The Eagleford Shale and More!

Size: px

Start display at page:

Download "The Eagleford Shale and More!"

Dwayne Quinn
7 years ago
Views:

1 The Eagleford Shale and More! (You mean there s more? ) September 2014

2 Company Overview Predecessor Michael Petroleum Corporation Formed in 1983 Active in Brazos County ( ) and South Texas ( ) Primary Focus Acquisition & development of natural gas and oil reserves in South Texas and East Texas South Texas Presence Since 1983 Group has drilled more than 500 wells in Webb and Zapata Counties Acquired over 500 wells in LaSalle, McMullen, Webb, and Zapata Counties Michael Petroleum sold to Calpine in 2001 for $371 million Growth & Sale of 4 Companies Laredo Energy I sold to Chesapeake Energy in 2003 for $110 million (181% IRR) Laredo Energy II sold to Chesapeake Energy in 2005 for $227.5 million (411% IRR) Laredo Energy III - sold to El Paso Corporation in 2007 for $205 million (201% IRR) Acreage Position: 126,000 acres 93,000 in S. Texas, 33,000 in Eaglebine Laredo Energy Today Equity support from Avista Capital Partners and Old Ironsides Energy Significant divestiture in March 2014, Expansion into Brazos, Burleson & Robertson Counties 2

3 Timeline of Major Events 1983 Michael Petroleum forms 2001 Laredo Energy I Key personnel from MP. Equity backing: EnCap Investments 2003 Laredo Energy II EnCap equity-backed 2007 Laredo Energy IV EnCap, Avista backed Begins leasing in unconventional plays LAREDO ENERGY TODAY 3 rigs running in 2 Theaters of Operation (Webb/Brazos) 41 MMcf/d, 1240 Bbl/d gross production 15+ Tcf gross resource potential 2001: Michael Petroleum SOLD to Calpine (later Rosetta) 400 drilling sites, 22 MMcf/d net production 2003 Laredo I SOLD to CHK 134 drilling sites, 13 MMcf/d net production 2005 Laredo II SOLD to CHK 174 drilling sites, 20 MMcf/d net production 2005 Laredo Energy III EnCap equity-backed 2007 Laredo III SOLD to El Paso 231 drilling sites, 23 MMcf/d net production 2013 Laredo V Avista, O.I.E. backed drills first Eagle Ford well in Brazos Co Laredo IV drills first S TX Eagle Ford well 2014 Laredo VI Avista backed continues mature asset development in S TX 3

4 Executive Summary Company Gross Acres 126,000 Proved Reserves 360 Bcfe Probable Reserves Bcfe Current Gross Production 41 MMcf/d, 1,240 BOPD 38 Operated Producing Wells 31 in Webb County (7 Eagle Ford, 17 Escondido, 7 Olmos) 7 in Brazos, Burleson, Robertson Counties ( 4 Eagle Ford, 1 Austin Chalk, 1Buda) South Texas Webb County 93,000 Gross Acres Currently Operating 1 Rig, 2 nd Operated Rig 4 th Qtr 2014 Southeast Texas Brazos, Burleson & Robertson Counties 33,000 Gross Acres December, 2013 first horizontal Eagle Ford well Currently Operating 1 Rig, 2 Non-Operated Rigs Running Divestment in March, 2014 Gross Production Rate Built to 110 MMcfd for all properties 82.5% of 22,000 Acre Position in Webb County, Retained Non-Operated Working Interest Additional 12,000 Acres in Webb County 3P Reserves of 1.7 Tcfe as of June 30, 2014 (D&M Independent Reserve Appraisal) 4

5 Business Strategy Laredo Energy s battle-tested strategy for value creation Build to Sell Create Value Through Relationships Technical Expertise Drill Bit Relationships Strong relationships with Landowners Community Vendors Technical Expertise Focused Operations South Texas Natural Gas Eaglebine Oil Selective pursuit of reserve acquisitions with additional drilling opportunities Drill Bit Control Development Through Operatorship Operate 90% net acreage Timing, Development Plan & Capital 5

Laredo Energy in South Texas Dimmit La Salle McMullen Laredo Group Experience: 500,000+ Acres Webb Duval MPC & LE Partnerships From all Laredo entities since 2001, on prospects generated by Laredo

6 Laredo Energy in South Texas Dimmit La Salle McMullen Laredo Group Experience: 500,000+ Acres Webb Duval MPC & LE Partnerships From all Laredo entities since 2001, on prospects generated by Laredo Group 500 locations drilled 600+ Bcf produced 160 MMcf/d peak gross production Legend LE 1 LE 2 LE 3 Zapata Jim Hogg Laredo Energy First LE horizontal well drilled in horizontal wells drilled to date 110 MMcf/d peak gross production before March divestiture LE 4 MPC Miles Starr 6

7 Laredo Energy in the Eagle Ford Webb County Dimmit La Salle McMullen Hawkville Discovery R.V. Benavides 2 (Eagle Ford Logs & Cores) Webb Duval Hill Ranch 1H (Escondido) Lobo Trend Area Zapata Jim Hogg Legend LE 1 LE 2 LE 3 LE 4 MPC Miles Starr 7

8 Northern Webb County: Wells in Multiple Horizons Wilcox (1V) Escondido (1V, 48H) Olmos (13H) San Miguel (1H) Eagle Ford (1V,26H*) Austin Chalk (2H) * 4 have Austin Chalk producing in curve of EF Lateral 8

9 Austin Chalk/Eagleford Completions and Penetrations 9

10 Webb County: GB Minerals AC/EF Performance 10

11 Webb County: Reservoir Performance Analysis 11

12 Hill Ranch #4H AUSTIN CHALK & EAGLE FORD "COMMINGLED" Interval 11,710' - 17,344' - 13 Stages: Slick Water Frac Austin Chalk AUSTIN CHALK EF UPPER EAGLE FORD Stage 11 Stage 10 Stage 9 Stage 8 Stage 7 Stage 6 Stage 5 Stage 4 Stage 3 Stage 2 Stage 1 LOWER EAGLE FORD BUDA 12

13 Evolution of Development Large Section of AC & EF RVB Area Webb Co. EF Fasken Area Webb Co. EF Austin Chalk Austin Chalk Original completions in Base of Upper EF Up EF Up EF Current strategy is in LOWER EF Lwr EF Lwr EF 13

14 Escondido Completions and Penetrations 14

15 Olmos Completions and Penetrations 15

16 16 Eaglebine

17 Michael Petroleum Wells Luther Unit #1 Buda/Georgetown: 47,488 Bbls Austin Chalk: 19,464 Bbls Luther A #1 Buda/Georgetown: 62,869 Bbls Austin Chalk: 70,159 Bbls Gulf - Payne Unit #1 Woodbine: 34,691 Bbls RF Franze #1 Buda/Georgetown: 36,981 Bbls Luza Unit #1 Buda/Georgetown: 48,337 Bbls Austin Chalk: 33,592 Bbls Smith Unit #1 Buda/Georgetown: 12,722 Bbls Austin Chalk: 19,356 Bbls Luza Dairy Unit #1 Buda/Georgetown: 2,068 Bbls Austin Chalk: 32,596 Bbls Ennis Owens #1 Buda/Georgetown: 2,793 Bbls RF Franze #2 Buda/Georgetown: 29,994 Bbls 17

18 Type Log Brazos Area Acreage Shallow Zones LE - Galls 1H Escondido/Navarro Olmos 18 Pecan Gap

19 Type Log Brazos Area Acreage Deep Zones LE Scasta 1H 19

20 Brazos County Area: Wells in Multiple Horizons Pecan Gap (Potential) Taylor (Potential ) Austin Chalk (2H) Woodbine (1*,1H) Eagleford (3H) Buda/ GT (1H) 20 * Woodbine Behind Pipe in Curve of EF Lateral

21 PAPA JOE SCASTA UNIT #1H WOODBINE A&D/EAGLE FORD "COMMINGLED" Interval 7,445' - 13,240' 22 Stages (Eagle Ford) - 2 Stages (Woodbine): Slick Water Frac Austin Chalk Woodbine A Stage 24 Stage 23 Woodbine D Eagle Ford Buda 21

22 Brazos Area Acreage Spread over 4 Counties 22

23 McGee Lease Scasta #1H Eagle Ford Development Anadarko Scasta-Milberger Unit 1EB-2EB 495 MBO EUR 610 MBO EUR 530 MBO EUR 625 MBO EUR 560 MBO EUR 510 MBO EUR 495 MBO EUR Hamilton #1H 395 MBO EUR 450 MBO EUR Stasny-Honza #1H 700MBO EUR Halcon Unit Area ~600 MBO EUR 23

24 Hunting for the Right Formula Webb vs Brazos 24 Webb County Natural Gas Window 0.1 to 2.8 GPM Minimal Urban Development Large Ranches Water Procurement/ Planning Larger Window for Lateral Placement in EF Commingle Austin Chalk Brazos County Oil Window Oil plus 8 to 10 GPM gas Significant Urban Development Smaller acreage tracts More JV Development Other environmental issues Toads? Much smaller Window for Lateral Placement in EF Commingle Woodbine

Third Quarter 2015 Swift Energy Company November 5, 2015

Third Quarter 2015 Swift Energy Company November 5, 2015 Forward Looking Statements The material included herein which is not historical fact constitutes forward-looking statements within the meaning of