Runnels County, Texas

Transcription

1 Multi-Zone Oil and Gas Program Runnels County, Texas

2 Forward Looking Statement This presentation may contain certain forward-looking statements, including management s assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation s control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Corporation s actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Corporations will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward looking statements, whether written or oral, attributable to the Corporation or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this Presentation are made as at the date of this presentation and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

3 Lease Acquisitions On November 21, 2013 the Company, through its wholly-owned subsidiary, Cardiff Energy (USA) Inc. entered into a Partnership and Operating agreement with Martin Energies, LLC the Operator to drill and develop a Multi-Zone Acre Prospect in Runnels County, Texas ( lease1) On September 25, 2014 the Company through its wholly owned subsidiary Cardiff Energy (USA) Inc. announced that it had acquired an additional 468 acre oil and gas lease in Runnels County, Texas adjacent to its current Multi-Zone Prospect. ( lease 2)

4 About Cardiff is an emerging junior oil and gas company engaged in the acquisition, exploration, development, and production of oil and gas properties. The Company is focused on developing their Multi-Zone Oil and Gas Project in Runnels County, Texas. Cardiff has partnered with Martin Energies; an experienced operator with an extensive track record of operating successful oil and gas projects in Runnels County since the 1980 s Cardiff is listed on the TSX Venture Exchange under the symbol CRS, Frankfurt: C2Z.F, US Pinksheets: CRRDF For additional details please visit Cardiff's website at

5 Geological Discussion, Runnels County The Runnels County Prospect is situated in the West-central portion of Texas and is known to be a region of Multi-Zone potential. The Primary Zone of interest is the Gardner Lime. However, there are no fewer than 14 different zones which have produced hydrocarbons in the area that will be drilled through on the way to the Gardner Lime targets. The trapping mechanism in this region is low relief structures. When porosity and structure coincide, it is possible to trap hydrocarbons. Operators generally have found low relief structures to be more prolific than high relief structures due to greater areal extent of the reservoirs. The shallower zones have similar trapping mechanisms.

6 Bearcat #4 Well (lease 1) The Bearcat #4 was a low risk, premium location. Several offset wells were significant producers. The Gardner Lime and the Palo Pinto were productive in the nearest offsetting wells, within 800 of the Bearcat #4 location. These offsetting wells were drilled and produced during the 1980 s by Martin Energies. Copyright Nov 2013

7 Bearcat #4 Well (lease 1) Drilling of the Bearcat #4 well commenced in September The Bearcat #4 was completed in November 2014 with initial production rate of 180 BOPD (Barrels of Oil per day) in the Palo Pinto formation and 250,000 Cubic Feet of Gas (250 MCF) in the Gardiner Lime. The Company plans to use horizontal technology to unlock the oil in the Gardner formation. There are two additional formations in the well to be tested at a future date, the Middle Caps and Dog Bend Lime. Copyright Nov 2013

8 Clayton # 1H Proposed Horizontal Drill Plan

9 Clayton 1H Horizontal Well Continued (lease 2) Following up with its success with the Bearcat #4, the Company announced on January 13, 2015 its plans to drill a horizontal well in Runnels County Texas to test the Gardner Lime. The Gardner Lime is a fractured limestone which is approximately 15 feet thick and comparable geologically to another major field in Texas called the Austin Chalk. The Austin Chalk has had a number of successful horizontal wells, of which some of the more prolific wells have had initial production of 1500 barrels of oil per day (BL/day). Martin Energies the Operator states, The key to determining where to drill a horizontal well is to know where decent production has happened historically in older vertical wells. Martin Energies has drilled a number of Gardner Lime vertical wells in the early 1980s in Runnels County, Texas and a number of these wells initially produced between BL/day. By drilling a horizontal leg in this area the results could be the equivalent production of 5-7 vertical wells.

10 Clayton # 1H Horizontal Well (lease 2) Continued An important feature of drilling in the Gardner Lime is that it is a naturally fractured limestone and will not require a costly hydraulic fracture treatment. The well will be drilled to a depth of approximately 4100 feet with a horizontal leg of up to 3500 feet Costs for horizontal drilling has come down drastically in the last 3 months and will allow the Company to do a horizontal test of the Gardner Lime at a very competitive cost. The cost of this well is estimated to be $1,300,000. The Clayton # 1H is a joint venture between the Company, (who will take 2/3) and Martin Energies, the Operator, (who will take 1/3). The Clayton # 1H will be drilled adjacent to the Bearcat #4. Martin Energies, the Operator states, " Due to the slowdown of drilling the deeper horizontal wells in the Midland area, some of the top experts in horizontal drilling are a part of the team. It is anticipated that drilling of the Clayton # 1H will commence June 15, 2015

11 IN THE NEWS Bearcat #2 In March, 1984, the Bearcat #2 well made the news. Upon completion it flowed back at 156 barrels of oil with an impressive but unknown amount of casing head gas during the first 24 hours. This well produced BO in the first 10 months plus an undetermined amount of natural gas. Smelley #2 was drilled and completed in the Gardner lime and flowed 245 barrels of oil during the first 24 hours of production and only required a small 500 gallon acid treatment. This well produced BO in the first 14 months and 29,519 BO in the first 26 months plus natural gas. The Four Parcels well was drilled and completed in the Gardner Lime and flowed at 180 barrels of oil during its first 24 hours of production. It produced BO in the first 17 months. With the crash in oil prices in the late 1980 s the previous operator shut down its drilling program and sold their lease.

12 For Additionl Information FOR ADDITIONAL INFORMATION PLEASE CONACT: Jack Bal President Telephone: