Laramie Energy EnerCom Conference Private Company Panel August 20, 2015
Laramie Energy II, LLC - Introduction Introduction Laramie Energy II, LLC (Laramie or Laramie II) is a Denver-based natural gas and oil field development company funded by management and private equity Private Equity Funding from…
Piceance Basin Piceance Basin Statistics One of the largest accumulations of natural gas in North America with direct access to the West Coast markets Estimated 200-300 Tcf of gas-in-place, approximately 4 Tcf recovered to date In…
Primary Producing Formations Williams Fork Structure Map Basin centered gas (Top of Dakota Sandstone) Fluvial deposition 3000 feet of stacked sand bars averaging 6 acres in size Sourced by Cameo Coals & Mancos Gas column increases…
Laramie Operations Operations are 100% focused on the Piceance Basin of Western Colorado 332 operated producing wells, 230 non-operated, all vertical/directional (562 Total) Acreage: 52,336 Gross Acres, 45,792 Net Acres; 95% HBP…
Piceance Basin Keys for Economic Success Land/Contracts High lease NRIs Reasonable Surface Use Agreements (surface ownership is valuable) Favorable Gathering & Processing Contracts Operations Manufacturing style drilling program…
Growth Plan Continue a one rig drilling program and move toward a multi-rig program with a focus on developing the companys highest return acreage Water infrastructure projects underway provide line-of-sight to cost reductions and…
Drilling Demonstrating Repeatable Performance 8
Completions - Frac Size Vs Reserves (WF) Frac size (water volume) determines reserves Williams Fork Frac History - Water Volume vs EUR 2.50 2.25 2.00 1.8 1.75 1.9 EUR/Well (Bcf) 1.50 1.3 1.25 1.00 Pad Sand (lbs) Water…
Completions Encana Sandless Fracs 1) Minimal degradation in reserves by eliminating sand. 2) Larger fracs result in higher EURs. Encana Sand vs. Sandless Completions (North Team) 7 Encana Sand 6 Encana Sandless 5 4 EUR…
Facilities Assets & Capabilities South Area Extensive Infrastructure Exists w/ Deliberate Expansions Planned Hawxhurst Compressor Steel Gas & Water Pipe High Pressure Gas Station (4 MMscfd) Gathering Network (4 16) Trunkline (DCP)…
Marketing Highlights PE currently sells all gas at White River Hub (1 mile from Meeker Plant) Buyers CIMA, Seminole, Concord, ConocoPhillips, Source Gas, Shell, Enserco, BP, Excel Energy Current Pricing 1st of Month Pricing Based…
Williams Fork Projected Well Economics High NRI Piceance Energy, LLC - Drill & Complete Economics Section 29 (2 Pads Remaining) 21 Well Pad - Frac w/ Sand 2,500 100% CASE 1 - SAND COMPLETIONS 100% WI 94.69% NRI 1.8 Bcf Gross EUR/Well…
Williams Fork Projected Well Economics Low NRI Piceance Energy, LLC - Drill & Complete Economics 16 Well Pad - Frac w/ Sand CASE 1 - SAND COMPLETIONS 100% WI 82% NRI 2,500 100% 1.8 Bcf Gross EUR/Well 1.354 MM D&C Cost NPV10 (M/Well)…
Number of Drill Locations Distributed by ROR at Fixed Prices Drill Locations (Sandless Fracs) - 3.00/MMBtu CIG & 50/bbl WTI 1600 3200 1400 2800 1200 2400 840 988 1000 2000 Cumulative Locations Locations 800…
Piceance Basin Mancos/Niobrara Fairway Emerging shale gas play Primarily a Gas Shale Play in Piceance Mancos shale is a 3000 to 4000 foot interval Basal portion is the Niobrara Drilled vertically where Williams Fork sands are…
Historical Drilling Days Per Well Vertical Mancos 6 Wells drilled to date Averaging 1.8MM DHC Last 2 wells 17
Frac Size Vs Reserves Vertical Mancos Frac size (water volume) determines reserves Mancos Frac History - Water Volume vs EUR (EUR does not include uphole Mesaverde reserves) 6.0 5.0 4.0 3.6 4.3 4.3 4.1 4.2 EUR (Bcf)…
Type Well Economics Mancos Vertical wells currently have more attractive economics Williams 4.00 / 90 Flat 5.00 / 90 Flat Mancos Fork Uphole Mancos Per Location Per Location Reserves Reserves IP NPV10 ROR NPV10 ROR (BCF) (BCF)…
Laramie Energy Summary Laramie has a Production Growth Strategy Built a Premier Position in a Prolific Gas Resource Basin Repeatable High Return Long Life Consistent Results Significant room for Growth High Working Interest…
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