Permex Petroleum Limited Partnership

Transcription

1 The 'smart money' is investing in oil now v Permex Petroleum Limited Partnership CAPITAL APPRECIATION -PRODUCTION FOCUSED CASH FLOW DRIVEN The 'smart money' is investing in oil now October 2015

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 explorationand development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents andother 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 onacceptable 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 THE OIL MARKET

4 Industry Facts Market Facts Why has oil prices dropped by over 50% in Year? Supply Demand Geopolitics Cyclical Correction Is this the first time oil prices dropped like this? Where do we see oil prices going? 5 times in past 30 years Magic Number 3

5 5 Major Corrections in Oil Price in 30 Years Price of Crude Oil 1985 to Black Monday Stock Crash, junk bond crisis, Recession Global recession, high unemployment, low job growth Asian debt crisis, Middle East increases production Russian increases output, US stays in recession Housing Market Crash leading to Global Recession US Shale Boom, OPEC production increase, Chinese economic slowdown Since 1985 there have been five correction in the price of crude oil (WTI) of 35% or more 4

6 What it Means for Investors Price has already started going up: Recovery will take 12 to 14 month Price is expected to increase by 71.1% (historical average) That means,price of WTI would be $68.45 Or higher by December 2016 Given these data, oil and gas properties should be accumulated 5

7 THE FUND

8 Permex Petroleum Limited Partnership A Truly Diversified Oil & Gas fund OIL AND GAS VALUE CHAIN: 1. UPSTREAM 2. MIDSTREAM 3. DOWNSTREAM FIELD ENHANCEMENT FIELD DEVELOPMENT PRODUCTION OF CRUDE OIL TRANSPORTATION TRADING OF CRUDE OIL TO REFINERIES REFINING OF CRUDE OIL INTO FINISHED PRODUCT THE STORAGE OF CRUDE OIL THE DISTRIBUTION AND MARKETING OF CRUDE OIL TO WHOLESALERS AND RETAILERS Permex YES Permex YES Permex NO 7

9 A Few Things About Us We are not in the business of reinventing the wheel or trying to develop the next new thing. We let others risk their money first and learn from their mistakes. Focused on Fee Based Revenuesin addition to production Focus on Pipeline & Transportation ownership Focus on Proven Producing oil wells Focus on Proven Producing natural gas wells Reduced risk exposure due to diverse portfolio Low Production Costs 8

10 Breakeven Oil Prices Average WTI breakeven oil price by play USD/bbl $11 Permex Petroleum LP 0 9

11 Revenue Model Well balanced portfolio holdings in energy sector 27% Pipeline Revenue 50% Oil Production 23% Natural Gas Production 10

12 Strategic Business Plan Overview Acquisition of Oil and Gas Properties & Pipelines Optimization & Enhancement of Producing Wells Development of Proven Undeveloped Assets Exit Revenue Year 1 Revenue Year 2-3 Asset Appreciation Year

13 Mehran Ehsan Director, CEO & President Richard Day Director of Business & Economic Development THE TEAM Barry Whelan Director, Chief Operating Officer Wayne Needoba Managing Director Dale Lee Reservoir Advisor Russ Zapotichny Vice President of Sales & Marketing Aaron Triplett Controller Kate Burton Administrative Assistant

14 THE PROPERTIES

15 Property Selection 6 months of due-diligence Geology, reserve reviews Engineering reviews Economical and feasibility reviews Low operational costs Low state taxes Project Life span years Property Life span years Only onshore projects 14

16 Properties Alberta Due Diligence Stages Short Listed Discounted Fields Texas Properties Vetted Properties Selected Discounted Acquisition Producing Properties Kentucky Properties Vetted Properties Selected Discounted Acquisition Pipeline Ownership Producing Properties Tennessee Reviewing Portfolio of Properties 15

17 CASH PAY-OUT SCENARIOS $40 OIL

18 Partial Raise - Performance ($5M raise) Assumption: 10 unit investment - $10,000 Average Annual Return 13.60% Annual Income $1, $1, $1, $1, $1, Annual Return 10.35% 11.70% 13.30% 15.21% 17.46% Cum. Income $1,097 $2,205 $3,534 $5,055 $6,801 Cum. Return 10.35% 22.05% 35.34% 50.55% 68.01% Fiscal Year Oil (BO) Gas (Mcf) Oil $/Bbl. Gas $/Mcf Feebased Revenues Gross Revenues Taxes, Op. Exp. & Royalties Net Revenue Limited Partners , ,000 $40.00 $3.00 $784,800 $1,721,800 $1,025,035 $696,765 $548, , ,000 $41.20 $3.09 $784,800 $1,894,677 $1,054,424 $840,252 $620, , ,500 $42.44 $3.18 $784,800 $2,098,735 $1,089,114 $1,009,621 $704, , ,175 $43.71 $3.28 $784,800 $2,342,555 $1,130,563 $1,211,991 $805, , ,801 $45.02 $3.38 $784,800 $2,630,520 $1,179,517 $1,451,003 $925,501 Total 68,631 2,451,168 $3,924,000 $10,688,286 $5,478,654 $5,209,632 $3,604,816 *Returns in this table are anticipated to start one month post acquisition targets of full $5M segment raise 17

19 Summary of Terms and Fund Contact Details Permex Petroleum Limited Partnership Fund size: Payout: Target ROI: Current ROI: Revenues: $20MM capped Monthly dividends & distributions 14% per annum 8% per annum Production + Fee based revenues Withdrawal and redemptions rights: Daily liquidity Annual Redemptions Management fee: Preferred returns: 0.5% per annum 8% subordination / preferred shares Incentive fee: 50% of returns in excess of 8% High watermark: Yes 18

20 THANK YOU 19