Empyrean Energy Plc · LSE:EME

Empyrean Energy — Investor Presentation (March 2014)

22 slides from Empyrean Energy's investor presentation, March 2014

  1. Slide 1: Investor Presentation March 2014

    Investor Presentation August 2013 INVESTOR PRESENTATION MARCH 2014 “A profitable onshore US oil & gas development and production company focussed primarily on the development of its productive assets in Texas and California”

  2. Slide 2: Disclaimer

    DISCLAIMER These presentation materials (Presentation Materials) in respect of Empyrean Energy Plc (Company) are being issued on a strictly private and confidential basis in the United Kingdom to, and only to, Investment Professionals as defined in Section 19 of the Financial Services and Markets Ac

  3. Slide 3: Portfolio

    PORTFOLIO Sugarloaf AMI South Texas 3% WI Operator: Marathon Oil EAGLE FORD SHALE: PRODUCTION & DEVELOPMENT AUSTIN CHALK: APPRAISAL Sugarloaf Block A Riverbend Project Eagle Oil Pool South Texas East Texas Project 7.5% WI 10% WI Onshore California Operator: ConocoPhillips Operator: Krescent 57.2% WI

  4. Slide 4: Overview

    OVERVIEW  Profitable AIM listed oil and gas production company with multiple onshore US projects targeting proven formations at varying stage of development  Current 1P Reserves of 2.3 million barrels of oil equivalent (‘MMboe’) and 2P Reserves of 4.39MMboe at flagship Sugarloaf AMI project – upda

  5. Slide 5: Corporate Structure

    CORPORATE STRUCTURE Market EPIC Share Shares in Market 12 month Cash Debt Drawn Repaid Price Issue Cap price Facility Debt Debt range 13 221 £29.52 5.1 – 13.5 US$1.93 US$50 US$12.75 US$2 AIM EME pence million million pence million million million million Board of Directors Significant Shareholders N

  6. Slide 6: Excellent Financial Growth

    EXCELLENT FINANCIAL GROWTH Interim Results for 6 months ending 30 September 2013 Net profit 3,512% increase in net profit to 18% higher than FY ended 31 March £2,384,000 2013 354% increase 136% increase in gross profit to in revenue to £3,152,000 £3,829,000 Significant upside potential with a highly

  7. Slide 7: Experienced Board

    EXPERIENCED BOARD Patrick Cross Dr Cross is experienced in corporate finance, organisation structures, marketing and joint Non-Executive Chairman venture operations. His previous positions include 25 years with British Petroleum specialising in strategic business development and six years as MD of B

  8. Slide 8: Strategy

    STRATEGY To increase production and reserves by developing Empyrean’s advanced 1 hydrocarbon production and development projects, which have excellent technical merit, in order to build shareholder value Projects have drill ready targets and have access to good processing 2 and production infrastruc

  9. Slide 9: About the Eagle Ford Shale

    ABOUT THE EAGLE FORD SHALE  A sedimentary rock formation from the Late Cretaceous age  50 mile-wide by 400 mile-long formation that runs from South Texas to the east  Produces natural gas, condensate, oil, and natural gas liquids, with margins more favourable than other shale plays  Estimated 7-

  10. Slide 10: Eagle Ford Shale: A Highly Active Play

    EAGLE FORD SHALE: A HIGHLY ACTIVE PLAY  +1,100 wells were spud in the Eagle Ford Shale in Q3 2013  The play accounted for 1,133 or more than 10% of the 9,175 wells spud in the U.S. during the quarter  Marathon has allocated US$2.3bn to the Eagle Ford Shale in 2014 to drill net 250-260 wells with

  11. Slide 11: Sugarloaf AMI – Average 3% WI

    SUGARLOAF AMI – AVERAGE 3% WI  A significant new condensate/ gas discovery with exciting upside Operated by Net acreage position Marathon Oil 729 acres  Marathon committed to optimising drilling, of 24,300 gross acres completion and production processes:  Drilling times improved dramatically <20

  12. Slide 12: Aggressive Development

    AGGRESSIVE DEVELOPMENT  Marathon has announced its intention to co-develop the Austin Chalk alongside the Eagle Ford Shale with the possibility of a further 300 wells to develop this formation  Provides low risk development upside potential with additional short term potential reserve gains as the

  13. Slide 13: Sugarloaf Well Spacing Initiatives

    SUGARLOAF WELL SPACING INITIATIVES Marathon has announced successful down-spacing results and an intention to co- develop the Austin Chalk with the Eagle Ford Shale. Selected areas are to be developed at 40 acre spacing and also to be trialled for 30 acre infill density spacing. The Austin Chalk pro

  14. Slide 14: Building Reserves, Production & Value

    BUILDING RESERVES, PRODUCTION & VALUE BUILDING BUILDING BUILDING RESERVES PRODUCTION VALUE Closer well Testing of On-going spacing of 40 and Additional drilling of 60 acres Formations prospects Well down-spacing The Austin Chalk - two Opportunity to drill initiatives successful with Austin Chalk wel

  15. Slide 15: Central Facility at Sugarloaf AMI

    CENTRAL FACILITY AT SUGARLOAF AMI  Separation of oil, water  Treat oil to sales quality  Oil storage  Water storage  Sales meters  Gas processing  Gas compression  Expandable EMPYREAN ENERGY PLC | Q1 2014 15

  16. Slide 16: Regional Corporate Activity

    REGIONAL CORPORATE ACTIVITY  Proposed acquisition of Aurora, a partner in Empyrean's flagship Sugarloaf AMI asset, by Baytex - A$4.10 per share  The acquisition implies a market capitalisation of A$1.84 billion and represents a 52% premium to Aurora's one- week VWAP to 6 February 2014  Devon Ener

  17. Slide 17: Sugarloaf Block A – Average 7.5% WI

    SUGARLOAF BLOCK A – AVERAGE 7.5% WI  Lies contiguous to the Sugarloaf AMI acreage in South Texas Operated by Net acreage position ConocoPhillips 43.5 acres  Production held by wells targeting the of 580 gross acres Eagle Ford Shale formation  Two new wells, Baker Trust-4 and Recent activity inclu

  18. Slide 18: Development in San Joaquin Basin, California

    DEVELOPMENT IN SAN JOAQUIN BASIN, CALIFORNIA EAGLE OIL POOL PROJECT EMPYREAN ENERGY PLC | Q1 2014 18

  19. Slide 19: Eagle Oil Pool – Average 57.2% WI

    EAGLE OIL POOL – AVERAGE 57.2% WI Operated by Net acreage position  Eocene Gatchell Sands are estimated to contain STRATA-X 2952 acres between 7- 22 million BO and 12-23 BCF of gas of 5160 gross acres  Eagle North–1 well: 13.4 metres net pay from a gross 21 metres in the vertical well in the targe

  20. Slide 20: Riverbend – Average 10% WI

    RIVERBEND – AVERAGE 10% WI Operated by Net acreage position  Located onshore Texas in Jasper County Krescent Energy 205 acres of 2053 gross acres  The Cartwright-1 well was drilled initially targeting the Austin Chalk Currently producing from the Wilcox  A down hole obstruction meant it was forma

  21. Slide 21: Investment Case

    INVESTMENT CASE • Strong production and revenues, particularly at the flagship Sugarloaf AMI, from proven PRODUCTION onshore US hydrocarbon formations • Second year of profits – FY 2013 £2,014,000 & Net Profit up 3,512% to £2,384,000 for 6 months to 30 Sept 2013 • Up to US$50 million loan from Macqu

  22. Slide 22: Contact

    CONTACT Tom Kelly Empyrean Energy plc T: +61 (419) 045 044 E:tom.kelly@empyreanenergy.com Lottie Brocklehurst/ Elisabeth Cowell St Brides Media & Finance Ltd T: +44 (0) 20 7236 1177 E: lottie@sbmf.co.uk/ elisabeth@sbmf.co.uk EMPYREAN ENERGY PLC | Q1 2014 22

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