A year of operational and value catalysts NASDAQ : MPET November 2014
The Company Independent upstream oil and gas company Founded in 1959 and traded on NASDAQ since 1972 Headquartered in Denver, Colorado New strategy and management since 2011 CORE Montana UPSIDE UK NON CORE Australia Oil…
The Company Market cap(1) 59 m Proved Reserves by Category(4) Cash and liquid investments(2) 17 m Debt - 25% ARO 3 m Preferred equity 25 m 5.7 PDP 56% MMboe PDNP Enterprise value(3) 70 m 19% PUD Proved reserves(4) 5.7 Mmboe…
Poplar CO2-enhanced oil recovery project in progress 22,000 net unitized acres ANALOGOUS CO2-EOR PROJECTS(1) Covers Poplar Dome, the largest geologic structure in the western Williston Basin Substantially all of the acreage held…
Poplar CO2-EOR Analogs 50 MMbbls incremental potential reserves at Poplar Poplar is analogous to Midale and Weyburn, Recovery potential(1) two oil fields with highly successful CO2-EOR projects in the Williston Basin Poplar…
Poplar CO2-EOR Milestones Summer Core Laboratories confirms 2012 miscibility Summer Pilot CO2 source & well permits 2013 secured Fall 5 pilot wells drilled 2013 2014 Pilot CO2 injection H1 2015 Announce pilot results 2015…
Poplar Stacked Formations Several reserve development opportunities Charles 52 MMboe produced to date CO2-EOR: pilot project ongoing Bakken / Three Forks CO2 Flood Prospective for oil production Other development…
UK Acreage Significant upside potential Two value creation opportunities: Developing unconventional play in PEDLs 231, 234, and 243 Peripheral targets on edge of Weald Basin Magellan strategy: Fund our share of initial…
UK Unconventional 125 k net acres in center of Weald Basin Our acreage Weald Basin PEDLs 231, 234, and 243 Focus on unconventional prospects Kimmeridge and Liassic formations 50% interest; operated by Celtique Energie Primarily oil…
UK Peripheral Target Farmout of Horse-Hill prospect executed Farm-out of PEDLs 137 and 246 to Angus Energy in Dec 2013 Magellan carried 100% for first well in exchange for 65% interest to Angus Well reached TD in November…
Australia Offshore Bonaparte Basin Large gas prospects to be farmed-out 100% working interest 3D seismic completed 1-3 Tcf potential resource 1 exploration well required by May 2016 Shallow water jack-up rig territory…
Milestones A year of operational and value catalysts Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Pilot CO2 injection, monitoring, & analysis CO2 injection Poplar CO2-EOR ongoing begins Announce pilot results Weald Basin UK…
Alignment of Incentives New management incentive Option vesting criteria plan implemented Oct 2013 Farm-out of Ability to NT/P82 Vesting criteria tied to: participate in 5% first well in share price performance Weald achieving…
Illustrative NAV Value Potential value 7.00 396 30 4 0 370 6.00 124 5 330 5.00 Implied / share (1) Value ( m) 264 4.00 150 198 3.00 132 2.00 44 66 Current market cap / 1.00 8 6 share price (1) - - Net cash…
Why Invest Now Timing Various operational milestones expected to be achieved over the next 6 to 12 months Value Poplar could yield 50 MMbbls of incremental potential reserves Large option value in the UK Execution New management…
Appendices
Experienced Leadership Robin West (66) Chairman Tom Wilson (61) President and CEO Founder of PFC Energy Former President of KMOC and Anderman Former Reagan Administration Assistant International Secretary of the Interior (1981-83),…
Onshore Australia Sale Sale of Palm Valley and Dingo completed Mar 31, 2014 Key terms Rationale Palm Valley and Dingo, Amadeus Basin gas Fund Poplar and UK with cash proceeds fields, sold Avoid cash outlay for Dingo development…
One Stone Convertible Preferred Allows for increase in net asset value per share On May 17, 2013, Magellan issued 19.2 m shares of convertible preferred stock to One Stone Energy Partners, a NY based private equity fund for 23.5 m…
UK Unconventional Farm-outs Recent transactions show increased interest in the potential development of UK shale basins Most recent transaction involving Total marks entry of the first Major into the UK shale play Recent…
Australia Offshore Bonaparte Basin Precedents for attracting farm-out partners The following farm-ins occurred in exploration blocks near Magellans NT/P82 block in the Bonaparte Basin: Date Company Asset Terms Origin earns 50% WI…
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