Prominence Energy Limited · ASX:PRM

Prominence Energy — Sun Resources NL — Investor Presentation (July 2015)

17 slides from Prominence Energy's investor presentation, Jul 30, 2015

  1. Slide 1: Investor Briefing

    Investor Briefing 30 July 2015

  2. Slide 2: Important Information - Disclaimer

    IMPORTANT INFORMATION - DISCLAIMER This presentation has been prepared by Sun Resources NL (“Sun”) for the purpose of providing a company and technical overview to interested parties to enable recipients to review the business activities of Sun. This presentation is limited in scope and is not inten

  3. Slide 3: Sun Resources Corporate Snapshot

    SUN RESOURCES CORPORATE SNAPSHOT Capital Structure: Post-Cap. Raising (SPP & Placement) Share Price / Volume History ASX code SUR Ordinary shares on issue 4,472m 1 Performance options 140m Listed options (A$0.025) 259m 2 Unlisted options (various prices) 21m Current share price A$0.001 Market capita

  4. Slide 4: Strategically Repositioned for Success

    STRATEGICALLY REPOSITIONED FOR SUCCESS  Recently finalised commercial agreements position Sun for growth and cash flow generation • Resolution of Amerril Energy LLC matters delivers to Sun a 100% working interest (WI) in Normangee Oil Project, SW Leona Oil Project and Centerville AMI • Agreement re

  5. Slide 5: Near-Term Actions Across Portfolio

    NEAR-TERM ACTIONS ACROSS PORTFOLIO  Seeking new investor/partner for capital investment at the asset level to fund current and future development drilling • Sun’s market capitalisation currently at <50% of balance sheet value • Sun is seeking new capital to frack and complete Jack Howe #1H for earl

  6. Slide 6: East Texas Is Now an Area of E&P Focus

    EAST TEXAS IS NOW AN AREA OF E&P FOCUS Turquoise Dots Represent Recent Buda Completions Source: ZaZa Energy Corp. 6

  7. Slide 7: Potential Well Locations & Indicative Well Economics

    POTENTIAL WELL LOCATIONS & INDICATIVE WELL ECONOMICS Potential Locations Gross Sales Volumes (160 acre spacing) Locations Oil bbl 310,906 Flo Delta 32 Gas cu ft 199,087 Total BOE 344,087 Normangee 16 US$M Southern W'bine 4 Single Well AFE 7,592 Badger 6 US$M Total 58 Total Opex (15yrs prod'n) 3,446

  8. Slide 8: Lower Woodbine – Normangee Oil Project

    LOWER WOODBINE – NORMANGEE OIL PROJECT  US$4mm fracking AFE gives pay out in year-2 and delivers IRR > 15% (@ US$50 oil)  Estimated gross revenue in first year of Jack Howe #1H flow-back (NRI) = ~ US$3-4 million  A 25% reduction in drilling and fracking AFEs delivers IRR = ~20% (@ US$50 oil)  US

  9. Slide 9: Sun's Woodbine Oil Project Areas

    SUN’S WOODBINE OIL PROJECT AREAS Across Leon and Madison Counties, East Texas Leasehold & Activity Map Sun has control of 14,173 net acres across its 5 3 Woodbine Oil Project areas Project Leasehold Table (as @ 30 June 2015) 4 Working Acres Net Royalty Map Project Interest Interest (%) Gross (%) 7 1

  10. Slide 10: Buda-Georgetown – New Bench Doubles Reserves

    BUDA-GEORGETOWN – NEW “BENCH” DOUBLES RESERVES Multiple oil targets – Minimum 2 Benches  Sub Clarksville Sandstone – Producing in area  Eagle Ford Shale – Lower Woodbine oil confirmed  Buda – First local oil completions confirmed Samuel #1H (Presco) Buda 8,000’ lateral drilled & fracked 1 Jack Ho

  11. Slide 11: Normangee Oil Project – Lower Woodbine Drill Sites

    NORMANGEE OIL PROJECT – LOWER WOODBINE DRILL SITES HBP Program  4 drilling units required to cover entire lease area  Frack Jack Howe #1H  D&C 3 more wells to HBP current lease position  D&C 1 Buda lateral Full Field Development  12 PUDs to fully develop (based on initial 160-acre spacing) 11

  12. Slide 12: SW Leona & Southern Woodbine Oil Projects

    SW LEONA & SOUTHERN WOODBINE OIL PROJECTS  Seale #1V drilled Buda-Rose section with shows and pay intervals  Seale #1H & T. Keeling #1H laterals completed in Lower Woodbine = 2 Units HBP  “Stack & Frack” Seale #1V  Frack toe of T. Keeling #1H  3 more wells to HBP project current area 12

  13. Slide 13: East Texas Stacked Oil Targets

    East Texas Stacked Oil Targets (including Buda-Rose Section) Source: Zaza Energy Corporation (2015) 13

  14. Slide 14: Delta Oil Project – Large Buda-Rose Structure

    DELTA OIL PROJECT – LARGE BUDA-ROSE STRUCTURE  Large Buda structure mapped Approximate Area of Buda Prospect with 300 feet of closure  Oil & gas column tested in old vertical well with 300 feet of log pay  Warrants initial vertical pilot well to test column height  Follow up with fracked lateral

  15. Slide 15: Badger Oil Project – Drilling Units to Be Developed

    BADGER OIL PROJECT – 16 DRILLING UNITS TO BE DEVELOPED  10% WI in 16 drilling units required to HBP the project area  Initial investment by Sun = US$13 mm; assuming US$8mm gross well AFE  Total of 64 wells required to fully develop; based on initial 160-acre spacing  Sun not contributing to init

  16. Slide 16: Strategic Development - Key Next Steps

    STRATEGIC DEVELOPMENT - KEY NEXT STEPS  Secure capital partner with shared value creation and strategic objectives  Frack and flow-back Jack Howe #1H • Generate cash flow from strong initial production • Demonstrate “Best in Class” operational execution capability • US$3-4 million gross in first y

  17. Slide 17: www.sunres.com.au

    gg eEE—————EEee"" www.sunres.com.aqu SUN fESOUICESz ABN 69 009 196 810 ASX SUR Matthew Battrick Managing Director and CEO Level 2, 30 Richardson Street, West Perth 6005 PO Box 1786, West Perth WA 6872 T +61 893219886 F +61 89321 8161 M 0416 111 298 E [email protected]

Sun Resources NL — Investor Presentation (July 2015) on 6ix