Corporate Strategy May 5, 2017

Transcription

1 OTCQB : BBLS Corporate Strategy May 5,

2 FORWARD-LOOKING STATEMENTS & CAUTIONARY NOTE Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of The use of words such as believes, expects, anticipates, intends, plans, estimates, should, likely or similar expressions, indicates a forward-looking statement. These statements and all the projections in this presentation are subject to risks and uncertainties and are based on the beliefs and assumptions of management, and information currently available to management. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. The identification in this presentation of factors that may affect the company s future performance and the accuracy of forward-looking statements is meant to be illustrative and by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Factors that could cause the company s actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: The success of the company s exploration and development efforts; the price of oil, gas and other produced gasses and liquids; the worldwide economic situation; changes in interest rates or inflation; the ability of the company to transport gas, oil and other products; the ability of the company to raise additional capital, as it may be affected by current conditions in the stock market and competition in the oil and gas industry for risk capital; the company s capital costs, which may be affected by delays or cost overruns; cost of production; environmental and other regulations, as the same presently exist or may later be amended; the company s ability to identify, finance and integrate any future acquisitions; and the volatility of the company s stock price. See Risk Factors in the company s 2015 Annual Report on Form 10-K, Quarterly Reports on 10-Q and other public filings and press releases. Cautionary Note Regarding Reserve & Resource Disclosure The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC s definitions of such terms. Reserve estimates that are intended to meet SEC guidelines are included in our periodic reports filed with the SEC. In this presentation, we sometimes also refer to broader, less precise terms when characterizing reserve estimates, such as resource potential and estimated ultimate recovery, or EUR, which the SEC does not permit to be disclosed in SEC filings and are not intended to conform to SEC filing requirements. These estimates are by their nature more speculative than those disclosed in our SEC filings and thus are subject to substantially greater uncertainty of being realized. They are based on internal estimates, are not reviewed or reported upon by any independent third party and are subject to ongoing review. Actual quantities recovered will likely differ substantially from these estimates. Factors affecting ultimate recovery of reserves include the scope of our actual drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices (including prevailing oil and gas prices), availability of drilling services and equipment, lease expirations, transportation constraints, regulatory approvals, field spacing rules, actual recoveries of oil and natural gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates, and other factors. These estimates may change significantly as the development of properties provides additional data. Investors are urged to consider closely the oil and gas disclosures in the company s 2015 Annual Report on Form 10-K. Confidentiality. Information contained herein is confidential between the Recipient of this information and Petrolia Energy Corp. It is strictly understood that this information shall not be shared with any third party without the written permission from Petrolia Energy Corp. Any dissemination or distribution of any information contained herein is strictly prohibited. Informational Purposes. The Information contained herein as been prepared for informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any security. Such information includes forward looking statements, estimates and projections, which are inherently uncertain, being based on assumptions and subjective judgments which may not prove to be accurate. No Liability. Recipients are urged to consult with their own independent financial advisors with respect to any investment. All information contained herein should be independently verified. Neither :Petrolia Energy, Inc. nor any of its officers, directors, members, employees or consultants, accept and liability whatsoever for any direct or consequential loss arising from any use of information contain in this presentation. Investing in securities can be speculative and can carry a high degree of risk. IRS Circular 230 Disclosure. Petrolia Energy Corp. and its affiliates do not provide tax advice. Accordingly, and discussion of U.S. tax matters included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone not affiliated with Petrolia Energy Corp of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. 2

3 CORPORATE STRATEGY Acquire attractive acreage positions in strategic areas Explore & Develop high-probability, lower risk Oil & Gas Properties Integrate Enhanced Oil Recovery (EOR) techniques Acquire Look for upside opportunity with behind pipe potential Focus on established regions Low Risk Reserves Credit facility in place Access to capital markets Exploit Apply new technologies Develop Additional Pay Zones Infill Drill Opportunities Control Costs / Maintain Margins Secondary/Tertiary Recover!" Produce Infill Drilling Step Out Drilling Minimize exploratory risk Acquire additional block acreage on favorable terms 3

4 EXECUTIVE SUMMARY Company Profile We specialize in identifying, analyzing, acquiring, and restoring distressed oil and gas fields with proven reserves. Any legal, environmental or compliance issues are systematically remedied. Existing wells are re-engineered, new wells are drilled and, if applicable, enhanced oil recovery (EOR) methods such as water flooding are initiated. Through it's wholly owned service company, Askarii Resources, Petrolia is able to remediate oil leases using ecologically friendly methods. This allows Petrolia Energy to acquire proven reserves more economically, reduce environmental impact and maximizes the recoverability of existing resource plays. Once the acquired assets are back on production and maximized operational efficiency is achieved, the non-producing reserves become producing reserves, enhancing Petrolia Energy s Balance Sheet and Shareholder Equity. In early 2015, a completely new Board of Directors and Management Team were put in place. Since then the company has increased its field acreage by 1,299%, from 623 to 8,091 net acres. Proven Reserves (1P) have increased 1,531%, from 275,000 Bbls to 4,209,000 Bbls. Shareholder equity has more than doubled during the period increasing from $3,080,628 to $6,998,504.!"#$%&'$( #$%&&"'($)&" *)+"'($)&",%+-."/0.-1%2-"'($)-3)" 45678" 45678" )*+(,*-./&( #$%&&"'($)&" *)+"'($)&",%+-."*)9":);<(%"'($)-3)" 85=68" 85=68" 0*-$1( #$%&&"'($)&" *)+"'($)&",%+-.",);-&"'($)-3)" 64>" 64>" 4

5 PETROLIA ENERGY TEAM Management Team Zel C. Khan Chief Executive Officer James E. Burns President Paul Deputy Chief Financial Officer Technical Team Saleem Nizami Geologist (Oklahoma) Kurt Rottmann Geologist (Oklahoma) Michele K. Mudrone Petroleum Engineer Jason Bagby Sr. Field Superintendent Sean Gryger Geologist (Texas & New Mexico) Board Members Leo Womack Chairman, Director Lee Lytton III Corporate Secretary, Director Joel Oppenheim Independent Director Quinten Beasley Director Saleem Nizami Independent Director Zel C. Khan Director James E. Burns Director 5

6 SERIES A 9% PREFERRED STOCK OFFERING The Company recently initiated a Series A 9% Preferred Stock offering, convertible at $0.14 per share. A 9% per annum cash dividend will be issued quarterly until conversion. The proceeds will be allocated towards reworking existing wells, drilling infill wells, an exciting new acquisition in California, and supplemental working capital. Through this process, production is expected to increase from 85 to 450 BOPD, which will create positive cash flow and increase shareholder value. BBLS Market Statistics (as of 4/27/2017) Shares Outstanding: 79.0MM Market Cap: $9.643 M Last Price: $ Week Range: $0.02 $0.19 Daily Avg. Volume (1M) 10,687 6

7 CHEROKEE PLATFORM ASSETS 2604 gross / 2604 net acres 97 total drilled gross vertical well (as of Dec.31, 2016) 1,641,240 barrels 1P reserves 2,800 feet in Slick Unit Dutcher Sands 7

8 PERMIAN BASIN ASSETS 4864 gross / 4864 net acres 90 total drilled gross vertical well (as of Dec.31, 2016) 2,292,903 barrels 1P reserves 2,700 feet in San Andres Carbonate 8

9 NAVARRO GROUP ASSETS 623 gross / 623 net acres 16 total drilled gross vertical well (as of Dec 31, 2016) 275,380 barrels 1P reserves 1,700 feet in Minerva-Rockdale Form. 9

10 RECENT DEVELOPMENTS Announced a 5 Well drill program at the end of December 2016 Purchases as was recorded as such on books for the remaining 60% WI on the Twin Lakes Field Began testing Microbial injection to control Paraffin buildup and Viscosity improvements in Texas Preliminary 2017 CAPEX guidance ($2MM) largely focused on the Northwest Shelf of Permian Basin Northwest Shelf of Permian Basin Remedial work on 21 existing wells Upgrade existing infrastructure Waterflood Injection 2 new horizontal wells Solar Field Development (w/ 3 rd Party) Navarro Group 1 new vertical well Upgrade existing infrastructure Paraffin / Viscosity management program Cherokee Platform 2 new infill vertical wells Upgrade existing infrastructure 10

11 GROWTH IN RESERVES Petrolia was able to add significant scale over the last couple years through acquisitions in Oklahoma and New Mexico Field Optimization and well work-overs provide efficient uses of capital for production and cash flow growth Petrolia s 1P reserves have increased 1294% since new management took over at the end of Proven Reserves (Bbls) " "" ">5@775777"" "> "" "45@775777"" " "" "A5@775777"" "A "" "@775777"" "?"""" 47A4" 47A>" 47A8" 47A@" 47A6" BA"47AC" <=>(&?(@*A&7B=C(D*7.&>( 11 *:" /D",E" Proven Reserves (Bbls) 23(4%*()5'6*71(89*$7(&:*7(9*$7;( 1P YE (Bbls) % Change , , % , % , % ,227, % Q ,209,523* 89% * based on internal estimates

12 TOTAL ACREAGE GROWTH 0&4$#(E/7*$C*(0%7&5C%(E/F5.1.B&=1( G$4*( 0&4$#(H7&11( E/7*1( 0&4$#()*4(( E/7*1( I577*=4( JKLJM( JKLJM( NOPQNPOLNR( JKLJM( SKNRT( TPQLPOLNR( JKLJM( OKJOT( RPQLPOLNR( JKLJM( NKRNQ( QPQNPOLNR( JKLJM( NKRNQ( NOPQNPOLNS( JKLJM( NKRNQ( TPQLPOLNS( QKOOQ( JJQ( RPQLPOLNS( ROQ( ROQ( +!!!" *!!!" )!!!" (!!!" '!!!" &!!!" %!!!" $!!!" Petrolia Energy Acreage Growth QPQNPOLNS( ROQ( ROQ( NOPQNPOLNU( ROQ( ROQ( TPQLPOLNU( ROQ( ROQ( RPQLPOLNU( ROQ( ROQ( QPQNPOLNU( ROQ( ROQ( #!!!"!" %2%#2$!#&" (2%!2$!#&" +2%!2$!#&" #$2%#2$!#&" %2%#2$!#'" (2%!2$!#'" +2%!2$!#'" #$2%#2$!#'" %2%#2$!#(" 3.455"67./5" 8/1"67./5" (2%!2$!#(" +2%!2$!#(" #$%&&"'($)&"""""""""""""""""""""""*)+"'($)&" #$2%#2$!#(",-../01" 12

13 13! Corporate Headquarters: 710 N. Post Oak Road, Suite 512,Houston, TX, USA T: (832) F: (832) E: