Q4 Q4 20 2012 Presentation 27 February 2013 This presentation is provided for information purposes only. It should not be used or considered as an offer to sell or a solicitation of an offer to buy any securities. Any opinions expressed are subject to change without prior notice. Although all reasonable care has been taken to ensure that the information herein is not misleading, Crudecorp makes no representation or warranty expressed or implied as to its accuracy or completeness. Neither Crudecorp, its employees, nor any other person connected with it, accepts any liability whatsoever for any direct or consequential loss of any kind arising out of the use or reliance on the information in this presentation. This presentation is prepared for general circulation and general information.
Q4 Highlights Oil sale of 13,015 bbls in Q4 (6,043 in Q3) Sales Average oil price USD 96.28/ bbl in Q4 (USD 98.14 in Q3) Production drilling program completed Construction Continuous steam flood commenced 8 October Etchegoin delineation well completed Projected investment costs increased by USD 3.4 mill to USD Post 31.12 64.7 mill, where main cost drivers have been re-orientation of some drill patterns and more expensive completion solutions 2
Financial Highlights Q4 2012 Q4 2011 % change Oil sale (bbls) 13 015 3 209 306 % Achieved Oil Price ($/bbl) 96,28 105,85 -9 % Revenues, MUSD 0,948 0,259 266 % COGS, MUSD -0,639 -0,201 218 % OPEX (other opex and salary), MUSD -0,916 -0,792 16 % Other expenses*, MUSD -0,735 EBITDA, MUSD -1,342 -0,734 83 % Depreciation, MUSD -0,260 -0,365 -29 % Capital expenditure, MUSD 16,329 5,354 205 % Cash position (as per 31.12), MUSD 10,876 14,757 -26 % Book equity (as per 31.12), MUSD 32,231 36,244 -11 % Unaudited * Provision of calculated loss compared to MTM value (market to market) on Credit Suisse facility 3
Profit & Loss (MUSD) Q4 2012 Q4 2011 Comment Revenues 0,948 0,259 Increase in revenues due to production from additional wells. Production cost -0,639 -0,201 Increased activity including a new steam generator and new wells completed for production Salaries -0,496 -0,509 Change in principles, actual salary for Q4 12 is KUSD 650 Depreciation -0,260 -0,365 In Q4 12 implemented a unit of production (UOP) depreciation profile Other operating expenses -0,420 -0,283 Correction of previously crediting of fees related to Credit Suisse of KUSD 100 in Q4 12 Other expenses -0,735 Calculated loss om MTM value on Oil swap agreement Credit Suisse facility Operating profit / EBIT -1,602 -1,099 Net financial items -0,991 0,839 Material variations due to change in USD/NOK exchange rate Taxes 2,743 0 Recorded deferred tax assets in the Balance Sheet from Q4 12 Net profit/(loss) 0,150 -0,260 Unaudited 4
Balance Sheet Assets (MUSD) 31.12.2012 31.12.2011 Comment Deferred tax assets 2,7 Deferred tax assets recorded in the Balance Sheet from Q4 12 Fixed Assets 48,5 15,6 Increase due to investments for oil production Production Rights in oil field 8,2 7,5 Increase due to IFRS adjustments. Other non-current assets 4,3 0,3 Third parties' share of investments (10 % owners) Note 6 in interim report Total non-current assets 63,8 23,3 Total Current Assets 13,0 15,4 Decrease in cash due to increased investments for oil production Total assets 76,8 38,7 Equity and Liabilities (MUSD) 31.12.2012 31.12.2011 Comment Equity 32,2 36,2 Long Term Debt 38,8 1,7 Credit Suisse, bond issue, derivatives and liability to previous owner Short Term Debt 5,8 0,8 As per 31.12.12: USD 5 million consists of accounts payable Total equity and liabilities 76,8 38,7 Unaudited 5
Cash Flow Cash flow from operating activities 2012 2011 Cash flow from operations -1,411 -0,961 Interest paid -0,16 0 Taxes paid -0,01 0 Net cash from operating activites -1,584 -0,961 Cash flow from investing activities Purchase of tangible fixed assets -33,058 -14,834 Loans to third parties -4,035 0 Net cash flow from investing activities -37,093 -14,834 Cash flow from financing activities Issue of ordinary shares 2,698 28,456 Bond Issue 3,772 Credit Suisse facility 30,000 Net cash from financing activities 36,470 28,456 Net change in cash, cash equivalents and bank ove -2,207 12,662 Cash, cash equivalents and bank overdrafts as of 1 Janu 14,757 3,511 Exchange rate gain-/loss on cash, cash equivalents and -1,675 -1,415 Cash, cash equivalents and bank overdrafts at end 10,876 14,757 Unaudited 6
The Chico Martinez Oil field in California Location Reserve estimates o Crudecorp is now developing the Etchegoin sands in the Chico Martinez property at depth of 400 – 1000 feet o STOIIP estimated to 50 MMBbls San Joaquin Basin west of Bakersfield, California – Competent Person’s Report by Gaffney, Cline and Associates – 0.6 MMBbls (approx 1.1%) already produced – Current planned development addresses 28% of STOIIP – More of the Etchegoin STOIIP to be developed when cash flow is established, and more knowledge has been gained from the reservoir CHICO MARTINEZ CHICO MARTINEZ CHICO MARTINEZ CHICO MARTINEZ OIL FIELD OIL FIELD OIL FIELD OIL FIELD Chico Martinez Oil field 1P 2P 3P (gross reserves)* Gross Field Oil Reserves (MMBbls) 3.35 4.79 5.22 Key facts *1P:Probable, 2P: Probable+Proven, 3P: Probable+Proven+Possible • Location: San Joaquin Basin west of Bakersfield, California • 2P production in 2015 is estimated at 2,390 bopd, with current o 5 independent engineering studies (1988-2008) development plan (28% of STOIIP). (from GCA report) estimate oil in place in the Etchegoin formation between • Intention is to develop the rest of the field (100% of STOIIP), thereby 55 and 63.5 MMBbls, with potential recovery of 32 -67% lifting production rates and extending field life • Current 10 years, but potential for 25-30 year field life • Operating cost USD 20 - 25 per bbl (in 2014) o 3D seismic shows potential for new discoveries in existing • NRI is 77.7% to Crudecorp (net after royalty) property 7
Cyclic Steam Circulation and Steam Flood Initial development through “Huff and Puff” Permanent steam flood to reservoir to be established Phase 2a Phase 2b-4 Dummy picture Steam flooding Cyclic steam injection Continous steam injection Steam is injected into a production well. Steam is injected into a dedicated injection Heats up adjacent oil to well bore and well. Heats up the entire reservoir and produce water and oil back. oil flows to production well. 8
Q4 activity A 7-phased development plan is currently in place Growth through investments in extra production wells Phase 3 – 4 Phase 1 Phase 2 A-B Phase 5-7 • Steam flood • Cold production • From Cyclic Steam • Steam flood expansion to Steam flood • 18 (18) prod. wells expansion • 4 horiz. prod. wells • 60 – 72 prod. wells • 48 vert prod. wells • 8 (8) injection wells • 48 injection wells • 29 steam injt. wells 2014-2016 Operational Operational Operational Q1/Q2-2013 Q4 activity o Initiated continous steaming operations on 8 October. o Completed drilling program for Phase 4 in December o Drilled a delineation well in December o The project activities remaining after Q4, include hook-up of 13 production wells and 15 steam injection wells 9
Simplified well lay-out in Chico Martinez North The complete pattern of wells have been drilled per Q4, and production is gradually being expanded (wells being steamed in red) 1st steam generator capacity is 5,000 BSPD On 31.12.12 approximately 3,500 BSPD was injected. Producing wells (on corners) Injection is a combination of 50% cyclic steam (stimulation of producers) and 50% continous steam (using steam injection well). 2nd steam generator operational 1 April Injection wells (in middle of grid) 10
Production rates pre-view 1. Steam injection rates will increase as more capacity is utilized - More wells are being hooked-up - Second steam generator operational 1 April 2. Production response to continuous steaming - Engineering predictions are from a few months to 12 months, before the steam-flood takes effect - Evidence of early continuous steam production in ‘old well’, closer to point of injection 3. Steam to Oil Ratio (SOR) - Current evidence points towards an SOR = 5 – 8 for the field - Business model was based on SOR above 8
Steam injection Q4 1st steam generator (5,000 BSPD capacity) Cyclic Cont. Idle Average daily steam injection in Q4 steam steam Generator capacity idle, as drilling 1,250 1,220 2,530 and well hook-up were on-going BSPD BSPD BSPD Average daily production in Q4, Oil prod. Continous steam stimulation takes 190 longer time to generate production BOPD 5 BOPD Cyclic steam injection and cyclic SOR = 6,5 oil production yields a SOR = 6.5. Globally, the SOR = 13 for the period SOR = 13
Steam injection, Q1-2013 1st steam generator is fully utilised per mid-February 2nd steam generator is on site, and hooked-up - Critical item is power line upgrade, which is ongoing. Current estimate is start-up of generator 1 April (4 months ahead of original schedule) Wells are being prepared and hooked-up to allow for fast utilisation of generator 2
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