Cygnus Oil And Gas · OTC:CYNS
Cygnus Oil And Gas — Investor Presentation (July 2006)
20 slides from Cygnus Oil And Gas's investor presentation, Jul 20, 2006
Slide 1: Management Presentation July 2006
Management Presentation July 2006 CYGNUS OIL & GAS (Ticker: CYNS)
Slide 2: Disclaimer
Disclaimer This presentation material contains forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections or other statements, other than statements o
Slide 3: Corporate Overview
Corporate Overview Cygnus Oil & Gas Cygnus Oil & Gas Headquarters: Houston, TX Ticker Symbol: CYNS (OTC BB) Stock Price (7/17/06): $0.66 Basic Shares Outstanding: 83 million Market Capitalization: $54.8 million 3-Month Avg. Trading Volume: 200,000
Slide 4: Corporate Vision & Strategy
Corporate Vision & Strategy Pursue unconventional onshore gas plays with potential for large scale long life reserves Balance portfolio with internally generated onshore Gulf Coast conventional oil and gas Target plays with multiple potential producing horizons Utilize cost effective development tec
Slide 5: Management Team
Management Team Roger Abel, Chairman & CEO 35 years of oil and gas experience Former President & COO of Occidental Oil & Gas Former Chairman of Conoco E&P, Europe; responsible for all of upstream activities in Europe and Russia Stephen C. Haynes, Chief Financial Officer 20+ years experience in petro
Slide 6: Asset Profile
Asset Profile Fayetteville Shale - Woodruff County, Arkansas Caney/Woodford Shale - McIntosh County, Oklahoma Mathison Project - Knox County, Mississippi Producing Interests - Mainly South Texas Exploration Joint Venture with SEI and Paradigm Strategic Exploration 45% Non-Operated interest in 150,00
Slide 7: Recent Focus on Gas Shales
SABINE UPLIFT LLANO UPLIFT Recent Focus on Gas Shales 4 active NFX rigs LOUISIANA ARKANSAS OKLAHOMA TEXAS BARNETT SHALE WOODFORD/CANEY SHALE FAYETTEVILLE SHALE OUACHITA MOUNTAINS ARBUCKLE MOUNTAINS FRONTAL BELT
Slide 8: Fayetteville Leasehold
Fayetteville Leasehold A
Slide 9: Fayetteville History
Fayetteville History Southwestern Energy 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr Cummulative No. of Wells 2 3 6 12 25 42 55 60 67 75 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 04 05 06 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr Cummulat
Slide 10: Fayetteville Log Comparison
Lower Fayetteville Shale Moorefield Shale Chattanooga Shale TXO "Rocka" #1 Cleburne County, Arkansas Maverick Oil and Gas "Byers" #1-3H Woodruff Co., Ark. Maverick Oil and Gas "Williamson Bros." #1-36H Woodruff Co., Ark. Horizontal Lateral TOC-2.5-4.6% Vitronite- 3% Horizontal Lateral TOC-2.5-4.0% V
Slide 11: Fayetteville Shale Aggressive vs. Moderate Development Scenarios
Fayetteville Shale Aggressive vs. Moderate Development Scenarios 2006 2007 2008 2009 2010 Aggressive 10 30 75 130 200 Moderate 5 10 30 75 130 Prove Concept | Optimize | Develop 2006 2007 2008 2009 2010 Aggressive 5 15 35 65 100 Moderate 1 5 15 35 65 Prove Concept | Optimize | Develop 2006 2007 2008
Slide 12: Fayetteville - Well Economics
Fayetteville - Well Economics Typical Gross Development Well Days to Drill 30 Days to Complete 5 Total Development Costs $2.0 million Finding & Dev. Costs/Mcf $1.30 Typical Gross Production Per Well Est. Ultimate Recovery (Bcf) 1.5 IP Rate (MMcf/d) 2.0 Decline Rate (1st year) 50% Development Project
Slide 13: Checotah Development Project
Checotah Development Project
Slide 14: Caney/Woodford Log Comparison
Caney/Woodford Log Comparison Citrus Oil and Gas "Wild Turkey" #1 McIntosh County Cygnus Oil and Gas "Checotah" 20-1H McIntosh County Caney Shale Woodford Shale Point of Horizontal Lateral
Slide 15: Checotah Prospect - Aggressive vs. Moderate Development Scenarios
Checotah Prospect - Caney/Woodford Shale Aggressive vs. Moderate Development Scenarios 2006 2007 2008 2009 2010 Aggressive 6 18 42 66 90 Moderate 2 6 18 42 66 Prove Concept | Optimize | Develop 2006 2007 2008 2009 2010 Aggressive 3 9 21 33 45 Moderate 1 3 9 21 33 Prove Concept | Optimize | Develop 2
Slide 16: Checotah - Well Economics
Checotah - Well Economics Typical Gross Development Well Depth 3,500 ft TVD w/ 2000 ft lateral Days to Drill 15 Days to Complete 5 Drilling $0.75 MM Completing $0.5 MM Total Development Costs $1.25 MM Finding & Dev. Costs/Mcf $1.25 Typical Gross Production Per Well Est. Ultimate Recovery (Bcf) 1.0 I
Slide 17: Exploration Joint Venture
Exploration Joint Venture 3-Way JV - Cygnus, Paradigm Strategic Exploration and Seismic Exchange International (SEI) Paradigm contributes exploration technical staff - develops prospects Paradigm contributes current prospects for consideration SEI contributes library of 3D and 2D Seismic Data Cygnus
Slide 18: Typical Exploration Joint Venture Project
Typical Exploration Joint Venture Project Smackover Test Onshore Alabama 175 Acre Structural Trap defined by 3-D 5-6 Similar prospects 14,500 Ft Well Depth $0.6 MM Completed Well Cost (net) Prospect Reserves - 1.2 MMBO (gross) WI= 25 %, NRI= 18 % PV10= $3 MM Net
Slide 19: Exploration Joint Venture Projection
2007 Average Production: 10 mmcfd 2008 Average Production: 18 mmcfd 2009 Average Production: 15 mmcfd 2010 Average Production: 4 mmcfd Exploration Joint Venture Projection Expect JV to mature 10 drilling prospects in 2 years Expect Cygnus to participate in 5 JV prospects (leverage remainder) over 2
Slide 20: Investment Considerations
Investment Considerations Geographically, long-lived reserve base Significant proven reserve base of low-risk prospects Strong cash-flow opportunities to support development activities High quality operator with a diversified portfolio of opportunities Several wells currently on production in Starr,