Voltaic Strategic Resources Limited · ASX:VSR
Voltaic Strategic Resources — Incremental Oil and Gas — Investor Presentation (March 2013)
24 slides from Voltaic Strategic Resources's investor presentation, March 2013
Slide 1: Excellence in Oil
INCREMENTAL OIL and GAS (asx: IOG) EXCELLENCE in OIL MARCH 2013 www.incrementaloilandgas.com Page 1
Slide 2: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and chan
Slide 3: Incremental Business Model
Incremental Business model – A producing oil company with a cash flow focus – We acquire underperforming oilfields and increase production – Focus is Onshore USA – Florence producing oilfield, Colorado (100% WI) – Round Mountain producing oilfield (100% WI) – Sheep Springs producing oilfield (100% W
Slide 4: IOG Capital Structure
IOG Capital Structure • Formed 2009 as Private Company • Listed January 2011 after raising $5.3m at 30 cents. • 486 shareholders • 155.6m shares (Directors and management 37.3%) 92.8m unlisted options1 • Market cap about $46 million • US$6m Debt 2010 2011 2012 REVENUE $6.17m $7.70m $16.04m EBITDA $2
Slide 5: Page 5
’ ae Uiaa NEBRASKA ae Florence Field California Assets af
Slide 6: Florence Oilfield
NEW ACQUISITION FLORENCE OILFIELD DENVER Page 6
Slide 7: Florence field history and production
Drilled first in 1862 400 Shallow wells drilled 15m barrels produced Produces from fractured shale 1800- 3600’ deep Revitalised by seller in last 4 years Av 700 bopd over last 2 years Page 7
Slide 8: Florence has been producing for over 125 years
Florence has been producing for over 125 years BOPD 2,500 2,000 1,500 BOPD 1,000 500 0 1887 1894 1901 1908 1915 1922 1929 1936 1943 1950 1957 1964 1971 1978 1985 1992 1999 2006 Page 8
Slide 9: Florence Field
FLORENCE FIELD • 21 Producing wells • High initial rates and quick payout • Light, sweet crude (WTI pricing) • Wells inexpensive, simple • Wells located from 3D seismic • Wells can decline quickly • No water production, low opex • IOG has over >20,000 acres leased • 100% WI, avg 80% NRI Page 9
Slide 10: Pierre Fm Potential
PIERRE FM POTENTIAL • Excellent quality 3D seismic over much of our leases • Fracture zones clearly visible and mappable on seismic • At least 15 anomalies remain undrilled • First two wells drilled not great, but lots of new data • Next campaign will concentrate on western part of field Page 10
Slide 11: Florence Production
FLORENCE PRODUCTION 1,000 20 0G ani PURCHASE 700 N BE i=) Average BOPD wn 8 400 300 200 100 0+ T T T T Pre 2010 «©2010 «©2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2000 Ql Q@ @3 4 at Q@2 43 4 a QQ 3 £4 Page 11 @ Avg BOPD ui # of Wells oo # of Wells Drilled + a
Slide 12: Niobrara
Silo Field 68 horizontals IP 500-2000 BOPD West Grover / Fury Field Recent wells at 600 BOPD managed rate Wattenberg Field PDC buys Niobrara at $10k/acre ($330m) Niobrara Florence Field • Very widespread First horizontal Niobrara commercial • Florence same depth and maturity as areas being drilled P
Slide 13: New Niobrara Well on Our Doorstep
NEW NIOBRARA WELL ON OUR DOORSTEP AUSTIN (AKK) drilled 300m from our western boundary Reported 200’ ‘potential pay’ in Niobrara Then drilled 4000’ horizontal well, with 18 stage frac Oil to surface immediately went on pump Reported rates of 400 boepd Page 13
Slide 14: Cretaceous Landscape
CRETACEOUS LANDSCAPE Niobrara deposited in same large inland sea as the Eagle Ford Shale in Texas Both limestones have significant entrained oil Eagle Ford now one of largest oil plays in world NIOBRARA FM. EAGLEFORD SHALE Page 14
Slide 15: IOG's Independent Expert's Report
IOG’s INDEPENDENT EXPERT’S REPORT Page 15
Slide 16: IOG Niobrara Certified Reserves
IOG NIOBRARA CERTIFIED RESERVES IOG DEVELOPMENT SCENARIOS: 1. SELF DEVELOP • Maintain 100% WI • Drill 3-4 wells/year • $4.5m/completed well • Minor debt funding, then self funding 2. FARM DOWN • Farm down to major, retaining significant equity, no cost to IOG Page 16
Slide 17: Noble: 10 billion bbl reserves, 300k bopd
“Noble Energy Dec 6, 2012 *” * NOBLE: 10 billion bbl reserves, 300k bopd Page 17
Slide 18: IOG Team
From left: IOG TEAM Adams: 20 years Accountant. MacDonald: 13 years in Senate, LLB Cronin: No 2 in Woodside (23 years) Stowell: Founder of Anvil and Mawson West, CA McGann: 40 years geologist worldwide, CPG CFO DIRECTORS Page 18
Slide 19: Projects, California
Projects, California • Producing ROUND MOUNTAIN • Producing SHEEP SPRINGS • VENTURA Development • McDONALD A/C Development • RAVEN PASS Exploration Page 19
Slide 20: Round Mountain
Round Mountain Smoot 8 Drilled 8 wells so far All successful Production about 100 bopd Six additional locations Page 20
Slide 21: Ventura Project
Ventura Project Area produced over 160 million barrels Very thick oil column C & H 18 drilled Q1 2013. producing >20 bopd Plans in hand to increase prod rate. Page 21
Slide 22: McDonald Anticline
McDonald Anticline Produced 22 million barrels Shallow, light oil Multi reservoirs Large land position Drill in 2013 At least 3 well locations Page 22
Slide 23: Quarterly Production
Incremental Oil and Gas - Quarterly Production m Avg GAS BOEPD Avg BOPD oe
Slide 24: 2013 Projected News Flow
2013 Projected News Flow • Drill 1 wells, Ventura Project………Done • Drill 2 wells, Florence Field………..Done • Drill 1 well, McDonald Anticline … Q3 • Drill 5 wells, Florence Field ……..Q3/4 2013 • Declare another after tax profit Page 24
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