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Corporate Presentation – Magnum Energy Inc.

Magnum Energy Inc. · Dec 31, 2014 · 38 slides

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Slides

  1. Corporate Presentation – Magnum Energy Inc. – slide 1
    Magnum Energy Inc. Corporate Presentation January, 2014 www.magnumenergyinc.com www.magnumenergyinc.com TSX-V: TSX-V:MEN MEN
  2. Corporate Presentation – Magnum Energy Inc. – slide 2
    Capital Structure (as at August 31, 2013) Shares outstanding 67.5mm* Stock options 3.7mm Fully diluted shares 71.2mm Share Price (52 week hi-low) 0.08 - 0.01 Market capitalization ( 0.03/share) 2.0mm *Certain trade creditors…
  3. Corporate Presentation – Magnum Energy Inc. – slide 3
    Net Asset Value: as at August 31, 2013 GLJ 2P Reserve Value (BFIT Disc 10%) 12.312 mm Undeveloped Land (8,082 acres 120/acre) 0.970 mm Bank Debt (Un-audited) (3.276) mm Working Capital (Un-audited) (0.579) Convertible Debenture (due…
  4. Corporate Presentation – Magnum Energy Inc. – slide 4
    Directors & Management Richard Nemeth, President & CEO, Director Over 20 years oil and gas financing, senior management, and public/investor relations Joined Magnum in 2007 as VP Corporate Development and Operations Appointed…
  5. Corporate Presentation – Magnum Energy Inc. – slide 5
    Corporate Strategy Focus on creating shareholder value Growth in value per share metrics: NAV, reserves, and production Long life reserves, premium commodities (light oil) Land portfolio primarily assembled in market cycle low during…
  6. Corporate Presentation – Magnum Energy Inc. – slide 6
    Provost Highlights Established Provost Core Area Acquired operated 50% interest in 4.25 sections at nominal cost to company Initially, 4 producing wells (30 bopd gross), processing & injection facilities Drilled 4 Hz wells, built…
  7. Corporate Presentation – Magnum Energy Inc. – slide 7
    Sedalia Highlights Established Sedalia Core Area Operated: commonly 100% WI Sweet, shallow natural gas with multi-zone potential Year round access, lower drilling and operating costs Expanded gas plant from 1.2 to 7.5 mmcf/d for…
  8. Corporate Presentation – Magnum Energy Inc. – slide 8
    Production History (boepd) 250 Gas production 212 201 200 Oil Production 170 158 150 108 100 81 50 0 2008 2009 2010 2011 2012 2013 Fiscal Year www.magnumenergyinc.com TSX-V: MEN 8
  9. Corporate Presentation – Magnum Energy Inc. – slide 9
    Reserve Profile: as at August 31 (mboe) 2,000 Probable Proved Sedalia property 1,558 1,472 acquisition closed 1,500 Oct, 2009 Provost property 991 1,026 1,000 acquisition closed Mar, 2011 715 Fiscal year-end is 500 August 31…
  10. Corporate Presentation – Magnum Energy Inc. – slide 10
    Reserves: Oil Equivalent (mboe) Oil Equivalent (mboe)* Reserve Category 2008 2009 2010 2011 2012 2013 Proved Developed Producing 71 119 410 463 312 255 Proved Developed Non-Producing 17 395 362 79 16 43 Proved Undeveloped 0 0…
  11. Corporate Presentation – Magnum Energy Inc. – slide 11
    Reserve Value: BFIT NPV10% (000s) (BFIT NPV 10% - 000s)* Reserve Category 2008 2009 2010 2011 2012 2013 Proved Developed Producing 1,914 2,707 6,232 5,270 4,411 2,526 Proved Developed Non-Producing 291 8,304 5,493 812 239 750…
  12. Corporate Presentation – Magnum Energy Inc. – slide 12
    Lands: as at August 31, 2013 W6 W6 W5 W5 W4 ALB E RTA Acres Gross Net Undeveloped 10,080 8,082 SE PRA Developed 7,680 4,988 Total 17,760 13,071 Grande Prairie Edmonton By Area Gross Net Sedalia (Gas) 70% 78% WestProvost…
  13. Corporate Presentation – Magnum Energy Inc. – slide 13
    Provost: Emerging Viking Oil Resource Play Redwater Edmonton Lloydminster Halkirk Red Deer Kerrobert Provost Dodsland Crosssfield Whiteside Plato Calgary Source: Macquarie Research, Feb 2011…
  14. Corporate Presentation – Magnum Energy Inc. – slide 14
    Provost: Hz Viking Oil Upside Magnum is operator 4.25 sections (in yellow) 50% working interest 4 vertical wells 4 horizontal wells drilled www.magnumenergyinc.com TSX-V: MEN 14
  15. Corporate Presentation – Magnum Energy Inc. – slide 15
    Provost: Viking Pool & Wells Only 1969 waterflood Injectors (blue) Producers (green) Majority of wells suspended Injection suspended (in 1977 on south and west) 16-34 Hz well pressure (22% higher than original ) 16-34 Hz…
  16. Corporate Presentation – Magnum Energy Inc. – slide 16
    Provost: Viking Hz Development 80 mmbbls oil in place (1968 McDaniels study) 2 mmbls oil recovered up to 14 gross (7.0 net) Hz locations Qi 135 bopd / Hz well ROIP = 100 mstb / Hz well timing of development drilling a…
  17. Corporate Presentation – Magnum Energy Inc. – slide 17
    Provost: Select Wells Cum Oil 300mbbls www.magnumenergyinc.com TSX-V: MEN 17
  18. Corporate Presentation – Magnum Energy Inc. – slide 18
    Provost: Peak Prodn Up 6 Fold Since Acqn www.magnumenergyinc.com TSX-V: MEN 18
  19. Corporate Presentation – Magnum Energy Inc. – slide 19
    Provost: Viking Hz 02/13-06 Oil Rates 250 Cum Oil = 21.4 mbbls (Sept 30) 225 200 175 Gross Oil Rate (bopd) 150 Initially pumping 135 bopd; 3 x vertical well 125 100 75 Optimization efforts 50 45 bopd 25 0…
  20. Corporate Presentation – Magnum Energy Inc. – slide 20
    Provost: Viking Hz 16-34 Oil Rates 250 Cum Oil = 24.4 mbbls (Sept 2013) 225 200 P (initial) = 845 psi (1968) P (16-34) = 992 psi (Sept, 2012) 175 Gross Oil Rate (bopd) 150 Initially flowing at 135 bopd; 3 x vertical…
  21. Corporate Presentation – Magnum Energy Inc. – slide 21
    Provost: Normalized Production 120.00 Magnum wells 00/16-34 and 02/13-06 have significantly outperformed typical area wells 100.00 Calenday Day Oil Production (bopd) 80.00 00/16-34 60.00 02/13-06 40.00 (Halkirk: max 131…
  22. Corporate Presentation – Magnum Energy Inc. – slide 22
    Provost: Hz Drilling Assumptions Operator Magnum; 50% working interest Potential Locations 14 gross (7.0 net) Measured Depth 1,660m (5,445); includes 850m (2,790) Hz leg Royalty 93.4% Crown; 6.6% Freehold (12.5% Lessors) 5% Crown…
  23. Corporate Presentation – Magnum Energy Inc. – slide 23
    Provost: Hz Drilling Metrics Per Well Net Present Value 0.7mm net Magnum* (includes capital) Booked Reserve Value 1.5mm net Magnum* (after capital spent) Rate of Return 70% Payout 13 months Profit / Investment Ratio 0.9 Net…
  24. Corporate Presentation – Magnum Energy Inc. – slide 24
    Provost: Low Cost Oil Workover Highlights Operator Magnum Interest 50% currently (100% if partner doesnt participate) Opportunity 2 horizontal well cleanouts isolate higher oil cut production remove potential sand obstruction 3…
  25. Corporate Presentation – Magnum Energy Inc. – slide 25
    Provost: Low Cost Oil Workover Metrics Gross Gross Gross Gross Producing Min Max Avg Cost Metric Well Operation (bopd) (bopd) (bopd) (000s) (/bopd) 12-07 Vert Hole in tubing 3 6 5 35 7,778 14-07 Hz Packer to isolate water; cleanout;…
  26. Corporate Presentation – Magnum Energy Inc. – slide 26
    Sedalia: Multi-zone Gas Asset Land 19.0 Sections (Gross) 15.7 Sections (Net) Plant Facilities Licenced 6.2 mmcf/d Compression Refrigeration Lower Cost, Higher Netback Shallow (880m) Multi-zone Long RLI Magnum Opportunity…
  27. Corporate Presentation – Magnum Energy Inc. – slide 27
    Sedalia: Predictable Production Base www.magnumenergyinc.com TSX-V: MEN 27
  28. Corporate Presentation – Magnum Energy Inc. – slide 28
    Sedalia: Ellerslie Hz Well Locations Cumulative Gas To Date (Vertical Wells): 06-13 2.7 Bcf 11-07 2.0 Bcf 06-13 11-12 0.8 Bcf Total 5.5 Bcf 11-12 11-07 www.magnumenergyinc.com TSX-V: MEN 28
  29. Corporate Presentation – Magnum Energy Inc. – slide 29
    Sedalia: Hz Ellerlsie Drilling Upside Operator Magnum Interest 100% Locations 5 Gross (5.0 net) Reserves 2 Probable of 5 locations booked Ellerslie Location GLJ Booking Interest % Type Comments 1 14-13/04-13-30-5W4 Prob Loc'n 100 Hz…
  30. Corporate Presentation – Magnum Energy Inc. – slide 30
    Sedalia: Significant Ellerslie Reserves Remain 5.4 bcf produced as at year-end 2009 (5.5 bcf currently) Initial pressure of 1,152 psi has dropped only 20% to 924 psi Pressures suggest significant gas reserves remain 2013-07-31…
  31. Corporate Presentation – Magnum Energy Inc. – slide 31
    Esther: Colony Analogue for Sedalia Esther Horizontal Analogy: 90 day Average Rate 2 mmcf/d Esther Analogue: 16-15 Hz Well On-stream May 14, 2010 Average rate 2.0 mmcf/d (first 90 days ) Cumulative production to date 0.85 bcf…
  32. Corporate Presentation – Magnum Energy Inc. – slide 32
    Sedalia: Hz Colony Drilling Upside Operator Magnum Interest 100% Locations 6 Gross (6.0net) Reserves 1 PUD & 2 Probable of 6 locations booked Colony Location GLJ Booking Interest % Type Comments 1 15-12/04-12-30-5W4 Prob Loc'n 100…
  33. Corporate Presentation – Magnum Energy Inc. – slide 33
    Esther: Hz Colony Analogue Well 16-15 www.magnumenergyinc.com TSX-V: MEN 33
  34. Corporate Presentation – Magnum Energy Inc. – slide 34
    Sedalia vs Esther: Colony Log Comparison Magnum Sedalia Penn West Esther 03-24-30-05W4M 02-09-32-03W4M Vertical Colony Sand Gas Well Vertical Colony Sand Gas Well Net Pay= 12 meters porosity 15% . Actual IP = 455 mcf/d Net Pay =…
  35. Corporate Presentation – Magnum Energy Inc. – slide 35
    Sedalia: Other Upside Operator Magnum Interest 100% Locations 5 Gross (4.75net) Reserves None assigned Belly River Location GLJ Booking Interest % Type Comments 1 10-23-30-5W4 100% V 1-23 has 1.4m crossover and 7-26 to north is 4m…
  36. Corporate Presentation – Magnum Energy Inc. – slide 36
    Summary Large Development Drilling Inventory Provost: up to 14 ( 7.0 net) Hz Viking oil locations Sedalia: up to 11 (11.0 net) Hz Ellerslie & Colony gas locations Newer processing facilities in both core areas Year round access…
  37. Corporate Presentation – Magnum Energy Inc. – slide 37
    Contact Information Richard Nemeth Director, President & CEO Office 604-948-2688 (Vancouver) Cell 604-218-1479 Email rnemethmagnumenergyinc.com www.magnumenergyinc.com TSX-V: MEN 37
  38. Corporate Presentation – Magnum Energy Inc. – slide 38
    Notice to the reader This presentation may include forward-looking statements such as those concerning Magnums plans, expectations and objectives for future operations All statements, other than historical facts, addressing events…

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