Investor Presentation January 2019 J. Michael Yeager - Chairman J. Russel Porter - Chief Executive Officer 1
Company Profile Oil and gas development and production Eagle Ford Shale Producing company based in Houston, TX Counties in Texas Focused on the liquids-rich Eagle Ford shale formation in Dimmit County, TX 9,400 net acre contiguous…
Freedom Management Team Experienced team with capacity to work at greater scale Incentivized to align shareholders and management outcomes J. Russell Porter President and CEO Mark Mabile Vice President, Operations Steve Mullican…
FDM Investment Highlights Compelling investment opportunity in rapidly growing company with significant upside Acreage located in volatile oil and condensate window Positioned in premium area Shale thickness of 400 ft. with three…
FDMs Eagle Ford Acreage Advantages Eagle Ford shale is one of worlds largest producing oil fields Proximity to offset operator production and data allows for confidence in geology High Quality Low- Verified, measured and tested 400 ft.…
Strategic Focus on Eagle Ford Development Successfully execute Maintain financial Pursue impactful current drilling flexibility and access and actionable M&A program to capital opportunities Grow value through low- cost…
Quality of FDM Position Confirmed with First Six Wells Offset Production Performance Confirms Area Quality Freedom Freedom Phase 2 Phase 1 Protg Murphy 4 Wells Avg. 2 Wells Avg. 6 Wells Avg. 19 Wells Avg. 1,187 BOEPD* 1,250…
Well Performance Above Type Curve Average well performance from Wilson and Hovencamp wells (Phase 1 & 2) tracking estimated type curve for proved and probable(2P) reserves Exceeding type curve for proved (1P) reserves only 9
Improving Operating Performance Faster completion times and lower costs with each drilling phase Reduced drilling time performance down to 10 days average in Phase 3 vs Phase 1 Recently improved estimated drilling and completion…
Changes in Fracturing Technology Advancing Drilling and Completion Technology Increases Production Wilson B Area 6,800 LL 27 Stages 6 Clusters per Stage 1,625/ft propp Current Design 7,750 LL 32 Stages 12 Clusters per Stage…
Recent Activity (Phase 3) Commenced six-month drilling program in August 2018 with fit-for-purpose rig Nine wells drilled in program to date from three pads Three wells recently completed and flowing back completion fluids and…
Production Growing in First Half of 2019 6 wells on production averaged 1,939 BOEPD in 4Q 2018 76% liquids (44% crude oil, 30% NGLs, 26% natural gas) 3 Vega wells in initial flowback 3 Persimmon wells completed (fracked) and…
Frac Water Interference 1500 2600 Event 1 Industry standard impact zone 3300 Normally can Hovencamp Wilson Hit effect producing Fraced While Producing wells due to pressure sink Impact drilling Event 2 sequence, short- term…
Opportunities and Objectives Continue to improve well productivity, utilizing more exact drilling designs and higher intensity completions Evaluate optimal spacing and frac design to minimize frac water interference and shut-ins…
APPENDIX 16
Updated Developmental Drilling Plan Focusing on and beyond Lower Eagle Formation Bench Immediate focus on optimizing well spacing and associated frac design Plans to drill four additional wells under remaining 45-day rig contract…
Current Infrastructure in Place FDM acreage close to existing oil and gas transportation lines Negotiated low transportation costs via pipelines and trucks US3-4 and US2-3, respectively No volume commitments No ship or pay…
Eagle Ford Favorable Price Margins LLS is a light crude price tied to Brent / Imports WTI Cushing* 52 - 55/bbl Direct access to Gulf Coast LLS market LLS is 3 to 6/bbl premium to WTI Permian is -3 to -4/bbl deficit to WTI Permian…
Established Reserve-Based Lending Facility Wells Fargo RBL Terms Reserve-based lending facility with Wells Initial Borrowing Base 20 MM Fargo is designed to grow with the Company Maturity 3 Years Provides alternate form of low-cost…
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