88 Energy Limited · ASX:88E
88 Energy — Merger or Acquisition (February 2022)
16 slides from 88 Energy's merger presentation, Feb 21, 2022
Slide 1: Project Longhorn acquisition
Project Longhorn acquisition Texas oil and gas production assets February 2022
Slide 2: Transaction highlights
Transaction 1 Diversifying portfolio with production Acquisition of ~73% average net non-operated working interest in leases highlights and wells in established conventional onshore production assets within the Permian Basin of Texas 2 Low-cost entry with net 2p reserves of 2.1 mmboe Competitive low
Slide 3: Project Longhorn, Texas
Project Longhorn, Texas Acquisition of attractive acreage in Permian Basin, Texas Key statistics Current gross ~300 Boe per production; Day4 ~70% oil Solid production 32 producing from existing PDP wells wells Net 2P 2.1 mmBOE 2P Independent certified reserves, reserves1,2 31 December 2021 7 planned
Slide 4: Transaction rationale
Transaction rationale Delivering immediate output and near-term production drilling upside IMMEDIATE • Current average production of approx. 300 BOE per day gross (approx. 70% oil) across 32 wells, doubling of output targeted by end 2022 CASH FLOW • 5 year 2P forecast net operating cash flows to 88
Slide 5: Transaction rationale
Transaction rationale Platform for immediate cash flow with planned program to unlock production upside Current Near Term Medium Term Longer Term • Current wells producing • Complete 7 work-over • Target increase in • Assess additional ~300 BOE per day gross activities (low risk upside production ab
Slide 6: Transaction rationale
Transaction rationale Strong project economics and acquisition metrics Immediate cash flows TargEt development IRR’s TARGET capex payback Direct and immediate production provides cash 75% to 400% depending on Between 7 – 18 months flow and exposure to oil price the type of drilling or work- dependin
Slide 7: Project Longhorn
Project Longhorn Texas U.S.A.
Slide 8: Project Longhorn
PROJECT Longhorn Non-operator with ~73% average ownership interest1 Project Longhorn: Permian Basin Texas • Approx. 1,300 net acres • Current production of ~300 BOE per day gross from 32 producing wells • 7 low-cost work-overs planned in 2022, target (2P) doubling of current output by end of CY2022
Slide 9: Attractive production growth forecast
Project Longhorn Attractive production growth forecast • Planned capital development activities Gross forecasted annual average production BOE per day have been certified Proven Reserves given their low risk nature 2000 1P 2P 3P POTENTIAL ACQUISITIONS • Differences between 1P, 2P and 3P are solely d
Slide 10: Projected operating cash flow leveraged to oil price
Project Longhorn Projected operating cash flow leveraged to oil price 5 Year Cash Flow, NRI to 88E (WI ~73%), US$’000 (1,2) 1P 2P 3P 66,050 53,048 50,100 46,113 44,008 42,586 39,603 36,241 34,218 31,107 28,238 26,321 WTI Futures (4 Feb 22) US$75/bbl US$80/bbl US$100/bbl 5 year operating cashflow for
Slide 11: Certified net 2P reserves of 2.05 MMBOE
Project Longhorn Certified net 2P reserves of 2.05 MMBOE3 Reserves, NRI to 88E (WI ~73%), Mboe (1,2 & 3) Oil Gas NGL 2,335 2,045 462 426 1,640 299 677 607 489 1,196 1,012 851 1P 2P 3P Note: 1. ODIN Reservoir Consultants Reserve Report (February 2022) 2. Basis for BOE conversion: MMcf net gas divided
Slide 12: Strong position with production cash flows
Strong position with production cash flows Healthy 88E financial position with future production cashflows • A$32.3M cash1 plus A$30.0M (net WTI crude oil price proceeds) from recent capital raise, zero debt US$/bbl 90 • Production cash flows secured to 80 support future Alaskan activities 70 • Dire
Slide 13: 88e's focus remains on Alaskan upside
88e’s focus remains on Alaskan upside Strong focus on unlocking significant value from Alaskan assets • Drilling of Merlin-2 appraisal well in Q1 2022 targeting 652 million barrels1 ,2 in the N20, N19 and N18 horizons • Unlocking the value of Yukon area via joint regional development, “88 Energy is
Slide 14: Contact
Contact: Brokers: Share Registry: Australia ASX: Computershare Managing Director: Euroz Hartleys Ltd As Corporate Advisor: Investor Services Pty Ltd Ashley Gilbert Mr Dale Bryan + 61 8 9268 2829 ASX: 88E Registered Office: United Kingdom AIM: Computershare Ground Floor, 516 Hay St, Cenkos Securities
Slide 15: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared 88 Energy Limited (the “Company” or “88 Energy”) solely for informational meetings relating to it and is being delivered for information purposes only to a limited number of persons. By attending the meeting where this Presentation is m
Slide 16: AQYANA (28)
AQYANA (28)