Baron Energy Inc

Baron Energy — Investor Presentation (April 2015)

23 slides from Baron Energy's investor presentation, Apr 1, 2015

  1. Slide 1: Baron Energy, Inc. Investor Presentation

    Baron Energy, Inc. Investor Presentation April 1, 2015

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Certain statements contained herein regarding future expectations, access to public capital markets, plans for acquisitions and dispositions, oil and gas reserves, exploration, development, production and pricing may be regarded as "forward-looking statements" within the m

  3. Slide 3: Company

    Company Baron Energy, Inc. (TKR: BROE) is an independent petroleum company engaged in the acquisition, development, and production of crude oil and natural gas in North America. We leverage the substantial experience of our management team to acquire, operate, and grow a portfolio of low-risk produc

  4. Slide 4: Investment Highlights

    Investment Highlights  Seasoned management team; significant operational experience  Large asset base; mostly oil; horizontal wells  Long-lived reserves  Production ramp up to begin in June 2015  >100 possible future wells/laterals/recompletions  Aligned with an energy capital provider  Manag

  5. Slide 5: Company Highlights

    Company Highlights  Seasoned oil and gas management team  Operated only properties  228 BOEPD (150 BOEPD net); 84% oil; 16 producers  Multi-year well inventory of low-risk, long-term production  > 100 possible future wells/laterals/recompletions  > 8,600 gross acres  Multiple pay zones in mos

  6. Slide 6: Company Overview

    Company Overview  HQ in San Marcos, Texas  Pink Sheets: BROE  Common shares outstanding (est): 130 million/15 million float  Current price (4/1/15): $0.075/share  3 month average volume: 10,844 shares/day  52 week range: $0.02 - $0.15/share  Current Market Cap: $9.75 million  Total Debt (est

  7. Slide 7: Management Team

    Management Team • 35 years of oil and gas experience including 18 years with a major oil company and 14 years as owner/operator Ronnie L. Steinocher, PE • Extensive experience in drilling, engineering, production operations, Chairman, President and CEO business development, and general management •

  8. Slide 8: Board of Directors

    Board of Directors Ronnie L. Steinocher, PE | Chairman, President & CEO  35 years of oil and gas experience; 18 years with a major oil company; 14 years as owner/operator  Extensive experience in drilling, engineering, production, business development, and general management  BS in Architecture,

  9. Slide 9: Current Status Company-Wide

    Current Status Company-Wide  Baron operates 100% of all properties  $215,000/month revenue (pre VPP)  75-100% WI (working interest) ownership; 56.25-77% NRI (net royalty interest)  150 BOEPD net; 84% oil  16 producers; 2 SWD wells  8,691 acres gross  Up to 100 future new wells/recompletions/l

  10. Slide 10: Production Focus Areas

    Production Focus Areas N TEXAS HQ San Marcos County of Operations 4/1/2015 www.baronenergy.com 10

  11. Slide 11: Planned Work Programs 2-3Q 2015

    Planned Work Programs 2-3Q 2015 Timing Well/ Gross Cost Net Cost Est Work Est IP Avg BOPD Formation (MM$) (MM$) Days BOPD Year 1 2Q Austin Chalk $0.75 $0.67 17 250 180 Recompletion 2Q Flippen $0.28 $0.21 10 40 30 Sand 3Q Austin Chalk $0.85 $0.82 19 250 180 Recompletion 3Q Austin Chalk $1.20 $1.20 27

  12. Slide 12: Production and Projected Production

    Production and Projected Production and Projected 35,000 30,000 Drilling Program to begin in June 2015 to ramp-up production 25,000 Gross BOEPD 20,000 Frio County 15,000 Taylor County 10,000 5,000 0 4Q 1Q 2Q 3Q 4Q 2014-2015 4/1/2015 www.baronenergy.com 12

  13. Slide 13: 2015 Targets

    2015 Targets  Continue development of properties 2-4Q  Drill 3-4 Austin Chalk horizontal wells/recompletions  Drill 1-3 Flippen Sand shallow vertical oil wells  Complete geological/engineering evaluation of all properties  ID potential recompletions and future drilling locations  Develop 3P re

  14. Slide 14: Frio County, South Texas

    Frio County, South Texas  100% operated properties  89.1-100% WI/64.15%-77% NRI  Gross 160 BOPD/200 MCFPD/200 BOEPD (133 BOEPD net)  14 producers; 87% Oil; 320-acre well spacing  8,082 gross acres; 8 producing leases  Multi-year drilling inventory – Multiple production targets (Olmos Sand, San

  15. Slide 15: Austin Chalk Section

    Austin Chalk Section Austin Chalk has three productive zones: B-1, 5,150’ Top of Chalk B-2, and Lower Chalk Upper Chalk B-1 Upper Chalk B-2 Lower Chalk 5,500’ Base of Chalk Eagle Ford Shale 4/1/2015 www.baronenergy.com 15

  16. Slide 16: First Horizontal Recompletion

    First Horizontal Recompletion • December 2014 Baron’s first horizontal recompletion in the Austin Chalk • 96% WI; Baron operated • 2,800’ lateral • Drilling rigs must be capable of drilling 5,000 ‘ plus lateral wells • Up to 80 future new wells and recompletions • > 40 years of reserve life 4/1/2015

  17. Slide 17: Production Systems

    Production Systems • Horizontal wells IP at 100-500 BOPD • 50,000 to 150,000 BO EUR per lateral • Large pump jacks are required to move substantial volumes of fluid • Both single lateral and dual lateral wells 4/1/2015 www.baronenergy.com 17

  18. Slide 18: Taylor County, Central Texas

    Taylor County, Central Texas  100% operated properties  75% WI/54.75% NRI  Gross 30-35 BOPD gross / 17-20 BOPD net  2 producers; 1 SWD; 100% Oil  609 contiguous acres; 2 producing leases  Possible future well locations – Flippen Sand Formation at 2,900’ – 10-acre spacing – Open hole completion

  19. Slide 19: Taylor County, Central Texas

    Taylor County, Central Texas • Shaffer Leases, Taylor County, Texas • Baron operated with 75%WI • Shallow oil wells with long-lived production • Field has been on production for more than 40 years • A number of future in-field drilling locations on 10 acre spacing; 3 permitted for drilling • Open ho

  20. Slide 20: Acquisition Focus Area

    Acquisition Focus Area Baron Energy, Inc. HQ in San Marcos, Texas 4/1/2015 www.baronenergy.com 20

  21. Slide 21: Austin Chalk Trend

    Austin Chalk Trend • Baron is focused on the Austin Chalk trend • Future acquisition priorities , preferences would be on trend in the Austin Chalk 4/1/2015 www.baronenergy.com 21

  22. Slide 22: Acquisition Criteria for Producing Properties

    Acquisition Criteria for Producing Properties  Operated properties only; prefer 100% WI  Current production > 200 BOEPD per project  Focus on oil production  Less than 10,000 feet well depth  Multiple pay zones  Upside via drilling, recompletions, and horizontal wells  Long-term production li

  23. Slide 23: Company Contact

    Company Contact Baron Energy, Inc. 300 S. C.M. Allen Parkway, Suite 400 San Marcos, Texas 78666-2278 Phone: 512-392-5775 Fax: 512-392-7238 info@baronenergy.com Brad Holmes, Investor Relations Houston, Texas (713) 654-4009 b_holmes@att.net 4/1/2015 www.baronenergy.com 23

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