This presentation, which is being provided for information purposes only, was prepared by Laramie Energy, LLC, a Delaware limited liability company in which Par Pacific Holdings, Inc. (Par) owns a 42.3% ownership interest. Investors…
Table of Contents 1. Laramie Energy Introduction 2. Piceance Basin Overview 3. Laramies Current Operations 4. Go-Forward Business Plan 3
Laramie Energy LLC - Introduction Laramie Energy, LLC is a Denver-based natural gas and oil field development company funded by management, public, and private equity. Introduction Public Equity: Par Pacific Holdings, Inc. (NYSE:…
Laramie Energy Brief History Laramie I (2004 to 2007) Invested 210 million of equity and 180 million of bank debt in the Piceance Basin Drilled over 200 wells by ramping up to a 5-rig program Built-out the areas midstream system…
Colorados Piceance Basin One of North Americas largest accumulations of natural gas 5 of the top 50 gas fields in the USA Peaked at over 1.6 Bcf/d of production 20% of all Rockies gas production 84% gas, 16% NGLs and condensate…
Primary Producing Formations Williams Fork Rollins Structure Map Basin centered gas Mancos/Niobrara PSI Fluvial deposition 3000 feet of stacked sand bars averaging 6 acres in size Sourced by Cameo Coals & Mancos Gas column…
Piceance Basin Development - Pad Drilling of Directional Wells Williams Fork Formation Laramies current drilling pattern: Stacked, tight-sand gas reservoir 3-columns of 21-wells Developed on 10-acre density using directional pad…
Extensive Interstate Pipeline Takeaway Capacity & Markets Unlike the Eastern U.S., the Piceance Basin has completely unconstrained pipeline takeaway capacity due to the construction of REX and Ruby pipelines and expansions of Kern…
Rockies Differentials to NYMEX vs. Eastern U.S. Piceance Basin = advantageous long-term basis differentials due to regional demand and ample pipeline capacity Northwest Rockies Index Dominion South Index Rockies Basis Strengthening…
Piceance Basin Keys for Economic Success Land/Contracts High lease NRIs Reasonable Surface Use Agreements (surface ownership is valuable) Gathering & Processing Contracts with optionality and minimal volume commitments Operations Must…
Piceance Basin - Activity and Economics Rig Count 2 rigs currently operating (down from 90 rigs in 2008) Major operators have exited, or are exiting, to raise cash for their oil-focused strategies elsewhere: 2013 - PDC, Noble, and…
Laramies Operations - Asset Locator Map Laramie Energy Acreage All Laramie Energy acreage in Garfield, Mesa, and Rio Blanco Counties, Colorado North Area I-70 corridor & highlands South Area Collbran Valley 13
Recently Acquired Acreage Blue = Acquired Leasehold Yellow = Laramie Energy prior Leasehold Rio Blanco County Recently Acquired Acreage Cascade Creek Field, average 98% WI and 95% NRI due to owned minerals Garfield County Collbran…
Laramie Operations 1,204 operated producing wells, 412 non-operated wells Net Production: 140 MMcfe/day substantially all gas is processed at Enterprises Meeker plant 58 drilled-but-uncompleted (PDNP) wells ready for completion Leases:…
Laramie Energys Competitive Advantages 100%Laramies concentrated in theOperating Competitive Piceance Basin with Advantages outstanding local knowledge of Geologic trends and rock properties Land ownership and infrastructure…
Extensive Laramie Infrastructure Northern Area (I-70 Corridor & Highlands) +70 miles of access roads, including the recently upgraded 20 million Cascade Canyon Mountain Road which connects the mesa area to the valley +70 miles of…
Drilling Demonstrating Repeatable Performance Significant Drill Cost & Time Reductions Achieved on Williams Fork Wells 18
Completions - Frac Size Vs Reserves (WF) Frac size (water volume) correlates to reserves EUR vs Completion Volume 2.8 2.6 2.4 2.2 2 EUR (BCF) Current Design 10,000 bbls/stage 1.8 10 Stages 1.6 1.4 1.2 1…
Piceance Basin Mancos / Niobrara Trend Emerging shale gas play Mancos shale is a 3000 to 4000 foot interval Primarily a Gas Shale Play in Piceance Basal portion is the Niobrara (+1500) Drilled vertically where Williams Fork sands…
Mancos / Niobrara IP Bubble Map Laramie Energy acreage offset by high IP horizontal wells 21
Frac Size Vs Reserves Vertical Mancos Still in early stage of optimization, varying water volume and proppant type / concentration Mancos Frac History - Water Volume vs EUR (EUR does not include uphole Mesaverde reserves) 6.0…
Go-Forward Business Plan Opportunistically grow asset position in the Piceance Basin through further consolidations Re-start completion program in 3rd quarter 2016 (58 PDNP wells left to complete) Re-start drilling program as soon as…
Laramie Energy Production Growth Strategy Premier position in a prolific gas resource basin Repeatable Competitive Returns Long Life Consistent Results Significant room for Growth High Working Interest Operating Control…
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