Harvest Natural Resources — Enercom Oil and Gas Conference 2015
17 slides from Harvest Natural Resources's conference presentation, Aug 17, 2015
Slide 1: Enercom Oil and Gas Conference Denver
HARVEST The Oil & Gas Conference Denver Enercom Oil and Gas Conference August 19, 2015
Slide 2: Forward Looking Statements
Forward Looking Statements HARVEST Cautionary Statements: Certain statements in this presentation are forward-looking and are based upon Harvest’s current belief as to the outcome and timing of future events. All statements other than statements of historical facts including planned capital expendit
Slide 3: About Harvest
About Harvest HARVEST Market Data Exchange/Ticker NYSE: HNR Market Capitalization * $ 41.4 MM Enterprise Value * $ 54.7 MM Cash (06/30/2015) $ 18.9 MM Debt** (6/30/2015) $ 32.2 MM Shares Outstanding 42.7 MM Institutional Ownership 72% * As of August 10, 2015 ** Reflected as warrant liability on the
Slide 4: "Back from the Brink"
“Back from the Brink” HARVEST On January 1, 2015, HNR exercised its right to terminate the SPA with Petroandina resulting from failure to obtain the Venezuela approvals: On January 2, 2015 HNR stock was trading at $0.93 On January 15, 2015 HNR filed a request for arbitration against the Government o
Slide 5: Terms of CT Energy Transaction
Terms of CT Energy Transaction HARVEST CT Energy funded $32.2 million to Harvest on June 19, 2015 through convertible and non-convertible notes $25.2 million non-convertible senior secured note, 5-year term @ 15% interest $6.97 million convertible senior secured note, 5-year term at 9% interest Note
Slide 6: Terms of CT Energy Transaction (cont'd)
Terms of CT Energy Transaction (cont’d) HARVEST Three new board members CT Energy appointed three members to the Company’s board of directors, including one appointee serving as an independent director Additional draw note provision Under the five year 15% non-convertible senior secured note CT Ener
Slide 7: Rationale and Benefits Of The Transaction
Rationale and Benefits Of The Transaction HARVEST Re-Capitalization of Harvest Designed to meet Harvest liquidity needs Repositions Harvest for long-term growth, both in Venezuela and Gabon Superior to alternative of funding Chapter 11 reorganization Strong alignment with current shareholders The $2
Slide 8: Potential Shareholder Value Creation CT Energy Transaction
Potential Shareholder Value Creation CT Energy Transaction HARVEST Market Capitalization, $MM Shares Outstanding, MM 300 250 200 120 100 50 0 $20 $0.47 43 $78 $1.82 43 $40 $0.94 43 $213 $2.50 85 430% return to shareholders $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- HNR Stock Price, $/share Pre-Discussio
Slide 9: Progress to Date
Progress to Date HARVEST Key provisions of Petrodelta term sheet Financing plan for Petrodelta to ensure funding of its capital requirements Independent cash management of Petrodelta hydrocarbon sales through an offshore bank, ensuring timely payment of contractors, lenders, owners and government ob
Slide 10: Venezuela – Petrodelta
Venezuela – Petrodelta HARVEST 20.4% Equity Interest in Petrodelta Six fields, 10 billion barrels of gross oil-in-place Growth underway Average 37,929 bopd in 2Q 2015 Development program ongoing in Temblador, Isleño and El Salto Six drilling rigs operating El Salto – 19,297 bopd Temblador – 8,724 bo
Slide 11: Petrodelta – Huge Oil Resource
Petrodelta – Huge Oil Resource HARVEST 10 Billion Barrels Oil Originally in Place 99% agreement between Venezuela Official Estimates and Harvest Estimates (Ryder Scott) Ultimate Recovery Factors in general agreement for 3P reserves Venezuela Official = 14% total with no expiration date Harvest (Ryde
Slide 12: Petrodelta Production Performance
Petrodelta Production Performance HARVEST Operating Service Contract from 1992 to January 2005 Conversion to Petrodelta lasted from 2005 through 2007 Drilling resumed in 2008 Production growth at El Salto, Temblador and Isleno Production has declined 20% in last 14 months Deteriorating drilling perf
Slide 13: Dussafu Overview South Gabon Basin
Dussafu Overview South Gabon Basin HARVEST n 680,000 acre PSC, Offshore Gabon Ø 66.667% operated interest Ø Superior fiscal terms n Discovered resources within an approved EEA Ø EEA covers 210,000 acres – equivalent to 36 blocks in the Gulf of Mexico Ø Mean Contingent Resource = 40 MMBO gross Ø Wate
Slide 14: Dussafu Runway for Growth
Dussafu Runway for Growth HARVEST 2015 Gross Discovered Resources P50 = 36 mmbo Exploration Inventory Seven Gamba Prospects P50 = 86 mmbo Six Dentale Prospects P50 = 670 mmbo All but one prospect contained within the EEA Selected Prospects and P50 Resource Prospect A/B: 214 mmbo Prospect 6: 32 mmbo
Slide 15: Prospects A & B Dentale (3D PSDM)
Prospects A & B Dentale (3D PSDM) HARVEST Geology Fault-separated twin 4-way closures Stacked Dentale sands Prospect Size Vertical closure of 310m over area of 65 km2 Combined P50 = 214 mmbo Structure – Intra-Dentale A’ B’ A B X’ A B X X’ Dentale Mobile shale A Prospect A A’ Dentale Mobile Shale B P
Slide 16: Prospects 6 and 7 (3D PSDM)
Prospects 6 and 7 (3D PSDM) HARVEST Geology Fault separated four-way closures Gamba and Dentale potential Prospect Size Prospect 6: Gamba and Dentale combined P50 = 32 mmbo Prospect 7: Gamba only P50 = 11 mmbo Structure – Base Salt X’ 7 6 Ruche X Ruche Prospect 6 Prospect 7 X DRM1-ST1 DRM1 X’ Salt S
Slide 17: Summary
Summary HARVEST September 9, 2015 Annual Meeting of Stockholders to vote on proposals related to the strategic transaction with CT Energy Very strong alignment with current shareholder interest Provides significant upside for shareholders Progress being made Petrodelta term sheet executed Work towar
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