Hydrocarb Energy 2014 - HYDROCARB CORPORATION

Hydrocarb Energy 2014
Forward-Looking Statements
This presentation contains certain forward-looking statements regarding activities that Hydrocarb Energy Corporation (HEC) plans, projects, or
anticipates will or may occur in the future. The forward-looking statements are based on management’s belief, based on currently available
information, as to the outcome and timing of future events. HEC cautions that forward-looking statements regarding its future natural gas and
liquids production are subject to risks and uncertainties including, oil and natural gas price volatility; HEC’s access to capital to fund its
expenditures; fluctuations in production; environmental, drilling and operating risks; regulatory changes; the uncertainty inherent in estimating
future oil and gas production or reserves; and other risks as described in reports that HEC files with the Securities and Exchange Commission,
including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Any of these factors could cause
HEC’s actual results and plans to differ materially from those in the forward-looking statements.
Hydrocarb Management
Board of Directors
Kent P. Watts
Chairman
Pasquale V. Scaturro
Director
Paul Schillmoller
Ind. Director
S. Chris Herndon
Ind. Director
Management
Pasquale V. Scaturro
CEO
Chuck F. Dommer
President/COO
Craig Alexander
VP Operations
Tobie Aupindi
VP New Ventures
Byrd Larberg
Ind. Director
Key Management
Pasquale Scaturro, Chief Executive Officer
Geophysicist/Geologist - 34 years technical and managerial experience in worldwide oil and gas exploration and
development includes Africa, Russia, Asia, South America including Turkey, Israel, Siberia, Republic of Georgia,
Azerbaijan, Iraq, Pakistan, Ethiopia, Guinea, Somalia, Tunisia, Namibia, and Sudan. Worked with Amoco,
McMoRan Oil and Gas, Maxus Energy Corporation, Deminex, Arco, Hunt Oil, Frontera Resources and others.
Founder and owner of Seismic Specialists, US Seismic and Tricon Geophysics.
Chuck Dommer, Vice President Exploration & Production
Geologist/Geophysicist - 35 years worldwide oil and gas exploration and development geophysicist with over 35
years in international and domestic oil and gas exploitation, exploration, and acquisitions. Chief Geologist, for the
LUKOIL-AIK in Siberia and managed operations for three multi-billion barrel Western Siberia fields under
exploitation, drilling 60+ wells/year. Worked in Texas, New Mexico, Rocky Mountains, Canada, Eastern U.S.,
Borneo, Myanmar, Russia, Ingushetia, Kazakhstan, Ukraine, Georgia, Azerbaijan, Romania, Poland, Suriname,
Peru, Venezuela, and Namibia
Capital Structure
Shares Outstanding
Market Capitalization as of 03-07-14
62.7 million
$144.21 million
Management and Affiliates
55.4 million
Warrants and Options
4.8 million*
Fully Diluted Shares Outstanding
67.5 million
* Average exercise price of all options and warrants approximately $2.50
Stock Performance
(OTCQB: HECC)
Recent closing price: $2.30 (March 7, 2014)
2.8
Closing Price
2.6
2.4
2.2
2
1.8
3 Months
Our Vision
The following summarizes corporate goals and strategy for the medium-term future,
or the next one to two years.
In our Domestic Production Business:
o Significantly grow Hydrocarb’s oil and gas production in 2014
o Acquire additional onshore and offshore assets
o Utilize these assets to grow our international efforts
In our International Exploration Business:
o Increase the value of our Namibia exploration concession
o Add 2 impactive world class exploration concessions in the East African Rift Play
In our Middle East Oil Field Services Business:
o Commence operations of our Abu-Dhabi based oil-field services company
o Obtain significant cash flow from new contracts
o Share in the modernization of the oil and gas infrastructure in the UAE and
neighboring OPEC producing countries.
Worldwide Operations
Texas
UAE (Abu Dhabi)
Namibia
Domestic US
Oil and Gas Production
International
Exploration
UAE Services
Oil and Gas Field
Domestic Production
GALVESTON BAY, TEXAS
Offshore Galveston Bay
• 18,850 Acres Held by Production
(HBP)
• Discovered by Exxon in 1960-70s
• Total Cumulative Production: 25
Million Barrels Oil, 1.0 TCF Gas
• Total Wellbores: 140
• Currently Producing: 30
• Wells to be Worked Over: 18
• Current Production: 300 boepd
• $6MM Revenue/year
• 2nd Qtr. 2014 Production Goal:
400 boepd
• $8MM/year anticipated Revenue
Offshore Galveston Bay
18,850 HBP Acres
• 50 wellbores under technical evaluation for
potential workover
• 15 Frio horizons to be re-evaluated
• Deep Yegua and Big Sand Plays moving into
Newly acquired
3D Seismic
the area
• Several exploration projects in development
• Infrastructure:
• First class - rebuilt since Hurricane Ike
• Rebuilt to withstand Cat 4 Hurricane
• $15-20 million asset for future
exploration plays
• Incredible asset for future “deeper”
exploration plays
Middle East Oilfield Services
ABU DHABI, UNITED ARAB EMIRATES
ABU DHABI, UNITED ARAB EMIRATES
Oil and Gas Services
• World Class Comprehensive Services License
• Approved by Supreme Petroleum Council
• Headquartered in Abu Dhabi, UAE
• Partnered with Fatima Mana al Otaiba – CEO Otaiba United
• ISO 9001:2008 Certified
• Abu Dhabi - $100 billion annually in oil revenue
• Abu Dhabi – Will spend $40 billion over five years to increase
reserve base
International Exploration
Owambo Basin Namibia
An unexplored high potential
onshore African Basin
•
HUGE and UNEXPLORED
•
21,300 kms²/5.3 million acres --- Size of New Jersey
•
Less than 15% of concession explored to date
•
Existence of light West Texas quality crude oil
•
Outstanding Business Climate & Petroleum Agreement
Exploring for WORLD CLASS RESERVES
Owambo Basin
•
1.1 Billion Barrels unrisked inplace oil resource, NSAI Report
•
295 Million Barrels of Oil (MMBO)
unrisked recoverable
•
26 additional exploration leads
from recent aerial gravity survey
•
All five elements, required to have
a petroleum system, are present
in the Owambo Basin
Oponono Prospect
1.1 Billion Barrels of
Unrisked In-place Oil
2013 Hi-Resolution Aerial
Gravity Survey
1714
1715
1814A
1815A
Free Air Hill Shaded Residual Gravity
OPONONO STRUCTURE
1.1 Billion Barrels Unrisked
In-place Oil Resources
Owambo Basin Prospective Leads
OPONONO STRUCTURE
1.1 Billion Barrels
Unrisked
In-place Oil Resources
AFRICA Prolific East and Central African Rift
Ongoing Projects
Central African Rift
Central Congo Basin
Largest Unexplored
Basin on Earth
Lake Tanganyika
Largest Unexplored
Rift Lake in Africa
Summary
Invest in Hydrocarb
• World-class experienced oil and gas industry management that is
highly motivated with significant ownership and personal investment
• Domestic production that can be enhanced to drive our International
opportunities
• Middle East Oilfield Service Business poised to capitalize on a 40
billion dollar infrastructure program underway by the United Arab
Emirates
• African concession with a Netherland Sewell evaluation reporting as
much as 1.1 billion barrels of potential unrisked in-place oil resources