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Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc.

Eco-Stim Energy Solutions, Inc. · Dec 9, 2015 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 1
    Wells Fargo 14th Energy Symposium New York December 9, 2015 Nasdaq: ESES
  2. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 2
    Investment highlights 80% of shale reserves located outside North America with just 20% of global pressure pumping capacity Argentina has 3rd largest shale formation in world; highest daily production outside of N. America Price…
  3. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 3
    Technology-driven, emerging growth platform Capitalize on emerging market developments and sentiment for Eco-Friendly unconventional solutions Emerging growth, technology-driven independent oilfield service company providing: Well…
  4. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 4
    Seasoned leadership team with highly relevant experience Relevant Experience Bjarte Bruheim 30+ years international management experience Chairman and Founder J. Chris Boswell President, CEO and 28 years experience in the…
  5. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 5
    Track record of consistent success building profitable energy service platforms Co-founded by Bjarte Bruheim in Developed in 1995 by Bjarte Bruheim, Deepwater exploration venture initially Bjarte Bruheim named Executive 1991; served…
  6. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 6
    Leading equity sponsors with extensive oilfield and emerging markets expertise Experienced energy investors dominate the founding In July 2014, the Company received 30 shareholder group million in private financing from Bjarte Bruheim…
  7. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 7
    Eco-Stims recipe for a successful international shale play Approximately 75% of global shale resources lie outside the United States Key Selection Criteria For International Shale Market Opportunities Top 10 Countries with Technically…
  8. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 8
    2014 oil and gas production and consumption in Argentina Oil consumption outstrips local oil supplies by 33k bbls/day. At Over 6 billion in dollars 45/barrel this equates to 542 million per year leaves the country each year to buy…
  9. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 9
    Argentina has gone from energy imports of 2 billion in 2009 to over 10 billion in 2013; Higher in last two years 10
  10. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 10
    Energy Imports (primarily LNG & Nat. Gas) have reduced dollar reserves to dangerous levels Argentina Dollar Reserves (2009 2015) (Billions of Dollars) 50 46 45 40 40 38 35 32 30 28 26 25 20 15 10 10 5 0 2009 2010…
  11. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 11
    YPF Partnership Agreements since 2013 Gasprom signed in 2015 12
  12. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 12
    Goldman Sachs base case predicted oil and gas production through 2040 most growth in next 10 years 1.3 million boe/d increase expected (300,000 boe/d before 2020) 13
  13. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 13
    Expected spending on drilling and completion over next five years exceeds 46 billion in base case 14
  14. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 14
    Vaca Muertas Loma La Lata field expected to have significant growth mostly natural gas 15
  15. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 15
    Vaca Muertas Loma Compana also expecting significant growth mix of oil and gas 16
  16. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 16
    Logistics of moving one crew to perform services in a large country 1500 miles 17
  17. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 17
    Very strong production results from Vaca Muerta despite limited number of horizontal wells; Recent well came on at 1,630 bbls/day 18
  18. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 18
    Investments, rig count and number of operators are all increasing E&P Companies Operating in Argentina Argentina is one of Latin Americas fastest-growing oil and gas exploration markets: 20 new shale drilling rigs moved to Argentina…
  19. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 19
    Service cost remain very high in Argentina due to logistics, supplies & labor Average Price per stage - 2015 700 Barriers to Entry: 700 Importation of new stimulation equipment has been limited 600 Any new equipment into country…
  20. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 20
    Actual Eagle Ford vs predicted Vaca Muerta - Drilling rigs and stimulation fleets 300 265 250 220 200 150 160 Eagle Ford play in Texas - 4 rigs & 1 Frac 100 crew operating in 2008 87 75 50 50 4 0 1 2008 2010 2012 2014 %…
  21. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 21
    Argentina market segmentation ESES expanding to all three market segments Argentina Well Stimulation Market Minimum 24,000 HHP 35% Unconventional 33% 29% Conventional Other 32% 4% Tight Gas Eco-Stim Minimum 16,600 HHP…
  22. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 22
    Expected equipment delivery dates as ESES moves to 52,000 HHP Nov Dec Jan Feb Mar Apr May Jun 2015 2015 2016 2016 2016 2016 2016 2016 Diesel Pumps 3 Pumps 2 Pumps 2 Pumps Turbine Pumps 27,000 HHP Blender Hydration Unit…
  23. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 23
    Multiple benefits of TPUs Multiple benefits over conventional diesel-powered well stimulation equipment Comparison of Physical Footprint Multi-Fuel Designed to run on field gas, LNG, CNG, Diesel or bi-fuel Capabilities No loss in…
  24. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 24
    Illustrative market economics for new Argentina equipment Illustrative Run-Rate Field Level Cash Flow for Comparable Equipment* Conventional & Tight Gas Unconventional Fleet Coiled Tubing Unit Pumping Fleets Stages per Month…
  25. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 25
    According to Welling & Co, the primary reason for poor performing shale wells is the lack of subsurface understanding 26
  26. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 26
    Technology platform to identify sweet spots and ground truth Eco-Stim conducts its horizontal stimulation services within a systematic methodology Leverages fiber-optic technology and predictive modeling (how many stages dont actually…
  27. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 27
    Example of sweet spot prediction Mud logs on this horizontal well show flare markers that confirm predictive fracture maps Using proprietary technology for accurate well placement and stimulation stage planning + Maps produced in…
  28. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 28
    Example of sweet spot prediction in a given area using Geo-Predict Very Good Very Poor E Excellent Well A Well B G Good F Fair P Poor Geo-Predict from Multiple Attributes
  29. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 29
    Confirmation of Producing Zones.. (It is generally accepted in the industry that only one of three stages actually produce) Derived from Fiber Optic Acoustic Signatures 9 8 7 6 5 4 3 2 1 TIME Gas Production from zone 6 Gas +…
  30. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 30
    Confidently targeting good locations, well orientation & sweet spots on each well; Significant cost savings in high cost environments 31 evenly Well A Traditional completion spaced stages Well A Well B 31 Stages 15 Stages Well A 210K…
  31. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 31
    In new shale plays, technology advances can accelerate learning curve and focus efforts in high probability regions Well Drilled in Eagle Ford Best producing areas Early Maps Of Eagle Ford to Identify Sweet Spots within Eagle Ford…
  32. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 32
    Eagle Ford Hogs after years of Drilling; Clearly certain areas produce better than other areas; formation is not homogeneous 33
  33. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 33
    LCav.e-6 EcoStim Field Management System (Example Upper from Permian Resistivity Basin) Zone Real-Time Fiber-Optic Data Proprietary Geo-Predict Results Recorded on Vertical Appraisal Well Show Correlation w/ Best Zones with 18…
  34. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 34
    Upper Resistivity GeoPredict Zone ofProduction searches out reoccurrences key attributes to provide guidance as to Sweet Spots in new shale plays All Wells-Acoustic Impedance Attributes Observed in Monitored Zones Can Be…
  35. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 35
    EcoStim Revenue growth First Year of Operations 5M 4.4 3.9 4M 2.9 3M 2M 0.8 1M Q4 Q1 Q2 Q3 2014 2015 2015 2015
  36. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 36
    Illustrated example of quarterly revenue potential from planned asset base ( millions) 16 14 12 10 8 6 4 2 - 1 Crew Running 2 Crews Running 3 Crews Running Crew 1 Crew 2 Crew 3 Mobilization/Demobilization…
  37. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 37
    Balance Sheet September 30, 2015 Current assets: Cash and cash equivalents 21,264,770 Accounts receivable 7,020,991 Inventory 1,254,315 Prepaids 3,693,253 Other assets 186,662 Total current assets 33,419,991 Property, plant and…
  38. Wells Fargo 14th Energy Symposium – Eco-Stim Energy Solutions, Inc. – slide 38
    Investment highlights 80% of shale reserves located outside North America with just 20% of global pressure pumping capacity Argentina has 3rd largest shale formation in world; highest daily production outside of N. America Price…

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