Axp Energy Limited · ASX:AXP
Axp Energy — Austin Exploration — RBS Oil & Gas Conference 2013
32 slides from Axp Energy's conference presentation, July 2013
Slide 1: Proving Up, Farming Down, Minimizing Capital, & Increasing Value
??????? Proving Up, Farming Down, Minimizing Capital, & Increasing Value WORLD CLASS PEOPLE. WORLD CLASS ASSETS RBS Oil & Gas Conference, Noosa, Australia - July 2013 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: Austin Exploration – Objectives
Austin Exploration – Objectives Austin Exploration aims to be a world class diversified oil and gas exploration and production company built on the foundation of world class people and assets. The Company’s strategy is to build shareholder value by: – Identify and acquire quality underdeveloped
Slide 4: Austin Exploration – Mission
Austin Exploration – Mission Austin’s Mission is to: 1. Maintain a world class management and engineering team 2. Control our destiny by: • Acquiring large acreage positions in highly prolific oil and gas producing regions (5,000 acres in Texas Eagle Ford and 11,500 acres in Colorado Niobrara) • Ret
Slide 5: US Assets – Map
US Assets – Map Pathfinder Niobrara Project Sebree & WW Magnolia Park City Commencement Ellislie Bourke 4 Birch Eagle Ford Project Yolanda 5
Slide 6: Recent exploration activity
Recent exploration activity 100% success in finding hydrocarbons Raised $23M for appraisal drilling – April, 2012 9 new exploration wells drilled over past 12 months: Colorado Niobrara 1 Vertical – Farmout Process Niobrara 2 Horizontal – Farmout Process Texas Birch 1 Vertical – Farmout Process
Slide 7: Pathfinder Prospect – Niobrara, Colorado
Pathfinder Prospect – Niobrara, Colorado 85% Working Interest in 11,500 acres General Manger: Ms Ola Akrad THE CANON CITY EMBAYMENT (DJ Basin) FLORENCE FIELD disc 1862 Pierre Shale 15.1 MMBO WET MTN THRUST PATHFINDER PROJECT Austin is the first Company to achieve production in the Niobrara shale whi
Slide 8: Colorado – Well Bore Diagram
Colorado – Well Bore Diagram 8
Slide 9: Pathfinder Prospect – Niobrara, Colorado
Pathfinder Prospect – Niobrara, Colorado 85% Working Interest in 11,500 acres State-of-the-art engineering techniques driving success and value Austin Exploration is the first company to successfully drill through the highly fractured Pierre formation and drill a horizontal well into the Niobrara
Slide 10: Niobrara – Colorado N2
Niobrara – Colorado N2 $150,000 Cash per month – needs capturing 10
Slide 11: Niobrara – Gas Gathering & Processing System
Niobrara – Gas Gathering & Processing System CIG Project design Industrial underway Markets Processing Plant 11
Slide 12: Birch Prospect – Eagle Ford, Texas
Birch Prospect – Eagle Ford, Texas 100% Working Interest in 5000 acres General Manger: Mr Aaron Goss Apache, Anadarko, Clayton Williams & Halcon are drilling, producing & leasing in Burleson County surrounding Austin’s acreage
Slide 13: Texas – Well Bore Diagram
Texas — Well Bore Diagram B1 B2 B3 A MD Casing fo)) . Casing Casing Bit Size i 60’ Conductor 16” Conductor 14” H 4370" Surface H 2210’ Surface 9.625 1 Surface 9.625 1 1 { I V | | i Taylor ! ! BLY 1 1 U 1 i ! ! 9,385" koP H H ‘ 9,424’ Intermediate 7” \ es | Os |. ea. ed 1 \ Austin H Chalk 13,219’ Ope
Slide 14: Birch Prospect – Eagle Ford, Texas
Birch Prospect – Eagle Ford, Texas 100% Working Interest in 5000 acres Excellent initial results Birch 1 confirmed thickness of 270 ft section of the Eagle Ford formation which IP rate of 95 BOEPD from a vertical well. Significant value added to the Birch project through successful exploration a
Slide 15: Halcon announces success in Burleson County
Halcon announces success in Burleson County MAY 2013 – Formerly Petro Hawk As Taken Over By BHP in 2012 for $12B 15
Slide 16: Mississippi – 100% Success
Mississippi – 100% Success Well Name IP Depth Formation Ellislie No. 1 82 BOPD 6,445’ – 6,450’ Armstrong Sands TVD: 6,585’ Armstrong No. 1A 135 BOPD 6,445’ – 6,450’ Baker Sands (Commencement) TVD: 6,650’ Bourke No. 4 248 BOPD 6,108’ – 6,111’ Parker Sands (MS #3) TVD: 6,410’ Adams Bourke No. 5 Propos
Slide 17: Mississippi – Well Bore Diagram
Mississippi – Well Bore Diagram 17
Slide 18: Magnolia Fields, Sebree & Poole Fields, Park City Fields
Magnolia Fields Sebree & Poole Fields Park City Fields 18
Slide 19: Kentucky – Well Bore Diagram – 100% Success
Kentucky – Well Bore Diagram – 100% Success 19
Slide 20: Resources Update – Gustavson Sept. 2012
Resources Update – Gustavson Sept. 2012 Oil EUR, Cumulative Oil Resources, Solution Gas Resources, MMBbl Production MMBbl BSCF Prospect MMBbl P90 P50 P10 P90 P50 P10 P90 P50 P10 Birch 5.36 9.53 17.51 0.19 5.17 9.34 17.32 21.41 42.01 82.99 Pathfinder 16.94 21.76 28.39 0 16.94 21.76 28.39 19.09 24.52
Slide 21: Farm-out Rationale – The Way Forward
Farm-out Rationale – The Way Forward Development options: Equity – leads to dilution of shares, difficult in weak small cap market Debt – covenants risky for small company Equity/debt JV’s Farm-out Farm-out advantages Dramatically reduces shareholder risk Reduces dilution of shares
Slide 22: Anticipated Schedule with FO Carried Wells
Anticipated Schedule with FO Carried Wells Well Est. Engineers & Operations Start Date TX – 1 12/2013 TX - 2 06/2014 TX – 3 12/2014 TX – 4 06/2014 CO – 4 03/2014 CO – 5 06/2014 22 22
Slide 23: Potential Cash Flow From 2013 Farmouts
Potential Cash Flow From 2013 Farmouts No External Capital Required 2015 2016 2017 Free Carried Wells 3.6 6.9 3.8 Participation Wells - 0 9.4 14 12 10 8 6 4 Participation Wells 2 Free Carried Wells 0 2015 2016 2017 Assumptions Oil Price $85/Barrel Gas Price $4/MCF Produce 340 Days/Year Production Ba
Slide 24: Potential Cash Flow From 2013 Farmouts
Potential Cash Flow From 2013 Farmouts Drill wells as option available - $7M External Capital 2015 2016 2017 Free Carried Wells 3.6 6.9 3.8 Participation Wells - 5.9 14.9 External Capital - 3.5 3.5 25 20 15 10 External Capital Participation Wells 5 Free Carried Wells 0 Assumptions 2015 2016 2017 Oil
Slide 25: Expected Economic Benefit
Expected Economic Benefit Texas Birch Eagle Ford Property Texas free carried first three wells $24M Texas free carried fourth well $8M Total cash and production cash received by Austin @ $95/barrel $20M B3 – Completion no longer required $0.75M B2 – Completion no longer required $0.9M Total financia
Slide 26: Expected Economic Benefit
Expected Economic Benefit Colorado Niobrara Property Colorado free carried first two wells $12M Total production cash received by Austin @ $95/barrel & $4MCF $7M Negotiated 3rd well buyout $6M Total financial benefit $25M @ $85/barrel = $24.5 mil 26
Slide 27: Expected Economic Benefit
Expected Economic Benefit Texas & Colorado Farmouts Combined Total financial benefit - $76.05M @ $85/barrel Assumes all current agreements close 27
Slide 28: Project 500 Squared
Project 500 Squared 1. Goal was to reduce operating costs by $500,000 p/a A reduction of $1,100,000 p/a was achieved 2. Goal was to achieve average daily production of 500 BOE Achieved production capacity of 547 BOE during March of 2013 28
Slide 29: Summary / Highlights
Summary / Highlights Austin’s 20,000 acres across five proven hydrocarbon basins in the US will support nearly 300 wells over time Technical expertise identifies best opportunities Operator expertise minimises risk and cost Confirmed hydrocarbons maximises farm-out value to shareholder 100
Slide 30: Corporate Snapshot
Corporate Snapshot Corporate Statistics (as at July 2013) Shares On Issue (ASX : AKK) 1.6b Market Capitalisation @ $0.15 $ 25M Cash $2M Debt Nil Enterprise Value EV $23 mil Ticker: USA:OTCQX International ADR AUNXY 30
Slide 31: Board of Directors
Board of Directors PROVEN COMPANY BUILDERS 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 Direct
Slide 32: Corporate Information
Corporate Information Austin Exploration Limited Auditor Level 9, 575 Bourke St. Grant Thornton Melbourne, VIC, 3000 Level 2, 215 Spring Street Australia Melbourne, VIC 3000 (03) 9606 3888 Phone (03) 8663 - 6000 (03) 9606 3800 Fax www.granthornton.com www.austinexploration.com AusCo Petroleum Inc. S