US Focused Oil & Gas Production and Development Company. The Mississippian A World Class, Low Risk Shallow Oil Play. Corporate Presentation

Transcription

1 US Focused Oil & Gas Production and Development Company The Mississippian A World Class, Low Risk Shallow Oil Play Corporate Presentation Dan Lanskey Richard Adrey

2 DISCLAIMER Disclaimer This presentation is not a Prospectus by AusTex Oil Limited A.C.N (AusTex) nor an offer for securities in any jurisdiction nor a securities recommendation. The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions investors should rely on their own examination of AusTex and consult with their own legal, tax, business and/or financial advisers in connection with any acquisition of securities. The information contain in this presentation has been prepared in good faith by AusTex. However, no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this presentation by AusTex, its directors, employees and advisors. To the maximum extent permitted by law, AusTex, its directors officers, employees and advisors disclaim liability for any loss or damage which may be suffered by any person through the use or reliance on anything contained in or omitted in this presentation. Certain information in this presentation refers to the intentions of AusTex, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause AusTex's actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, AusTex, its directors officers, employees and advisors do not give any assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as contemplated. 2 2

3 INTRODUCTION Highly prospective acreage USA Mid Continent 23,000 net acres in Prolific Mississippi Lime Play Oklahoma and Kansas - World Class Resource AusTex Current Production ~300 boe/day Independent Reserve Report June P Reserves 5.9 million boe NPV 10 $US158m = 48 cents per share Fast Tracking Development Production Growth Funding in place to continue well defined drilling program JV partnership opportunities Multiple projects - Farm out? Strong technical team and Board with extensive success and experience TSXV dual listing progressing Target 2 nd Half

4 CORPORATE SNAPSHOT ASX code Richard Adrey Kay Philip Kwang Hou Hung Luis Vierma Dan Lanskey CAPITAL STRUCTURE BOARD AND MANAGEMENT Executive Chairman and Founder Non-Executive Director Non-Executive Deputy Chairman Non-Executive Director Managing Director and Founder AOK Ordinary Shares on Issue (m)* QX International ADR (1:50) Options on issue (m) Market Cap. ($0.13 share) Convertible Note Current Production Cash (June 2012) ATXDY AU$42.5 million $US7.5m 300 boe/d (70% oil) (as at 1 4 June 2012) $7.2M TOP SHAREHOLDERS Shares % 1 KWANG HOU HUNG 31,470, % 2 CITICORP NOMINEES PTY LIMITED 24,793, % 3 PHESOJ PTY LTD 12,779, % 4 DR LEON EUGENE PRETORIUS 12,000, % 5 MR RICHARD A ADREY 11,018, % 6 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 10,000, % 7 MR SCOTT COHEN 6,500, % 8 KENG CHUEN THAM 6,380, % 9 RONATAC PTY LTD <MASTER CARPETS HLDNG S/F A/C> 5,500, % 10 MR VICTOR WAN <SUPER FUND A/C> 5,325, % 11 TERSTAN NOMINEES PTY LTD <MORROWS P/L SUPER FUND> 4,279, % 12 MRS LINDA K ADREY 3,827, % 13 DAVIES NOMINEES PTY LTD <SUPER DUPER SUPER FUND > 3,500, % 14 BERPAID PTY LTD 3,350, % 15 REMOVALE PTY LTD 3,251, % 16 ALGENI PTY LTD <THE URRY FAMILY S/FUND A/C> 3,210, % 17 WIL EVANS DESIGN PTY LTD <COASTWIDE REALTY A/C> 3,000, % 18 ETRANZ.COM PTY LTD 2,872, % 19 MS LOUISE MARJORIE BERNARDI 2,500, % 20 DAN FULKERSON <EST LATE B R FULKERSON A/C> 2,400, % 157,957, % Total Shares on Issue 328,784,

5 INDEPENDENT RESERVE REPORT JUNE 2012 Reserve Category Oil Reserves Net (Mbbl) Gas Reserves Net (MMscf) BOE Mboe 6:1 Undiscounted Cash Flow ($ million) 10% NPV Cash Flow Proved ,150 $10.9m Proved Producing ,119 $6.5m Proved undeveloped 2,736 3,776 3, ,062 $79.2m Total Proved (1P) 3,101 4,546 3, ,331 $96.7m Probable Undeveloped 1,803 1,736 2, ,801 $61.7m Total Proved + Probable (2P) 4, , ,132 $158.4m Possible Undeveloped 6,386 6,254 7, ,995 $230.4m Total Proved + Probable + Possible (3P) 11,290 12,536 13, ,127 $388.8m Competent Person s Statement Reserves have been certified by Richard A. Burns PE, a Reservoir Engineer employed by Integrated Petroleum Technologies Inc., Denver, Colorado, and is a qualified person as defined under the ASX Listing Rule Mr Burns holds a Bachelor of Science in Petroleum Engineering and has over forty years experience in engineering studies, evaluation of oil and gas properties, drilling, completion, production and process engineering of oil and gas operation and evaluation of properties in Canada and U.S.A and is a qualified evaluator and auditor as defined in National Instrument Reserves have been developed within the guidelines of the Canadian Oil and Gas Evaluation handbook and in accordance with Canadian National Instrument Mr Burns has consented to the use of the reserve figures in this presentation. Mr. Burns is a published member of the Society of Professional Engineers. 5 5

6 MAJORS FOCUS ON LIQUID RICH PLAYS Mississippian 17 Million acres Vast Resource Potential AusTex 23,000 net acres Source SandRidge Energy

7 AUSTEX TARGETING OIL RICH PROJECTS Mississippian Potential Central Kansas Uplift Shallow, Carbonate Oil Play 17 million acre area EUR Mboe/Hor. Well EUR Mboe/Vert. Well SWD Infrastructure key to success Potential for 25+ net Horizontal Well locations at Snake River Project alone (160 acre spacing) Ellsworth Project ~3200 acres AOK 50% Defined Miss Lime Area Image Source SandRidge Energy 2012 not to scale 7 7

8 NORTHERN OKLAHOMA AusTex Snake River Project Source Range Resources July

9 SCHEMATIC CROSS SECTION Source Vitruvian Exploration May

10 NEMAHA RIDGE - LOCATION Nemaha Ridge (uplift) Location is Important Miss Lime Interval Gross thickness: 300 feet +/- Chert 30 feet + Higher structure provides access to more Chat Better oil cuts ~70% Multiple prolific lithologies High porosity chert Siliceous limestone with medium porosity Fractured limestone with lower porosity Significant open fractures Reacts well to frac job Woodford TOC up to 10% is a great source rock Source Range Resources July 2012 not to scale 10 10

11 SNAKE RIVER PROJECT NORTHERN OKLAHOMA Kay Co Ceja: Glasgow 3H & 4H Ceja: Paris B2 & 3H Ceja: Highly 4H Cum > 100 MBO Ceja: Washaki 2H & Osage 3H Range: Billy 3-26H Ceja: Benjamin 4&5 Ceja: Martin 1H Grant Co Range: Mac 1-27H Osage Co SandRidge: Kasper 1-2H 341 boepd Noble Co Range: Odin 1-31H Range: Thor 1-32H FARO 6,000 BF/D (5-10% oil cut) + 1 mmcfg/d Range: G. State 2-13H AOK leasehold ~5,500 net ML acres Green Circles MS Solid Producers Red Circles MS Chat Producers Contours: Mississippian Structure (C.I. = 250 ) Dark blue lines = Recent HZ wells = AusTex Leases 11 11

12 CRITICAL INFRASTRUCTURE IN PLACE Oil Refinery East Tonkawa Unit #15-4 and #14-5 Snake River Project Mustang Gas Compression Station 12

13 SNAKE RIVER PROJECT DEVELOPMENT Vertical and Horizontal Wells Production Hubs SWD infrastructure established Why low risk Vertical Wells? 100% WI ~80%NRI ETU #14-5 Delineate Multiple Stacked Pays Gain reservoir knowledge - Build initial reserve base 8 wells drilled through Miss Lime / Woodford Shale TD ~4,750 feet Completion costs ~$600,000 EUR 100,000 BOE 20 acre spacing Stabilized BOE/day after Initial Production Drilling and Completing 2 wells per month Multiple Horizontal Opportunities First Well participation 14% with NYSE:RRC EUR increase to 600,000 BOE per well 4 wells per section 2.4m BOE EUR per 640 acres? Results improve with knowledge 1,000 BOE/d Increased density to 160 acre spacing Woodford Shale now being targeted Balder #1-30N ETU Oil Storage Tanks ETU #15-4 Source Devon Energy June

14 MISSISSIPPI LIME INTERVAL Vertical Wells show consistent results Logs and Sample show ~320 feet gross interval Distinct Chert Intervals (more than one) Porosity in excess of 20% Naturally fractured solid section Porosity ~5-8% Responds to hydraulic frac Single day 2 stage frac operation Fits frac service company windows 100 barrel per minute slick water Woodford Shale and Wilcox Interval underlie Mississippi Lime Source Devon Energy June

15 VERTICAL PRODUCTION FROM MULTI FACIES Drill & Complete F & D LOE EUR IRR NPV $0.6M $10/boe $8-9/boe Mboe 60-70% $1.2m Source Vitruvian Exploration May

16 SNAKE RIVER PROJECT BALDER #1 HORIZONTAL WELL BALDER #1 Horizontal Well (13.76%) May 2012 Multiple Horizontal locations Increased density application 160 acre spacing EUR increase to 600,000 boe Drilled in participation with Range Production Company Inc., a subsidiary of Range Resources (NYSE:RRC) Well successfully reached TMD at 8,952 feet 3,911 foot horizontal section of the well 19 stage frac Balder #1 Production Rates 30 Day production average 899boe/d peak 1,363 boe/day (782 barrels of oil, 340 barrels NGLs and 1,448 mcf gas) Balder #1 Infrastructure and SWD Balder #1 Producing 16 16

17 KAY COUNTY HORIZONTAL WELL Drill & Complete F & D LOE EUR IRR NPV $3.4M $7.27/boe $8-9/boe 600 Mboe 100% $7.1m Source Range Resources July

18 KAY COUNTY HORIZONTAL ECONOMICS Source Range Resources July

19 KANSAS PROJECT OVERVIEW Kansas Exploration and Development upside Recognised now as Miss Lime Extension Cooper Project Producing ~11,600 acres of 3D seismic 53% WI 43% NRI Discovery well Clark #1 drilled in 2010 WI 53% NRI 43.5% - Seismic ties to Sonic Logs Vertical drilling Toronto, Lansing-Kansas City and Mississippian targets to 4,700 feet - $450,000 Fully Completed Colby Project Exploration 15,500 acres of 3D seismic 70% WI 57.4% NRI Historical Data shows Miss Lime presence Ellsworth County Producing ~3,000 acre WI 50% NRI 38% Targeting multiple Arbuckle formation breaks deeper targets in existing oil fields 3,500 feet Vertical Well Economics Drilling and Completions Costs (US $mm) Estimated Ultimate Recovery (mboe) IRR % >80% PV 10 $1.7 Payout (months) 7 19 Source Kansas Geological Survey

20 APACHE ANNOUNCES MISS LIME POSITION Apache Corporation NYSE:APA announces 580,000 Miss Lime Acreage in Kansas Market Cap $34 Billion Apache Acreage AOK Colby and Cooper Projects Source Apache Corporation June

21 MISSISSIPPIAN MULTIPLE STACKED PAYS Source Apache Corporation June

22 PROJECT SUMMARY OKLAHOMA Project Well Acreage WI NRI Status County, State Snake River - ~5, % 81.25% Development Producing Kay/Noble County, OK ETU # Producing Miss Lime - ETU # Producing Miss Lime - ETU # Production Testing - ETU #14-7 Fraced waiting for Pump Hookup Adams #1 10% Producing Miss Lime - Balder #1-30N 13.76% Producing Miss Lime - Blubaugh #20-D1 SWD - Completed - Blubaugh # Under Completion - Blubaugh # Under Completion - Tulsa and surrounds - ~1, % 81.25% Producing Tulsa, OK KANSAS Project Well Acreage WI NRI Status County, State Cooper - 11,600 53% 38% Development/Producing Sheridan, KS Melanie #1 Waiting on Completion Beltz % 33.8% Producing Ellis, KS Ellsworth - 3,200 50% 38% Development/Producing Ellsworth, KS Rolf #1 Producing Arbuckle Ludwick #1 - Producing - Arbuckle Mollhagen #8 - Completed Waiting on SWD Colby - 15,500 70% 58.8% Exploration/Seismic Completed Thomas, KS 22 22

23 MONTHLY PRODUCTION 23 23

24 FORWARD PLAN Target September Quarter December Quarter March Quarter Corporate and Field Activity Corporate TSX Listing Gowlings Lawyers engaged Appoint Investment Bankers In progress and application lodgement Ongoing JV discussions Market Conditions?? Northern Oklahoma Vertical Well Miss Lime Drilled 2 new wells to date Rig to drill 4 additional wells Currently 4 waiting on completion Rig to drill 5 new wells Complete on 2 wells/month Rig to drill 6 new wells Complete 2 wells per month Horizontal Wells Miss. Lime Location identification and preparation for Dec Qtr. Participate 1 x horizontal Well 1 Horizontal Well Target Additional leases in Identified area of interest Kansas Lansing KC, Miss Lime - Sheridan/Thomas counties Arbuckle existing Wells Ellsworth County Melanie #1 Drilled Successfully (First Miss Lime Well) Finalise 3D seismic locations Mollhagen #8 producing Ludwig #1 producing Possible 1 Vertical (awaiting nearby HZ results) Possible 1 Vertical 2 Additional Wells 2 Additional Wells 24 24

25 INVESTMENT HIGHLIGHTS Highly prospective acreage in the prolific Mississippi Lime Play Growing oil production from high graded drill targets in a proven area Development Plan ongoing Funding in place to continue well defined drilling program JV partnership opportunities on multiple projects Strong technical team and Board with extensive success and experience TSX dual listing progressing The Mississippian A World Class Low Risk Shallow Oil Play 25 25

26 AusTex Oil Limited USA Richard Adrey Executive Chairman Australia Daniel Lanskey Managing Director

27 APPENDICES 27 27

28 BOARD AND MANAGEMENT Richard Adrey Executive Chairman and Founder USA Board and Management Team Kwang Hou Hung Non Executive Deputy Chairman Singapore President and Founder of International Energy Corp Former investment banker specializing in M&A Involvement in numerous public companies in the USA, including Piper Aircraft, Cynocom Corporation, Vacation Break, Medisys and Versatech Holds a B.S. in Finance Member Independent Petroleum Association of American, Oklahoma Independent Producers Association, Mid Continent Oil & Gas Association, Wildcatters, Petroleum Club & OCC Operator Qualified as a Chartered Accountant with KPMG, United Kingdom in Member of both the Institute of Chartered Accountants in England & Wales ( ICAEW ) and the Malaysian Institute of Accountants. Extensive corporate experience having served in senior management and director positions with companies listed in Malaysia and Australia. Dan Lanskey Managing Director & Founder Vice President International Energy Corp Over 10 years senior management experience for a number of ventures in Asia, Europe and the USA. 8 yrs Oil and Gas industry experience Post-Graduate business degree from Griffiths University, Qld. Member of the Petroleum Exploration Society of Australia (PESA)

29 BOARD AND MANAGEMENT (CONT D) Luis Vierma Non Executive Director USA Kay Philip Non Executive Director Australia GeoChemist Bachelor Degree in Chemistry Master s degree in Geology (Geochemistry of Petroleum) Formerly Deputy Chairman of OPEC Long Term Strategy Vice President of Exploration and Production of PDVSA, Director and Chairman of CITGO Deputy Director of Hydrocarbons - Energy Ministry of Venezuela President of CVP an affiliate of PDVSA President of PDVSA Research Centre Professor of Chemistry at Universidad Central de Venezuela 32 yrs Global Industry Experience Geophysicist with extensive experience in project acquisition and financial analysis of resources projects. Honorary Associate at the School of Physics, University of Sydney. Awarded the Chevalier de l Ordre National du Merite by the French Government for facilitating collaborations between Australian and French scientists. Senior Fellow of the Financial Services Institute of Australia ( FINSIA ), Member Australian Institute of Physics ( AIP ), Member Australian Society of Exploration Geophysicists ( M.ASEG )and Secretary of the Australian-French Association of Science and Technology ( AFAS ) 29 29

30 TECHNICAL CONSULTANTS Dr Peter Power Geologist 50 years experience in hydrocarbon exploration worldwide Geologist PhD. Senior management positions with International Majors - Unocal and Union Texas. MD of Ampolex Ltd prior to its acquisition by Mobil. Formerly Chairman of AusTex Oil, Metgasco and Elk Petroleum and Non-Executive Director of Petsec. Founding Head of Geology at the Western Australian Institute of Technology Formerly chairman, Hon. Life Member, Australian Petroleum Production and Exploration Association ( APPEA ). formerly President, Australian Geoscience Council Ruben Alba, Consultant Bachelor of Science (Chemical Engineering) - Specialist in complex reservoir problems involving geochemistry, geomechanics, surface logistics and environmental concerns Managed technical and laboratory staff at Halliburton Energy Services and Superior Well Service Introduced novel technologies involving new fluid chemistry as well as completion processes to reservoirs requiring cutting edge technology Holds two patents in unique completion technologies and is adept to the challenges of unconventional reservoirs Over 13 years experience 30 30

31 USA - INFRASTRUCTURE RICH 31 31

32 DRILLING ON SNAKE RIVER PROJECT Vertical Rig on Blubaugh #21-3 Horizontal Rig on Balder #1-30N 32 32