Glori Energy Inc · OTC:GLRI
Glori Energy — Investor Presentation (September 2014)
37 slides from Glori Energy's investor presentation, Sep 2, 2014
Slide 1: Corporate Presentation September 2014
Corporate Presentation September 2014
Slide 2: Forward Looking Statements
Confidential Forward Looking Statements 1 Any statements contained herein which are not statements of historical fact may be deemed to be forward - looking statements, including, without limitation, statements identified by or containing words like “believes,” “expects,” “anticipates,” “intends,” “e
Slide 3: Opportunity Overview
Confidential Opportunity Overview 2 Glori Energy is an energy technology company that deploys its proprietary biotechnology to enhance recovery of oil from producing reservoirs 2/3 of discovered oil remains in the reservoir after using today’s conventional oil and gas development technologies 2.4 tr
Slide 4: Technology
Confidential TECHNOLOGY 3
Slide 5: Statoil Norne Field microbial EOR results quote
Confidential “Spectacular results have been recorded by Statoil at its Norne Field in the Norwegian North Sea. Following 25 years of research and development (R&D) and deployment, the recovery factor at Norne is approaching 55%. More than 30 MMbbl of additional produced oil has been attributed to th
Slide 6: AERO Has Received Multiple Awards For Innovation
Confidential AERO Has Received Multiple Awards F or Innovation 5
Slide 7: How it Works
Confidential How it Works 6 Post - AERO™ Technology Injection well with AERO™ technology New water pathways Newly dislodged oil New water flow Sand grains Microbial nutrients _____________________ Source: Company data. Pre - AERO™ Technology Sand grains Trapped oil Water pathway Injection well Produ
Slide 8: Model Return Potential
Confidential Model Return Potential 7 A Pre - AERO Production B Projected Production without AERO C Incremental Production due to AERO Today Time Economic Limit Barrels of Oil per Day Log Scale A B C AERO Start Projected Original Oil Projected Additional Oil Post - AERO Start Comparative Production:
Slide 9: AERO Biology Is Low Cost
Confidential $92 $80 $50 $32 $6 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Non-OPEC Marginal Cost Fracking / Horizontal Drilling Mainstream EOR USA AERO Biology Is Low Cost 8 _____________________ (1) Source: Company data. (2) Source: Mackenzie, Kate. “Marginal Oil Costs are Heading Towards $100/ba
Slide 10: Intellectual Property
Confidential INTELLECTUAL PROPERTY 9
Slide 11: Technology & Statoil Collaboration
Confidential Technology & Statoil Collaboration 10 Glori Energy Ownership of Jointly Developed IP Statoil ASA ( OB: STL) • International public energy company with ~$92 billion market capitalization (1) • Winner of the National Petroleum Directorate IOR award in 2001 Deployment at Norne field antici
Slide 12: Strong Intellectual Property Protection
Confidential Key AERO Patent – Systems and Methods of Microbial Enhanced Oil Recovery • R eceived notice of allowance July 23, 2014 • Will be issued September 9 th • Owned by Glori. License to Statoil • Inventors: Glori & Statoil personnel Microbial Enhanced Oil Recovery Delivery Systems and Methods
Slide 13: Field Performance
Confidential FIELD PERFORMANCE 12
Slide 14: AERO Implementation Data - Project A
Confidential AERO Implementation Data 13 -20% 30% 80% 130% 180% 230% 280% 330% 380% -1000 -800 -600 -400 -200 0 200 400 600 800 1000 Percent Uplift Days Relative to AERO Start Linear Regression Applied to Data Before AERO and During AERO Implementation Project A Linear (Pre-AERO) Linear (AERO Active
Slide 15: AERO Implementation Data - Project B
Confidential AERO Implementation Data 14 -20% -10% 0% 10% 20% 30% 40% 50% 60% -160 -110 -60 -10 40 90 140 190 Percent Uplift Days Relative to AERO Start Linear Regression Applied to Data During AERO Implementation Project B Data Full Field: AERO Applied to Only =20% of Field Linear (AERO Active) Per
Slide 16: AERO Implementation Data - Project C
Confidential AERO Implementation Data 15 -20% 0% 20% 40% 60% 80% 100% 120% -250 -200 -150 -100 -50 0 50 100 150 200 250 Percent Uplift Days Relative to AERO Start Linear Regression Applied to Data Before AERO and During AERO Implementation Project C Linear (Pre-AERO) Percent uplift measured against
Slide 17: AERO Implementation Data - Project D
Confidential AERO Implementation Data 16 -20% 0% 20% 40% 60% 80% 100% 120% -250 -150 -50 50 150 250 350 450 550 650 750 Percent Uplift Days Relative to AERO Start Linear Regression Applied to Data Before AERO and During AERO Implementation Project D Linear (AERO Active) Linear (Series1) Percent upli
Slide 18: AERO Implementation Data - Project E
Confidential AERO Implementation Data 17 0% 50% 100% 150% 200% 250% 300% 350% 400% -1000 -800 -600 -400 -200 0 200 400 600 Percent Uplift Days Relative to AERO Start Linear Regression Applied to Data Before AERO and During AERO Implementation Project E Linear (Pre-AERO) Percent uplift measured again
Slide 19: AERO Implementation Data - Project F
Confidential AERO Implementation Data 18 -20% 0% 20% 40% 60% 80% 100% 120% -400 -200 0 200 400 600 800 Percent Uplift Days Relative to AERO Start Linear Regression Applied to Data Before AERO and During AERO Implementation Project F Data Full Field: AERO Applied to Only =10% of Field Linear (Pre-AER
Slide 20: Glori In The Field In Brazil
Confidential Glori In The Field In Brazil 19
Slide 21: Business Model
Confidential BUSINESS MODEL
Slide 22: Synergistic Dual Business Model
Confidential Synergistic Dual Business Model 21 Oil Operations: Acquisition and operation of producing oil fields, upgrading with AERO technology • East Texas Coke field acquisition • Potential 35% - 40 % IRR from PV8 acquisition AERO Technology as a service: deployment of technology for oil and gas
Slide 23: Global Market Services Model
Confidential Global Market Services Model 22
Slide 24: Coke Field Acquisition (closed March 14, 2014)
Confidential Coke Field Acquisition (closed March 14, 2014) 23 Coke + Quitman Fields • 28 wells • Estimated 19 years reserves to production ratio • 3 producing horizons - Paluxy , Sub - Clarksville, Young. • Proved reserves of approximately 2.8 MM Boe of which 56% are proved developed producing • Hi
Slide 25: Coke Operations Performing Well
Confidential Production at Coke is ahead of forecast Multiple failures and maintenance challenges in Q2 caused loss in production and increased expenses Maintenance enabled upgrades where appropriate to improve performance going forward Glori engineers are now focused on conventional production enha
Slide 26: Coke Field Demonstrates Return Potential and Economics
Confidential Coke Field Acquired 3/14/2014 Demonstrates Return Potential and Economics 25 6 16 3 2 5 COKE EBITDA OPERATIONS IMPROVEMENT (CURRENT) OPERATIONS IMPROVEMENT (PLANNED) AERO (PROJECTED) TOTAL Coke Field: PROJECTED EBITDA GROWTH Source: Company estimates for EBITDA contribution. EBITDA is E
Slide 27: Coke Field Projected Economics
Confidential Coke Field Projected Economics 26 Assumptions _____________________ (1) Compares projected base production (PDP reserves) to projected base production after AERO. Does not include other proved unde vel oped reserves. (2) Includes development of conventional Proved Undeveloped Reserves a
Slide 28: Illustrative Potential Build-up From Acquisitions
Confidential Illustrative Potential Build - up From Acquisitions (1) 27 Acquisition Build - up Terms / Assumptions _____________________ (1) Illustrates potential financial outcome assuming illustrative acquisition example can be duplicated with three acquisitions p er year spaced 4 months apart. ($
Slide 29: Strategic Add-on Acquisition at Coke
Confidential 3 leases from Private Seller at the Coke field Acquisition closed 8/27/2014 27 bopd , net @ approx. $74,000 per flowing barrel Operational synergy opportunity to increase production rates Injection well facilitates AERO for all Coke field Strategic Add - on Acquisition at Coke 28 Acquir
Slide 30: Financial Highlights
Confidential FINANCIAL HIGHLIGHTS
Slide 31: Financial Strategy
Confidential Financial Strategy 30 Deploy capital to acquire mostly producing oil assets to be enhanced by implementing Glori’s AERO technology. Leverage acquisitions with debt secured by Proved reserves and supported by historical cash flow. Benefit from expanding production base, low cost of AERO
Slide 32: 2Q14 Income Statement Summary
Confidential 2Q14 Income Statement Summary 31 * Please see Adjusted EBITDA reconciliation at the end of this presentation. (unaudited, in 000s) 30-Jun-13 30-Jun-14 Total revenues 935 5,556 494% Operating Expenses 1,138 4,511 296% Science and technology 405 397 (2%) SG&A 1,087 1,370 26% Total operati
Slide 33: Summary Balance Sheet
Confidential Summary Balance Sheet 32 (In millions) June 30, 2014 Cash $38.2 Debt 21.5 Net Debt (16.7) Stockholders'equity 53.0 Total Assets $82.7 Debt/Cap 29%
Slide 34: E&P Innovation Trends: The Path to Mass Adoption
Confidential E&P Innovation Trends: The Path to Mass Adoption 1972 : First CO 2 EOR project initiated in West Texas 2001: DNR pursues CO 2 EOR growth strategy via acquisition of oil fields 1989: Oryx Energy significantly expands horizontal drilling activities in South Texas region 1920: Horizontal d
Slide 35: Summary Highlights
Confidential Experienced Management, Board, Advisors & Investors Proven & Proprietary Technology Compelling Unit Economics More Oil From Yesterday’s Wells Summary Highlights 34 Robust Acquisition Pipeline Generating Attractive Returns Large and Growing Market
Slide 36: Reconciliation of Adjusted EBITDA
Confidential Reconciliation of Adjusted EBITDA 35 (in 000's) Net loss Taxes on income - 142 Gain on change in fair value of warrants - - Loss on commodity derivatives - 2,791 Interest expense 253 1,257 Depreciation, depletion and amortization 126 1,158 Non-recurring merger and acquisition costs - 23
Slide 37: Non GAAP Financial Information
Confidential Non GAAP Financial Information We use both GAAP and certain non - GAAP financial measures to assess performance . Generally, a non - GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that a
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