Axp Energy Limited · ASX:AXP
Axp Energy — Austin Exploration — Investor Presentation (November 2015)
22 slides from Axp Energy's investor presentation, November 2015
Slide 1: Re-Tuned for Low Cost Production
Re-Tuned for Low Cost Production Investor Presentation – November 2015
Slide 2: Investment Highlights
Investment Highlights _________________________________________ • One of the few U.S. focused oil & gas companies actively expanding in a low oil price environment • Two high impact, low cost Pierre wells to be drilled in Colorado in 2015. A discovery will be a “game changer” for the Company • Addit
Slide 3: Corporate Structure
Corporate Structure Major Shareholders Corporate Snapshot Lanstead Partners Ltd 15.74% ASX Code: AKK Cash (as at November 1 2015): $750k Board & Management 3.6% Admark Investments Pty Ltd 1.43% Market Cap $5.5m Mr. William Cavanagh 1.24% 52 week high ($/share): $0.10 Mr. & Mrs. J & S Capp 0.95% 52 w
Slide 4: Our US Based TEAM – Today and Tomorrow
Our US Based TEAM – Today Dr. W. Mark Hart Guy Goudy Lonny Haugen Aaron Goss Timothy Hart Chairman Managing CFO VP & GM Texas COO Director & CEO & Colorado VP & GM Business Unit Kentucky & Mississippi Business Unit …and Our Team Tomorrow… 4 4
Slide 5: Normalized G&A Costs
Re-Tuned for Low Cost Production & Future Growth Cost Control Measures & WTI Crude Price By Quarter Austin Normalized G&A Costs WTI Price $900,000 $110.00 Normalized G&A Costs $800,000 $100.00 $90.00 $700,000 WTI Price $80.00 $600,000 $70.00 $500,000 $60.00 $400,000 $50.00 $300,000 Q1 Q2 Q3 Q3 Q1 Q2
Slide 6: Diversified Low Risk Portfolio
Diversified Low Risk Portfolio Asset Cost Risk Benefit Kentucky Illinois Basin Low Low Medium Mississippi Wilcox Basin Low Low High Colorado Pierre Formation Low Medium High Niobrara Formation Medium Low High Texas Eagle Ford Suspended Suspended Suspended • Diversified acreage of circa 20,000 + acre
Slide 7: Significant Oil and Gas Reserves & Resources
Significant Oil and Gas Reserves & Resources 45 million barrels + of unlocked oil and gas potential _________________________________________ • Huge amount of unlocked oil and gas reserves over Austin diversified asset base offers investors significant future upside • Colorado reserves and resources
Slide 8: We Are Now Headquartered in Florence
We Are Now Headquartered in Florence Then second oldest oil community in the United States LESS THAN ONE MILE FROM THE PATHFINDER OIL & GAS PROJECT 8
Slide 9: Low Cost Exploration – Florence, Colorado
Low Cost Exploration – Florence, Colorado Pathfinder Project Pathfinder encompasses 15,282 acres (AKK:100%) – big enough for over 350 wells, with 40 acre spacing First company to secure oil and gas rights directly next door to the second oldest oil field in North America which has produced over 15 m
Slide 10: C18#2 Pierre Well – High Impact Target identified
C18#2 Pierre Well – High Impact Target identified Has been methodically de-risked for December Drilling The C18#2 well site has been staked in preparation for drilling Why Are We Confident About The Potential of the C18#2 well ? 10
Slide 11: Surface Geochemistry Studies Confirm Hydrocarbon Seepage To Surface
Surface Geochemistry Studies Confirm Hydrocarbon Seepage To Surface • Surface Geochemical studies indicate the presence of hydrocarbon accumulations in section 18 of the Pathfinder Project • The purple zones indicate a high intensity iodine readings that have been detected. • Iodine is used to detec
Slide 12: Fractures Capable Of Holding Commercial Quantities of Oil
Fractures Capable Of Holding Commercial Quantities of Oil. Confirmed On High Definition 3D seismic 12
Slide 13: Adjacent Neighbour Hit on 21 Consecutive Oil Wells In The Pierre Formation
Our Directly Adjacent Neighbour Hit on 21 Consecutive Oil Wells In The Pierre Formation 21 Adjacent Pierre Wells - 2015 Production Data Well Well Type IP Date Initial Production Cumulative Production (2015) Years Apache Vertical Oct-08 46 10,030 5.49 Dolly Varden Vertical May-10 30 14,995 4.84 Ellio
Slide 14: Strategic Drilling Agreement In Place
Strategic Drilling Agreement In Place - Atlas Copco RD20 Rig is now on location • A low cost, complete drill rig and machinery package has been secured • A 12 month rental agreement significantly reduces ongoing development costs and increases operational efficiencies • Complete drilling and develop
Slide 15: Low Cost Exploration – Mississippi
Low Cost Exploration – Mississippi - 100% success rate. Board Of Education well flow rates imminent Well Name IP Depth Formation Ellislie #1 82 BOPD 6,445’ – 6,450’ Armstrong Sands Armstrong #1A 135 BOPD 6,445’ – 6,450’ Baker Sands Bourke #4 248 BOPD 6,108’ – 6,111’ Baker Sands (MS #3) Bourke #5 15
Slide 16: Low Cost Drilling & Production – Kentucky
Low Cost Drilling & Production – Kentucky _________________________________________ Kentucky ~4000 acres in the oil and gas rich Illinois Basin Kentucky Exploration LLC. Approx. 4000 acre 50/50 Joint Venture with private Australian Investment Company Achieved a record production day rate of 50 B
Slide 17: Non-Core Assets
Non-Core Assets _________________________________________ Burleson County, Texas Birch Eagle Ford Non-Conventional High Cost Asset (Drilling Suspended) • Austin has a 30% Working Interest in Texas Operations, Net Revenue Interest of 22.5% • Halcon Resources Corporation announced in 2014 the property
Slide 18: In Summary
In Summary _________________________________________ Austin has significantly reduced corporate overheads, salaries reduced from US1.98 mil to ~US$480k per annum Austin’s 100% controlled 15,282 acre Colorado Pathfinder property in the DJ Basin Colorado sits directly adjacent to the Florence Oil fi
Slide 19: Austin’s Board Of Directors - Proven Company Builders
Austin’s Board Of Directors - Proven Company Builders ________________________________________ Dr. W. Mark Hart, Non-Executive Chairman Dr. Hart has more than 35 years of executive experience across the world in a number of major mining and energy companies, including Standard Oil Minerals, Newmont
Slide 20: Austin’s Board Of Directors - Proven Company Builders
Austin’s Board Of Directors - Proven Company Builders ________________________________________ Mr. Stuart Middleton – Non-Executive Director Mr. Middleton has joined the Austin Exploration board of directors as a non-executive director based in Sydney. Stuart has recently returned to Australia from
Slide 21: Thank you
Thank you Contact Details Austin Exploration Limited Suite 605, Level 6 50 Clarence Street Sydney NSW 2000 Australia P: (03) 9606 3888 F: (03) 9606 3800 www.austinexploration.com Austin Exploration Inc. 113 North Santa Fe Florence, Colorado USA 81226 P: (303) 233 2232 F: (303) 233 2442 www.austinexp
Slide 22: Disclaimer
Disclaimer _________________________________________ Statements made by representatives of Austin Exploration Limited during the course of this presentation that are not historical facts are forward-looking statements. These statements are based on certain assumptions made by the Austin Exploration
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