Investor Presentation Stuart Page, CEO More Oil From Yesterdays Wells Robert W. Baird & Co. Industrials Conference Chicago, IL November 2014
Company Overview: Synergistic Dual Business Model Glori Energy is an oil production and biotechnology company that deploys its proven breakthrough AEROTM technology to recover more oil from conventional oil fields at a lower cost.…
AERO is Effective in Low Price Commodity Environment Acquiring mature producing oil properties: Lower prices induce oil and gas companies to sell mature non-core properties to raise capital, which increases our acquisition…
ACTIVATED ENVIRONMENT FOR RECOVERY OF OIL (AERO) TECHNOLOGY 5
Technology Overview Gloris AERO System is the result of decades of lab research and field deployments by Glori and its research collaborators, primarily Statoil S.A. of Norway All key Intellectual Property is owned or controlled by…
How it Works Bacteria Grows on Residual Oil Trapped oil is freed Nutrients enable resident bacteria to grow Growth of microbiology on the residual oil on the residual oil, developing a biomass disrupts the balance of forces holding…
Implementation of AERO TM Technology Pre-AERO Technology Post-AERO Technology Injection well with Injection well AERO technology Water pathway New water flow Microbial nutrients New water Trapped oil Sand grains…
Model Return Potential Illustrative Impact of AEROTM Technology B = 1,500 MBbls C = 1,800 MBbls AERO Start Post-AERO Start Comparative Production: Production without AERO: B = 1,500 MBbls Projected Original Oil Production due to…
Sample AERO Technology Implementation Data 250 200 Production (boe/d) 150 100 50 Daily Production Uplift of 90% -- -240 -210 -180 -150 -120 -90 -60 -30 0 30 60 90 120 150 180 210 Days Relative to AERO Start…
Biology Impact is Dynamic Microbial Enhanced Oil Recovery Response from single well-pair flood pilot 10.0 9.0 8.0 Production(Bopd) m3 7.0 6.0 oProduction 5.0 4.0 3.0 2.0 1.0 0.0 Month Blue = Start MEOR Bopd…
AERO Profit Margin Beats Traditional Methods At 80 oil prices and 6 cost per bbl, AERO profit margin is 74 100 90 Low CAPEX 80 15 70 (typical pilot expenditure 25 60 65 100k) 48 50 55 + 40 74 Low OPEX 30 20 32 (ultra…
Technology & Statoil Collaboration Recognized by the Industry Glori Energy Ownership of Jointly Developed IP Restricted to owned assets Perpetual Irrevocable Royalty-Free License to IP Unrestricted Statoil ASA (OB: STL)…
Better Enhanced Oil Recovery As much as 2/3 of discovered oil remains in the reservoir after using todays conventional oil and gas development technologies due to the physics of fluid flow, leaving 2.4 trillion barrels of…
OIL & GAS SEGMENT
Coke and Quitman Fields Glori has acquired, and will continue to Total Reserves Profile (1/1/2014)(1) acquire, mature oil fields in the United States Developing these properties is the primary PDP Probable Possible Oil Natural Gas…
FINANCIAL HIGHLIGHTS
Financial Strategy Deploy capital to acquire mostly producing oil assets to be enhanced by implementing Gloris AERO technology Leverage acquisitions with debt secured by proved reserves and supported by historical cash flow Benefit…
3Q14 Income Statement Summary Three Months Ended % Change (unaudited, in 000s) 30-Sep-13 30-Sep-14 Total revenues 775 5,458 604% Operating Expenses 1,054 3,745 255% Science and technology 386 449 16% SG&A 934 1,572 68% Total…
Summary Balance Sheet (in millions) September 30, 2014 Cash 32.7 Debt 20.4 Net debt (12.3) Stockholders' equity 52.8 Total assets 78.9 Debt/Cap 28% 20
Illustrative Potential Build-up From Acquisitions (1) ( in millions) Acquisition Build-up Summary Overview Terms / Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Pro forma average daily production (Bbls) 876 2,371 3,976 5,504 6,955…
Investment Highlights In a low price environment, E&P companies may consider reducing capex for new wells, Depressed Oil Price Environment making Glori the low cost alternative to increase production from existing wells using the…
APPENDICES Board of Directors & Management Intellectual Property & Awards Field Performance 23
APPENDIX Management & Board of Directors
Experienced Management Team STUART PAGE MICHAEL PAVIA CEO CTO MBA Harvard Business School BA, MA, Oxford University PhD Organic Chemistry, University of Pennsylvania BS Chemistry, Lehigh University VICTOR PEREZ BUD BIERHAUS…
Accomplished Board of Directors John Clarke Former EVP and CFO (Dynegy) Former Chairman and CEO (NATCO) Mark Puckett Mark Chess Former President, Executive Vice President, Chevron Energy Technology Infinity Corporation Ganesh…
APPENDIX Intellectual Property & Awards
Strong Intellectual Property Protection Key AERO Patent Systems and Methods of Microbial Enhanced Oil Recovery Received notice of allowance July 23, 2014 Owned by Glori. License to Statoil Inventors: Glori & Statoil personnel…
AERO Has Received Multiple Awards For Innovation 29
AERO is Built on Decades of R&D Spectacular results have been recorded by Statoil at its Norne Field in the Norwegian North Sea. Following 25 years of research and development (R&D) and deployment, the recovery factor at Norne is…
APPENDIX Field Performance 31
Glori In The Field In Brazil 32
AERO Implementation Data 380% Linear Regression Applied to Data 330% Before AERO and During AERO Implementation Project A 280% Percent Uplift 230% 180% 130% 80% 30% -20%-1000 -800 -600 -400 -200 0 200 400 600 800…
AERO Implementation Data 60% Linear Regression Applied to Data During AERO Implementation 50% Project B Data Full Field: AERO Applied to Only =20% of Field 40% 30% Percent Uplift 20% 10% 0% -160 -110 -60 -10 40 90…
AERO Implementation Data 120% Linear Regression Applied to Data Before AERO and During AERO Implementation 100% Project C 80% Percent Uplift 60% 40% 20% 0% -250 -200 -150 -100 -50 0 50 100 150 200 250 -20% Days…
AERO Implementation Data 120% Linear Regression Applied to Data Before AERO and During AERO Implementation 100% Project D 80% Percent Uplift 60% 40% 20% 0% -250 -150 -50 50 150 250 350 450 550 650 750 -20% Days…
AERO Implementation Data 400% Linear Regression Applied to Data 350% Before AERO and During AERO Implementation Project E 300% 250% Percent Uplift 200% 150% 100% 50% 0% -1000 -800 -600 -400 -200 0 200 400 600 Days…
AERO Implementation Data 120% Linear Regression Applied to Data Before AERO and During AERO Implementation 100% Project F Data Full Field: AERO Applied to Only =10% of Field 80% Percent Uplift 60% 40% 20% 0% -400…
Reconciliation of Adjusted EBITDA For the Three Months Ended September 30 (in 000s) 2013 2014 Net loss (825) (356) Taxes on income - 51 Gain on change in fair value of warrants (1,183) - Gain on commodity derivatives - (2,027)…
Non-GAAP Financial Information We use both GAAP and certain non-GAAP financial measures to assess performance. Generally, a non-GAAP financial measure is a numerical measure of a companys performance, financial position or cash flows…
Glossary of Terms Enhanced Oil Recovery (EOR) A stage of hydrocarbon production that involves use of sophisticated techniques to recover more oil than would be possible by utilizing only primary production or waterflooding. EOR…
E&P Innovation Trends: The Path to Mass Adoption R&D / First Mover First Mover Market Response to Mass Technology Innovation Begins Adopting Technology Employs Growth Strategy Adoption Horizontal Drilling 1920: Horizontal drilling…
Thank you. Victor M. Perez Chief Financial Officer 713-237-8880 vperezglorienergy.com Investor Relations Counsel: Lisa Elliott/ Anne Pearson Dennard-Lascar Associates 713-529-6600 43
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