A year of operational and value catalysts ahead NASDAQ : MPET February 19, 2014
The Company Independent upstream oil and gas company Founded 1959 and traded on NASDAQ since 1972 Under new management since 2011 Headquartered in Denver, Colorado CORE Montana UPSIDE UK LEGACY Australia Oil production:…
Onshore Australia Sale Sale of Palm Valley and Dingo announced Feb 18, 2014 Selected terms Rationale Palm Valley and Dingo gas fields sold Fund Poplar and UK with cash proceeds Buyer: Central Petroleum (ASX: CTP) Avoid cash outlay…
The Company Market Cap(1) 63 m Proved Reserves by Category(4) Cash(2) 12 m Debt 0 m 15% Enterprise value(3) 83 m 7% 7.4 PDP MMboe PDNP PUD Proved reserves(4) 7.4 MMboe 78% PV-10(4) 97 m Net production(5) 228 bopd Oil / Gas…
Poplar CO2-enhanced oil recovery project in progress 22,000 net unitized acres ANALOGOUS CO2-EOR PROJECTS(1) Covers Poplar Dome, the largest geologic structure in the western Williston Basin Substantially all of the acreage…
Poplar CO2-EOR Analogs 50 MMbbls incremental reserves at Poplar in line with CO2-EOR analogs Poplar is analogous to Midale and Recovery potential(1) Weyburn, two oil fields with highly successful CO2-EOR projects in the Williston…
Poplar CO2-EOR Milestones Summer 2012 Core Laboratories confirms miscibility Summer 2013 Pilot CO2 source & well permits secured Fall 2013 5 pilot wells drilled 2014 Pilot CO2 injection Imminent End of Announce pilot…
Poplar Stacked Formations Several reserve development opportunities Charles Approximately 275 bopd gross CO2-EOR: pilot project ongoing Bakken / Three Forks / Nisku Prospective for oil production CO2 Flood Other…
UK Acreage Significant option value Two value creation opportunities: Developing unconventional play in PEDLs 231, 234, and 243 Peripheral targets on edge of Weald Basin Magellan strategy: Fund our share of initial…
UK Unconventional 125 k net acres in center of Weald Basin Our acreage Weald Basin PEDLs 231, 234, and 243 Focus on unconventional prospects Kimmeridge and Liassic formations 50% interest; operated by Celtique Energie Primarily oil…
UK Peripheral Target Horse-Hill farm-out executed at 600 / acre Farm-out of PEDL 137 to Angus Energy in Dec 2013 Magellan carried 100% for first well in exchange for 65% interest to Angus Expected well cost of 10 million…
Australia Offshore Bonaparte Basin Large gas prospects to be farmed-out 100% working interest 3D seismic completed 1-3 Tcf potential resource 1 exploration well required by 2015 Shallow water jack-up rig territory Active…
Milestones A year of operational and value catalysts ahead Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Pilot CO2 injection, monitoring, & analysis CO2 injection Poplar CO2 begins Announce pilot results Weald Basin UK Participate…
Alignment of Incentives New management Option vesting criteria incentive plan implemented Oct 2013 Farm-out of NT/P82 Participation 5% Vesting criteria tied to: in first well in Weald Basin share price 10% performance achieving…
Sources of Value Asset Value Potential Capex Cash 12 m(1) Onshore Australia cash proceeds A20 m Poplar (current) Proved reserves PV10 97 m(2) US Poplar CO2 Pilot +50 MMbbls(3) 20 m(4) 60% complete Poplar Three Forks /…
Why Invest Now Timing Various operational milestones expected to be achieved over the next 12 months Value Poplar could yield 50 MMbbls of incremental reserves Large option value in the UK Execution New management executing…
Appendices
UK Unconventional Farm-outs Recent transactions provide validation for the potential development of UK shale basins Most recent transaction involving Total marks entry of the first Major into the UK shale Recent Transactions…
Australia Offshore Bonaparte Basin Precedents for attracting farm-out partners The following farm-ins recently took place in exploration blocks near Magellans NT/P82 block in Bonaparte Basin: Date Company Asset Terms Origin earns…
Experienced Leadership Robin West (66) Chairman Tom Wilson (61) CEO Founder, CEO of PFC Energy Former President of KMOC and Anderman Former Reagan Administration Assistant International Secretary of the Interior (1981-83), responsible…
One Stone Convertible Preferred Allows to increase net asset value per share On May 10, 2013, Magellan issued 23.5 m of convertible preferred stock to One Stone Energy Partners, a NY based private equity fund Rationale Key Terms(1)…
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