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HK TO ACQUIRE GEOI – Halcon Resources Corp

Halcon Resources Corp · Apr 25, 2012 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 1
    HK to Acquire GEOI April 25, 2012 NYSE: HK
  2. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 2
    Announcing the Acquisition of GEOI by HK Consideration (37.97 per GEOI share (1) ): 20.00 in cash 1.932 HK shares Total transaction value 1.0 Billion (1) GEOI stockholders to own 18% of HK at closing Expected to close in 3Q12,…
  3. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 3
    Liquids-Rich Asset Base and Significant Drilling Inventory 3 Exploratory Liquids-Rich Plays Not Shown Bakken Mississippian Lime Utica/Point Pleasant Woodbine Austin Chalk Wilcox PF Total Proved Reserves: 52.8…
  4. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 4
    Creating a Resource Powerhouse Numerous oily resource style high growth assets Resource Intensity Multi-decade drilling inventory Improves commercial opportunity set Accretive To Immediately accretive to discretionary cash…
  5. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 5
    Substantial Increase in Production and Reserves Avg. Net Daily Production 12,000 +171% 10,000 Boe/d +151% 8,000 6,000 4,000 2,000 0 (1) (1) HK GEOI HK PF 2011 4Q11 Proved Reserves (2) 60,000 50,000 +151% MMBoe…
  6. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 6
    Pro Forma Non-Core Divestiture Candidates 2011 Average Net Daily Production Proved Reserves (1) Boe/d Full Year 4Q11 Oil Gas NGL Equiv. % % Total PF PV10 (1) % Total PF MBbls MMcf MBbls Mboe Oil/NGLs % PD Reserves (MM) PV10…
  7. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 7
    Increased Capitalization HK Recap GEOI Merger HK + GEOI (000s) 12.31.11 Adjustments 12.31.11 Adjustments PF 12.31.11 Debt Revolving Credit Facility (1)(2) 127,000 (127,000) 53,100 (53,100) - Term Loan 75,000 (75,000) - - - 8.00%…
  8. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 8
    Solid Liquidity to Fund Growth HK Recap GEOI Merger HK + GEOI (000s) 12.31.11 Adjustments 12.31.11 Adjustments PF 12.31.11 Cash and Cash Equivalents 49 710,342 39,144 (611,391)(1) 138,144 Revolving Credit Facility 150,000 75,000…
  9. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 9
    Bakken Project Area Overview 55,000 net acres (37,000 operated) Diversified Footprint Across Bakken Trend (1) 50+ MMBoe of unbooked resource potential NW Williams County (operated) 2 rigs running 20-24 gross wells planned for…
  10. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 10
    Bakken Operated Project Area Economics and Upside Potential for increased drilling Base Case Returns (300 Mboe) (1)(2) density (i.e. 4-6 wells per 1280 acre unit) Three Forks formation potential Improved frac efficiency expected…
  11. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 11
    Eagle Ford Project Overview Eagle Ford Acreage Position 24,000 net acres (operated) (1) 50+ MMBoe of unbooked resource potential 2 rigs running (3rd to be added in 2H12) 20-24 gross operated wells planned for 2012 (45% W.I.)…
  12. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 12
    Eagle Ford Project Economics and Upside Base Case Returns (325 Mboe) (1)(2) Continued refinement of optimal completion methodology Potential for increased drilling density (i.e. 80 or 120 acre spacing) Austin Chalk potential…
  13. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 13
    Eagle Ford Project Improvements First three well completions largely ineffective Laterals 3200-5900 with 10-16 frac stages 40/70 white sand (embedment issues) Slick water, linear gels and cross link frac fluids Recent six wells…
  14. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 14
    2012 Pro Forma D&C, Seismic and Infrastructure Estimate By Category By Area Drilling and Completions 78% Utica/Point Pleasant 9% Seismic 9% Woodbine 8% Infrastructure 13% Wilcox 8% Total 620 MM Mississippi Lime 9% Bakken 17% Eagle…
  15. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 15
    Building An Oil Company Targeted Net Acres Progress (1) First Spud Targeted Areas Utica / Point Pleasant 150,000 - 250,000 50% May Woodbine 150,000 - 250,000 35% May Wilcox 50,000 - 100,000 30% June Mississippian Lime 50,000 -…
  16. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 16
    Utica/Point Pleasant Overview Target Acreage: 150,000 250,000 Focus volatile oil and liquids-rich window NY Access to cores, geochem and logs 3D seismic to optimize completions and reduce costs PA Wells could be as prolific as…
  17. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 17
    Utica/Point Pleasant Thickness and Reservoir Quality Comparison A N. Coast Energy Newstar Energy D&M A C. Shaney 1 Toalston 1 Lark 1 Harrison Co. (near Buell 8H Well) Carroll Co. (near Mangun 8H Well) Mercer Co. Cross Section 24…
  18. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 18
    Utica/Point Pleasant Volatile Condensate Single Well Type Curve Play: Utica/Point Pleasant Estimated Avg. Well Cost: 6.5-7.5 MM Estimated EUR: 1,250 MBoe Target Acreage: 150,000-250,000 acres Est. Spud-to-Production: 90 days Rig…
  19. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 19
    Woodbine Overview Target Acreage: 150,000 250,000 Upper Cretaceous section 40% silica and clastics = deliverability Regional studies indicate: 10%+ porosity Current IPs 3-4x higher vs. recent past TX Geologically analogous to…
  20. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 20
    Woodbine Hydrocarbon System Deltaic depositional system Woodbine sands charged with Eagle Ford sourced oil Multiple Woodbine sand lenses 6,500- 11,500 depth Play 1: High porosity, high storage capacity sands Play 2: Downdip,…
  21. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 21
    Woodbine Single Well Type Curve Play: Woodbine Estimated Avg. Well Cost: 5.5-6.5 MM Estimated EUR: 467 MBoe Target Acreage: 150,000-250,000 acres Est. Spud-to-Production: 60-90 days Rig Count Estimate: 2Q12: 1 2H12: 2 Wells…
  22. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 22
    Wilcox Overview Oil-prone reservoir with significant Target Acreage: 50,000 100,000 associated gas and NGLs Production rate limits and commingling restrictions removed from Louisiana regulations 3D seismic essential to success…
  23. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 23
    Wilcox Log Section TMS LA TENNECO FEE Log 17011206780000 GRR (CTR) RILD Depth(ft) 0 150 -5 20 9000 9100 9200 9300 9400 Upper Wilcox Eocene age tight sandstones 9500 9600 Bivens 9700 N. Bivens…
  24. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 24
    Wilcox Single Well Type Curve Play: Wilcox Estimated Avg. Well Cost: 7.5-8.5 MM Estimated EUR: 510 MBoe Target Acreage: 50,000-100,000 acres Est. Spud-to-Production: 60-90 days Rig Count Estimate: 2Q12: 1 2H12: 1 Wells…
  25. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 25
    Mississippian Lime Overview Initially developed using vertical wells Target Acreage: 50,000 - 100,000 (1) Carbonate reservoir (high permeability) Predominately oil production KS Shallow drilling depths (4,000- 6,000)…
  26. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 26
    Mississippian Lime Log Section Chat High porosity (20-30%) High permeability Associated with karsting High fluid volumes Dense limestone High porosity tripolitic chert lenses embedded within the low porosity/permeability…
  27. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 27
    Mississippian Lime Single Well Type Curve Play: Mississippian Lime Estimated Avg. Well Cost: 2.5-3.5 MM Estimated EUR 175 MBoe Target Acreage: 50,000-100,000 acres Est. Spud-to-Production: 60-90 days Rig Count Estimate: 2Q12: 1…
  28. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 28
    Exploratory Liquids Rich Plays - undisclosed Targeting 225,000 375,000 acres in aggregate Two unconventional plays (100,000 150,000 acres each) One conventional play (25,000 75,000 acres) Will drill in all three plays in 2012…
  29. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 29
    Investment Highlights Proven Management Team With Significant Ownership Stake Technical Bias With Extensive Resource Play Experience Attractive Liquids-Rich Asset Portfolio With Compelling Economics Positioned For Significant…
  30. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 30
    HK to Acquire GEOI Oily (69% Liquids) Strong growth profile (+25% in 2012) Adds two established liquids rich resource plays Austin Chalk potential Solid production base Immediately accretive New HK shareholders 33 NYSE:…
  31. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 31
    Appendix NYSE: HK
  32. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 32
    Pro Forma Production and Reserves (69% Liquids) 2011 Average Net Daily Production Proved Reserves (1) Boe/d Full Year 4Q Oil Gas NGL Equiv. % % Total PV10 (1) % Total MBbls MMcf MBbls Mboe Oil/NGLs % PD Reserves (MM) PV10 Resource…
  33. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 33
    Pro Forma Derivative Summary FY 2012 FY 2013 FY 2014 OIL OIL OIL Volume Ceiling / Floor Floor Volume Ceiling / Swap Floor Floor Volume Ceiling / Floor Floor (Bbls) Swap Price* Purchased* Sold* (Bbls) Price* Purchased* Sold* (Bbls)…
  34. HK TO ACQUIRE GEOI – Halcon Resources Corp – slide 34
    Halcn/RAM Transaction Summary Why RAM Energy Resources Solid platform Concentrated ownership Stock Listing Oil levered Simple balance sheet Modifications Attractive valuation New Senior Management and Board Ticker change to…

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