Voltaic Strategic Resources Limited · ASX:VSR
Voltaic Strategic Resources — Incremental Oil and Gas — Corporate Update (October 2017)
18 slides from Voltaic Strategic Resources's corporate update, Oct 16, 2017
Slide 1: DJ Basin Growth Opportunity
DJ Basin Growth Opportunity “A significant value accretive asset for shareholders”
Slide 2: Corporate overview
16/10/2017 Corporate overview Share Price (90 day VWAP)1 AU$ 0.025 Market Capitalization AU$ 4.65M / US$ 3.72M Bank Debt2 (ANB Bank) AU$ 8.13M / US$ 6.50M EV AU$11.71M / US$ 9.37M PV10 Estimate of PDP Reserves value3 AU$23.43M / US$18.74M No of shares on issue (pre rights issue) 202.2M No of options
Slide 3: Board
16/10/2017 Board A chartered accountant and corporate finance background and has been involved in public Mark Stowell company management for over 20 years including significant experience in the natural resources Non-Exec Chairman and energy sectors. Founder and director of Incremental Petroleum, se
Slide 4: Strong track record - CEO/BoD's
16/10/2017 Strong track record - CEO/BoD’s CEO, John Whisler, Management and other Board members have extensive Oil and Gas experience: • Successfully built E&P companies from ground floor • Track record of value accretion on divestment of exploratory and mature fields 2.30ROI for mature oil field
Slide 5: IOG acquisition assessment criteria
16/10/2017 IOG acquisition assessment criteria Incremental uses the following criteria as a guide to determine if an asset should be reviewed: • Oil weighted conventional assets ✓ • Immediate/Near-term Cash flow ✓ • Well economics that support investment (including risk for dry/uneconomic holes) C
Slide 6: Transaction overview
16/10/2017 Transaction overview Transaction • Acquisition of the Borie Oilfield, DJ Basin, Wyoming (94% working interest in 21 Operated wells with a total of 2,850 net acres) Purchase Price • A$1.1250m (US$0.900m) subject to adjustments at closing Funding • Equity raised through rights issue Product
Slide 7: Key transaction benefits
16/10/2017 Key transaction benefits • Conventional oil production in the DJ Basin • Low decline profile for existing production • Located in Wyoming – IOG already has Borie operates in WY (Silvertip Field) Field • Existing production profitable at current oil price • At least 3 high conviction well
Slide 8: Acquisition price underpinned by value of existing production
16/10/2017 Acquisition price underpinned by value of existing production • Incremental is acquiring current production and lease acreage for US$0.900M Borie Field Market 1 Production (Net) 60 BOPD US$15,000/Bbl US$35,400/Bbl Lease Area (Net) 2,850 Acres US$316/Acre US$7,200/Acre Production uplift po
Slide 9: Field overview – Borie Field, DJ Basin, Wyoming
16/10/2017 Field overview – Borie Field, DJ Basin, Wyoming Production Borie Field, DJ Basin, Wyoming • 60 barrels of oil per day net (100 miles North of Denver, ~10 • 11 operated producing wells plus miles west of Cheyenne) Silvertip 3 water EOR injection wells WY Borie Field • Avg 81% NRI Denver, C
Slide 10: Field history
16/10/2017 Field history • Discovered in 1950 • Produces from the J2 & J3 Sand Formations • 5.5 MMBO produced to date • Wells have been drilled at various times between 1950 and early 2000’s WYOMING NEBRASKA • There haves been no new wells drilling during high oil price period (potential overlooked)
Slide 11: J Sand (Muddy) Isopach & Structure Map
16/10/2017 J Sand (Muddy) Isopach & Structure Map J Sand (Muddy) Log Intervals Top Muddy Top 1st Bench Top 2nd Bench Top 3rd Bench Top Skull Creek • N-S oriented field producing atop a thrusted anticline in the northern DJ Basin • Well EUR’s based on 180Mbbl • New well locations have good control an
Slide 12: New well economics
16/10/2017 New well economics • BORIE well est EUR – 180,000 Bbls MUDDY Formation • IP – 80 BOPD New well economics • Type Curve – based on wells drilled in Borie Field after 1980 $7 20,000 Millions • Capex – US$1.2m (A$1. 5m) per well 18,000 $6 Bbls of Oil Production (per annum) 16,000 US$/Bbl IRR
Slide 13: Existing assets – Silvertip Field (WY)
16/10/2017 Existing assets – Silvertip Field (WY) Proved Reserve (Dec MMBOE 31, 2016) • SILVERTIP FIELD, WYOMING (100% WI, Liquids 738 OPERATOR) RESERVES Gas 958 • 537 BOEPD production (Q2-17) Total 1,696 Liquids (Oil & NGL’s) - 33%, Natural Gas - 67% Proved • 1.224 MMBOE 1P reserves Reserve (at M
Slide 14: Existing assets (CA)
16/10/2017 Existing assets (CA) • SHEEP SPRINGS & ROUND MOUNTAIN, CALIFORNIA (100% WI, OPERATOR) • 85 BOEPD production (Q2-17) ROUND MOUNTAIN Sheep Springs – 63 BOEPD (Oil - 93%, Natural Gas - 7%) Round Mountain – 22 BOPD • 0.30 MMBOE 1P reserves • Lease all HBP Sheep Springs – 160 acres Rou
Slide 15: Financial performance
16/10/2017 Financial performance Jun-17 Dec-16 Dec-15 Cash Flow – US$’000 (6 months) (12 months) (12 months) Receipts from Sales $2,955 $4,851 $4,336 Payments to Suppliers ($2,560) ($3,912) ($3,187) Interest (Net) ($161) ($337) ($209) Production Tax Paid ($169) ($419) ($241) Net cash flow from Opera
Slide 16: Summary
16/10/2017 Summary Conventional oil weighted Profitable cashflow at Long life, low decline rate Production optimization asset purchased in counter $50/bbl with growth wells provide leverage to and cost reductions cyclical environment potential through drilling future oil price rise identified (<$20/
Slide 17: Disclaimer
16/10/2017 Disclaimer This presentation has been prepared by Incremental Oil and Gas Ltd (“Incremental”). This presentation does not constitute investment advice. Neither this presentation nor the information contained in it consti tutes an offer, invitation, solicitation or recommendation in relati
Slide 18: Appendix 1 – M&A oil weighted transactions 2016 & 2017
16/10/2017 Appendix 1 – M&A oil weighted transactions 2016 & 2017 M&A Transactions used to determine “Market” value (Source – www.boereport.com/ma-database/) Value/ Value Region/ Production Value/ Lease Proved Proved Date Acquirer Target ($MM) Play % Liquids BOE/D BOE/D Acreage Value/ Acre Reserves
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