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October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc.

Eco-Stim Energy Solutions, Inc. · Oct 31, 2016 · 33 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. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 1
    Corporate Overview October 2016 Nasdaq: ESES
  2. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 2
    Who are we Emerging growth, technology-driven independent oilfield service company providing: Well stimulation; Coiled tubing; and Reservoir field management services Proprietary proven technologies and processes to: Reduce…
  3. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 3
    Seasoned leadership team with local and international experience Relevant Experience Bjarte Bruheim 30+ years international management experience Chairman and Founder J. Chris Boswell President, CEO and 28 years experience…
  4. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 4
    Management team has consistent track record of building profitable E&P & energy service platforms Co-founded by Bjarte Bruheim in Developed in 1995 by Bjarte Bruheim, Deepwater exploration venture initially Bjarte Bruheim named…
  5. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 5
    Our business plan in Argentina is backed by 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…
  6. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 6
    Why did EcoStim start its operation in Argentina Argentina has 3rd largest shale formation in world; highest daily production outside of N. America Subsidized oil price of 68/BOE; price of natural gas is 7.50 mmbtu Only six…
  7. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 7
    What makes EcoStims growth opportunity attractive for investors Shale plays require massive horsepower Argentina is currently importing the maximum amount of natural gas possible Drivers Major incentives for operators to increase gas…
  8. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 8
    Strong growth can be achieved in major shale developments Actual Results From A Pure Play Pressure Pumping & Coiled Tubing Business Which Experienced Strong Growth In An Under-Supplied North American Market From 2009 To 2012 Revenue…
  9. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 9
    Argentina has barriers to entry that limit capacity growth Barriers to Entry: Importation of new stimulation equipment is still challenging Any new equipment into country must be negotiated with at least 3 agencies (Ministry of…
  10. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 10
    Argentina Rig Count 200 Despite a government oil price guarantee for non-exported oil of 67.50; oil drilling is down 50% in Argentina primarily because of the gap between international oil prices and the Argentina oil price. As the…
  11. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 11
    Argentina fracturing equipment supply & demand 800 700 600 500 400 300 200 100 0 2012 2013 2014 2015 2016 2017 2018 Frac HHP Available Demand for Frac HHP 12
  12. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 12
    Argentina is a net importer now of both oil and gas 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…
  13. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 13
    Argentina has gone from net energy imports of 2 billion in 2009 to over 10 billion in 2013; Last two years not reported 14
  14. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 14
    Energy imports (primarily LNG & nat. gas) had reduced dollar reserves to dangerous levels in 2015 Argentina Dollar Reserves (2009 2015) (Billions of Dollars) 60 46 40 38 40 32 28 26 20 10 0 2009 2010 2011 2012 2013 2014 2015 US…
  15. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 15
    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…
  16. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 16
    Mature oil-producing country with strong customer base E&P Companies Operating in Argentina 17 Source: Management research
  17. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 17
    Review of past business and new contract opportunities for EcoStim 2015 Customers And Partners New Customers 1st Half 2016 New Tenders/Proposals 2016/2017 18
  18. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 18
    Argentina customers now going through 2017 budget cycles and a number of proposals are being submitted in October Invited to tender on well stimulation for over 200 stages on unconventional wells in 2017 - 25-40 million depending on…
  19. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 19
    Unconventional wells drilled Vertical vs Horizontal Unconventional Wells Drilled YPF & Partners had 11 rigs 250 drilling horizontal wells as of Q2 2016 For 2016, YPF expects to drill 100 horizontal 200 wells; 54 drilled in…
  20. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 20
    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…
  21. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 21
    Unconventional wells to be drilled Forecast (assumes drilling efficiencies & more rigs dedicated) Estimated Horizontal Unconventional Wells 450 400 400 350 350 300 300 250 200 175 150 100 100 50 35 0 2015 2016 2017…
  22. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 22
    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…
  23. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 23
    Technology well-suited to reduce cost and environmental impact in a country like Argentina 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…
  24. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 24
    Modern automation software, sensing technology and computer chip speed allow for major changes in turbine pumping Modern computer-processing speed and software developments have allowed for: Multiple redundant safety features now…
  25. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 25
    Capacity expansion nearly complete to prepare for tight gas & unconventional markets - 2016 EcoStim 2015 EcoStim Q1- Q3 2016 EcoStim Q4 2016 Data Van 1 Data Van 1 Data Van 1 Data Van 2 Data Van 3 (27k HHP) (16k-25k HHP) (9k HHP)…
  26. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 26
    You cant manage what you dont measure. EcoStim conducts its horizontal stimulation services within a systematic methodology Leverages fiber-optic technology and predictive modeling (how many stages dont actually produce hydrocarbons)…
  27. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 27
    Example of sweet spot prediction; largely based on the identification of micro-fracture swarms or natural fracturing Mud logs on this horizontal well show flare markers that confirm predictive fracture maps Using proprietary…
  28. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 28
    Confirmation of producing zones.. (It is generally accepted that only one of three stages produce hydrocarbons) Derived from Fiber Optic Acoustic Signatures 9 8 7 6 5 4 3 2 1 TIME Gas Production from zone 6 Gas + Water…
  29. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 29
    Target completion stages based on technology & empirical data 32 Stages 200k / Stage = 6.4 Million 16 Stages 200k / Stage = 3.2 Million 30
  30. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 30
    Plug & Perforation pump rates versus sliding-sleeve pump rates 5 sets of perforation clusters Each cluster pumps at 90bpm requiring 27,000 HHP on surface - 27 Million of CAPEX. 15 sliding sleeves strategically placed in…
  31. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 31
    9,000 HHP Pumping Spread using stranded flare gas (via CNG) versus 27,000 HHP Pumping Spread using diesel fuel Traditional EcoStim Configuration 32
  32. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 32
    What makes EcoStims growth opportunity attractive for investors Shale plays require massive horsepower Argentina is currently importing the maximum amount of natural gas possible Drivers Major incentives for operators to increase gas…
  33. October 2016 Corporate Overview – Eco-Stim Energy Solutions, Inc. – slide 33
    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 34

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