TARGET ENERGY LIMITED IPAA OGIS SAN FRANCISCO OCTOBER 2013
COMPANY OVERVIEW Overview Key Metrics Listed in Australia (ASX:TEX) and in US via ADRs on OTCQX TEX International Platform (OTCQX: TEXQY) ASX Code (Australia) OTCQX Code (US) TEXQY US Permian Basin and Gulf Coast, oil focused Shares…
TARGET ENERGY ACTIVE & SUCCESSFUL Active and successful Houstonbased Australian public oil and gas company with production in the US Permian Basin and Gulf Coast. Target offers some of the best listed company leverage to the Permian…
STRONG, ALIGNED BOARD OF DIRECTORS BA, MA Economics and Law (Cambridge) Chris Rowe 12.0m shares Over 35 years of legal and commercial experience in the oil and gas and resources sector 1.7m options Chairman of ASX listed Northern Star…
CONTENTS I. TARGET ENERGY ASSETS I. TARGET ENERGY ASSETS II. VALUATION Pumpjack on Target s Darwin 1 well June 2013 III. CORPORATE 6
PERMIAN BASIN FAIRWAY PROJECT The West Texas Permian Basin is the largest hydrocarbon basin in the US, covering 52 counties and over 75,000 square miles. Map of US Lower 48 States Regional Map of Permian Basin 1 Target Energy…
PERMIAN BASIN FAIRWAY PROJECT The Permian Basin is the most coveted hydrocarbon basin in the US because of its low risk, oilrich, stacked reservoir zones. Operational Overview Major Reservoir Target Zones in the Permian Basin…
PERMIAN BASIN FAIRWAY PROJECT Target is a Permian Basin focused company and is committed to building upon a high quality portfolio. Map of Targets Fairway Project in the Midland Basin5 Location Howard & Glasscock Counties, Tx Howard…
PERMIAN BASIN FAIRWAY PROJECT DEVELOPMENT PLAN Vertical Production (Wolfberry) Lower Wolfcamp Lower Wolfcamp Lower Wolfcamp Potential Horizontal Lower Wolfcamp Production Vertical Production (Fusselman) 10
PERMIAN BASIN FAIRWAY PROJECT DEVELOPMENT PLAN Multiple potential completions per well at up to 110 well locations.1 Phase 1 Fusselman Phase 2 Wolfberry Cline Upside 3,900 5,700 Clearfork 3,900 5,700 Clearfork 3,900 5,700 Clearfork…
PERMIAN BASIN FAIRWAY PROJECT PRODUCTION GROWTH Target has commenced its FY14 drilling campaign with the objective of increasing production and revenues by more than 400%. (Australian FY14 is 7/1/13 to 6/30/14) Actual FY13 Average…
SHALE PLAYS ARE DRIVING PERMIAN BASIN GROWTH Fairway is positioned in centre of two rapidly emerging shale plays. Activity and Success Map of Apaches Permian Basin Interests1 Permian Basin has multiple (expanding), proven vertical and…
PERMIAN BASIN GROWTH STRATEGY Target is actively pursuing opportunities to expand in the Permian Basin with our local, experienced partner Trilogy Operating, Inc. Multiple Sources of Opportunity Growing with our Partners Targets Permian…
SOUTH LOUISIANA PRODUCTION EAST CHALKLEY FIELD A new development well has just been drilled on the East Chalkley field in Cameron Parish. Target will further aim to maximise oil recovery through a waterflood. Schematic of the East…
OTHER PRODUCING ASSETS GULF COAST Targets wells in the Section 28 project have multiple bypassed pay zones which could be produced for minimal additional capital investment. Section 28, St Martin Parish, Louisiana Map of Targets Gulf…
CONTENTS II. VALUATION I. TARGET ENERGY ASSETS II VALUATION III. CORPORATE Separating system at Sydney 1 July 2013 17
RESERVES & RESOURCES The maiden reserves assessment at Fairway has increased Targets 2P reserves by 887%. Oil constitutes 79% of 2P reserves. Targets Net Reserve & Resource Position1 Growth in 2P Reserves Net Reserves & Barrels of Oil…
FUSSELMAN WELL ECONOMICS Fusselman wells are inexpensive to complete and can be highly productive with robust economics. Fusselman Type Curves1 Single Well Economics1,2 Assumptions 350 Well Capex USm. 1.8 Oil cut % 86 300 High…
WOLFBERRY WELL ECONOMICS Wolfberry wells are characterised by a long producing life. Wolfberry Type Curves Single Well Economics1,2 Assumptions 160 Well Capex USm. 2.1 Oil cut % 80 140 High Case EUR 185MBOE 120 WTI US/bbl 80 90…
NEWS FLOW & POTENTIAL VALUATION MILESTONES Four additional development wells are planned to be drilled and/or completed by the end of the year, providing increased production, cash flows, potential reserves and a strong news flow.…
CONTENTS III. CORPORATE I. TARGETS ASSETS II VALUATION III. CORPORATE Kelly rotating in the rotary table August 2012 22
CASH FLOWS FUNDED FOR DRILLING Organic free cash flows are rising with increased production. Target is funded for its 2013 forward work program. Comments 2013 Cashflow Waterfall July to December 2013 (USm) Operating Cash Flows:…
FINANCIAL POSITION Consolidated Statement of Financial Position at 30 June 2012 & 30 June 2013 (A) 30 June 2013 (Audited) 30 June 2012 (Audited) CURRENT ASSETS Cash 1,537,700 682,540 Other assets 2,026,843 214,607 TOTAL CURRENT ASSETS…
SUMMARY Permian Basin and Gulf Coast, oil focused Producing oil & gas and generating strong cash flows Low risk, development led growth Oil production growth in the Permian Basin is expected to surpass all US onshore basins and…
Pumpjack on Darwin Lease 27
TARGET ENERGY LIMITED AUSTRALIA 6 RICHARDSON STREET, SUITE 5 WEST PERTH, WA 6005 T: +61 8 9476 9000 F: +61 8 9476 9099 USA 1900 ST JAMES PLACE, SUITE 425 HOUSTON, TEXAS 77056 T: +1 713 275 9800 F: +1 713 275 0999
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