Battalion Oil Corporation · AMEX:BATL
Battalion Oil — Tremisis Energy Acquisition — SPAC Merger (November 2005)
42 slides from Battalion Oil's SPAC merger presentation, Nov 14, 2005
Slide 1: Acquisition of RAM Energy, Inc. by Tremisis Energy Acquisition Corporation Road Show Presentation
Acquisition of RAM Energy, Inc. by Tremisis Energy Acquisition Corporation Road Show Presentation November 14, 2005 The attached slide show was previously filed with the Securities and Exchange Commission on November 14, 2005 as part of Amendment No. 1 (“Amendment”) to the Current Report on Form 8-K
Slide 2: RAM Energy, Inc.
RAM Energy, Inc.
Slide 3: Disclosure Statement
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, including, without limitation, statements regar
Slide 4: Company Contacts
TREMISIS RAM LAWRENCE S. COBEN LARRY E. LEE CHAIRMAN AND CEO CHAIRMAN AND CEO ISAAC KIER JOHN LONGMIRE TREASURER SR VP AND CFO 212-397-1464 918-663-2800 KATHLEEN HEANEY INVESTOR RELATIONS 203-803-3585 4 COMPANY CONTACTS
Slide 5: Tremisis-RAM Merger: Transaction Overview
Transaction Overview Tremisis and RAM to merge to create new publicly traded entity - RAM Energy Holdings, Inc. Tremisis to issue 25.6 mm shares to RAM shareholders Tremisis to pay $30 mm to RAM shareholders Total transaction value of approximately $300 mm Tremisis shareholders will own 23% and RAM
Slide 6: Excellent Fundamentals of Oil & Gas Industry
Oil & Gas supply/demand fundamentals create strong pricing environment for the foreseeable future Limited inventory of high quality domestic drilling prospects Drilling economics are excellent despite increasing service costs 6 Excellent Fundamentals of Oil & Gas Industry
Slide 7: Company Highlights
Founded in 1987 Exploration and production company focused in Oklahoma, Texas and Louisiana Management team with significant experience Growth through selected acquisitions, development drilling and exploitation Drilling success rate of 92% since 1989 7 Company Highlights
Slide 8: Investment Highlights
Experienced management team with successful track record High quality, diversified portfolio of long-lived producing assets Large inventory of PUD drilling locations and recompletion projects Growth potential in emerging resource plays Balanced growth strategy Increased access to capital markets Exc
Slide 9: Valuation Overview
RAM Peers (5) 55.0 11.9 2.0x $26.58 71.0 14.0 1.3x 0.57x TEV/Reserves ($/BOE) TEV/PV-10 Reserve Life Index (in Years) % Proved Developed Net Asset Value per Share (1) Pro Forma the merger (4) (4) PV-10 is based on YE 2004 proved reserves and prices as reported by RAM and Peers $15.42 $9.61 Price/NAV
Slide 10: Company Overview
Company Overview 10
Slide 11: Principal Fields and Emerging Resource Areas
Tulsa Office Houston-District Office Electra-Field Office I II III IV A B 11 Principal Fields Emerging Resource Areas Tulsa Office I Electra/Burkburnett II Egan III Boonsville IV Vinegarone A Barnett Shale – Fort Worth Basin Reeves County, TX B Barnett & Woodford Shale - Areas of Interest
Slide 12: Company Highlights
Experienced management team with successful track record 19.7 MMBOE total Proved Reserves with PV-10% of $445 million 238 undrilled PUD locations and 187 recompletion projects Stable production and long-life reserves Operate over 89% of PV-10% proven reserve value Significant acreage position in eme
Slide 13: Investment Highlights: Experienced Management Team
Experienced management team with successful track record Senior management average experience of over 25 years Management will have significant ownership of combined company Significant growth in reserves, production and EBITDA 92% success rate in drilling since 1989 Completed 20 acquisitions totali
Slide 14: Investment Highlights: Diversified Portfolio of Producing Assets
High quality, diversified portfolio of long-lived producing assets 19.7 MMBOE of Proved Reserves with PV-10% of $445 mm Developed reserves represent 71% of total proved reserves Reserve life index of 14 years Operate 89% of proved reserves Balance of oil (60%) and gas (40%) Situated in prolific prod
Slide 15: Investment Highlights: PUD Drilling and Recompletion Inventory
Large inventory of PUD drilling locations and recompletion projects Low risk infill drilling/recompletion program 238 PUD drilling locations with estimated CAPEX of $39.7 mm 187 recompletion projects with estimated CAPEX of $6.5 mm Low finding and development costs 15 Investment Highlights
Slide 16: Investment Highlights: Emerging Resource Plays
Growth potential in emerging resource plays Barnett Shale – Fort Worth Basin Largest and most active natural gas field in Texas 28,000 gross and 6,800 net acres, all HBP leasehold 127 horizontal drilling locations with 23%-36% WI Operating partners: Chief Oil & Gas and EOG Resources Current proved r
Slide 17: Investment Highlights: Balanced Growth Strategy
Balanced growth strategy Exploitation and development of significant inventory of projects Accelerate development of Barnett Shale – Fort Worth Basin Increase exploration activity in Barnett and Woodford Shale – Reeves County Pursue selected acquisition opportunities Strategy allows the Company to a
Slide 18: Investment Highlights: Increased Access to Capital Markets
Increased access to capital markets Acceleration of $85 mm CAPEX drilling/recompletion program Refinance long term debt with new credit facility, providing additional liquidity Opportunistically access equity markets to improve balance sheet Warrants provide potential additional equity (approximatel
Slide 19: Property Overview
Stable production and long-life reserves Oil and gas fields with multiple pay zones Low-cost development projects Operate over 89% of reserve value Substantial emerging resource position 19 Property Overview
Slide 20: Proved Reserves
126 568 5.8 Undeveloped $445 $1,174 19.7 Total Proved 319 606 13.9 Developed SEC Pricing: Oil=$63.62/BBl Gas=$12.70/MCF PV-10% $MM FNR $MM MMBOE As of September 30, 2005 20 Proved Reserves
Slide 21: Proved Reserves Overview
Total Proved Reserves: 19.7 MMBOE Developed PUD Oil Natural Gas & NGL’s As of September 30, 2005 21 Proved Reserves Overview 71% 29% 60% 40%
Slide 22: Proven Reserves and Production
(2) (1) (2) (1) Results are affected by acquisitions and dispositions during each of the periods (2) As of September 30, 2005 (1) (1) 22 Proven Reserves and Production
Slide 23: RAM Proved Reserve Summary
2004 2005 Beginning reserves (MMBOE) Production Property Sales Additions & Revisions Ending reserves (MMBOE) Finding Costs Per BOE As of September 30, 2005 8.1 19.1 (1.0) 13.7 1.8 19.1 19.7 $6.50 $6.04 (2.0) (0.2) (0.5) 23 RAM Proved Reserve Summary
Slide 24: Drilling Success Rate
0 Dry Holes………. 4 4 Currently Drilling or Completing… 450 52 Total……………… Success Ratio….. 410 48 36 Producers……… Drilling Results (2) Excluding wells in progress (1) Since 1989 through September 30, 2005 (1) (2) Total Wells FY2005 Wells 92% 100% 24 Drilling Success Rate
Slide 25: Drilling / Recompletion Projects
25 As of September 30, 2005 $ in millions Proved Reserves Projects Future Capital PUD Locations 238 $39.7 Recompletions 187 $6.5 Total Proved 425 $46.2 Barnett Shale Locations 127 $38.8 Total Projects 552 $85.0 Drilling / Recompletion Projects
Slide 26: Principal Fields
84% 84% Percent of total Proved Reserves $34.4 $374.4 1.2 16.2 Vinegarone Total $56.6 1.3 Egan $60.2 3.2 Boonsville As of September 30, 2005 PV-10% MMBOE Property: $223.2 10.5 Electra/Burkburnett $ in millions 26 Principal Fields
Slide 27: Summary Financial and Operating Data
$ 27.7 $ 5.1 $ 9.1 EBITDA 1,033 504 685 Production (MBOE) $ 48.3 $ 17.7 $ 20.5 Oil & Gas Revenue YTD Ended 9/30/05 2004 2003 $ In Millions * Results are affected by acquisitions and dispositions during each of the periods. 27 Summary Financial and Operating Data
Slide 28: Investment Highlights
Experienced management team with successful track record High quality, diversified portfolio of long-lived producing assets Large inventory of PUD drilling locations and recompletion projects Growth potential in emerging resource plays Balanced growth strategy Increased access to capital markets Exc
Slide 29: Appendix
Principal Fields Emerging Resource Areas Officers and Management Hedging Positions Glossary of Terms 29 Appendix I. II. III. IV. V.
Slide 30: I. Principal Fields
Electra/Burkburnett Area, Wichita and Wilbarger Counties, Texas Egan Field, Acadia Parish, Louisiana Boonsville Area, Jack and Wise Counties, Texas Vinegarone Field, Val Verde County, Texas 30 I. Principal Fields
Slide 31: Electra/Burkburnett Area, Wichita and Wilbarger Counties, Texas
Proved reserves of 10,540 MBOE PV-10% = $223.2 million Net monthly production of over 56,000 BOE from 490 producers 209 identified PUD drilling locations 100% WI ownership & operational control Gas plant and gathering system As of September 30, 2005 31 Electra/Burkburnett Area, Wichita and Wilbarger
Slide 32: Egan Field, Acadia Parish, Louisiana
Proved reserves of 1,712 MBOE PV-10% = $56.6 million Net monthly production of over 8,000 BOE from 11 producers Multizone recompletion potential in 10 existing wellbores Operating and ownership control of field Seismic analysis may lead to future drilling opportunities As of September 30, 2005 32 Eg
Slide 33: Boonsville Area, Jack and Wise Counties, Texas
Proved reserves of 3,171 MBOE PV-10% = $60.2 million Net monthly production of over 19,000 BOE from 89 producers 22 identified drilling locations and numerous low-cost workovers Operating control of 88 producing wells Producing wells hold Barnett Shale rights 25 miles of gas gathering system As of S
Slide 34: Vinegarone Field, Val Verde County, Texas
Proved reserves of 1,186 MBOE PV-10% = $34.4 million Net monthly production of over 6,500 BOE from 7 non-operated producers 7 identified infill wells to be drilled Long-lived natural gas field As of September 30, 2005 34 Vinegarone Field, Val Verde County, Texas
Slide 35: II. Emerging Resource Areas
Barnett Shale - Fort Worth Basin, Jack and Wise Counties, Texas Barnett and Woodford Shale -Exploration Project, Reeves County, Texas 35 II. Emerging Resource Areas
Slide 36: Emerging Resource Area - Barnett Shale, Fort Worth Basin
Industry 1.1 Bcfed from over 3,600 wells Wells: 4,000’ – 11,000’; $400 M - $2,600 M Major activity focused on Denton, Wise, Tarrant, Johnson and Parker counties Gas production established in Hood, Jack, Erath and Palo Pinto counties Map Source: Pickering Energy Partners 36 Core Tier Tier Emerging Re
Slide 37: Barnett Shale, Jack and Wise Counties, Texas
RAM Acreage Located in the largest natural gas field in Texas Own WI ranging from 23-36% in nearly 28,000 gross acres lying within a 43 square mile area 127 locations identified for horizontal drilling on HBP leasehold Over 80% of the acreage lies in “core” area* Commercial production on this acreag
Slide 38: Barnett Shale and Woodford Shale Exploration Project, Reeves County, Texas
RAM Acreage Exploration play - 70,000 gross acres (11,000 net) Estimated thickness of the Barnett is between 400’-700’ and the Woodford varies from 200’-400’ Capital risk minimized through third-party drilling commitments to earn farmout agreements Participating interests range from 6.25-18.75% Keys
Slide 39: III. Officers and Management
28 Years 16 Years Production Accounting Manager Forrest Fischer 4 Years 4 Years Product Marketing Manager Brandon Lee 34 Years 8 Years Operations Engineer Mike Kaiser 20 Years 5 Years Senior Reservoir Engineer Ronald Strawser 33 Years 7 Years Reservoir Engineering Manager Sherman Hyatt 33 Years 8 Ye
Slide 40: III. Officers and Management
*Consultant to RAM 27 Years 11 Years Average Experience 30 Years 16 Years Drilling/Completion Supervisor Dennis Pratt 20 Years 13 Years Drilling/Completion Supervisor Gary Gibson 20 Years 13 Years Drilling/Completion Supervisor Mark Newton 31 Years 16 Years Electra Operations Manager Jacky Simmons F
Slide 41: IV. Hedging Positions
As of September 30, 2005 41 Year per day Price per day Price per day Price per day Price 2005 1,500 $40.00 500 $46.00 6,000 $6.00 6,000 $8.47 2006 1,750 $42.15 1,500 $60.56 5,247 $6.23 5,247 $8.60 2007 1,000 $35.00 1,000 $69.74 1,233 $7.00 1,233 $11.95 2005 500 $55.75 - - 2006 - - 5,000 $9.50 Second
Slide 42: Glossary of Terms
BOE - Barrel of Oil Equivalent BOE is comprised of the following product types: Oil : 1 barrel = 1 BOE NGL : 42 gallons = 1 BOE Natural Gas : 6 Mcf’s = 1 BOE Mcf – Million cubic feet NGL - Natural Gas Liquids MBOE – Thousand Barrels of Oil Equivalent MMBOE – Million Barrels of Oil Equivalent FNR – F
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