AGM PRESENTATION BUILDING A CONVENTIONAL PRODUCTION BUSINESS IN TEXAS AND THE GULF COAST AOW.ASX NOVEMBER 2017 ANPOF.OTC
DISCLAIMER Extent of Information This document has been prepared by American Patriot Oil and Gas Corporation Limited ( “ American Patriot Oil and Gas ” or “ Company ” ). This Presentation, including the information contained in this disclaimer, does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the Presentation, disclaimer not anything contained in such forms the basis of any contract or commitment. This Presentation does not take into account your individual investment objective, financial situation or particular needs. You must not act on the basis of any other matter contained in this Presentation but must make your own assessment of the Company. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained in this Presentation, including the accuracy, likelihood of the achievement or reasonableness of any forecast, prospects, returns or statements in relation to future matters contained in the Presentation ( “ Forward-looking statements ” ). Any such forward- looking statements that are contained in this Presentation or can be implied by the same are by their nature subject to significant uncertainties and contingencies associated with the oil and gas industry and are based on a number of estimates and assumptions that are subject to change ( and in many cases are outside the control of American Patriot Oil and Gas and its directors) which may causes the actual results or performance of American Patriot Oil and Gas to be materially different from any future results or performance expressed or implied by such forward-looking statements. To the maximum extent permitted by law, none of American Patriot Oil and Gas ’ s, or related corporations, directors, employees, agents nor any other person accepts and liability, including without limitation arising from fault or negligence, for any loss arising from use of this Presentation or its content or otherwise arising in connection with it. Exclusion of Financial Product Advice This Presentation is for information purposes only and is not a prospectus or other offering under Australian law or under any others laws in the jurisdictions where the Presentation might be available. Nothing herein constitutes investment, legal, tax or other advice. This Presentation is not a recommendation to acquire shares and has been prepared without taking into account the investment objectives, financial situation or needs of individuals. Independent Advice You should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek appropriate advice, including, legal and taxation advice appropriate to your jurisdiction. American Patriot Oil and Gas is not licensed to provide financial advice in respect of its shares. 2
INVESTMENT HIGHLIGHTS Building a significant production business focused in Texas & Gulf Coast with five acquisitions delivering 2.3mboe reserves, 500boepd and US$83m revenue @ US$50/oil Increasing reserves & production with aggressive acquisition & development strategy Low cost, conventional producing assets, economic at low oil prices with existing infrastructure Long-term profitable production with a focus on further lowering operating costs Upside potential through work over, infill drilling and behind pipe strategies US$40m debt facility term sheet with Arena Investors L.P., due diligence on reserves completed 3
COMPANY SNAPSHOT Corporate Snapshot Northern Star Ticker ASX: AOW, OTCQB: ANPOF Share Price (29 Nov 2017) $0.032 Current Shares on issue 237,074,615 Rough House Options 21,621,725 (ex $0.25/expiry Oct 2018) Texas Market Cap $7.6m Acquisitions Cash (30 Sept 2017) $0.36m Debt Nil EV 7.24 Shareholder Type as at 29 November 2017 Texas Acquisitions Board & Production Reserves PV10 Revenue Management, Project Location (boepd) (1P mboe) (US$) (US$M) 11% Peak Energy East Texas 145 895 5,541 22.7 HJH South Texas 104 436 3,785 14.8 Top Holders Lost Lake/Goose Creek South Texas 100 250 2,892 10.9 Other (ex Board & Shareholders, Management), 54% Anasazi, CWS, Safari SW Texas 148 758 7,396 33.8 35% Total 497 2,339 19,614 82.2 4
MANAGEMENT TEAM Alexis Clark Nick Melosi David Shaw Frank Pirera CEO and Managing Director COO (US Based) Non-executive Chairman CFO and Company Secretary Mr Clark is a graduate of the University Mr Melosi is a Southern Illinois University David Shaw is a Melbourne University Mr Pirera is a graduate of Monash of Adelaide where he obtained a geology graduate with more than a University where he obtained a law graduate, and is currently a Bachelor of Economics and decade of experience in the oil and gas practising solicitor with his own firm, Bachelor of Business (Accounting) and Commerce. Alexis was appointed MD industry. Prior to joining American Campbell & Shaw Lawyers. He is a is a Fellow of the Certified Practising and CEO of American Patriot in early Patriot, Nick worked with medium to director on a number of private Accountants with more than 30 years 2014, prior to that he was an Oil & Gas large cap companies such as Marathon company and advisory boards and has of experience in public practice. Mr Analyst at Patersons Securities Oil and Gas, Sanchez Oil and Gas, Pirera has a wealth of experience in a long history with the Australian covering small to mid cap oil & gas Carrizo Oil and Gas and BHP Billiton. He Football League (AFL) being the financial control and management and companies and worked as an Energy is an operations, development and Essendon Football Club President strategic planning having advised Analyst at Merrill Lynch covering acquisitions geologist with operations from 1992 to 2002 in addition to the numerous public and private medium to large cap energy and development experience in over 250 former Commissioner of the AFL. companies throughout his career. companies; and more recently Shaw horizontal wells across US plays. Nick David is a Non-executive Chairman of Stockbroking where he covered a has developed multiple developmental Ambassador Oil and Gas Limited. basket of mid-cap oil and gas and engineering driven drilling projects, companies. Alexis has had more than has performed reserve analysis 15 years experience in the Institutional on multiple acquisitions and has banking and finance sector where he been involved with multiple workover held positions at Westpac Institutional projects. Bank, GE Capital and ANZ Banking Group, working on transactions across the Energy & Resources and Infrastructure client base. 5
STRATEGY - REPEATABLE MODEL Existing Assets Existing assets: Maximise value • Free carried • • Monetise existing Joint Venture properties • Acquire value accretive production Production • Low cost / distressed conventional producing assets • Low decline / long life • End 2017: 500 boepd End 2018: +2,000 boepd • Exit Strategy • Exit after three years • Track oil price recovery • Repeatable model Aggressive acquisition program – targeting 2,000+ boepd by end 2018 6
STRATEGY - UNLOCKING VALUE Focused on growing reserves & production in the USA Deal making and Partnering with equity Growing reserves & Increased production Monetise asset operational capacity finance providers production delivering returns • Build a significant • Management and deal • Partner with equity and • Acquire low cost and/or • Target significant & attainable production producing business that making strength to hedge funds for equity distressed conventional growth; captures the benefits of producing assets source new finance • 2017 = 500 boepd oil price recovery and opportunities • Partner with banks for • Targeting four • 2018 mid = 1,000 boepd improving market • Competitive advantage debt to optimise the acquisitions per year • 2018 end = 2,000 boepd conditions with in-house capital structure • Expansion of reserves • Mitigate risk by focusing • Uplist to NASDAQ operational capability • AOW has no current and resources base, on brownfield assets, low exchange in the US drive efficiencies & • Significant due debt outstanding borrowing levels and • Exit after three years diligence with team in aggressive build out conservative acquisition plus post achievement place focused on over the next 12-18 assumption of production milestone Engineering, Land and months • Target 30% +IRR and environmental DD • Maximise reserves & ROO of 3x production from existing acreage 7
TEXAS & THE GULF COAST – GROWING RESERVES AND PRODUCTION Peak Energy – East Texas Anasazi Lost Lake/Goose Creek HJH – South Texas AOW Texas acquisitions Anasazi/CWS/Safari 8
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