Baron Energy — Investor Presentation (March 2018)
19 slides from Baron Energy's investor presentation, Mar 1, 2018
Slide 1: South Texas Project Summary
South Texas Project Summary Baron Energy Inc. March 1, 2018 Information Update
Slide 2: Forward-Looking Statements
Forward-Looking Statements FORWARD-LOOKING STATEMENTS: Certain statements contained in this document constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the S
Slide 3: South Texas Project 3-5 Year Plan
South Texas Project 3-5 Year Plan Project Highlights 1) Build a portfolio of non-operated producing oil and gas properties with substantial upside 2) Target 300 BOPD production by YE 2019 3) Monetize the portfolio in 2019 4) Various options available for EXIT 2019 3/1/2018
Slide 4: Executive Summary
Executive Summary • Baron Energy Inc. (“Baron” or the “Company”) (OTCPK: BROE), a publically traded, independent energy company based in San Marcos, Texas, acquiring and operating producing oil and natural gas properties in South Texas • Seasoned, multi-disciplined management team • Company uses a t
Slide 5: Management Team
Management Team Ronnie L. Steinocher | Chairman, President and CEO 38 years of oil and gas experience; 18 years with a major oil company; 10 years as an owner/operator; CEO Baron Energy since February 2010 Extensive experience in drilling, engineering, production operations, business development
Slide 6: South Texas Project Highlights
South Texas Project Highlights HIGHLIGHTS • Baron Energy manages the project and operates all properties • Seasoned, multi-disciplined management team; decades of industry experience • Well progressed plan; ready for production ramp up • Simple strategy; highly flexible business model • Realistic ac
Slide 7: South Texas Area of Interest
South Texas Area of Interest Baron Energy Inc. HQ San Marcos, Texas 3/1/2018
Slide 8: Area of Operations
Area of Operations • South Texas • 17 Counties • 12,000 producing leases • 122,500 wells drilled • Stacked pay scenarios throughout focus area • 1.6 million barrels of oil equivalent production per day (BOEPD) Baron is currently focused on 2 counties within its Area of Operations 3/1/2018
Slide 9: South Texas Project Status
South Texas Project Status Progressed and Projected for Base Case 2015-2016 2017 2018 2019 2019 Acquire Field work to Recomplete 1 Drill 3-4 EXIT producing enhance Well development STRATEGY properties production Drill 1 wells See Pro Forma Exit Options development 200-500 BOPD well 100-200 BOPD Proj
Slide 10: Success Factors
Success Factors 1) ID properties that fit the targeted acquisition profile 2) Organize non-operated partnership and funding for the acquisition and close deal 3) Complete near-term production enhancement program 4) Inventory upside for each property 5) Repeat process to stay-on-pace with 2019 EXIT P
Slide 11: Number of Producing and Projected Wells at Year-End
Number of Producing and Projected Wells at Year-End Actual and Projected Producing Wells at YE (Does Not Include Future Acquisitions) 16 15 14 12 10 10 WELLS at YE 8 6 6 5 5 4 2 1 0 2015 2016 2017 2018 2019 EXIT 2020 YEAR-END 3/1/2018
Slide 12: Production and Projected at Year-End
Production and Projected at Year-End Production Projected at Year-End 800 700 600 500 BOPD 400 300 200 100 0 2018 2019 EXIT 2020 YEAR-END LOW CASE BASE CASE HIGH CASE 3/1/2018
Slide 13: Austin Chalk Formation - South Texas
Austin Chalk Formation - South Texas Multiple Producing Zones Top of Austin Chalk Austin Chalk producing B1 Chalk Zone zones vary in thickness from 10-100 feet Austin Chalk is a 100-400’ B2 Chalk Zone thick formation with multiple producing zones Lower Chalk Zone Base of Austin Chalk Eagle Ford Shal
Slide 14: Austin Chalk Vertical Well Production Profiles
Austin Chalk Vertical Well Production Profiles Austin Chalk Production Profiles – Vertical Well 250 200 Initial Production (IP) Range 80-200 BOPD per well 150 BOPD 100 Austin Chalk wells can produce for up to 40 years with low decline rates 50 0 1 2 3 4 5 YEAR HIGH BASE LOW 3/1/2018
Slide 15: Pump Jack on Austin Chalk Well
Pump Jack on Austin Chalk Well South Texas • Rural terrain • Existing infrastructure • Local services • Favorable weather throughout year 3/1/2018
Slide 16: Crude Oil Transport Well-to-Market
Crude Oil Transport Well-to-Market South Texas • Oil moved from well to storage tank then to sales via truck • Local oil sales • Oil moved from leasehold to local commercial storage prior to pipeline transfer to market 3/1/2018
Slide 17: Legacy Austin Chalk Wells
Legacy Austin Chalk Wells South Texas • Some Austin Chalk wells have been on production Pump Jack in South Texas for more than 40 years • Wells are still producing and could produce for many more years • Some leases have significant upside potential via recompletions and future drilling locations 3/
Slide 18: South Texas Project Summary
South Texas Project Summary • HIGH GROWTH BUSINESS MODEL WITH EXIT STRATEGY – Production only; no exploration activities – Acquire producing properties with upside; drill development wells – Acquired first lease in December 2015 – Baron Energy manages and operates all properties • VALUE CREATION – R
Slide 19: Contact Information
Contact Information Baron Energy Inc. 300 S. CM Allen Parkway Suite 218 San Marcos, Texas 78666-6954 Phone 512-392-5775 Fax 512-392-7238 [email protected] http://www.baronenergy.com/ 3/1/2018