Investor Presentation

Transcription

Investor Presentation
Baron Energy, Inc.
Investor Presentation
June 12, 2015
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 meaning of
the Securities Litigation Reform Act. They are subject to various risks, such as operating hazards, drilling risks, the inherent uncertainties in
interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company's
periodic reports and other documents filed with the SEC. Actual results may vary materially.
Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited
to, the volatility of oil and gas prices, the costs and results of drilling and operations, the timing of production, mechanical and other inherent
risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties
about reserve estimates, environmental risks and other risks and uncertainties set forth in Company's periodic reports and other documents
filed with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
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Company Overview
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 producing oil and gas properties with meaningful near-term upside and
long-term production. Baron owns and operates oil and gas properties in South and Central
Texas. The company is headquartered in San Marcos, Texas.
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Investment Highlights
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Seasoned and incentivized management team
 35 years industry experience on average
 40% ownership creates shareholder alignment
Significant asset base in place
 8,000+ acres; 100% operated; 75-100% working interest
 Multi-year development drilling inventory; 50-year reserve life
 Low-risk vertical and horizontal oil wells; multiple pay zones: 90% oil weighted
Ramp-up in production and revenue targeted by year-end 2015 via new drills and
recompletions
 Successful ramp-up will significantly increase production and revenue
Working to become fully SEC compliant; upgrade to the OTC exchange by year-end 2015
 Listing upgrade will provide company exposure to new investors and increase
shareholder liquidity
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www.baronenergy.com
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Company Overview
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HQ in San Marcos, Texas
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Pink Sheets: BROE
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Common shares outstanding (est): 132 million/15 million float
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Current price (6/12/15): $0.10/share
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3 month average volume: 5,975 shares/day
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52 week range: $0.02 - $0.15/share
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Current Market Cap: $13.2 million
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Total Debt (est): $11.2 million (includes VPP)
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www.baronenergy.com
1) VPP = Volumetric Production Payment
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Management Team
Ronnie L. Steinocher, P.E.
Chairman, President and CEO
Lisa P. Hamilton
Executive Vice President, CFO
and Director
Management team has
worked together for more
than 23 years
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• 35 years of oil and gas experience including 18 years with a major oil
company and 14 years as owner/operator
• Extensive experience in drilling, engineering, production operations,
business development, and general management
• Licensed Professional Engineer in Texas since 1985
• 35 years of oil and gas experience including 20 years with a major oil
company and 14 years as owner/operator
• Extensive experience in finance, land, contracts, production operations,
business development, and general management
• BS in Business and Commerce with Highest Honors
• Business development; North America and International
• Acquisitions/Divestments; > 100 transactions since 2002
• Drilling and production operations
• Private and public companies
www.baronenergy.com
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Board of Directors
Ronnie L. Steinocher, P.E. | Chairman, President and CEO
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35 years of oil and gas experience; 18 years with a major oil company; 14 years as owner/operator
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Extensive experience in drilling, engineering, production, business development, and general management
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BS in Architecture, The University of Texas at Arlington; BS in Civil Engineering, The University of Texas at Austin
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Licensed professional engineer in Texas since 1985; member of Society of Petroleum Engineers since 1983
Lisa P. Hamilton | Executive Vice President, CFO and Director
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35 years of oil and gas experience; 20 years with a major oil company; 14 years as an owner/operator
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Extensive experience in finance, land, contracts, operations, business development, and general management
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BS in Business and Commerce with Highest Honors, University of Houston - Downtown
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Current Status Company-Wide
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Baron operates 100% of all properties
75-100% WI (working interest) ownership; 56-77% NRI (net royalty interest)
225 BOEPD gross / 150 BOEPD net; 90% oil
16 producers; 2 SWD wells
8,106 acres gross
Multi-year drilling inventory
Reserve life > 50 Years
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Production Focus Areas
N
TEXAS
HQ San Marcos
County of Operations
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Oil and Gas Reserves
Category
Crude Oil
Natural Gas
Total
(Bbls)
(Mcf)
(Boe)
PDP
252,368
279,917
302,353
$5,430,895
PDNP
123,270
124,074
145,426
$2,047,158
PUD
893,626
739,144
1,025,616
$9,969,410
Total Proved
1,269,264
1,143,135
1,473,395
$17,447,463
Probable
1,114,114
114,079
1,134,485
$8,904,510
Total 2P
2,383,378
1,257,214
2,607,881
$26,351,973
Possible
1,276,450
595,820
1,382,846
$13,734,950
Total 3P
3,659,828
1,853,034
3,990,727
$40,086,923
1)
2)
3)
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PV-10
As of May 1, 2015
NYMEX strip pricing
PGH Petroleum and Environmental Engineers, LLC, independent 3rd party
www.baronenergy.com
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Production and Projected
Production and Projected
900
800
Drilling Program to begin in July 2015
to ramp-up production
Gross BOEPD
700
600
500
Frio
County
400
Taylor
County
300
200
100
0
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
2014-2015
1)
2)
3)
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Production at end of Q
3-4Q projections based on current capex and drilling schedule
Projected production is base case and may vary up or down depending on well results
www.baronenergy.com
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2015 Targets
 Continue development of properties 3-4Q
 Execute ramp-up in production
 Become fully SEC compliant; trade on the OTC exchange
 Complete audited financials; complete SEC filings
 Complete divestment of non-core properties
 Sell by year-end (pending market conditions)
 Maintain current low-cost G&A structure
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Frio County, South Texas
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100% operated properties
89-100% WI/64.15%-77% NRI
Gross 153BOPD/170 MCFPD/180 BOEPD (134 BOEPD net)
14 producers; 90% Oil
7,497 gross acres; 8 producing leases
Multi-year drilling inventory
– Multiple production targets (Olmos Sand, San Miguel, Austin Chalk, Eagle Ford Shale, Buda Lime,
Pearsall Shale)
• Horizontal wells
– 100-300 BOPD/well IP’s; 50M-500MBO/well EUR
– Some wells are dual-laterals
– Possible future multi-lateral completions in some chalk wells
• Vertical wells
– 30-100 BOPD/well IP’s; 30M-100MBO/well EUR; 40 acre/well spacing
– Possible down-spacing to 20 acre/well
Reserve life > 50 years
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Austin Chalk Section
Austin Chalk has three
productive zones: B-1,
B-2, and Lower Chalk
5,150’ Top of Chalk
Upper Chalk B-1
Upper Chalk B-2
Lower Chalk
5,500’ Base of Chalk
Eagle Ford Shale
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First Horizontal Recompletion
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December 2014 Baron’s first
horizontal recompletion in the Austin
Chalk
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96% WI; Baron operated
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2,800’ lateral
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Drilling rigs must be capable of
drilling 5,000’ plus lateral wells
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67 possible future new wells and
recompletions identified
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> 50 year reserve life
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Production Systems
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Horizontal wells IP at 100-500 BOPD
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50,000 to 150,000 BO EUR per lateral
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Large pump jacks are required to
move substantial volumes of fluid
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Both single lateral and dual lateral
wells
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Taylor County, Central Texas
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100% operated properties
75% WI/54.75% NRI
Gross 25-30 BOPD gross / 14-16 BOPD net
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/well IP’s; 20-40 MBbl/well EUR
– 3 PUD locations permitted to drill; 3 future possible locations
Reserve life > 20 years
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Taylor County, Central Texas
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Shaffer Leases, Taylor County, Texas
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Baron operated with 75%WI
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Shallow oil wells with long-lived production
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Field has been on production for more than
40 years
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A number of future in-field drilling locations
on 10 acre spacing; 3 permitted for drilling
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Open hole completions should provide high
initial production rates for new drills
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> 20 year reserve life
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www.baronenergy.com
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Acquisition Focus Area
Baron Energy, Inc.
HQ in San Marcos, Texas
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Austin Chalk Trend
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Baron is focused on the Austin Chalk
trend
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Future acquisition priorities &
preferences would be on trend in the
Austin Chalk
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Acquisition Criteria for Producing
Properties
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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 life > 20 years
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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
[email protected]
www.baronenergy.com
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