Voltaic Strategic Resources Limited · ASX:VSR
Voltaic Strategic Resources — Incremental Oil and Gas — Good Oil Conference 2013
21 slides from Voltaic Strategic Resources's conference presentation, September 2013
Slide 1: Good Oil Conference September 2013
INCREMENTAL OIL and GAS (asx: IOG) GOOD OIL CONFERENCE SEPTEMBER 2013 www.incrementaloilandgas.com
Slide 2: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and chan
Slide 3: Incremental Business model 2010-13
Incremental Business model 2010-13 – A profitable producing oil company – We acquire underperforming oilfields and increase production – Focus is Onshore USA – Florence producing oilfield, Colorado (100% WI) – Round Mountain producing oilfield (100% WI) – Sheep Springs producing oilfield (100% WI) –
Slide 4: Incremental Business model 2013
Incremental Business model 2013 – A profitable producing oil company – We acquire underperforming oilfields and increase production – Focus is Onshore USA – Florence producing oilfield, Colorado (100% WI) – Round Mountain producing oilfield (100% WI) – Sheep Springs producing oilfield (100% WI) – Mc
Slide 5: IOG Capital Structure
IOG Capital Structure • Listed January 2011. • 486 shareholders • 156.2m shares (Directors and management 37.3%) 96.5m unlisted options1 • Market cap ~$21 million • US$4m Debt 2010 2011 2012 2013 (H1) REVENUE $6.17m $7.70m $16.04m $6.29m EBITDA $2.40m $2.98m $6.91m $2.11m 1. 92.5m options exercisabl
Slide 6: Operating Locations
OPERATING LOCATIONS IN NEVADA N ©” Sacremento San Francisco CALIFORNIA CALIFORNIA ASSETS Fresno Las Vegas © CLos Angeles ©-Long Beach (©) 1OG Project Locations San Diego UTAH COLORADO FLORENCE FIELD ARIZONA Phoenix or) Chandler North America Tucson Q Denver 1@) © Colorado Springs
Slide 7: Florence Oilfield
WATTENBERG OILFIELD FLORENCE OILFIELD DENVER 7
Slide 8: All Historic Production (15 million bbl)
ALL HISTORIC PRODUCTION (15 million bbl) SHALLOW FRACTURED SHALE Jurassic & older 8
Slide 9: Shallow Fractured Shale Potential
SHALLOW FRACTURED SHALE POTENTIAL • First two IOG wells drilled are not great, but lots of potential still • New seismic in west of Field to start soon • Next drilling campaign will concentrate on western part of field Fracture zones clearly visible and mappable on seismic 9
Slide 10: IOG's Value Proposition
IOG’s VALUE PROPOSITION FRACTURED NIOBRARA FORMATION Jurassic & older 10
Slide 11: Cretaceous Landscape
CRETACEOUS LANDSCAPE Niobrara deposited in same large inland sea as the Eagle Ford Shale in Texas Both limestones have significant entrained oil Eagle Ford now one of largest oil plays in world NIOBRARA FM. EAGLEFORD SHALE 11
Slide 12: Wattenberg Field Niobrara Florence Field
Florence NIOBRARA “D” Wattenberg Field ) Niobrara Florence Field First horizontal Niobrara commercial • Very widespread • Florence same depth and maturity as areas being drilled Page 12
Slide 13: Florence Niobrara logs look better than Wattenberg
Florence Niobrara logs look better than Wattenberg FLORENCE WATTENBERG Niobrara ‘B’ Top 13
Slide 14: Noble etc having great success at Wattenberg
NOBLE etc HAVING GREAT SUCCESS at WATTENBERG Noble Energy; NYSE: NBL. Market cap $22 Billion, 14
Slide 15: PDC Energy; NASDAQ-PDCE; Market Cap $1.5 billion
PDC Energy; NASDAQ-PDCE; Market Cap $1.5 billion 15
Slide 16: Niobrara Laterally Uniform at Florence
407 boepd from horizontal NIOBRARA LATERALLY UNIFORM AT FLORENCE Niobrara IOG Leases 16
Slide 17: IOG's Niobrara Plan 2013
IOG’s NIOBRARA PLAN 2013 • Four wells being permitted • Will target natural fractures in Niobrara • Niobrara petroleum system different to shallow fractured shale • Two wells to be drilled in late 2013 • Estimated $1.4m each • Targeting natural fractures…wells will not be fracced 17
Slide 18: Projects, California BOEPD
Projects, California Sheep Springs + Round Mountain (BOEPD Avg) 300 250 200 BOEPD 150 100 50 0 • Drilled 11 wells, 8 successful • Revenue $26m • IRR 34% • Sold SS & RM August (SALE PRICE US$13m) 18
Slide 19: Why sell profitable California oilfields?
WHY SELL PROFITABLE CALIFORNIA OILFIELDS ? CONCENTRATE ON LARGER AREA PLAYS SUCH AS FLORENCE FUNDS USED TO: • DEVELOP FLORENCE, ESPECIALLY NIOBRARA • PURCHASE NEW LONG LIFE CONVENTIONAL FIELDS • PAY OUT EXISTING DEBT • WORKING CAPITAL REMAINING FLORENCE PRODUCTION WILL KEEP CASH FLOW POSITIVE 19
Slide 20: IOG Team
From left: IOG TEAM Cronin: No 2 in Woodside (23 years) Stowell: Founder of Anvil and Mawson West, CA John Whisler MacDonald: 13 years in Senate, LLB VP USA McGann: 40 years geologist worldwide, CPG Adams: 20 years Accountant. CFO DIRECTORS 20
Slide 21: 12 Months Projected News Flow
12 Months Projected News Flow • New 3D Seismic, Florence Field • Drill 2-3 wells, Florence Field • Purchase another long life, profitable oilfield • Continue to be cash flow positive 21