Tuscany Energy Ltd New · OTC:TSCAF
Tuscany Energy Ltd New — Tuscany Energy — Investor Presentation (February 2012)
33 slides from Tuscany Energy Ltd New's investor presentation, February 2012
Slide 1: Tuscany Energy Ltd. February 2012
Tuscan ry ENERGY LTD. February 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 February 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 February 2012 - 3-
Slide 4: Corporate Overview: Capital Structure
Corporate Overview CAPITAL STRUCTURE Shares outstanding: 124 million Substantial management Market cap @ $0.15: $ 18.6 million ownership… Mgmt./Directors: 37% ownership Net debt: nil TSXV: TUS February 2012 - 4-
Slide 5: Corporate Overview: Sources of Funding
Corporate Overview SOURCES OF FUNDING Total available capital: $ 7.9 million Debt free, with significant Cash: $ 0.8 million capital to fund growth… Liquid investments: $ 2.5 million Unused bank line: $ 4.6 million TSXV: TUS February 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 VP Ops. & Director Donald K. Clark Czar, Orbit Roger Hume Brad R. Perry CFO Corridor, PanCanadian John McLeod Marshall Kis VP Dev. Geology Glen Phill
Slide 7: Oil Development Program
Oil Development Program 2011 wells drilled: • 7 horizontals @ Evesham • 3 horizontals @ Macklin • 1 horizontal @ Lloyd 100 % successful, all wells on production TSXV: TUS February 2012 - 7-
Slide 8: Production Growth
Production Growth 600 500 Average Production, BOEPD 400 300 200 100 - Q1 Q2 Q3 Est Q4 Est Q1 Est Q2 2011 2012 TSXV: TUS February 2012 - 8-
Slide 9: Revenue Growth
Revenue Growth 3.5 3.0 Quarterly Revenue, $ Millions 2.5 2.0 1.5 1.0 0.5 - Q1 Q2 Q3 Est Q4 Est Q1 Est Q2 2011 2012 TSXV: TUS February 2012 - 9-
Slide 10: Cash Flow Growth
Cash Flow Growth 2.5 Quarterly Cash Flow from operations, $ Millions 2.0 1.5 1.0 0.5 - Q1 Q2 Q3 Est Q4 Est Q1 Est Q2 2011 2012 TSXV: TUS February 2012 - 10-
Slide 11: Why Oil?
Why Oil? Advantages of Oil • International commodity • Price managed by OPEC • Reduced low cost supply • High prices TSXV: TUS February 2012 - 11-
Slide 12: Why Not Gas?
Why Not Gas? Problems with Natural Gas • North American commodity • Continuing over supply from shale gas • Large company participation • Low prices TSXV: TUS February 2012 - 12-
Slide 13: Why Oil? US Oil/Gas Price Ratio
Why Oil? US Oil/Gas Price Ratio 40 35 30 25 20 15 BTU Equivalent 6:1 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Years TSXV: TUS February 2012 - 13-
Slide 14: Asset Overview
Asset Overview Tuscany’s oil assets are concentrated in the Macklin / Evesham corridor, an area with many heavy oil discoveries. TSXV: TUS February 2012 - 14-
Slide 15: 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 February 2012 - 15-
Slide 16: 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 February 2012 - 16-
Slide 17: Dina Well Economics
Dina Well Economics MACKLIN EVESHAM Well cost (drill & equip) $ 1.0 mm $ 1.0 mm Initial oil production 100 bopd 80 bopd First year production avg. TBD 50 bopd Reserves per well TBD 75,000 bbl On-stream cost (per flowing bbl) $ 10,000 $12,500 (all figures gross) • 2% royalty on first 37,000 bbls • No
Slide 18: 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 Four producing wells & three shut-in Dina horizontal oil wells 3D seismic & geological control Water disposal system active, controlled b
Slide 19: Macklin Development
Macklin Development 2010 2011 2012 Sept Sept Nov Mar Macklin Seismic 1st horizontal Additional 2nd & 3rd Additional property interpretation drilled by adjacent horizontals horizontal acquired & other Tuscany; land drilled by drilling to by Tuscany technical work acquired & Tuscany; commence IP 100 b
Slide 20: Macklin
Macklin Nov. 2011 - Drilling Macklin 92/7-28-39-27W3, with production tanks in foreground. TSXV: TUS February 2012 - 20-
Slide 21: Macklin – Recent Drilling
Macklin – Recent Drilling New horizontal wells drilled Q3 & Q4-11 on-stream at initial rates of 100-110 bopd. First new HZ oil well drilled summer 2011; on-stream 100 bopd. Second & third new HZ wells drilled Nov ‘11, both IP’d at 110bopd. Adjacent land acquired in October; new 3D seismic shot on th
Slide 22: 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 Februar
Slide 23: 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 340 bopd gross from 12 horiz. Dina wells drilled to date 3D seismic & geological control Water disposal system active and controlled by Tuscany TS
Slide 24: Evesham
Evesham 2011 DRILLING FUTURE POTENTIAL 12 horiz. wells drilled in 2011 72 potential horiz. locations using 50 metre spacing TSXV: TUS February 2012 - 24-
Slide 25: Winter
Winter Winter is the next early-stage Dina oil property Tuscany will advance. Vertical well has bypassed pay; horizontal to drill 2012. Tuscany HZ locations Dina horizontal oil producers Tuscany 55% WI Plan to drill a HZ Bypassed oil pay in Dina zone well in 2012. TSXV: TUS February 2012 - 25-
Slide 26: Winter - Seismic
Winter- Seismic TSXV: TUS February 2012 - 26-
Slide 27: 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, Sec 7-48-1W4, Lloyd North) TSXV: TUS February 2012 - 27-
Slide 28: Reserves Upside Potential
Reserves Upside Potential Tuscany’s Dec. 2010 reserves report evaluated only 18 oil locations; the company’s extensive oil inventory remains largely unbooked. UNBOOKED LOCATIONS Booked per McDaniel per mgmt. locations report Dec ’10* estimates Evesham 14 59 73 Macklin - - 25 Winter - - 10 Lloydminst
Slide 29: 2012 Forecast
2012 Forecast Increase production in 2012, while adhering to a disciplined budget. 2012 FORECAST Capital expenditures $ 7.7 mm Operating cash flow* $ 8.5 mm *(assumes $70/bbl heavy oil price) 2012 DRILLING PLANS (indicative)) Macklin 4 new horizontal wells Evesham 4 new horizontal wells Macklin 3 ho
Slide 30: 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 No debt Est. Dec 2011 exi
Slide 31: 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 32: 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 33: For further information, please visit: www.TuscanyEnergy.com
For further information, please visit: www.TuscanyEnergy.com Suite #1800 633 – 6th Avenue S.W. Calgary, AB T2P 2Y5 Tel: (403) 269-9889 TSXV: TUS Fax: (403) 269-9890
Tuscany Energy — Investor Presentation (February 2012) on 6ix