Permex Petroleum Limited Partnership PRODUCTION FOCUSED CASH FLOW DRIVEN

Transcription

1 v Permex Petroleum Limited Partnership PRODUCTION FOCUSED CASH FLOW DRIVEN

2 Forward Looking Statement This presentation may contain forward looking information within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein may be forward looking information. Generally, forward looking information maybe identified by the use of forward looking terminology such as plans, expects or does not expect, proposed, is expected, budgets, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward looking information reflects the Corporation s current beliefs and is based on information currently available to the Corporation and on assumption the Corporation believes are reasonable. These assumptions include, but are not limited to, the actual results of drilling and exploration being equivalent to or better than anticipated or historical results and future costs and expenses based on historical costs and expenses, adjusted for inflation. Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Corporation and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the natural resources industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Corporation; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward looking information. 1

3 A Few Things About Us Focused on Cash flow & ROI Strong believers of mitigation of risk Not bound to any geographical location or resource type We let others risk their money first and learn from their mistakes Fee based revenues in addition to production 2

4 The Opportunity The fundamental long term outlook for the North American energy sector is attractive Significant volatility in energy prices will continue over the short term but over the medium to longer term, issuers involved in the development and production of oil and natural gas will realize strong cash flow and profits attributable to attractive commodity prices driven by global demand, limited excess production capacities and restrictive supplies 3

5 Permex Petroleum Limited Partnership Advantage Alternative to Traditional Investments Income + capital gains + tax benefits make this an attractive option for investors seeking a well rounded strategic sustainable investment option Portfolio Diversification Geographical dispersion, asset character and stage of investment Reduced Risk Exposure Added risk reduction from the tax deduction since it returns 28.50% of their initial investment in the form of tax savings leaving only 71.50% in after tax investment cost and at risk capital No Market Volatility Investment is made directly into Oil and Gas producing fields and production drilling programs with oversight from seasoned management teams, not into stocks Eligible for all Registered Accounts Fund is eligible for TFSA, RRSP, RESP, LIRA, RIF investments Exit Strategy & Liquidity Option Fund provides redemption allowance and also seek exit strategies by way of divestitures to up sell assets Top Industry Advisors A technically focused oil and gas group specializing in developing resource opportunities from geologic concept through operations, production and development. 4

6 Summary of Terms Permex Petroleum Limited Partnership Fund size: Payout: Revenues: Withdrawal and redemptions rights: Management fee: Targeted Returns: Preferred returns: $20MM capped Monthly dividends & distributions Production + Fee based revenues Annual liquidity with one year lock 0.5% per annum 14% annual return 8% subordination / preferred shares Incentive fee: 50% of returns in excess of 8% High watermark: Yes 5

7 Business Plan Overview Four phase strategic plan Acquisition of Oil and Gas Properties Optimization & Enhancement of Producing Wells Development of Proven Undeveloped Assets Exit & Sale Of Fields Through Proving Probable Reserves PDP PDNP PUD Probable PDP s PDNP to PDP (no associated exploration risk ) PUD s to PDP (no associated exploration risk ) The Company s strategy is to market and sell the fields with capital appreciation. Enhance project value by bringing probable reserves into Proven Undeveloped (PUD) category 6

8 THE TEAM THE TEAM

9 ERC Organizational Chart Updated March 2013 N.A Energy Resources Corporation Mehran Ehsan President &CEO Richard Day Business Development Sandey Wang Controller Barry Whelan Director & COO Dale Lee Reservoir Engineer Russell Parsons Field Operator Wayne Needoba Managing Director Matei Ghelesel Engineer Craig Hart Well Tending Manager Management Board of Advisors Malcolm Fraser Robert Jamieson Gary P. Schroeder David G. Mark Kevin Redmond Over 110 years of combined experience Over 150 years of combined experience Highly Experienced Executive Team Highly Specialized & Experienced Advisory Board Extensive Industry Market Intelligence Strict Property Acquisition Process Production focused Zero Exploration Risk 8

10 Property Selection 6 months of due diligence Geology, reserve reviews Engineering reviews Economical and feasibility reviews Low operational costs Low state taxes Life span years Only onshore projects 9

11 THE PROPERTIES

12 Property Portfolio Diversified Portfolio over 40% devoted to producing fields Asset Characteristics Geography 11

13 Properties Kentucky Ontario Alberta Tennessee Properties Vetted Properties Selected Acquisition in Process Field Optimization Plans Active Properties Vetted Properties Selected Acquisition in Process Development Due Diligence Stages Short Listed Opportunities Reviewing Portfolio of Properties 12

14 Logs with Structure 13

15 Sample Log Oil Oil Oil Oil Oil 14

16 Property Attributes Key attributes: Fully operating properties + developmental up side 100 producing wells 65 re fracture PDNP wells (upside opportunities) 42 PUD locations & re entries (upside opportunities) 80 probable opportunities Over 40 miles of pipelines Total reserves 14mmboe Geology & reservoir: Main pay: Weir, Knox, Berea formations Depth: feet Trapping mechanism: structure Reservoir type: sandstone 15

17 CASH PAY OUT SCENARIOS BASED ON PARTIAL FUND RAISED

18 Partial Raise Performance ($5M raise) Assumption: 50 unit investment $50,000 Average Annual Return 16.98% Annual Income $5, $6, $7, $8, $10, $8, $11, $9, $8, $6,936 Annual Return 11.89% 13.51% 15.47% 17.86% 20.74% 17.81% 22.70% 19.44% 16.51% 13.87% Cum. Income $5,944 $12,699 $20,434 $29,366 $39,736 $48,643 $59,995 $69,713 $77,967 $84,902 Cum. Return 11.89% 25.40% 40.87% 58.73% 79.47% 97.29% % % % % Fiscal Year Oil (BO) Gas (Mcf) Oil $/Bbl. Gas $/Mcf Fee based Revenues Gross Revenues Taxes, Op. Exp. & Royalties Net Revenue Limited Partners , ,000 $80.00 $3.00 $784,800 $1,832,800 $1,043,905 $788,895 $594, , ,000 $82.40 $3.09 $784,800 $2,026,156 $1,075,222 $950,934 $675, , ,500 $84.87 $3.18 $784,800 $2,254,457 $1,107,479 $1,146,978 $773, , ,175 $87.42 $3.28 $784,800 $2,527,050 $1,140,703 $1,386,347 $893, , ,801 $90.04 $3.38 $784,800 $2,848,979 $1,174,924 $1,674,055 $1,037, , ,331 $92.74 $3.48 $784,800 $2,591,563 $1,210,172 $1,381,391 $890, , ,612 $95.52 $3.58 $784,800 $3,116,866 $1,246,477 $1,870,389 $1,135, , ,220 $98.39 $3.69 $784,800 $2,827,573 $1,283,871 $1,543,701 $971, , ,237 $ $3.80 $784,800 $2,573,005 $1,322,388 $1,250,617 $825, , ,102 $ $3.91 $784,800 $2,349,236 $1,362,059 $987,177 $693, Total 68,631 3,119,978 $7,848,000 $24,947,685 $11,967,201 $12,980,484 $8,490,242 17

19 TRACK RECORD

20 Track Record & Comparison Stock markets, real estate & energy resources yearly investment returns comparison Year S&P/TSX Composite (Canadian Stocks) Dow Jones NASDAQ Berkshire Hathaway Stock (Warren Buffet) CIBC Canadian Real Estate Index U.S. Diversified Equity REIT Index Energy Resources Oil & Gas Projects* % 5.50% -1.80% -4.76% 3.77% -0.89% 14.90% % 7.26% 6.42% 22.60% 2.18% 5.48% 11.90% 2013 Forecast 13.60% * Composite performance of all N.A Energy Resources oil & natural gas projects. ** Performance includes tax benefits attained as well. 19

21 Cumulative Return

22 THANK YOU 21