Baron Energy — Investor Presentation (May 2011)
32 slides from Baron Energy's investor presentation, May 2011
Slide 1: Baron Energy, Inc. Company Overview Presentation
Baron Energy, Inc. Company Overview Presentation May 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements.” All statements, other than statements of historical facts, included in this presentation that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur in the future
Slide 3: Introduction
Introduction On February 22, 2010, Baron Energy, Inc. merged with two privately held limited partnerships with oil and gas properties and operations in West Texas The merger brought with it a veteran management team, new board of directors, and a new business strategy to acquire and exploit oil
Slide 4: Company Overview
Company Overview HQ in New Braunfels, Texas OTC Markets: BROE Shares outstanding: 47 million; 15 million float Current Price (5/1/11): $0.08/share 30 day average volume: 10,893 shares 52 week range: $0.05 - $0.59/share Current Market Cap: $3.8 million Total Debt: $2.7 million www.b
Slide 5: A corporate vision and strategy proven during more than 10 years of regional transactions
A corporate vision and strategy proven during more than 10 years of regional transactions and operating history Baron plans to grow its production and revenue by: 1) Acquisition of producing properties 2) Production enhancements; workovers; reactivations 3) Recompletions; in-fill drilling Focuse
Slide 6: Management Averages Over 30 Years of Oil and Gas Experience
Management Averages Over 30 Years of Oil and Gas Experience Ronnie L. Steinocher – Chairman, President and CEO: More than 30 years of oil and gas experience including 18 years with Conoco Inc. Co-founder and owner/operator of independent oil and gas companies since 2001. Extensive experience in dr
Slide 7: Core Area of Operations in North Central and West Texas
Core Area of Operations is located in North Central and West Texas where management has operated for the past 10 years Baron Energy, Inc. Core Area of Operations HQ New Braunfels, Texas Baron Energy Overview 7
Slide 8: Core Operating Area
Core Operating Area North Central and West Texas 55 Counties 52,982 square miles 34 million acres 650,000 BOPD production 88,500 producing oil wells 36,500 shut-in wells Multiple pay zones Well and production data from Texas Railroad Commission 2010 Baron Energy Overview 8
Slide 9: Operators in core area range from the largest to the smallest
Operators in core area range from the largest to the smallest Many major oil companies continue to operate in West Texas ExxonMobil Chevron ConocoPhillips Smallest operator is a sole proprietorship 7,618 oil and gas companies operate in Texas Data from Texas Railroad Commission 2010 Baro
Slide 10: Operating Status
Operating Status Annualized revenue is currently $1.4 million, an increase of 300% since 12/31/2010 Net production of 36 BOPD; gross production of 54 BOPD, an increase of 200% since 12/31/10 100% oil production; 14 producers; 13 operated Well depths range from 2,700 to 7,700 feet More than
Slide 11: Preferred criteria used to identify acquisition candidates
Preferred criteria used to identify acquisition candidates 1) Located in core area 2) Current production 3) 100% working interest ownership 4) Upside via workovers, reactivations, recompletions, in-fill drilling 5) Well depths less than 5,000 feet 6) Multiple pay zones 7) Private negotiation Baron E
Slide 12: Production is increased by a balanced mixture of different programs
Production is increased by a balanced mixture of different programs Baron Energy Overview 12
Slide 13: Production increase via workovers and reactivations is continuing to ramp up
Production increase via workovers and reactivations is continuing to ramp up Baron Energy Overview 13
Slide 14: Production increase via small acquisitions, workovers, and reactivations will continue
Production increase via small acquisitions, workovers, and reactivations will continue throughout the remainder of the year Mid-year target 50 BOPD Baron Energy Overview 14
Slide 15: West Texas Intermediate Crude Oil Prices
West Texas Intermediate Crude Oil Prices Baron Energy Overview 15
Slide 16: Revenue and operating cash flow continue to increase
Revenue and operating cash flow continue to increase with more production and higher oil prices Baron Energy Overview 16
Slide 17: Highlights
Highlights Potential for significant value increase over the next 12 months Understandable business plan driven by a focused strategy Veteran management team; worked together for 18 years Management’s 17% ownership directly aligned with shareholders Operate properties; mostly with 100% wor
Slide 18: Keeping the pace will provide a significant increase in producers and production
Keeping the pace will provide a significant increase in the number of producers and production within 12 months Current State Future State Future State Future State 5/1/11 12/31/11 12/31/12 High 12/31/12 Net BOPD 36 100 300 500 Producers(1) 12 (14) 50 100 125 Avg Net 3.0 2.0 3.0 4.0 BOPD/well Acres
Slide 19: Larger producing properties are also under consideration
Larger producing properties are also under consideration but come with more competition and larger funding requirements Example of the types of larger properties under consideration during the past 6 months: Located in core area 20-100 BOEPD gross 12-40 producing wells Water disposal avail
Slide 20: 12 Month Plan to Increase Shareholder Value
12 Month Plan to Increase Shareholder Value Build a solid base of operated properties generating growing, predictable cash flows Increase production continually; stay on pace Restructure and reduce debt Develop strategic alternatives that will increase shareholder value and create liquidity
Slide 21: Company Contact
Company Contact Baron Energy, Inc. 392 West Mill Street New Braunfels, Texas 78130 Phone / Fax (830) 608-0300 www.baronenergy.com Baron Energy Overview 21
Slide 22: Pump Jack
Pump Jack Jones County, Texas Baron Energy Overview 22
Slide 23: Pump Jack
Pump Jack Blue barrel contains chemical that is injected into the well to reduce corrosion. Baron Energy Overview 23
Slide 24: Pump Jack
Pump Jack Close up of beam pumping unit. Baron Energy Overview 24
Slide 25: Oil Storage Tanks
Oil Storage Tanks Storage battery, Runnels County, Texas Baron Energy Overview 25
Slide 26: Water Injection Pumps
Water Injection Pumps Injection pumps are used to dispose of produced water. Baron Energy Overview 26
Slide 27: Water Disposal Well
Water Disposal Well Runnels County, Texas Baron Energy Overview 27
Slide 28: Pump Jack
Pump Jack Beam pumping unit with wind turbines in the background. Baron Energy Overview 28
Slide 29: Pump Jack and Wind Turbine
Pump Jack and Wind Turbine Taylor County, Texas Baron Energy Overview 29
Slide 30: Road Construction
Road Construction Taylor County, Texas Baron Energy Overview 30
Slide 31: Road Construction
Road Construction Increasing road width for heavy equipment and trucks Baron Energy Overview 31
Slide 32: Pump Jack, Storage Tanks, and Seperator
Pump Jack, Storage Tanks, and Seperator Garza County, Texas Baron Energy Overview 32