Baron Energy Inc

Baron Energy — Investor Presentation (February 2015)

25 slides from Baron Energy's investor presentation, Feb 18, 2015

  1. Slide 1: Baron Energy, Inc. Investor Presentation

    Baron Energy, Inc. Investor Presentation February 18, 2015

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Certain statements contained herein regarding future expectations, access to public capital markets, plans for acquisitions and dispositions, oil and gas reserves, exploration, development, production and pricing may be regarded as "forward-looking statements" within the m

  3. Slide 3: Company

    Company Baron Energy, Inc. (TKR: BROE) is an independent petroleum company engaged in the acquisition, development, and production of crude oil and natural gas in North America. We leverage the substantial experience of our management team to acquire, operate, and grow a portfolio of low-risk produc

  4. Slide 4: Investment Highlights

    Investment Highlights  Seasoned management team; significant operational experience  Large asset base; mostly oil; horizontal wells  Long-lived reserves  Production ramp up to begin in April 2015  >150 possible future wells/laterals/recompletions  Aligned with an energy capital provider  Mana

  5. Slide 5: Company Highlights

    Company Highlights  Seasoned oil and gas management team  Operated only properties; mostly 100% working interest  240 BOEPD (187 net); 87% oil; 14 producers  Multi-year well inventory of low-risk, long-term production  > 150 possible future wells/laterals/recompletions  > 8,600 gross acres  M

  6. Slide 6: Company Overview

    Company Overview  HQ in San Marcos, Texas  Pink Sheets: BROE  Common shares outstanding (est): 122 million/15 million float  Current price (2/17/15): $0.06/share  3 month average volume: 13,569 shares/day  52 week range: $0.02 - $0.15/share  Current Market Cap: $7.3 million  Total Debt (est)

  7. Slide 7: Management Team

    Management Team • 35 years of oil and gas experience including 18 years with a major oil company and 14 years as owner/operator Ronnie L. Steinocher • Extensive experience in drilling, engineering, production operations, Chairman, President and CEO business development, and general management • Lice

  8. Slide 8: Board of Directors

    Board of Directors Ronnie L. Steinocher, PE | Chairman, President & CEO  35 years of oil and gas experience; 18 years with a major oil company; 14 years as owner/operator  Extensive experience in drilling, engineering, production, business development, and general management  BS in Architecture,

  9. Slide 9: Current Status Company-Wide

    Current Status Company-Wide  Baron operates 100% of all properties  $265,000/month revenue  $150,000/month net cash flow (pre-VPP)  75-100% WI (working interest) ownership; 56.25-77% NRI (net royalty interest)  187 BOEPD net; 87% oil  14 producers; 2 SWD wells  8,691 acres gross  Up to 150 f

  10. Slide 10: Production Focus Areas

    Production Focus Areas N TEXAS HQ San Marcos County of Operations 2/18/2015 www.baronenergy.com 10

  11. Slide 11: Work Program 2Q 2015

    Work Program 2Q 2015 Timing Well/ Gross Cost WI% Work IP BOPD Avg BOPD Formation (MM$) Days Year 1 2Q Austin Chalk $1.40 100% 25 200 130 Lateral 2Q Austin Chalk $0.85 96% 15 250 180 Recompletion 2Q Flippen $0.35 75% 7 60 50 Sand Total $2.60 510 360 A successful 2Q 2015 work program will lead to addi

  12. Slide 12: Production and Projected Ramp-up

    Production and Projected Ramp-up Monthly Production and Projected 900 Drilling programs are scheduled to 800 begin in April 2015 700 Gross BOEPD 600 500 Frio Boe 400 Frio Bo 300 Taylor Bo 200 100 0 Oct Nov Dec Jan Feb proj Mar proj Apr proj May proj Jun proj Jul proj 2014-2015 2/18/2015 www.baronene

  13. Slide 13: 2015 Production Targets

    2015 Production Targets Production Targets 1400 A continuous drilling program will provide a 1200 substantial increase in production by year-end 1000 Gross BOEPD 800 Low Base 600 High 400 200 0 Current 2Q 3Q 4Q 2015 2/18/2015 www.baronenergy.com 13

  14. Slide 14: 2014 Targets (Year-end Status)

    2014 Targets (Year-end Status)  Acquire an anchor project  Complete divestment of non-core properties  Become fully SEC compliant; trade on the OTC exchange  Align with an energy capital provider  Restructure private debt  Maintain current low-cost G&A structure  Focus on meaningful producing

  15. Slide 15: 2015 Targets

    2015 Targets  Continue development of Frio County properties  Drill 3-4 new Austin Chalk horizontal wells; target one well per quarter  Drill 1-2 shallow oil wells or lateral recompletions  Olmos Sand formation  Complete geological/engineering evaluation of all properties by end of 2Q  ID pote

  16. Slide 16: Frio County, South Texas

    Frio County, South Texas  100% operated properties  89.1-100% WI/64.15%-77% NRI  Gross 193 BOPD/190 MCFPD/227 BOEPD (160 net)  14 producers; 87% Oil; 320-acre well spacing  8,082 gross acres; 8 producing leases  Multi-year drilling inventory – Multiple production targets (Olmos Sand, San Migue

  17. Slide 17: Austin Chalk Section

    Austin Chalk Section Austin Chalk has three productive zones: B-1, 5,150’ Top of Chalk B-2, and Lower Chalk Upper Chalk B-1 Upper Chalk B-2 Lower Chalk 5,500’ Base of Chalk Eagle Ford Shale 2/18/2015 www.baronenergy.com 17

  18. Slide 18: First Horizontal Recompletion

    First Horizontal Recompletion • December 2014 Baron’s first horizontal recompletion in the Austin Chalk • 96% WI; Baron operated • 3,000’ lateral • Drilling rigs must be capable of drilling 5,000 ‘ plus lateral wells • Up to 80 future new wells and recompletions in the Austin Chalk • > 40 years of r

  19. Slide 19: Production Systems

    Production Systems • Horizontal wells IP at 100-500 BOPD • 50,000 to 150,000 BO EUR per lateral • Large pump jacks are required to move substantial volumes of fluid • Both single lateral and dual lateral wells 2/18/2015 www.baronenergy.com 19

  20. Slide 20: Taylor County, Central Texas

    Taylor County, Central Texas  100% operated properties  75% WI/54.75% NRI  Gross 22-25 BOPD gross  2 producers; 1 SWD; 100% Oil  609 contiguous acres; 2 producing leases  Possible future well locations – Flippen Sand Formation at 2,900’ – 10-acre spacing – Open hole completions – 30-60 BOPD/we

  21. Slide 21: Taylor County, Central Texas

    Taylor County, Central Texas • Shaffer Leases, Taylor County, Texas • Baron operated with 75%WI • Shallow oil wells with long-lived production • Field has been on production for more than 40 years • A number of future in-field drilling locations on 10 acre spacing; 3 permitted for drilling • Open ho

  22. Slide 22: Acquisition Focus Area

    Acquisition Focus Area Baron Energy, Inc. HQ in San Marcos, Texas 2/18/2015 www.baronenergy.com 22

  23. Slide 23: Austin Chalk Trend

    Austin Chalk Trend • Baron is focused on the Austin Chalk trend • Future acquisition priorities , preferences would be on trend in the Austin Chalk 2/18/2015 www.baronenergy.com 23

  24. Slide 24: Acquisition Criteria for Producing Properties

    Acquisition Criteria for Producing Properties  Operated properties only; prefer 100% WI  Current production > 200 BOEPD per project  Focus on oil production  Less than 10,000 feet well depth  Multiple pay zones  Upside via drilling, recompletions, and horizontal wells  Long-term production li

  25. Slide 25: Company Contact

    Company Contact Baron Energy, Inc. 300 S. C.M. Allen Parkway, Suite 400 San Marcos, Texas 78666-2278 Phone: 512-392-5775 Fax: 512-392-7238 info@baronenergy.com Brad Holmes, Investor Relations Houston, Texas (713) 654-4009 b_holmes@att.net 2/18/2015 www.baronenergy.com 25

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