Axp Energy Limited · ASX:AXP
Axp Energy — Austin Exploration — Investor Presentation (August 2016)
32 slides from Axp Energy's investor presentation, August 2016
Slide 1: Pathfinder – An Iconic Oil Opportunity
Pathfinder – An Iconic Oil Opportunity Investor Presentation – August 2016
Slide 2: Investment Highlights
Investment Highlights __________________________________________ • Virgin acreage in the world’s second oldest oil basin – 15,282 acres with significant expansion potential • Operator and full controller of two 100% owned, world class oil and gas properties in Colorado and Kentucky • Fully funded th
Slide 3: High Impact, Three Well Program Underway
High Impact, Three Well Program Underway __________________________________________ Three phase drilling program designed to significantly reduce costs and increase operational efficiencies: Phase 1 – Sequentially drilling the upper vertical sections on the three wells Successfully completed Phase 2
Slide 4: High Impact Three Well Program Underway
High Impact Three Well Program Underway __________________________________________ Wells designed to intersect multiple factures identified by 3D seismic data: Magellan # 1 well: • Upper vertical section complete • Lower deviated section complete • Oil shows seen throughout drilling • Perforated pro
Slide 5: Magellan Well Drilling
Magellan Well Drilling __________________________________________ CEO Tim Hart manages drilling activity for the Magellan well Drilling equipment layout during drilling of Magellan Green Pierre Oil seen exiting the blooie line into the pit Drilling equipment layout during drilling of Magellan 5
Slide 6: Marco Polo Well Drilling
Marco Polo Well Drilling __________________________________________ Preparing the Marco Polo well pad Drilling equipment mobilized in preparation for the drilling of Marco Polo Nitrogen membrane unit generates 94% Nitrogen at 1500psi Final Rig preparations are made, and the drill steel is moved in t
Slide 7: Becoming one of the Lowest Cost Oil Producers in Industry
Becoming one of the Lowest Cost Oil Producers in Industry __________________________________________ Cost Control Measures & WTI Crude Price By Quarter Austin Normalized G&A Costs WTI Price $900,000 $110.00 $800,000 $100.00 $700,000 $90.00 Normalized G&A Costs $600,000 $80.00 WTI Price $500,000 $70.
Slide 8: Where is Austin’s Pathfinder Project?
Where is Austin’s Pathfinder Project? ______________________________________ THE CANON CITY General EMBAYMENT Manger: Ms Ola Akrad (DJ Basin) FLORENCE FIELD disc 1862 Pierre Shale 15.1 MMBO WET MTN THRUST Q1 Q2 Q3 Q3 Q1 Q2 Q3 2014 2014 2014 2014 2015 2015 2015 PATHFINDER PROJECT • Florence, Freemont
Slide 9: Pathfinder – A Golden Ticket
Pathfinder – A Golden Ticket __________________________________________ • Austin’s Pathfinder Project lies in the Western section of the Florence Oil Field which has produced more than 15 million barrels of oil • The entire Western region in this oilfield has been largely undrilled due to the fact t
Slide 10: Virgin Acreage Next to the World’s Second Oldest Oil Field
Virgin Acreage Next to the World’s Second Oldest Oil Field __________________________________________ • Florence is second oldest oil field in the world • Oil discovered in a seep north of Canon City in Oil Creek in 1862 • First deep well drilled in 1876 • 15.5 million barrels of oil from over 1,000
Slide 11: Pierre Wells – Potential 10 Year Development Plan
Pierre Wells – Potential 10 Year Development Plan __________________________________________ Drilling Plan For Pierre Project Year: Wells Drilled: Cumulative Wells Drilled: 1 3 3 2 6 9 3 8 17 4 8 25 5 16 41 6 16 57 7 16 73 8 16 89 9 16 105 10 16 121 ** Assumes capital is available for drilling ** As
Slide 12: Pierre Wells – Potential 10 Year Development Plan
Pierre Wells – Potential 10 Year Development Plan __________________________________________ Projected Net Income Of Pierre Project For 10 Years Assumptions: **Continual drilling program – personnel would have to be increased **Capital is available for drilling ** Assumes two drill rigs on location
Slide 13: Recent Production Statistics – Directly Adjacent Pathfinder
Recent Production Statistics – Directly Adjacent Pathfinder __________________________________________ Our neighbour, directly adjacent, has hit 21 consecutive oil wells in the Pierre Formation: 21 Adjacent Pierre Wells - 2015 Production Data Well Well Type IP Date Initial Production Cumulative Prod
Slide 14: Several High Impact Targets Identified – How?
Several High Impact Targets Identified – How? __________________________________________ High Definition ‘Zig Zag’ 3D seismic program: • State of the art 3D seismic accurately locates high density fracture networks Surface Geochemistry Studies: • Applying surface geochemistry techniques to detect hy
Slide 15: Surface Geochemistry Studies Confirm Hydrocarbon Seepage to Surface
Surface Geochemistry Studies Confirm Hydrocarbon Seepage to Surface __________________________________________ Highest intensity hydrocarbon leakage zones to the surface • Surface Geochemical studies indicate a presence of hydrocarbon accumulations in section 18 of Pathfinder • The purple zones indi
Slide 16: What is the Pierre formation?
What is the Pierre formation? __________________________________________ Natural fracturing in the Pierre Shale is unique to the Florence field Oil accumulations located in the lower section of the Pierre The Sharon Springs is the source formation rock for the oil in Pierre and acts as a bottom seal
Slide 17: Greater Oil Reserves Potential at Pathfinder
Greater Oil Reserves Potential at Pathfinder __________________________________________ The Pierre formation thickens to the west and Austin believes the pay section is thicker with potential for greater oil reserves Orange shaded area depicts additional oil from formation dipping to the west Pathfi
Slide 18: Pierre Formation Ideally Suited for Low Cost Drilling
Pierre Formation Ideally Suited for Low Cost Drilling __________________________________________ Targeting the field’s naturally occurring, gravity feed, oil-bearing fractures allows for the lowest cost oil exploration and production possible – no high cost fraccing Deviated Wellbore: Using 3D seism
Slide 19: Pathfinder Property – A Hydrocarbon Rich Basin
Pathfinder Property – A Hydrocarbon Rich Basin __________________________________________ Proven targets (in order of depth): • Pierre Shale • Niobrara Shale • Codell formation • Greenhorn formation • Grenaros formation • Dakota formation • Pierre wells shallow and highly economic at low oil prices
Slide 20: Our US Based Team
Our US Based Team __________________________________________ Guy Goudy Dr. W. Mark Hart Timothy Hart Aaron Goss Lonny Haugen Executive Chairman Non –Executive Vice MD & CEO COO CFO Chairman 20
Slide 21: Pierre Drilling – Highly Economic at Low Oil Prices
Pierre Drilling – Highly Economic at Low Oil Prices __________________________________________ We do it all ourselves: Drilling and field operations managed directly by Executive Management Formation is naturally fractured – no fraccing required Strategic Drill rig rental agreement in place wi
Slide 22: Strategic Drilling Agreement in Place
Strategic Drilling Agreement in Place __________________________________________ Full Operational control drives costs down: • A low cost, long-term complete drill rig and machinery package has been secured with Math Energy Drilling • Drill rig fleet rental agreement significantly reduces ongoing de
Slide 23: Extensive Drill Rig Fleet and Machinery at the Ready
Extensive Drill Rig Fleet and Machinery at the Ready __________________________________________ Extensive Drill Rig Fleet & Machinery: Atlas Copco RD20 Range III Drilling Rig 3000 gallon Water Trailer Doghouse Trailer & Misc Drilling Tools 1200 gallon fuel storage tank Drilling Rig Substru
Slide 24: Pierre Wells – Potential Single Well Economics
Pierre Wells – Potential Single Well Economics __________________________________________ $40 /bbl WTI $50 /bbl WTI $60 /bbl WTI ** Potential Economics based on nearby oil production **Assumed Drilling costs = USD$500k/well **Projected production declines illustrated on the next slide ** Royalty = 2
Slide 25: 10 Year Projected Decline Curve
10 Year Projected Decline Curve __________________________________________ • Bulk production occurs in first three years and steadies for long-term production • There are wells in Florence that have been producing oil and gas for more than 100 years 25
Slide 26: Kentucky – Low Cost Drilling and Production
Kentucky – Low Cost Drilling and Production __________________________________________ Kentucky continues to provide AKK with a solid boost to cashflows Kentucky ~4000 acres in the oil and gas rich Illinois Basin Kentucky Exploration LLC. Approx. 4000 acre 50/50 Joint Venture with private Australi
Slide 27: Corporate Structure
Corporate Structure __________________________________________ Corporate Snapshot Major Shareholders ASX Code: AKK Lanstead Partners Ltd 4.95% Cash (as at June 30 2016): $2mil 1215 Capital Ltd 3.77% Board and Management 2% Market Cap $8mil Admark Investments Pty Ltd 1.86% 52 week high ($/share): $2c
Slide 28: Austin’s Board of Directors – Proven Company Builders
Austin’s Board of Directors – Proven Company Builders __________________________________________ Mr. Guy Goudy, Executive Chairman Guy joined Austin Exploration in 2009 and has served the Company in various roles including Chief Operating Officer, Managing Director and Chief Executive Officer and wa
Slide 29: 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 fro
Slide 30: A Great Investment!
A Great Investment ! The RIGHT Property The RIGHT Team Cost Control Measures & WTI Crude Price By Quarter Austin Normalized G&A Costs WTI Price $900,000 $110.00 $800,000 $100.00 Normalized G&A Costs $700,000 $90.00 $600,000 $80.00 WTI Price $500,000 $70.00 $400,000 $60.00 $300,000 $50.00 $200,000 $4
Slide 31: Contact Details
Contact Details __________________________________________ Austin Exploration Limited Suite 605, Level 6 50 Clarence Street Sydney NSW 2000 Australia P: + 61 2 9299 9580 F: + 61 2 9299 9501 www.austinexploration.com Austin Exploration Inc. 113 North Santa Fe Florence, Colorado USA 81226 P: (719) 784
Slide 32: 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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