Baron Energy, Inc. 2014 Business Plan January 1, 2014
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. 1/1/2014 BARON ENERGY 2014 2
Company Overview Baron Energy, Inc. 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 and operate a portfolio of low-risk producing oil and gas properties with meaningful near-term upside and long-term production. 1/1/2014 BARON ENERGY 2014 3
Company Overview HQ in San Marcos, Texas Pink Sheets: BROE Shares outstanding: 96 million / 15 million float Current Price (1/1/14): $0.039/share 3 month average volume: 11,770 shares/day 52 week range: $0.015 - $0.10/share Current Market Cap: $3.7 million Total Debt (est): $3.0 million www.baronenergy.com 1/1/2014 BARON ENERGY 2014 4
Management Team Ronnie L. Steinocher Chairman, President and CEO 35 years of oil and gas experience including 18 years with major oil company and 14 years as owner operator Extensive experience in drilling, engineering, operations, business development, and general management Licensed Professional Engineer in Texas since 1985 Lisa P. Hamilton Executive Vice President, CFO and Director 34 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, operations, business development, and general management BS in Business and Commerce with Highest Honors Management team has worked together more than 20 years Business development Acquisitions/Divestments; > 90 transactions since 2002 Drilling and production operations Private and public companies 1/1/2014 BARON ENERGY 2014 5
2014 Goals Acquire an anchor project Complete divestment of non-core properties Become fully SEC compliant; trade on the OTC exchange Restructure private debt Maintain current low cost G&A structure Focus on meaningful producing property acquisitions Grow Baron Bakken initiative 1/1/2014 BARON ENERGY 2014 6
Acquisition Focus Anchor Project 200-500 BOEPD $10-50MM Texas, Louisiana, Oklahoma, New Mexico Operated 100%WI Other Producing Properties 100-200+ BOEPD $10-25MM Upside via recompletions and new drills Operated or non-operated WI Baron Bakken Initiative Williston Basin, North Dakota Bakken and Three Forks Shale Oil Formations Secure additional non-operated WI (1-5%) 1/1/2014 BARON ENERGY 2014 7
Acquisition Focus Area Baron Energy, Inc. HQ in San Marcos, Texas 1/1/2014 BARON ENERGY 2014 8
Acquisition Criteria Current production > 100 BOEPD per project, prefer > 200 BOEPD Focus on oil production, natural gas secondary Operated or non-operated properties, prefer operated Less than 10,000 feet well depth Upside via recompletions, infill drilling and horizontal wells Long-term production life, > 20 years 1/1/2014 BARON ENERGY 2014 9
Acquisition Cycle ID & Evaluate Project Repeat Process Successful Offer Acquire Fund 1/1/2014 BARON ENERGY 2014 10
Baron Bakken Initiative Baron Energy, Inc. is the managing member of recently formed Baron Bakken I, LLC ( Baron Bakken ) and owns 30% of the LLC Baron Bakken owns non-operated working interest in 1,920 acres in the core of the Bakken Shale, the Williston Basin, North Dakota The Williston Basin is one of the premier shale oil basins in North America Major producing oil formations are the Bakken Shale and Three Forks Shale Baron Bakken plans to increase its interest in the Bakken Shale by leveraging its existing industry contacts on an opportunistic basis Expect non-operated working interest to be in the 1-5% range Well cost to drill and complete are $7-10 million gross 200-500+ BOPD IP; 500-600,000 Bbls/Well EUR; reserve life > 30 years 1/1/2014 BARON ENERGY 2014 11
Bakken Formation Production Bakken Formation Williston Basin Baron Bakken I, LLC Baron Bakken I, LLC ( Baron Bakken ) was formed in the 4Q 2013 to participate in the Bakken fairway production in the Williston Basin, North Dakota Bakken Shale is one of the premier producing shale oil basins in North America Initial acreage position is in NW North Dakota and consists of 3 sections of contiguous acreage Six potential producing horizons, 3-Bakken Shales & 3-Three Forks Shales, should provide a number of additional wells Plan is to acquire additional non-operated working interest (1-5%) on an opportunistic basis by using current industry contacts Baron Energy, Inc. owns 30% of Baron Bakken 1/1/2014 BARON ENERGY 2014 12
Business Plan Upgrade Summary Prior to 2014 Focus area North and West Texas Targeted acquisitions 10-100 BOPD with workover and reactivation upside; 3-100 wells per project $1-3 million target size Well depths < 5,000 feet Operated only properties 2014 Plan New focus area includes Texas, Louisiana, Oklahoma, and New Mexico Targeted acquisitions 100-500+ BOEPD with upside via recompletions, new drills, and horizontal wells $10-50 million target size Well depths <10,000 feet Operated or non-operated properties Expand Bakken Shale investment initiative 1/1/2014 BARON ENERGY 2014 13
Company Contact Baron Energy, Inc. 300 S. CM Allen Parkway, Suite 400 San Marcos, Texas 78666-2278 Phone: 512-392-5775 Fax: 512-392-7238 info@baronenergy.com www.baronenergy.com 1/1/2014 BARON ENERGY 2014 14