Petrichor Energy (TSX.V - PTP) Corporate Presentation

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October 2013 TSX.V: PTP Acquiring, Exploring and Developing Oil and Gas Projects in North and South America August 2014

description

Petrichor Energy Inc. is an emerging oil and gas exploration company focused on acquiring, exploring and developing new oil and natural gas reserves in North and South America. The company has been developing its current properties, located in the southern United States, for the past three years. Petrichor Energy is growing its operations by implementing two primary objectives. The first is exploiting the potential of its low risk oil and gas fields in Texas and Mississippi. The second is to find new and highly prospective exploration projects in both North and South America — and to develop them into commercially feasible operations. By applying the latest geophysical and geological technologies when selectively drilling new wells, the company expects to increase its success ratio, as well as reduce the risk typically associated with oil and gas exploration.

Transcript of Petrichor Energy (TSX.V - PTP) Corporate Presentation

Page 1: Petrichor Energy (TSX.V - PTP) Corporate Presentation

October 2013

TSX.V: PTP

Acquiring, Exploring and Developing Oil

and Gas Projects in North and South

America

August 2014

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Certain information regarding Petrichor Energy Inc., including management’s assessment of future plans and operations, may constitute forward looking statements under applicable securities law and necessarily involve risks, including risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements. The offer is subject to normal commercial risk that the offer may not be completed on the terms negotiated or at all.

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Disclaimer

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Petrichor Energy is a is an emerging oil and gas exploration company focused on acquiring, exploring and developing new oil and natural gas reserves in North and South America, employing the latest geophysical and geological technologies

Strategy: building reserves and production by exploring & developing low risk/maximum return properties with proven and probable oil & gas reserve assets

Focus: on new long life reserves (20-25 years) with access to pipelines & production infrastructure

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Grow Reserve Base Through Drilling:

• Moderate depths • Multi-zone objectives • Near known pools or areas that are geologically understood

Executive Summary

PETRICHOR ENERGY INC.

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• Marble Falls Pennsylvanian age limestone located in North Texas

• 11,695 acres of oil-rich Marble Falls resource play

• WI 66.67%

• Analogous resource plays:

– Marble Falls to Strawn Lime, West Texas

– Mississippi Lime to Kansas/Oklahoma

• Shallow depths (less than 5,000 ft)

• 60 Vert/Hz wells to date in area, with tremendous success

• Majors aggressively acquiring acreage and expanding development of properties in area, including; DTE Energy, EOG, Swan, Pioneer, Newark and Best

• Low CapEx – quick return

• Low risk / high reward

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Opportunity

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PETRICHOR ENERGY INC.

Major Shareholders

Canadian 72.81%

United States 15.9%

International 11.28%

CDS & Co 60.7

Joe DeVries. 10.1

Robert Haveman 9.4

Market Statistics

Stock Exchange TSX.V

Trading Symbol PTP

52 Week High/Low $0.58 – 0.28

Outstanding Shares 31,001,329

Stock Options 1,492,500

Warrants 20,782,160

Fully Diluted Share Capital 53,275,989

Source: Yahoo Financial

Corporate Snapshot

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Marble Falls; Pennsylvanian Age Limestone North Texas

Ideal property location; same geographic area as prolific Barnett Shale play in N. Texas

Majors concentrated in prolific resource area, including, DTE Energy, EOG, Pioneer, Swan, Newark and Best

Entry level land pricing

Rapid development; known successful commercially productive oil and gas reservoirs

Analogous Resource Play Marble Falls resource play; multiple target zones

Analogous to S. Kansas & N. Oklahoma limestone play Experienced Management & Technical Team Strategic & profitable business plan; continue to

acquire acreage with excellent well economics

Low development costs & well payouts less than 6 months from production

Proven management and technical experience

Creating shareholder value

Investment Highlights

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Marble Falls, Forth Worth Basin

Verba Fields

Marble Falls, North Texas

• 11,695 Acres • 66.67% WI • 1st vertical well drilled • 2nd vertical well spud • Pennsylvanian-age Limestone • Oil-rich resource play • Proven drilling success • Shallow depths • Low Drilling Costs • High ROR

Verba Field, Mississippi

• 10 wells • Oil production • 20% WI

Texas

Dallas

Houston

Property Locations Summary

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Pennsylvanian Age Limestone

The Company has acquired a 66.67% working interest in 11,695 acres of a oil-rich Pennsylvanian Limestone, located in the Forth Worth

Basin, North Texas in the following counties; Young, Jack, Stephens, Montegue and Palo Pinto. Additional formation targets include the

Atoka Conglomerates, the Caddo Limestone and the Mississippi Limestone (Chester Lime and Chappel Lime) These limestone

formations are found at an average depth of 4,000ft-5,000ft, and 125ft - 300ft of gross pay thickness.

Overview

Both the Marble Falls and the Mississippi Lime formations, are shallow and found in numerous counties within the Forth Worth Basin

and in the same geographic area as the prolific Barnett Shale play in North Texas. Shorter horizontal sections, as well as some vertical

completions, have been typically providing high production results, with low drilling and completion costs. Because of the limestone’s

porosity and natural fractures, expenses can total half, and even a fourth of the typical unconventional well efforts.

Reports

Over 60 horizontal wells and vertical wells have been drilled with positive results; 300+ bbl/day in horizontal wells, and 150+bbls/day of

liquids gas in vertical well production. Recent reports of IP in Jack County, Texas is approximately 1,500 bbl oil equiv/day.

Majors in Area

Currently, with over 2 million acres available in Marble Falls/ML resource plays, there has been a rapid movement of Majors focusing on

developing and exploring these areas, as a result of wells promising an oil ratio of 50 percent, and low drilling costs/high rates of return.

Since 2011, to date, Majors have acquired 1,039,220 net acres of Marble Falls/Mississippi Lime (ML) and continue to increase

acreage/drill locations, including the expansion of ML resource plays with successful “tight hole” wells distanced away from early “core”

areas. Additionally, the drilling of ML resource play wells have an upside potential in the discovery of other prolific reefs and channel

sands.

Marble Falls Oil-Rich Play

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The Marble Falls is an oil-rich Pennsylvanian-age porous limestone formation, that is deposited above the Barnett Shale and forms pinnacle reefs at depths less than 5000 feet, reaching a thickness of 400+ feet. These resource plays create the opportunity for large reservoir targets with massive hydrocarbon deposits within shoal basins, and have produced in excess of 400,000 BO per well.

Limestone plays have produced approximately over 75,000+ BO in vertical wells, with great potential in horizontal wells to expose more reservoir rock and exponentially increase production capabilities. To date, over 300 Marble Falls resource play wells have been successfully drilled.

Marble Falls Limestone Formation

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Target Area

• Rapid development in Pennsylvanian-age Marble Falls Formation; similar to Barnett play

• Play consists of vertically fracturing of reservoir rock and horizontal boreholes

• Atokan sandstones and Conglomerates

• Migrations of Chestarian-age sediments derived from Ouachita fold belt - North Texas

• Approximately 450 feet of post-Barnett, Chestarian rock found in N.West, Fort Worth Basin – near Jack/Young County

Forth Worth Basin

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• Marine deposited limestone and

numerous pinnacle reefs

• Two formations between the Atokan/Bend Conglomerates and the Barnett Shale

• Distinct sediments present of a Pennsylvanian formation (Marble Falls)

• Limestone platform varies from 125ft to 300+ft in thickness

• Additional targets – Caddo Limestone,

and Mississippi Limestone (Chester Lime & Chappel Lime)

Subsurface Stratigraphic Section

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Marble Falls Stratigraphic Column

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Target Area

Marble Falls, North Texas Young, Jack, Stephens, Montegue and Palo Pinto Counties

• Majors rapidly developing area with successful results

• Recently, 60 vertical and horizontal

wells drilled successfully • 300+ successfully drilled wells in

Marble Falls resource plays to date • EOG Resources drilling and completing

wells, recent production rates per well of approximately 700 BOEPD

Target Area – Fort Worth Basin

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Young County Oil Production in Area

82,018 BO

123,190 BO

180,029 BO

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Proposed Location #5

HINSON#1 WELL Drilled and Test Results Pending

Proposed Location #2

Proposed Location #3

Proposed Location #4

Chappel Limestone

Depth Structure

Drill Targets

• Marble Falls (Pennsylvanian-age Limestone), Atoka Conglomerates, Caddo Limestone and Mississippi Limestone (Chester Lime and Chappel Lime)

• Horizontal drilling techniques, utilizing the latest slick water fracture stimulations

Drill Target Areas - Young County

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Hinson #1 Well - Young County

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• March 2014 - drilled and completed for production; drilled total depth of 5,200 feet (1,585 meters)

• showing significant hydrocarbons

• May 2014 – currently being tested

in multi zones to evaluate production capabilities for future wells

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JOHNSON 8H – horizontal well in the Halek (Caddo) formation recorded IP well test= 481 BOPD crude oil +1,814 MCFD natural gas. CURRENT CUMULATIVE PROD: > 96,880 BO > 687,185 MCFG

- Jack County - Halek #8 Johnson Well Production

Halek #8 H Johnson

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Young County

Jack County

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117,459 BO 490,400 BO

Young County Oil Production in Area

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103,001 BO

509,848 BO

214,858 BO

647,020 BO

294,925 BO

109,277 BO

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1,208,242 MCFG

72,439 BO

Jack County Gas Production

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4,186,310 MCFG

1,141,217 MCFG

75,445 BO

67,764 BO

4,129,480 MCFG

82,525 BO

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Proposed Location Garner #2 Well; Jack County

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Garner #2 Well

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Garner #2 Well - Jack County

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• July 25, 2014 commenced drilling operations

• August 7, 2014 Well drilled to a total depth of 6,350 feet (1935.8 metres)to test the Strawn Sands, Caddo Lime, Marble Falls, Barnet Shale, and Ellenberger

• Well has been cased and currently scheduled for production

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PETRICHOR ENERGY INC.

Detail Status Petrichor WI % $(Thousand)

Marble Falls Acquisition Completed 50 4,200

0

Marble Falls WI % Increase Completed +16.66 785

0

Hinson #1 Vertical Well Drilled - Test Results Pending 66.67 750

0

Spud Garner #2 Vertical Well Commenced 66.67 750

Marble Spud 3rd Vertical Well 66.67 750

Marble Spud 4th Vertical Well 66.67 750

Marble Spud 5th Vertical Well 66.67 750

Marble Spud 6th Hz Well 66.67 1000

Total 4,000

MARBLE FALLS 2013 2014

WELLS Q3 Q4 Q1 Q2 Q3 Q4

Marble Falls Acquisition Completed

Hinson #1 Vertical Well Drilled Production

Spud Garner #2 Vertical Well Drilled Production

Spud 3rd Vertical Well Spud Production

Spud 4th Vertical Well Spud Production

Spud 5th Vertical Well Spud Production

Spud 6th Hz Well Spud Prod.

Marble Falls Prospect - Use and Proceeds Timeline

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18.5% interest in Verba wells

10 wells on the property; 7 wells which are fully equipped oil wells

Producing approximately 3500 barrels per month

3 wells with potential to be re-worked for more production

Verba

Field

Verba Field Location Map

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2 working interests

Operational salt water disposal wells & mineral leasehold rights to majority of any known productive limits in the field

Mississippi Oil & Gas Board Production Records show that Verba Field has produced approximately 2,500,278 barrels of oil through to December 2011 from eight formations.

Verba Field Production

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Near Term Targets

• Completion of acquisition of the Marble Falls prospect end of Q3 2013 (Completed)

• Spud first test well at Marble Falls resource play Q4, 2013 (Completed)

• Hinson #1 Well in production Q1, 2014 (Completed)

• Spud Garner #2 Well Q3, 2014 (Commenced, as at July 25, 2014)

Medium Term Targets

• Continue to expand acreage by 50%

• Drill three step-out wells between Q1 – Q4 2014

• Targeting 2100 BOP/day within 2-3 years

Objectives

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Joe DeVries, President, CEO & Director

• 20 years of experience financing public companies

• Currently a director of Altima Resources Ltd. and director of Precision Enterprises Inc

Richard Barnett, CGA

CEO, Secretary & Director

• Over 20 years of accounting experience serving both public and private corporations

• Experience of a wide range of companies, including producing oil & gas, resource & explorations, engineering, and research & development

Richard Switzer, P.Geol Director

• Over 35 years of experience in the petroleum industry

• Currently President and CEO of Altima Resources Ltd.

• Previously at Texaco, Amoco, Skelly Oil Canada and Mesa Petroleum working for T. Boone Pickens

• Member of the American Association of Petroleum Geologists and a Professional Geologist with APEGGA

Jurgen Wolf

Director

• Over 15 years of experience working with companies in the oil and gas sector

• Previously President of US Oil and Gas Resources, which amalgamated to form Odyssey Petroleum in 2005

• Currently a director of the following public companies; Petrichor Energy Inc, Iconic Minerals Ltd, and Transamerican Energy Inc

David Blake, P. Geophysicist

Technical Advisor

• Over 29 years of experience in the petroleum industry

• Currently, President and CEO of BLAKEnergy, Ltd. & BLAKEnergy Operating, L.L.C.

• Success rate of 75% in developing commercial production for top quality oil and gas prospects

• Involved with 52 companies which have successfully been brought in prospects, including; Mobil, BHP, Texaco, Devon, Chevron, Arco, and Amoco, amongst others

• Member of the Society of Exploration Geophysicist and Geophysical Society of Houston

Board and Management Team

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www.petrichorenergy.com

TSX-V Listed: PTP US OTC-BB: ODEFF.PK Frankfurt / Berlin: YQNP CUSIP: 71643U107

Head Office: Suite 303 – 595 Howe Street Vancouver BC Canada V6C 2T5 Tel: 604.718.2800 Fax: 604.718.2808

Auditors: Dale Matheson Carr-Hilton Labonte 1140 Pender Street West Vancouver, B.C. V6E 4G1 Legal Council: DuMoulin Black LLP 10th Floor, 595 Howe St. Vancouver,B.C. V6C 2T5 Engineering Firm: Fletcher Lewis Engineering Inc. Penn Park Office Center 5001 N Pennsylvania #300 Oklahoma City, Oklahoma 7311

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