Skip to main content IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. Investor Presentation | Shale Experts
Loading...
Pm

IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc.

Eco-Stim Energy Solutions, Inc. · Apr 18, 2016 · 35 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. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 1
    IPAA OGIS Conference New York April 2016 Nasdaq: ESES
  2. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 2
    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…
  3. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 3
    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…
  4. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 4
    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…
  5. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 5
    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…
  6. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 6
    EcoStims 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…
  7. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 7
    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…
  8. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 8
    Argentina has gone from net energy imports of 2 billion in 2009 to over 10 billion in 2013; Last two years not reported 10
  9. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 9
    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…
  10. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 10
    What has changed in Argentina New pro-business, free markets President Oil prices confirmed at 67.50; Natural Gas prices confirmed at 7.50 Currency controls removed Export taxes reduced to encourage more exports Currency devalued…
  11. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 11
    Mature oil producing country with strong customer base E&P Companies Operating in Argentina Source: Management research 13
  12. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 12
    2016 Argentina shale developments Chevron to spend 15 billion in development of Vaca Muerta shale Petronas to drill 900 wells in Argentina; 35 horizontal wells in 2016 - Upstream Dow Chemical to participate in 130 wells in Argentina;…
  13. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 13
    Review of past business and new contract opportunities for EcoStim 2015 Customers And Partners New Customers Q1 2016 New Tenders/Prospects 2016/2017 Page 1515
  14. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 14
    Unconventional wells drilled Vertical vs Horizontal Unconventional Wells Drilled YPF & Partners now have 250 11 rigs drilling 10-12 horizontal wells each per For 2016, YPF expects to drill 54 wells in Vaca year; 20 wells from…
  15. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 15
    Vaca Muerta average stages per well Vertical vs Horizontal Average Stages Per Well 20 18 16 14 12 10 8 6 4 2 0 2012 2013 2014 2015 2016 Vertical Horizontal Source: Management Estimates & YPF Public Data 17
  16. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 16
    Drilling efficiency gains Eagle Ford vs Vaca Muerta Drilling days per horizontal well 120 100 80 60 40 20 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Eagle Ford Vaca Muerta Source: Management Estimates &…
  17. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 17
    Unconventional stages per month forecast (implies doubling of capacity in 2018) Average of 60 stages per month Unconventional Stages Per Month per crew 900 Average of 50 stages 833 800 per month Average of per crew 45 stages…
  18. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 18
    Unconventional wells to be drilled Forecast (assumes drilling efficiencies & more rigs dedicated) Estimated Horizontal Unconventional Wells 450 400 400 350 350 300 300 250 200 200 150 95 100 50 35 0 2015 2016 2017…
  19. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 19
    Argentina following path experienced in US shale plays 2 years behind our original forecast Represents 13% of peak Horizontal Wells - Argentina Eagle Ford wells 500 400 300 Note that generally, the Eagle Ford 200 play had 7 to…
  20. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 20
    Service cost remain high in Argentina due to logistics, supplies & labor Includes proppant; 50% lower if operator provides proppant Barriers to Entry: 400 Importation of new stimulation equipment is still challenging 400 Any new…
  21. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 21
    Drilling efficiency is solved within first 3-5 years; completion efficiency is driven by activity first & then by technology Technically Recoverable Reserves are defined as a function of the volume of oil produced from each well, the…
  22. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 22
    Argentina well stimulation spending 2016 by type of reservoir Spending by type of reservoir Minimum 24,000 HHP Minimum 24,000 HHP 19% 29% 50% 56% 25% Minimum 16,600 HHP Minimum 16,600 HHP 21% Conventional Tight Gas…
  23. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 23
    Advantages of proprietary turbine-powered pumping units Only pumping unit in the world capable of: running on 100% natural gas can run on multiple fuel sources including natural gas, CNG, LNG and Diesel delivering emissions 65% below…
  24. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 24
    Major Improvements to turbine-powered pumping units as compared with last generation Modern computer processing speed and software developments have allowed for: multiple redundant safety features now automated; Turbine / Gearbox…
  25. IPAA OGIS Conference New York – 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 27
  26. IPAA OGIS Conference New York – 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. IPAA OGIS Conference New York – 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. IPAA OGIS Conference New York – 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 30
  29. IPAA OGIS Conference New York – 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. IPAA OGIS Conference New York – 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 30 Stages 15 Stages Well A 12 MM…
  31. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 31
    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 8…
  32. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 32
    Comparative balance sheets at December 31 December 31, 2015 2014 Assets Current assets: Cash and cash equivalents 11,742,489 7,013,556 Accounts receivable 8,155,264 264,192 Marketable securities 1,360,767 Inventory 1,546,463…
  33. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 33
    Historical revenues and summary of analysts estimates for 2016 & 2017 Millions of Dollars 140 120 100 80 60 40 20 0 2014 Actual 2015 Actual 2016 Analyst Estimates 2017 Analyst Estimates Analyst 1 Analyst 2…
  34. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 34
    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…
  35. IPAA OGIS Conference New York – Eco-Stim Energy Solutions, Inc. – slide 35
    2930 W. Sam Houston Pkwy N. Suite 275 Houston, Texas 77043 281-531-7200 www. ecostim-es.com Contact: Jeff Freedman Manager Investor Relations jfreedmanecostim-es.com 37

From the store

Browse maps, data & reports in the Shale Experts store