Investor Presentation March 2015 Harnessing Biology to Increase Recoverable Oil
Synergistic Business Model Glori Energy (NASDAQ: GLRI) is an energy technology and oil production company that utilizes its patented AEROTM System to unlock residual oil from mature conventional fields at a low cost. Oil & Gas…
Tomorrows Oil from Yesterdays Wells As much as 2/3 of discovered oil remains in the reservoir after using todays technologies, leaving 2.4 trillion barrels of unrecovered reserves (1) Gloris AERO Technology harnesses the power of…
AERO Significantly Reduces Production Decline and Boosts Ultimate Reserve Recovery Illustrative Impact of AERO Technology Based on Company modeling estimates B = 1,500 MBbls C = 1,800 MBbls AERO Start Post-AERO Start Comparative…
AERO Profit Margin Beats Traditional Methods At 50 oil prices and 6 cost per barrel, AERO profit margin is 44 per incremental barrel 70 60 60 55 Low CAPEX 50 44 + 40 30 32 Low OPEX 20 18 10 6 = -- Low Risk (10)…
Investment Highlights With lower oil prices, E&P companies are reducing capex for new wells, making Dramatic Change in AERO the low cost alternative to increase production from existing wells Commodity Price Poorly capitalized…
ACTIVATED ENVIRONMENT FOR RECOVERY OF OIL (AERO) TECHNOLOGY 7
AERO Technology Development Gloris AERO System is the result of decades of lab research and field deployments by Glori and its research collaborators, primarily Statoil S.A. of Norway All key Intellectual Property is owned or controlled…
How AERO Works 1. Microbes Grow on Residual Oil 2. Trapped oil is freed Injected nutrients enable the microbes in the Growth of microbes on the residual oil reservoir to grow on the oil in the reservoir. releases additional energy and…
Implementation of AERO Technology Before AERO Deployment After AERO Deployment Producing Injection well with Producing Injection well well AERO technology well Water pathway New water flow Microbial nutrients New…
AEROTM Kansas Pilot I Source: DrillingInfo. 11
Sample Project IV: Field Data AERO Active Source: DrillingInfo.. 12
AEROTM Canadian Pilot 13
Biology Impact is Dynamic 300 250 200 Production (boe/d) 150 100 50 Daily Production Uplift of 125% Daily Production Uplift of 65% Daily Production Uplift of 70% -- -3 -2 -1 -- 1 2 3 4 5 6 7 8 9 10 11 12 13…
OIL & GAS SEGMENT 15
Coke and Quitman Fields Coke and Quitman Asset Glori has acquired, and will continue to acquire, mature oil fields onshore USA Coke Field Gloris first significant oil property was Quitman the Coke field acquired in March 2014 Field…
AERO SERVICES SEGMENT 17
Project Management Reservoir Analysis & Field Deployment Full Field Treatment Design (Pilot phase) Implementation - Review existing field - Equipment delivery - Roll-out to additional data and installation injection wells to -…
FINANCIAL HIGHLIGHTS 19
Financial Strategy Deploy capital to acquire mostly producing oil assets to be enhanced by implementing Gloris AERO technology Leverage acquisitions with debt secured by proved reserves and supported by historical cash flow Benefit…
3Q14 Income Statement Summary Three Months Ended % Change (unaudited, in 000s) 30-Sep-13 30-Sep-14 Total revenues 775 5,458 604% Operating Expenses 1,054 3,745 255% Science and technology 386 449 16% SG&A 934 1,572 68% Total…
Summary Balance Sheet (in millions) September 30, 2014 Cash 32.7 Debt 20.4 Net debt (12.3) Stockholders' equity 52.8 Total assets 78.9 Debt/Cap 28% 22
Non GAAP Financial Information We use both GAAP and certain non-GAAP financial measures to assess performance. Generally, a non-GAAP financial measure is a numerical measure of a companys performance, financial position or cash flows…
Reconciliation of Adjusted EBITDA For the Three Months Ended September 30 (in 000s) 2013 2014 Net loss (825) (356) Taxes on income - 51 Gain on change in fair value of warrants (1,183) - Gain on commodity derivatives - (2,027)…
APPENDIX 26
Experienced Management Team STUART PAGE MICHAEL PAVIA CEO CTO MBA Harvard Business School BA, MA, Oxford University PhD Organic Chemistry, University of Pennsylvania BS Chemistry, Lehigh University VICTOR PEREZ KEN NIMITZ…
Accomplished Board of Directors John Clarke Former EVP and CFO (Dynegy) Former Chairman and CEO (NATCO) Mark Puckett Mark Chess Former President, Executive Vice President, Chevron Energy Technology Infinity Corporation Ganesh…
E&P Innovation Trends: The Path to Mass Adoption R&D / First Mover First Mover Market Response to Mass Technology Innovation Begins Adopting Technology Employs Growth Strategy Adoption Horizontal Drilling 1920: Horizontal drilling…
Experienced Science Advisory Board and Established Investor Base Science Advisory Board Selected Investors(1) Dr. Stephen Brand Global Energy Board (Accenture) Former SVP, Technology (ConocoPhillips) Dr. Michael Pavia CTO…
Statoil Collaboration Restricted to owned assets Perpetual Irrevocable Royalty-Free License to IP Unrestricted Use Statoil ASA (OB: STL) International public energy company with 55 billion market capitalization(1) In…
AERO is Built on Decades of R&D Spectacular results have been recorded by Statoil at its Norne Field in the Norwegian North Sea. Following 25 years of research and development (R&D) and deployment, the recovery factor at Norne is…
AERO Significantly Reduces Production Decline and Boosts Ultimate Reserve Recovery Illustrative Impact of AEROTM Technology 120 A = 700 MBbls B = 1,100 MBbls Post-AERO Start Comparative Production: 100 Production without AERO: A…
Sample AERO Technology Implementation Data 250 200 Production (boe/d) 150 100 50 Daily Production Uplift of 90% -- -8 -7 -6 -5 -4 -3 -2 -1 -- 1 2 3 4 5 Months Relative to AERO Start Oil Production without…
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