Louisiana Energy Conference June 2, Zach Hart Sr. VP Business Development

Transcription

1 Louisiana Energy Conference June 2, 216 Zach Hart Sr. VP Business Development

2 Forward Looking Statements This presentation includes forward looking statements. Forward looking statements can be identified by the use of forward looking terminology such as the words expect, estimate, project, forecast, anticipate, believes, should, could, intend, plan, probability, risk, target, goal, objective, may, will, endeavor, outlook, optimistic, prospects or by the use of similar expressions or variations on such expressions, by the discussion of strategy or objectives or by the use of budgets and projections for periods after the date hereof. Forward looking statements are based on current plans, estimates and projections and are subject to inherent risks, uncertainties and other factors which could cause actual results to differ materially from the future results expressed or implied by such forward looking statements. Any forward looking statements made in this presentation speak only as of the date hereof. Indigo Minerals LLC and Indigo Resources LLC does not intend to update or revise these forward looking statements to reflect events or circumstances after the date of this presentation and does not assume any responsibility to do so. 2

3 Indigo Overview Headquartered in Houston, TX Private Equity Backed Formed in 26 Three Core Assets, over 934, net acres Active HZ development in North La Oil exposure in Central LA Large mineral position in 15 states Second largest producer of Horizontal Cotton Valley North Louisiana Acres Horizontal Cotton Valley Haynesville Shale Leasehold 272, 22, Mineral Total 272, 22, Central Louisiana Oil Acres Central Louisiana Oil Leasehold 58, Mineral 325, Total Acres 383, 3

4 Cotton Valley Characteristics Stacked Pays Type Log ~1,5 of hydrocarbon bearing sands Multiple targets per surface acre Top CV Moderate depths ~9, 1,5 TVD B Lime D Sand Liquids Rich 5 1 bbl/mm NGLs 2 4 bbl/mm condensate Bodcaw Vaughn Mid Vaughn Sits above Bossier Shale and Haynesville Shale Typically 1% HBP by either existing production or Haynesville Roseberry Pseudo-Conventional Sandstone being developed Unconventionally Sexton 7,5 laterals with 36 frac stages Taylor 4

5 Cotton Valley Growth Story Drilled first Horizontal Cotton Valley well in 21 Have since increased acreage by ~19, net acres Hold 272, net acres in the Cotton Valley N N

6 Operated Assets Growth Acreage in core of both Cotton Valley and Haynesville plays 2, 3 rd Party Net Proved Reserves (BCFe) Operate over 1,2 wellbores Currently running 2 rigs Significant reserve growth and resource capture ~2 TCFe of proved reserves >6 TCFe of 3P Resource Cotton Valley & Haynesville Map est 216 Net Production Growth (Mmcfe/d) 2 Cotton Valley Haynesville YE 216 6

7 Strong Gulf Coast Demand Growth Regional Changes in Gas Demand, (BCF/d) NW +1.2 Canada Rox +.5 MW +.7 NE +2.7 CA -.7 SW +.6 MC +1. SE +1. Gulf Coast +1.2 FL +1.1 Mexico +3.2 Source: Bloomberg 7

8 2 Proximity to Market and Declining Supply Marcellus / Utica: BCF/d Dominion South Marcellus (2) ($1.32) Haynesville: BCF/d 2 Northern Louisiana Hub (1) ($.6) Eagle Ford: BCF/d 2 Henry Hub Indigo $ Discount to Henry Hub ) Northern Louisiana Hub reflects the historical 6 month average basis at Perryville Hub as of 9/15/215. 2) Dominion South Marcellus reflects the historical 6 month average basis at Dominion South Hub as of 9/15/215. 8

9 NGLs Poised to Run Ethane: Currently oversupplied U.S. Ethane Supply / Demand Outlook* Demand increasing by ~8, bbl/d Propane: Exporting record amounts Demand and export capacity continues to grow Butane & Natural Gasoline's: Linked to oil price Will benefit with recovery in oil market Current Over Supply Supply Range Typical Cotton Valley NGL Barrel Ethane Propane Butane Natural Gasolines 8 US Propane & Propylene Exports (1, bbl/d) 1% 11% 19% 6% * Source: Enterprise May 216 Investor Slides

10 Indigo Summary Well capitalized, strong balance sheet and supportive sponsors Continuing to add to asset base Significant resource close to best markets Large footprint of liquids rich Cotton Valley acreage 272, net acres 2 nd largest producer of horizontal Cotton Valley 1 th largest private gas producer in the US Rapid growth in short amount of time Top 1 Private Gas Producers* Rank Company Year Founded 1 Company A Company B Company C Company D Company E Company F Company G Company H Company I Indigo 26 * Oil and Gas Financial Journal April 216 1