Transaction Overview Earthstone Energy Inc. Oak Valley Resources, LLC NYSE MKT: ESTE 138mm in Cash 3.2 MMBoe 11.4 MMBoe 82% Liquids / 60% PD 65% Liquids / 32% PD 16% Ownership in Combined Company 84% Ownership in Combined…
Strategic Rationale Creating a growth-oriented company with significant upside for shareholders The combination Strengths: creates: Strengths: - Stable production and - Critical mass - Significant production and reserves cash…
Combined Company Overview Proven, growth-oriented management team Pro Forma Asset Location Oil-weighted with strong cash margins The combined entity will be focused on the Eagle Ford and Bakken Robust liquidity with clean balance sheet…
Investment Highlights Management team with proven ability to Well-capitalized to pursue drill-bit growth create shareholder value and acquisitions Initial investors(1) of GeoResources since Liquidity of 177.3mm, with 139.6mm in the…
Management Strong management and technical team with demonstrated ability and prior success Most underlying professional and support staff are Oak Valley investors and have been involved in prior successful ventures with management…
Backed by Top Tier Equity Investors Oak Valley Management EnCap Investments L.P. Management team recently of GeoResources prior to Leading provider of private equity to the independent sale to Halcn Resources in 2012 E&P sector CEO has…
Track Record Oak Valley management team has repeatedly executed on its strategy 2005 2007 Southern Bay Energy, LLC Gulf Coast, Permian Basin creating significant value for shareholders Initial investors 40% IRR - Success with…
GeoResources Performance Summary (Oak Valley managements most recent public company) Stock Performance (%) Reserves Growth (MMBoe)(1) Merger with Southern Bay to Sale to Halcn 40.0 35.9 40 CAGR = 57% Initial Investors: 29.2 IRR =…
Go-Forward Strategy Managements strategy is similar to that used in prior entities which delivered significant returns to shareholders Asset Strategy Corporate Strategy Optimize Existing Properties Align shareholders and management -…
Asset Overview
Operated Eagle Ford 16,855 net acres in Gonzales & Fayette counties in oil window Current gross production of 4,400 Boepd 40 producing wells - 2 rigs running dedicated to the Eagle Ford - 1 rig drilling Austin Chalk locations 240…
Operated Eagle Ford 2 rigs currently drilling Eagle Ford locations - Newtonville North 5 well pad, 500 ft spacing - Flatonia SW 5 well pad, 500 ft spacing - Offset by Sanchez, Penn Virginia, and Argent Eagle Ford - Kolar-Labatt lease…
Non-Operated Eagle Ford Non-op position with BHP; 60 gross producing wells Two areas totaling 3,130 net acres - White Kitchen 15% working interest HBP Gas and liquids 7,625 gross / 1,265 net acres - Martin Ranch 10% working interest…
Non-Operated Bakken Summary Near-Term Plans 88 gross / 7 net wells Expand acreage 10,919 net acres in North Dakota and Acquire production Montana (3,813 in ND / 7,106 net acres in MT) Establish operating presence Operators include:…
Other Areas Milam County, Texas Webb County, Texas 18,925 net acres prospective for multiple 2,486 net acres liquids-rich plays (Austin Chalk, Buda, South Texas oilfield under waterflood Georgetown, Eagle Ford, Woodbine)…
2014 Current Capital Expenditure Budget mm D&C Spend by Area Drilling and Completion Operated Eagle Ford 83.5 (Fayette / Gonzales Counties) 12% Non-Operated Bakken 13.7 Non-Operated Eagle Ford 73% 8.0 7% (LaSalle County)…
12/31/13 Pro Forma Reserve Summary SEC Pricing(1) Proved Reserves by Category Proved Reserves by Commodity 14.6 MMBoe 14.6 MMBoe PDNP, 4% NGL, 9% PDP, 35% Gas, 31% PUD, 62% Oil, 60% PV-10 by Category CQ4 13 Production by…
Pro Forma Earthstone 12/31/13 Proved Reserves (MMBoe) CQ4 13 Production (Boepd) 16.0 14.6 3,000 2,750 357% 358% 2,500 12.0 2,000 8.0 1,500 1,000 4.0 3.2 600 500 0.0 0 ESTE Standalone ESTE Pro Forma ESTE Standalone ESTE Pro…
Capitalization & Liquidity Current liquidity of 177.3mm Pro Forma Liquidity - Cash and Equivalents of 139.6mm (mm) ESTE OVR Pro Forma - 56.5mm borrowing base credit facility 12/31/2013 2/28/2014 (18.8mm drawn) Cash and Equivalents…
Contact Information Earthstone Energy, Inc. Oak Valley Resources, LLC Ray Singleton Frank Lodzinski Neil Cohen Director, CEO, Director, CEO, VP, Finance and President and President Corporate Headquarters Corporate…
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