Investor Services Pty. Ltd. Lakewood CO 80214 Level 5
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