Barnwell Industries, Inc. · AMEX:BRN

Barnwell Industries — Investor Presentation (2011)

23 slides from Barnwell Industries's investor presentation, 2011

1. Slide 1: Barnwell of Canada, Limited Corporate Presentation

   Barnwell of Canada, Limited Corporate Presentation Spring, 2011

2. Slide 2: 2010 Summary

   2010 Summary  Current economic environment combined with weak gas prices limited Company activity over the past 30 months  Company reduced capital program to preserve balance sheet  Exploration focus over this period on developing oil prospects  In 2010, participated in drilling 23 gross, 2.8 ne

3. Slide 3: 2011 Exploration

   2011 Exploration 3

4. Slide 4: Barnwell of Canada Core Areas

   BARNWELL OF CANADA CORE AREAS  HEAVY OIL EXPLORATION AND HORIZONTAL (“HZ”) WELL DEVELOPMENT, SW SASKATCHEWAN  DUNVEGAN GAS FIELD DEVELOPMENT HZ & SUPER- DIRECTIONAL WELLS (UPPER & MIDDLE DEBOLT FORMATION)  LIGHT OIL HZ DEVELOPMENT WELLS AT RED EARTH AB. (SLAVE PT. FORMATION RESOURCE PLAY)  LIGHT

5. Slide 5: Exploration Objectives

   Exploration Objectives  Replace Production & Reserves  Manage Production Cycle • plant grow harvest  Manage Risk • Capital Budget limits • Economic Requirements • Technical Challenges • Competition  Primary Objective: Successful High Return Projects 5

6. Slide 6: Exploration Process

   Exploration Process - Engineering Assessment Geotechnical Concept Land Assessment Acquisition Develop Drill 3 to 5 years 6

7. Slide 7: Dunvegan 2010/2011 Activity

   DUNVEGAN 2010/2011 ACTIVITY  10 WELLS DRILLED IN 2010, 7 GAS WELLS  9 WELL PROGRAM Q4 2011  JAN 2010 REGULATORY APPROVAL OF UNIT EXPANSION  COMMINGLING OF MIDDLE & UPPER DEBOLT IN 2010  DOWN-DIP LIMITS OF UPPER DEBOLT GAS POOL DEFINED BY 7 WELL RECOMPLETIONS IN 2010  2 UPPER DEBOLT HORIZONTAL

8. Slide 8: Duperow Heavy Oil, SW Saskatchewan

   DUPEROW HEAVY OIL, SW SASKATCHEWAN  2010 DISCOVERY HZ WELL INITIAL PRODUCTION 100 BOPD  4-6 MULTI LEG HORIZONTAL WELLS FOR 2011  60-80 POTENTIAL HORIZONTAL WELL LOCATIONS  60 MMB OIL IN PLACE (4% EST. RECOVERY)  BOC OPERATOR  BOC 50% 12 SECTIONS (7680 ACRES)  HEAVY OIL PLAY (12 DEGREES API) 8

9. Slide 9: Seagram Lake Horizontal Development Plan

   SEAGRAM LAKE HORIZONTAL DEVELOPMENT PLAN  UP TO 7 HZ WELLS PER SECTION  2 LEGS PER HZ WELL (1200m/ 4000ft LATERAL)  $1.9MM DRILL & COMPLETE & EQUIP PER DUAL WELL  3 WELLS ( 6 LEGS) DRILLED IN 2011  POTENTIAL POOL DEVELOPMENT > OVER 60 LEGS  BOC HOLDS RIGHTS IN 25 SECTIONS IN THE AREA 9 99 9

10. Slide 10: Birdbear Heavy Oil SW Saskatchewan

    BIRDBEAR HEAVY OIL SW SASKATCHEWAN  2010 COMPETITOR DISCOVERY HZ WELL (INITIAL PRODUCTION UNKNOWN)  SEISMIC TO BE ACQUIRED TO IDENTIFY PROSPECT SIZE AND INITIAL VERTICAL TEST WELL LOCATIONS.  HORIZONTAL WELL DEVELOPMENT  BOC 100% OF 5 SECTIONS (3200 ACRES)  HEAVY OIL PLAY (12-14 DEGREES API) 

11. Slide 11: Red Earth Slave Pt HZ Development

    RED EARTH SLAVE PT HZ DEVELOPMENT  1 HZ WELL PLANNED FOR 2011, A LONG LATERAL (1200m)  POTENTIAL FOR UP TO 10 HZ WELLS ON BARNWELL WORKING INTEREST LANDS ( 7.5 GROSS SECTIONS, 3.7 NET)  DRILL& COMPLETE & EQUIP $3.0MM  BOC OPERATED LANDS WI% 54- 79% / NON OP 15-50%  SLAVE PT RESERVOIR IS A LOW P

12. Slide 12: Red Earth Slave Point Vertical Producer

    RED EARTH SLAVE POINT VERTICAL PRODUCER PROPOSED HZ CUM PRODUCTION: 14MBO CURRENT: 17 BOPD IP: 55 BOPD UPPER SLAVE PT MIDDLE FT VERMILLION 12

13. Slide 13: Valhalla NW Alberta

    VALHALLA NW ALBERTA PLANNED DEVELOPMENT LOCATIONS  1 MONTNEY HZ OIL WELL (EST IP 100-150 BOPD)  2-4 DOIG SILT HZ GAS WELLS (EST IP 3MMCFD PER WELL) LIQUIDS RICH  1 HALFWAY HZ OIL WELL (EST IP 100 BOPD)  1 CHARLIE LK OIL WELL (EST IP 50 BOPD)  1 CHARLIE LK RE- COMPLETION (EST IP 30 BOPD)  BOC O

14. Slide 14: Gas Production (Net)

    Gas Production (Net) 12 10 8 Mmcf/day 6 4 2 0 2006 2007 2008 2009 2010 Millions of Cubic Feet per Day 14

15. Slide 15: Liquids Production (Net)

    Liquids Production (Net) 800 Oil 700 NGL Barrels per day 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 15

16. Slide 16: Total Production (Net)

    Total Production (Net) 16000 Oil NGL 14000 Gas 12000 10000 Mcfe/d 8000 6000 4000 2000 0 2006 2007 2008 2009 2010 Millions of Cubic Feet per Day, Equivalent 16

17. Slide 17: Proved + Probable Reserves

    Proved + Probable Reserves 50 NGL Oil Gas 40 30 Bcfe 20 10 0 2006 2007 2008 2009 2010 Constant $, Billions of Cubic Feet, Equivalent 17

18. Slide 18: Barnwell Average Oil Prices

    Barnwell Average Oil Prices $120 $100 $80 C$/B $60 $40 $20 $0 2006 2007 2008 2009 2010 Canadian Dollars per Barrel 18

19. Slide 19: Barnwell Average Gas Prices

    Barnwell Average Gas Prices $8.00 $7.00 $6.00 $5.00 C$/Mcf $4.00 $3.00 $2.00 $1.00 $0.00 2006 2007 2008 2009 2010 Canadian Dollars per Thousand Cubic Feet 19

20. Slide 20: Unit Operating Costs

    Unit Operating Costs 2.5 2 1.5 $/Mcfe 1 0.5 0 2006 2007 2008 2009 2010 Net of transportation, accrual, in Canadian Dollars per Thousand Cubic Feet Equivalent 20

21. Slide 21: Business Environment

    Business Environment  Gas prices are at lowest level in 8 years.  Strong oil prices are driving financial and exploration activity.  Resource plays dominate land sales and available services  Service Costs are high.  Improved Alberta Royalties and incentives  Very attractive Saskatchewan royal

22. Slide 22: 2011 Plan

    2011 Plan  Drill 20 gross (6 net) wells  Focus on oil projects, South West Saskatchewan, Eastern Alberta, Peace River Arch  Limited participation in gas projects to retain strategic interests and land  Operate New Projects  Manage and optimize costs  Develop medium term gas projects 22

23. Slide 23: Forward-looking statements

    The information contained in this presentation contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looki

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