Carbon Energy Corporation · OTC:CRBO
Carbon Energy — Carbon Natural Gas — Investor Presentation (March 2012)
19 slides from Carbon Energy's investor presentation, Mar 28, 2012
Slide 1: March 2012
March 2012
Slide 2: Appalachian and Illinois Basins
Appalachian and Illinois Basins Illinois Basin Properties Appalachian Basin Properties 1
Slide 3: Strategic Position in Southern Appalachia
Opportunity for Carbon to acquire producing assets in the south, expand existing operations, and consolidate a Southern Appalachian position. Northern and Southern Appalachian Basins have same geologic history, similar producing formations and age equivalent Devonian shale plays Marcellus and Utica
Slide 4: Southern Appalachian Producing Horizons
Southern Appalachian Producing Horizons 3 System Series Horizon South Point Chapmanville Neely Branch Williamson Carbon Fuels Addington Land Elliot County Evan North Addington Asher South Addington New River Interstate Natural Gas Penn Middle Breathitt ? ? Cow Run sandstone ? ? Salt Sands ? Maxon ?
Slide 5: Multiple Horizontal Resource Play opportunities
Multiple Horizontal Resource Play opportunities Berea Sandstone Oil Seelyville Coal Devonian / Lower Huron Shale Chattanooga Shale Horizontal Berea Oil Development Program 21,000 net acres > 300 potential horizontal oil locations Light Oil, Nymex less $7.00 netback Additional oil development opportu
Slide 6: Significant opportunity for expansion of production, reserves and cash flow
Significant opportunity for expansion of production, reserves and cash flow at low finding and development and operating costs Over 268,000 net acres of oil and gas and coalbed methane rights > 50% Held by Production > 40% expire greater than 5 years Significant Undeveloped Resource Potential with l
Slide 7: Horizontal Development Projects
Seelyville Coal Chattanooga Shale Lower Huron Shale Berea Sandstone Oil Horizontal Development Projects Lower Huron Shale Lower Huron Shale & Siltstone Lower Huron Shale 6
Slide 8: 2012 Plans
2012 Plans 7 Continue development of horizontal Berea oil play in Kentucky 100% Carbon Continue leasing to fill in strategic acreage Review of adjacent properties for acquisition Initial Drilling of Mont Eagle and Fort Payne Oil Prospect New River Block, Tennessee Continue Optimization of INGC acqui
Slide 9: 2011 Activity
Drilled 7 Berea Sandstone horizontal oil wells in Kentucky Regional play with growth potential Expanding land base to accommodate increased drilling activity Participated in 1 Chattanooga Shale horizontal well in Tennessee High BTU gas on 70,000 acre block held by production (Carbon 50%) Drilled 1 m
Slide 10: Net Proved Reserves
Net Proved Reserves 9 Cawley, Gillespie & Associates, Inc. SEC methodology and pricing as of 12/31/11
Slide 11: Proved Reserves Cawley Gillespie & Associates December 2011
Proved Reserves 10 Cawley Gillespie & Associates December 31, 2011 Reserves Oil (MBO) Gas (BCF) Total (BCFE) Proved Developed Producing 281 39.5 41.2 Proved Developed Non-Producing 131 0.4 1.2 Proved Undeveloped 321 18.8 20.8 Total Proved Reserves 732 58.8 63.2
Slide 12: Berea Sandstone Play
Berea Sandstone Play The Berea trend covers over 50,000 square miles in Kentucky, Ohio, West Virginia, Virginia & Pennsylvania Entire Berea play has produced ~2 TCF in >100 years Oil window is significantly under- developed in Kentucky Oil Window Oil & Gas Window Gas Window Carbon’s focus area is no
Slide 13: Berea Sandstone Horizontal Oil Development
Oil Oil Oil Oil Oil Berea Sandstone Horizontal Oil Development Brice Shepherd #1 Vertical Log Well cost $600,000 Multiple Oil Zones Drills in 6-8 days +2000’ Lateral 12% - 15% Porosity 7 Stage Frac in one day Packers Plus styled completion 25,000 lbs of Sand per stage IP: 30 - 50 BOPD / 50 - 150 MCF
Slide 14: Interstate Natural Gas Company Assets
14 Interstate Natural Gas Company Assets Producing Oil Wells and Oil Potential Berea and Big Lime Evaluating additional potential Behind pipe recompletions Refrac’s New vertical and horizontal wells Offset leasing Addington Land Berea Oil Project
Slide 15: New River, TN Asher Block Horizontal Chattanooga Devonian Shale
New River, TN Asher Block Horizontal Chattanooga Devonian Shale 70,000 acre contiguous Block – HBP Carbon has right to participate from 20% up to 50% working interest on proposed wells Gas delivered to East Tennessee Gas Pipeline via Atlas Gathering and Processing Facilities New River, TN 15
Slide 16: Mississippian Oil Potential Monteagle / Fort Payne Limestone
Carbon New River CNX New River Mississippian Oil Potential Monteagle / Fort Payne Limestone Oil potential > 12 million barrels oil produced to date from fields to the west of New River acreage Oil production established in three wells to the east of New River acreage New River acreage block largely
Slide 17: Monteagle – Chattanooga Shale Cross-Section
Oil Oil Monteagle Limestone Fort Payne Limestone Chattanooga Shale Monteagle – Chattanooga Shale Cross-Section 17 A A’
Slide 18: Illinois Basin
Illinois Basin Over 77,000 net acres in Illinois Basin 50% working interest in Wabash Valley CBM Project 36 vertical producing wells 1 horizontal producing well 1,500 mcfd gross production Wabash Valley CBM Joint Venture 18 Sullivan Energy Minority Interest
Slide 19: OTC: CRBO Denver, CO contact
OTC: CRBO 1700 Broadway Suite 1170 Denver, CO 80290
Carbon Natural Gas — Investor Presentation (March 2012) on 6ix