Voltaic Strategic Resources Limited · ASX:VSR
Voltaic Strategic Resources — Incremental Oil and Gas — Investor Presentation (December 2015)
20 slides from Voltaic Strategic Resources's investor presentation, December 2015
Slide 1: Investor Briefing December 2015
INVESTOR BRIEFING DECEMBER 2015 GROWTH STRATEGY CASH FLOW EXPERIENCED BOARD/MANAGEMENT LOW COST PRODUCER ASX: IOG www.incrementaloilandgas.com Twitter - @IncrementalOG LinkedIn - http://www.linkedin.com/company/incremental-oil-and-gas-ltd
Slide 2: Highlights
HIGHLIGHTS • Low cost oil and gas producer • Growth Strategy • Leveraged to future oil and gas price increases • Experienced Board and Management • Strong Geological and Engineering expertise
Slide 3: Proven Oil & Gas Basins
PROVEN OIL & GAS BASINS SILVERTIP, WY DENVER H/Office FLORENCE, CO SHEEP SPRINGS & ROUND MOUNTAN, CA Page 3
Slide 4: New Paradigm - Opportunities
NEW PARADIGM - OPPORTUNITIES 4
Slide 5: Board and Management Are Invested in Future Success
BOARD AND MANAGEMENT ARE INVESTED IN FUTURE SUCCESS Ordinary shares on issue 163,684,580 Options on issue 1 5,400,000 Shareholder Distribution ASX: IOG Share Price SILVERTIP Board/ PURCHASE $0.05 Management $0.04 32% 32% Top 20 (Excl $0.03 A$ Board/ Management) $0.02 $0.01 Other 36% Shareholders $0.
Slide 6: Value Comparison - Mkt Cap:BOEPD Production
VALUE COMPARISON - MKT CAP:BOEPD PRODUCTION1 1. Based off production in July-September 2015 quarter with Market cap based off A$ ASX share price as at 30-Sep-15 Page 6
Slide 7: Fields Profitable at Current Oil and Gas Prices
FIELDS PROFITABLE AT CURRENT OIL AND GAS PRICES Per BOE1 Revenue 2 Royalties and Field Netback/ (Q1-Q3 2015) Prod’n tax 3 Operating Gross Profit Costs Margin Silvertip, Wyoming3 $21 ($5.9) ($5.4) $9.8 / 46% (24% oil, 48% gas, 28% NGL) SS & RM4, California $47 ($8.3) ($10.1) $28.6 / 61% Florence, Col
Slide 8: Experienced Leadership
EXPERIENCED LEADERSHIP Mark Stowell Involved in public company corporate sector for over 25 years including significant IPO and merger activities in the resource and Non-Exec Chairman energy sectors. Founder of IOG. John Whisler More than 25 years experience in the oil and gas industry in a broad ra
Slide 9: Strong Executive Team
STRONG EXECUTIVE TEAM Simon Adams Over 20 years of experience with a number of ASX listed companies in CFO/ Co. Sec. various sectors including energy, agribusiness, resources and property. Jennifer Cadena Extensive legal experience in the oil and gas sector with experience in VP Land and Legal contr
Slide 10: Why Is Incremental in the USA?
WHY IS INCREMENTAL IN THE USA? • Over 5 million wells and an extensive delivery/transportation system in place – mature industry • Largest hydrocarbon market in the world • Strong deal flow • IOG has a substantial database of information and contacts Page 10
Slide 11: Acquisition Process
ACQUISITION PROCESS • Disciplined and well researched due diligence process undertaken to identify suitable targets • Reviewed more than 40 opportunities over 8 months during 2014/15 • Identified and secured Silvertip in June 2015 Page 11
Slide 12: Silvertip Purchase
SILVERTIP PURCHASE • Purchase price – US$6.3M (funded by debt finance) • Significant surface equipment already in place including gas processing and stripping plant • 100% working interest (WI) & 82.5% average net revenue interest (NRI) • 105 wells including 90 producers, 2 water injection wells and
Slide 13: Silvertip Production
SILVERTIP PRODUCTION Oil production since acquisition - 27 workovers since July focusing on oil producing wells Page 13
Slide 14: Multiple Opportunities
MULTIPLE OPPORTUNITIES (from existing wells – derisked development) • Stacked pay in multiple zones (1500-9000 ft) • Proven production from 6 different formations (Oil and Gas ) • Oil and gas generated from several different source rocks ( ) Formation Approx Measured Depth (ft) Lance 1500 Me
Slide 15: California Projects
CALIFORNIA PROJECTS NEVADA San Francisco CALIFORNIA Round Mountain Sheep Springs P A C I F I C • Sales(1) (2010-2015): $27.4 million Oilfields have provided good stable cash flow with O C E A N low decline rates N 0 50 100 Los Angeles 1. Net Revenue to IOG (after refinery charges & royalty) Page 15
Slide 16: Colorado Project
COLORADO PROJECT • Sales (1) (2012 - 2015): $16.0 million Low decline since 2014. 1. Net Revenue to IOG (after refinery charges & royalty) Page 16
Slide 17: Business Growth Plan
BUSINESS GROWTH PLAN • Identify and acquire long-life, profitable oil/gas fields with development potential • Continue with field optimization programs – workovers and recompletions • Increase reserve base to add value and leverage borrowing capacity • Dividends – subject to availability of surplus
Slide 18: Why Invest in Incremental?
WHY INVEST IN INCREMENTAL? • Under valued compared to peers • Leveraged to oil and gas price turnaround - counter cyclical investment opportunity • Well researched and selective growth strategy in place which is being delivered • Strong Board and Management with significant investment in the Company
Slide 19: Presenter Contacts
PRESENTER CONTACTS SIMON ADAMS Email – sadams@i-og.net Telephone - +61 (0)8 6144 0590 Web – www.incrementaoilandgas.com Twitter - @IncrementalOG LinkedIn - http://www.linkedin.com/company/incremental- oil-and-gas-ltd Page 19
Slide 20: Disclaimer – Forward Looking Statement
DISCLAIMER – Forward Looking Statement This presentation has been prepared by Incremental Oil and Gas LTD (“Incremental”). This presentation may contain certain statements that may be deemed forward-looking statements. Forward- looking statements reflect the Company’s views and assumptions with resp
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