Voltaic Strategic Resources Limited · ASX:VSR
Voltaic Strategic Resources — Incremental Oil and Gas — Canary Networks Investor Forum 2016
22 slides from Voltaic Strategic Resources's conference presentation, Sep 26, 2016
Slide 1: Canary Networks Investor Forum Presentation (ASX Announcement)
20 Howard Street Perth WA 6000 PO Box Z5207 St George’s Terrace ABN 66 138 145 114 Perth WA 6831 www.incrementaloilandgas.com Tel: 08 6144 0590 ASX Code: IOG Fax: 08 6144 0593 ASX Announcement/Media Release 26 September 2016 CANARY NETWORKS INVESTOR FORUM PRESENTATION Incremental Oil and Gas Limited
Slide 2: Investor Presentation September 2016
Investor Presentation September 2016 ASX: IOG Slide 1 www.incrementaloilandgas.com 1
Slide 3: Business Strategy
Business Strategy Experience has taught us that mature, long-lived oil and gas assets provide the best opportunities for dependable value. We focus on assets with optimization upside, recompletion potential, and exploration opportunities. Growth of reserves enhance investor value. Acquire Develop Gr
Slide 4: The Assets
The Assets Western United States 750 BOEPD: Percentage by Field Sheep Springs & Round Mountain, CA 13% Silvertip, WY Silvertip, WY 80% Florence, CO Florence, CO 7% Sheep Springs & Round Mountain, CA Slide 3 ASX: IOG www.incrementaloilandgas.com
Slide 5: Stack Pay Development Silvertip
Stack Pay Development Silvertip 10 stacked formations T 6 shallow gas T 4 oil/NGLs/gas Shallow P Gas P P Currently producing from 7 P formations 2017 test remaining 3 P P formations Targeting 3+ BCFG in 2016 T recompletions P Slide 4 ASX: IOG www.incrementaloilandgas.com
Slide 6: Targeting 3+ BCFG 2016
Targeting 3+ BCFG 2016 Original Reserves EUR of 125 MMCF/well (independent party reserve report as of Jan. 2016) ~ 100-150 MCFd IP US$7 million future net cash flow Recent Recompletion: 1.2 MMCFd IP from 42-4F shallow gas formations (September 2016) Payout less than 3 weeks (< $35K CAPEX)
Slide 7: Stack Pay Development 2017
Stack Pay Development 2017 Explore development potential in Silvertip PDNP & New Drill Wells unproven stacked pay formations in current wellbores Lance Ft. Union Recomplete wells in proven shallow gas formations in current wellbores Meeteetse Mesaverde Virgelle Drill 4 wells to furth
Slide 8: Gas Price Outlook
Gas Price Outlook $3.40 $3.20 $3.00 $/MMBtu $2.80 $2.60 $2.40 $2.20 $2.00 2016 2017 2018 2019 2020 2021 *NYMEX Natural Gas forward curve from August 1, 2016 Slide 7 ASX: IOG www.incrementaloilandgas.com
Slide 9: Growth Strategy
Growth Strategy Stage 1 – Optimized and streamlined legacy assets to 190 BOEPD Stage 2 – Acquired Silvertip – increased company production to ~540 BOEPD • Phase I Workover Program – increased company production to ~750 BOEPD In Progress • Phase II Workover Program – projected company production to ~
Slide 10: Actively Growing Asset Portfolio
Actively Growing Asset Portfolio Acquire assets that represent significant value Vast U.S. industry network Intimate knowledge of the U.S. oil and gas industry Skilled negotiations with proven success Reputation for extensive due diligence to purchase the right asset Review several deals
Slide 11: Corporate Overview
Corporate Overview Slide 10 ASX: IOG 10 www.incrementaloilandgas.com
Slide 12: Oil & Gas Experts
Oil & Gas Experts Optimize and exploit long-lived, conventional onshore US oil and gas fields Strong technical team with engineering, geology, land, legal, and financial expertise Extensive experience in 6 U.S. basins with over 200 wells drilled and completed Total Management industry experi
Slide 13: Dedicated to Investor Value
Dedicated to Investor Value Ambitious U.S. team dedicated to: Acquiring low-risk unidentified-value oil and gas assets at competitive prices Increasing profitability and value from the assets Growing reserves through a combination of recompletions and the drill bit Implemented strategies f
Slide 14: We Create Value
We Create Value Focus on low-cost, high-return opportunities Acquire fields below fair market value Focused investment is used to increase company value 2016 Combined Silvertip, WY Purchase, workovers, 1P Reserves: and re-completions 1730 MBOE 2015 Combined 1P Reserves: 467 MBOE Slide 13 ASX:
Slide 15: Track Record of Success
Track Record of Success Significant experience in building successful ground floor E&P companies Design, develop and divest of exploratory and mature fields Achieved high return on investments 2.30 ROI for mature oil field; sold for $42 million 2.81 ROI for 140 well exploratory field; sold
Slide 16: Reserves and Production
Reserves and Production NET Total 1P Reserves by Category MBOE SS & RM Florence Silvertip Total Effective January 1, 2016 Proved Developed 336 122 962 1,420 Producing (PDP) Proved 18% Developed Not Producing - - 309 309 PDP (PDNP) PDNP 82% Total 1P Reserves 336 122 1,271 1,729 Slide 15 ASX: IOG www.
Slide 17: Market Summary
Market Summary Capital Market Summary Shareholder Distribution Exchange: trading symbol ASX: IOG Share Price (22 Sept 2016) A$0.042 Market Capitalization A$8M US$6M Ordinary shares on issue1 201,834,580 Options on issue2 5,400,000 1. Shares on issue after allotment of all shares from August Placemen
Slide 18: Financial Summary
Financial Summary Per BOE1 Revenue2 Royalties and Field Netback/ (H1 2016) Prod’n tax Operating Gross Profit Costs3 Margin Silvertip, Wyoming $17 ($6) ($6) $5 / 30% SS4 & RM4, California $35 ($10) ($8) $18 / 50% Florence, Colorado $32 ($10) ($11) $11 / 34% Revenue and expenditure in the table above
Slide 19: Experienced Leadership – Board & Team
Experienced Leadership – Board & Team Mark Stowell A chartered accountant and corporate finance background and has been involved in public company management for over 20 years including significant experience in Non-Exec Chairman the natural resources and energy sectors. Founder and director of Incr
Slide 20: Experienced Leadership – Board & Team
Experienced Leadership – Board & Team Simon Adams Over 20 years of experience with multiple ASX listed companies in various CFO/ Co. Sec. sectors including energy, agribusiness, resources and property. Part of B.Bus., M. Acc. management team responsible for significant business growth and diversific
Slide 21: Contacts
Contacts Denver, CO Perth, AU JOHN WHISLER SIMON ADAMS Managing Director Chief Financial Officer Email - [email protected] Email - [email protected] Telephone - +1 720-763-3183 Telephone - +61 (0)8 6144 0590 or +61 (0)439 845 435 www.incrementaloilandgas.com Twitter: @IncrementalOG Linkedin: https://w
Slide 22: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements This presentation has been prepared by Incremental Oil and Gas Ltd (“Incremental”). This presentation may contain certain statements that may be deemed forward-looking statements. Forward- looking statements reflect Incremental’s views and assumptions with res
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