PROVEN: EXPERTISE PROVEN: RESULTS American Eagle Energy Corp (AMZG) Investor Presentation June 2014 Williston Basin (Bakken / Three Forks) Oil Focused Operator
COMPANY OVERVIEW American Eagle Energy Corporation is a Denver, Colorado based exploration & production operator focused on the Williston Basin (Bakken and Three Forks Formations). American Eagle Summary Ticker Symbol (NYSE MKT) AMZG…
MANAGEMENT Brad Colby President / CEO 30 years experience in E&P development with technical background in engineering and geology Experienced in asset acquisition, development, and drilling joint ventures Strong business background…
INVESTMENT CONSIDERATIONS 45,600 net acre position in northwest Divide County, ND targeting the Three Forks and Bakken formations High Return Williston with 318 net identified locations Oil Exposure at De-risked and delineated position…
STRATEGY & 2014 YEAR END GOALS Strategies Ability To Execute 2014 Year End Goals Plan on drilling 16 net (24 gross) wells in To trade in-line with our Williston peer Continue to validate our Spyglass Area 2014 with 40% to 60% IRRs(1)…
COMPANY OVERVIEW 7
RESERVE GROWTH Proved Reserves Highlights(1) PDP Vs. PUD - Pro Forma for March 2014 Acquisition(1) Pro forma for March 2014 acquisition implies 2013 finding and development cost of 16.00 per BOE PDP Reserves Reserves: 5.4 Mmboe…
PRODUCTION GROWTH & UPSIDE FROM INVENTORY Average Daily Net Production Per Period (BOEPD) Williston Reserves (12/31/13) & Upside (MMBOE)(1) 100 3,500 93.5 90 3,000 3,000 80 32.7 2,500 2,250 70 1,879 60 2,000 1,645 50 1,362…
SPYGLASS PROJECT AREA OVERVIEW 10
WILLISTON BASIN SPYGLASS OPERATING AREA VS. CORE AMZG Spyglass Well Results Identical to Williston Core AMZGs 45,600 net acres in its Spyglass Area of Northwest Divide County, ND AMZG 45,600 net have well results equal to or acre…
WILLISTON BASIN STRATIGRAPHY 12
SPYGLASS THREE FORKS LONG LATERAL ECONOMICS Spyglass Overview Three Forks Long Lateral Ryder Scott Type Curve Lower D&C costs and flatter decline curves drive 450 strong per well economics 400 65%+ IRRs 350 17 month paybacks…
SPYGLASS WELL ECONOMICS RYDER SCOTT ASSUMPTIONS Spyglass: Lower D&C costs & flatter decline curves produce impressive IRRs & quick paybacks Spyglass Well Economics Ryder Scott Assumptions For All Well Types(1) Assumptions: Three Forks…
SPYGLASS PROJECT AMZG OPERATED WELL RESULTS AMZG Operated Well Results American Eagle Spyglass Acreage (Yellow) Lateral Average Daily Rates (BOE) 1 Year Date Well Target Ft. 30 60 90 365 Cum 47 Sep-14 Iver Three Forks Long Drilling (4…
AMZG THREE FORKS OPERATED RESULTS VS. RYDER SCOTT TYPE CURVE Selected Three Forks long lateral operated well results validate Ryder Scott type curve and 450 BOE EURs AMZG Operated Three Forks Long Lateral Well Results Vs. The Ryder…
SPYGLASS OFFSET OPERATOR ECONOMIC ASSUMPTIONS American Eagle Spyglass Acreage (Yellow) & Offset Operator Economic Assumptions (1) American Eagle (Yellow) Crescent Point 1-mile lat w/ tax incentives: Well Costs (MM) 6.4 EURS: 175-275…
DERISKED INVENTORY AND UNDEVELOPED UPSIDE Spyglass Structure Map & AMZG Inventory(1) Proved Area (25 PDPs): Reserve Report Net PUDs: 40 Net Identified Locations: 69 Proved Area Net Inventory: 134 (6.8 years) Undeveloped Area: Net…
SPYGLASS CROSS SECTION CONSISTENT GEOLOGY Three Forks Reservoir Well Logs / Cross Section: Consistent Geology From West to East A (West) A (Middle) B (East) Undeveloped Area: Proved Area Bordering Probable: Proved Reserves Area: This…
FINANCIAL OVERVIEW 20
2014 UPDATED CAPITAL BUDGET AND PRODUCTION 2014 Development Plan Detail 2014E Development Budget Expect to add approximately 24 gross (16 net) 2014 Drilling Budget ending 12/31/14 Drilling operated wells during 2014 with development…
CAPITALIZATION Actual American Eagle Energy - Capitalization Summary 3/31/2014 (All amounts in 000's) Cash (1) 50,082 Debt: Morgan Stanley (200 million facility at 5.5% to 10.5%) (2) 108,000 Stockholders' Equity: Common Stock &…
PRO FORMA VALUATION VS. BAKKEN COMPS Adjusted EV/ Net Bakken Acres EV / Last Quarter Average Net Daily Production (BOEPD) 20,000 200,000 18,000 17,321 170,093 180,000 167,050 163,825 16,000 160,000 14,000 140,000 12,000 120,000 109,911…
INVESTMENT CONSIDERATIONS 45,600 net acre position in northwest Divide County, ND targeting the Three Forks and Bakken formations High Return Williston with 318 net identified locations Oil Exposure at De-risked and delineated position…
CONTACT INFORMATION Marty Beskow, CFA Vice President of Capital Markets & Strategy American Eagle Energy Corporation 2549 West Main Street, Suite 202 Littleton, CO 80120 720-330-8378 martybeskowamzgcorp.com 25
APPENDIX 26
HEDGING SUMMARY & PHILOSOPHY Active hedging program supports capital spending, protects cash flow, and helps ensure strong financial coverage metrics Approximately 60% of current production hedged Plan to add swaps on ongoing basis to…
SPYGLASS DRILLING INVENTORY Current DSU Size Potential Wells Unrisked Potential NRI Per Well EUR Total Unrisked 1 Project Area DSUs (Acres) Net Acres per DSU Locations NRI Wells (Mboe)2 Potential (Mmboe) Three Forks Spyglass Proved…
VALUATION SUPPORTING DETAIL (Market data as of 5/29/2014; numbers in millions, except per share and acreage values) Metric KOG OAS TPLM EOX Peer Average AMZG Current Stock Price 12.75 50.27 10.39 6.65 6.08 Shares Outstanding 270.2 101.2…
RECENT FINANCING AND AGREEMENTS Sold 12.65MM shares of common stock 6.60/share in March 2014 - 84 million equity raise Brought in long-term, institutional holders Sold 3.95MM shares of common stock 6.80/share in October 2013 - 27…
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