Tuscany Energy Ltd New · OTC:TSCAF
Tuscany Energy Ltd New — Tuscany Energy — Shareholder Meeting (May 2012)
39 slides from Tuscany Energy Ltd New's shareholder meeting presentation, May 2012
Slide 1: Annual General Meeting May 2012
TSXV: TUS Annual General Meeting May 2012
Slide 2: Corporate Vision
Corporate Vision To deliver substantial growth and value for Tuscany shareholders by adhering to a focused approach to heavy oil exploration and development. Oil % of 2011 Revenue TSXV: TUS May 2012 - 2-
Slide 3: Overview
Overview Tuscany is oil-focused with significant 2012 production growth planned from repeatable, horizontal oil development drilling. Tuscany’s core areas are Macklin and Evesham, Saskatchewan. TSXV: TUS May 2012 - 3-
Slide 4: Corporate Overview: Capital Structure
Corporate Overview CAPITAL STRUCTURE Shares outstanding: 123 million Substantial management Market cap @ $0.13: $ 16 million ownership… Mgmt./Directors: 37% ownership Net debt: nil TSXV: TUS May 2012 - 4-
Slide 5: Corporate Overview: Sources of Funding
Corporate Overview SOURCES OF FUNDING MARCH 31, 2012 Debt free, with Total available capital: $ 5.7 million significant capital to fund Cash: $ 0.5 million growth… Liquid investment: $ 0.6 million Unused bank line: $ 4.6 million TSXV: TUS May 2012 - 5-
Slide 6: Experienced Leadership
Experienced Leadership MANAGEMENT BOARD OF DIRECTORS Robert Lamond CEO & Chairman Robert Lamond (chairman) Czar, Orbit Dave Bennington Donald K. Clark COO &VP Ops. Donald K. Clark Czar, Orbit Roger Hume Brad R. Perry CFO Corridor, PanCanadian John McLeod Marshall Kis VP Dev. Geology Glen Phillips Cz
Slide 7: Actively drilling for oil
Actively drilling for oil 11 horizontal oil wells were drilled by Tuscany in 2011, for a 100% success rate. The company plans to fund 2012 drilling from operating cash flow. PROPERTY 2011 WELLS DRILLED 2012 INDICATIVE DRILLING PLANS MACKLIN 3 horizontal oil wells 4 horizontal wells 3 horizontal reac
Slide 8: 2011 Reserves Report
2011 Reserves Report Tuscany’s December 2011 reserves report shows substantial growth from 2010, due to the company’s 100% successful 2011 oil drilling. Oil & % annual increase** NGL’s Natural Combined NPV10* Combined (mbbls) gas (Bcf) (mboe, 6:1) ($mm) BOE NPV10 Developed Producing 457 0.29 505 $ 1
Slide 9: Q1 Highlights
Q1 Highlights $ Thousands, Q1 2012 Q1 2011 unless otherwise indicated Production (BOEd) 370 192 Average price ($/BOE) $69.8 $57.23 Revenues $2,238 $989 Revenues oil percentage 98% 97% Cash Flow from operations $1,148 $429 Capital expenditures $2,448 $397 TSXV: TUS May 2012 - 9-
Slide 10: Production Growth
Production Growth 600 . 500 Average Production, BOEPD 400 300 200 100 - Q1 Q2 Q3 Q4 Q1 2011 2012 December 31st year end TSXV: TUS May 2012 - 10-
Slide 11: Revenue
Revenue 3.5 3.0 Quarterly Revenue, $ Millions 2.5 2.0 1.5 1.0 0.5 - Q1 Q2 Q3 Q4 Q1 2011 2012 December 31st year end TSXV: TUS May 2012 - 11-
Slide 12: Cash Flow
Cash Flow 2.5 Quarterly Cash Flow from operations, $ Millions 2.0 1.5 1.0 0.5 - Q1 Q2 Q3 Q4 Q1 2011 2012 December 31st year end TSXV: TUS May 2012 - 12-
Slide 13: Oil vs. Gas
Oil vs. Gas ADVANTAGES OF OIL PROBLEMS WITH NATURAL GAS International commodity North American commodity Price managed by OPEC Large company participation Reduced low cost supply Continuing oversupply from shale gas High prices Low prices 55 50 45 40 35 30 25 20 15 BTU Equivalent 10 5 0 2003 2004 20
Slide 14: Strong realized heavy oil price
Strong realized heavy oil price Edmonton Light pricing from Sproule & Associates price deck TSXV: TUS May 2012 - 14-
Slide 15: Asset Overview
Asset Overview Tuscany’s oil assets are concentrated in the Macklin / Evesham corridor, an area with many heavy oil discoveries. TSXV: TUS May 2012 - 15-
Slide 16: Oil property strategy
Oil property strategy • Find oil plays through bypassed oil pay on old vertical logs • Acquire property • Conduct seismic and other technical work • Drill horizontal test well • On success, follow up with full development • Produce asset for cashflow, or sell asset outright Redeploy proceeds into ne
Slide 17: Core Assets: Macklin & Evesham
Core Assets: Macklin & Evesham Tuscany lands Wells that produced oil from Dina, Cummings, or Ellerslie zones. DINA OIL FOCUS AREAS Evesham Macklin TSXV: TUS May 2012 - 17-
Slide 18: Core Assets: Macklin & Evesham
Core Assets: Macklin& Evesham Well logs show comparable Dina oil pay across Tuscany’s properties and nearby producing fields. TSXV: TUS May 2012 - 18-
Slide 19: Dina Well Economics
Dina Well Economics MACKLIN EVESHAM Well cost (drill & equip) $ 1.0 mm $ 1.0 mm Initial oil production 80-100 bopd 80 bopd First year production avg. TBD 50 bopd Reserves per well 72,000 bbl 72,000 bbl On-stream cost (per flowing bbl) $ 12,500 $ 12,500 (all figures gross) • 2.5% royalty on first 37,
Slide 20: Executing on the strategy: Macklin
Executing on the strategy Macklin May 2011 May 2012 ⁻ No producing wells ⁻ 6 new horizontal oil wells drilled ⁻ 100% Tuscany drilling success ⁻ 25 additional locations TSXV: TUS May 2012 - 20-
Slide 21: Macklin
Macklin Macklin is a robust heavy oil opportunity with horizontal well IP rates in excess of 100 bopd; active drilling planned for 2012. • Tuscany 55% WI & operator • Six producing wells, and three shut-in Dina horizontal oil wells • 3D seismic & geological control • Water disposal system active, co
Slide 22: Macklin Development
Macklin Development 2010 2011 2012 Sept Sept Nov May Macklin Seismic 1st horizontal Additional 2nd & 3rd property interpretation drilled by adjacent horizontals 3 additional acquired & other Tuscany; land drilled by horizontals by Tuscany technical work acquired & Tuscany; IP 100 bopd drilled by con
Slide 23: Macklin
Macklin March 2012: Drilling Macklin 95/7-28-39-26W7, production tanks in place. TSXV: TUS May 2012 - 23-
Slide 24: Macklin – Recent Drilling
Macklin – Recent Drilling New horizontal wells drilled Q4-11 & Q1-12 with initial production rates of 110 bopd. • First new HZ oil well: drilled Aug ‘11; on-stream Sept ‘11 @ 100 bopd. • Second & third HZ: drilled Nov ‘11, on-stream Dec ‘11 @ 110 bopd each. • Adjacent land acquired & new 3D seismic
Slide 25: Macklin – 3D seismic
Macklin – 3D seismic • New 3D seismic shot Q4-11 integrated into existing 3D and well control. • From technical data, Tuscany and its partner control nearly the entire Dina pool. • Combined with recent horizontal production results, Macklin offers significant development potential. TSXV: TUS May 201
Slide 26: Executing on the strategy: Evesham
Executing on the strategy Evesham Nov. 2010 May 2012 ⁻ 3 horizontal oil wells ⁻ 12 horizontal oil wells ⁻ 100% Tuscany drilling success ⁻ 66 additional locations TSXV: TUS May 2012 - 26-
Slide 27: Evesham
Evesham Evesham is another key growth asset, with 12 horizontal Dina heavy oil wells drilled to date and more planned for 2012. • Tuscany 60% WI & operator • 12 producing horizontal Dina oil wells drilled to date • 3D seismic & geological control • Water disposal system in place and expansion underw
Slide 28: Evesham: 2011 Drilling
Evesham 2011 DRILLING 7 horiz. wells drilled in 2011 100 % success TSXV: TUS May 2012 - 28-
Slide 29: Evesham: Future Potential
Evesham FUTURE POTENTIAL 66 potential horizontal locations at 50 metre spacing. McDaniel December 31, 2011 reports:1,301 MBOE P+P and 1,759 MSTB contingent resource, net to Tuscany. TSXV: TUS May 2012 - 29-
Slide 30: Executing on the strategy: Winter
Executing on the strategy Winter May 2011 Q3-2012 ⁻ No producing wells ⁻ First horizontal well to drill Q3 ⁻ Bypassed Dina pay in old ⁻ If first well successful, vertical well 9 additional locations TSXV: TUS May 2012 - 30-
Slide 31: Winter
Winter Winter is the next early-stage Dina oil property Tuscany will advance. Vertical well has bypassed pay; horizontal to drill Q3-12. Tuscany HZ locations Dina horizontal oil producers • Tuscany 55% WI Bypassed oil pay • Plan to drill a HZ in Dina zone well in Q3-12. TSXV: TUS May 2012 - 31-
Slide 32: Winter – 3D Seismic
Winter – 3D Seismic TSXV: TUS May 2012 - 32-
Slide 33: Other Oil Prospects
Other Oil Prospects Numerous oil opportunities are in various stages of technical work ahead of drilling SASKATCHEWAN 2 Birdbear plays (Evesham, Senlac) 2 Shaunavon plays (Gull Lake, Chambery) ALBERTA 4 Lloydminster plays (Morgan, Islay, Lloyd North, Sec 7-48-1W4) TSXV: TUS May 2012 - 33-
Slide 34: Reserves Upside Potential
Reserves Upside Potential Tuscany’s Dec. 2011 reserves report evaluated 27 oil locations; management feels that significant oil inventory remains unbooked. Oil well locations BOOKED POTENTIAL Dec 2011 May 2012 reserve report mgmt. estimate Evesham 21 66 Macklin 6 25 Winter – 10 Lloydminster – 47 Oth
Slide 35: 2012 Forecast
2012 Forecast Tuscany will increase production in 2012, while adhering to a disciplined budget. 2012 DRILLING PLANS (indicative) Macklin 4 new horizontal wells Evesham 4 new horizontal wells Macklin 3 horizontal reactivations Lloydminster 2 new horizontal wells Winter 1 new horizontal well TSXV: TUS
Slide 36: Why Tuscany?
Why Tuscany? Tuscany is poised for significant growth, with a solid balance sheet and an active horizontal oil drilling program to capture the value of the company’s large heavy oil opportunity base. FINANCIALLY SOLID PLATFORM EXTENSIVE OIL SOUND FOR GROWTH OPPORTUNITY BASE Q1 2012 No debt 150+ pote
Slide 37: Forward Looking Statements
Forward Looking Statements This presentation contains a summary of Management’s assessment of historical, financial and operating results and should be read in conjunction with the annual report and consolidated financial statements of the Company, other information filed in regards to each company
Slide 38: Forward Looking Statements
Forward Looking Statements Basis of Presentation The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a
Slide 39: For further information, please visit: www.TuscanyEnergy.com
For further information, please visit: www.TuscanyEnergy.com Suite #1800 633 – 6th Avenue S.W. Tel: (403) 269-9889 TSXV: TUS Calgary, AB T2P 2Y5 Fax: (403) 269-9890