(OTCQX: VYEY) IPAA OGIS, New York - Investor Presentation April 20, 2015
Investor Highlights Focused on our strategic business combination with Lucas Energy (NYSE MKT: LEI) Oil and liquid rich gas as primary targets Permian Basin and Eagle Ford focused Adding shareholder value by growing proved reserves…
Business Model Near-Term Focus Expect to Utilize of available capital sources to complete the Lucas Energy merger and add value to all shareholders. Expect 12 million capital infusion through Aurora Energy Partners for near term merger…
Combined Company Benefits The Proposed Strategic Combination between Victory and Lucas would provide benefits to all stakeholders Significant drilling inventory in two of North Americas most prolific and economic oil and gas plays…
Combined Company Expected NYMEX Reserves Current Combined Reserve Detail (NPV 10) 1 (MBOE) Proved Developed Producing (PDP) 4.2 M 233 Strategic business combination with Lucas Energy (NYSE MKT: LEI) with anticipated Proved…
Market Response to February Announcement Since the February 4th announcement of Share Price 0.44 LOI, both companys stock prices have February 4, 2015 Public 0.40 responded favorably as illustrated in the Announcement price and…
Progress Since February Announcement LUCAS WAS GRANTED NYSE MKT LISTING EXTENSION THROUGH AUGUST TO SUPPORT THE COMPLETION OF THE MERGER LUCAS DEBT WAS RENEGOTIATED TO SUPPORT MERGER TIMING 12 MILLION FUNDING AGREEMENTS IN FORCE AND…
Remaining Steps RECEIVE FAIRNESS OPINIONS FOR LUCAS AND VICTORY SIGN DEFINITIVE MERGER AGREEMENT SECURE FINANCING FOR PUD DEVELOPMENT DRILLING AND PDP ACQUISITIONS 1 SUBMIT SEC FILINGS (S-4 registration statement, Joint proxy,…
Resulting in Stronger Combined Company EXIT TRANSACTION WITH NEARLY 80% NON-AFFILIATED OWNERSHIP/FLOAT DIVERSIFIED PORTFOLIO OF O&G ASSETS IN TWO PREMIER BASINS THAT DELIVER ECONOMICALLY VIABLE RETURNS IN TODAYS LOW PRICE COMMODITY…
Company Profiles Pre-Merger Victory Energy Profile 1 Lucas Energy Profile 1 Ticker OTC QX: VYEY Ticker NYSE MKT: LEI Share Price 0.39 Share Price 0.21 Market Cap 11.2 M Market Cap 7.3 M 52 Week High 0.49 52 Week High 0.80 52 Week…
Company Profile Post Merger Estimate Renaissance Natural Resources New Pubco Corporation Profile 1 100% of Shares Ticker NYSE MKT: TBD Share Price 0.94 LEI 40% VYEY 30% Navitus 30% Market Cap 18.5 M Subsidiary Subsidiary…
How Can We Take Advantage of the Rapid E&P Landscape Changes Lets review The Data 15
April EIA Forecast Shows Modest Recovery Modest price improvement above 60 is forecast by Q4 2015 16
History Shows a More Aggressive Recovery 140 12 120 2008 2009 Crash 18 month Recovery 124 to 43 43 to 85 10 100 8 80 WTI Spot Henry Hub 60 SOURCE Cushing, OK WTI Spot Price FOB, US Energy Information 6 Administration…
The Right Basins Deliver Excellent Outcomes Eagle Ford and Permian Midland Basin Wells Offer Excellent Economic Returns and Break Even Floors. (chart does not include recent basin drilling cost reductions) Estimated Inter nal Rates…
Recent Cost Declines Make Both Basins Profitable Eagle Ford Opportunities as a Result of the Expected Merger with Lucas AFEs for drilling and completion of horizontal wells with 7,200 foot laterals have decreased 18% from 9.4 million…
Focus on Eagle Ford Price Sensitivity IRR for (2) Boggs wells projected at upwards of 30% (at 50% WI) at a five year average oil price of 55/bbl 5 Year Avg. Price per Barrel and IRR Sensitivity (Boggs, Eagle Ford) 1 Returns…
Contacts Victory Energy Corporation Kenneth Hill, CEO Email: Kennyvyey.com Phone: (512) 347-7300 www.vyey.com Investor Relations Derek Gradwell Senior Vice President, Natural Resources MZ North America Main: 212-301-7130…
Appendix and Support Material 22
Pre-Merger Corporate Structure 23
Post-Merger Corporate Structure Renaissance Natural Resources Corp Shareholders Entities Renaissance Newly Listed NYSE MKT Company Aurora Aurora Energy Partners Navitus Navitus Energy Group & Partners Victory Victory Energy…
Asset Overview 25
Portfolio Highlights and Opportunities Victory Energy Lucas Energy Fairway Project (1000 Gross Acres) Gonzales, Wilson, Karnes Counties Glasscock & Howard Counties 10,000 net Austin Chalk acres 80% oil, 20% Gas 3,300 net Eagle Ford…
Pre-drilling Proved Reserves Lucas Reserves (NYMEX Strip 2/20/15) Victory Reserves (NYMEX Strip 2/20/15) Type (MBOE) NPV10 (M) Type (MBOE) NPV10 (M) PDP 137 3.4 PDP 96 .773 PUD 5,219 31.9 PUD 7 .122 Total Proved 5,356 35.4 Total Proved…
Post-Drilling Proved Reserves Pre-Merger CAPEX Spend 2 CAPEX To create a significant increase in production revenue Two 50% WI Boggs Wells 7.8 M and PDP reserve valuation for the post merger valuation, capital will be deployed via…
Permian Assets in Sweet Spot of Play Fairway project (proved producing) Glasscock & Howard counties 80% oil, 20% gas 1,000 gross acres At least 20 more drilling locations with 40 acre spacing 10% WI / 7.5% NRI Fusselman &…
Permian Geology Offers Stacked Pay Upside Midland and Central Basin offers multiple productive zones in the Fusselman, Wolfberry, Strawn and Atoka, with potential for future horizontal Wolfcamp, Clearfork and Cline development.…
South Texas Assets Located in Oil Zone Lucas Acreage is primarily located In Gonzales and Karnes Counties Both counties are in the oil fairway 31
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