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Lucas Energy Presentation

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Title: Lucas Energy Presentation


1
Lucas Energy Presentation
  • June 1, 2007

2
Lucas Energy Overview
  • In 2004, Lucas Energy was founded by industry
    experts with extensive regional field experience
    who wanted to build a different type of oil and
    gas company.
  • Our corporate philosophy is to operate an
    efficient, agile and risk averse oil company.
  • We avoid most of the typical exploration and
    production risk by acquiring proven assets in
    areas where management has had prior experience.
  • To date our team has proven its ability to grow
    reserves while maintaining a profitable company.

1
3
Company History
4.00
80
3.00
60
2.00
40
Volume (000s)
Stock Price
1.00
20
0.00
0
Jan-05
Apr-07
Aug-05
May-05
Oct-06
Jan-07
Jun-07
Feb-07
Mar-07
Sep-05
Mar-06
Jun-06
Jun-06
Aug-06
Sep-06
Nov-06
Dec-06
May-07
May-06
  • Acquired 9 Producing Wells in Gonzales and Karnes
    Counties Financed with 2.2 Million Debt and
    Restricted Shares
  • Acquired 2 leases and 2 shut in wells in Gonzales
    County
  • Acquired 6 Oil Wells in Gonzales County Financed
    with Restricted Shares
  • Acquired 1 Well in Gonzales County
  • Acquired 1 Producing Well in Austin Chalk Region
  • Acquired 2 Shut-In Wells in Gonzales County
  • Acquires 498 acre, 5 well property in Austin
    Chalk
  • Acquires Team Bank lease
  • Announces Reserve Report of 1.5m BBLS
  • Lucas Energy Resources Founded
  • Acquired 2 Unit Wells in Gonzales County
  • Acquired 2 Producing Wells in Baylor County
  • Acquired 5 Wells in Zavala County
  • Acquired, Improved 1 Well in Gonzales County
  • Sold Interest in Zavala County for Profit
  • Reverse Merger Completed Began Trading OTC
  • Acquired 7 leases, 3 Wells in Fort Bend County
  • Announced 1.0 Million Equity Private Placement
  • Acquired, Revitalized 1 Well in Gonzales County
  • Acquired, Revitalized 1 Well in Gonzales County

2
4
Lucas Hyper-growth Strategy
  • First phase of operations was completed by
    acquiring forty-three leases totaling 10,000
    acres with proven reserves.
  • Lucas has over twenty prioritized lateral
    drilling locations with proven reserves.
  • Engineering and geology work has been completed
    on a ten well lateral program.

3
5
Increasing Reserves
  • Our leases are sourced directly through local
    landowners and small operators.
  • This intimate knowledge of the area and contacts
    gives us the advantage.
  • We employ a field-tested process to revitalize
    underperforming assets and add reserves.
  • New equipment is used in order to avoid costly
    downtime and maintenance.
  • Our test and production improvement process has
    proven effective with nineteen wells revitalized
    to date.
  • We generate new lateral prospects through
    revitalizing vertical wells.
  • We have a target of 300-350m in reserves in
    three years.

4
6
Reserve Overview
  • Lucas Energy has approximately 1 .6 million
    barrels, 35 million (PV10), in proven reserves.
  • We have a finding cost of less than 5/bbl.
  • We anticipate 52.5 million in additional
    reserves in Fiscal 2008.

Reserve Risk Spectrum
High
Low
Confidence
100
0
5
7
Industry Risks vs. Lucas Energy
Lucas Energy No No No No No Yes
Typical Emerging Oil Company Yes Yes Yes Yes
Yes Yes
  • 1. Exploration Failure Risk
  • 2. Lease Acquisition Risk
  •  
  • 3. Political Risk Geopolitical/Legislative
  •  
  • 4. Environmental Risk Permitting
  • 5. High Finding and Operating costs
  • 6. Execution Risk

6
8
Summary
  • Investors are buying immediate cash flow.
  • We have an ability to find and acquire attractive
    reserves that are overlooked by larger companies.
  • We have already acquired significant proven
    reserves twenty PUD locations, twenty-seven
    wells in production and eight wells awaiting
    revitalization.
  • We employ a proven test and clean-up/production
    improvement process to hold leases.
  • Typical payback timeline per well is less than
    twelve months.
  • Our gross margins run in the 80 range.
  • Lucas Energy has been cash flow positive since
    its first operating quarter.
  • We are poised for a Hyper-growth stage with
    current financing. 90 of capital raised will be
    invested in the drilling program and additional
    reserve acquisitions.

7
9
Appendix
  • Table of Contents
  • Slide
  • Current Portfolio 11
  • Typical Revitalization Process 12
  • Production Example 13
  • Management and Directors 14
  • Ownership Summary 15
  • Safe Harbor Statement 16

8
10
Acquired Rights to Thirty-four Properties
  • Lucas owns 100 working interest in all
    properties.
  • 10,000 acres/41 leases.

Lucas Energy acquires leases with large reserve
potential.
9
11
Typical Lucas Energy Revitalization Process
Griffin Oil Unit No.2Post Lucas Energy
Revitalization
Typical Shut-In Well atTime of Purchase
New Modern Equipment Added Chinese pumping unit
assembled and delivered available for approx. 60k
10
12
Griffin Oil Unit No.2 Well Production
Lucas Acquired
11
13
Management and Directors
  • James J. Cerna, Jr. Chief Executive Officer
  • Twelve years of experience in buy side research
    (primarily at GT Global/AIM).
  • Chief Oil Gas Analyst and CFO, Petroleum
    Partners Inc.
  • William A. Sawyer Chief Operations Officer
  • Thirty years of experience in oil and gas
    operations.
  • Highly experienced field operator, petroleum
    engineer.
  • Previous firms ARCO, Houston Oil Minerals,
    ERCO.
  • Malek A. Bohsali Chief Financial Officer
  • Fifteen years experience in energy industry.
  • MBA, University of Houston.
  • Rick Schmid Board Member
  • Certified Geophysicist in the State of Texas.
  • Previous firms Texas Independent Exploration,
    DDD Energy.
  • Peter Grunebaum Board Member
  • Forty years of experience as an independent
    energy investment banker.

12
14
Current Ownership Summary
Fully diluted shares, no warrants or options
outstanding
13
15
Safe Harbor
  • Certain statements made during this presentation
    are forward-looking and are subject to risks and
    uncertainties. The forward-looking statements
    made are based on our beliefs, assumptions and
    expectations of future performance, taking into
    account all information currently available to
    us.
  • Actual results could differ materially from the
    forward-looking statements made during this
    presentation.
  • When we use the words "believe," "expect,"
    "anticipate," "plan," "will," "intend" or other
    similar expressions, we are identifying
    forward-looking statements.
  • The forward-looking statements made during this
    presentation are subject to the safe harbor of
    the Private Securities Litigation Reform Act of
    1995.
  • We refer you to our filings with the Securities
    and Exchange Commission for a more detailed
    discussion of the risks that may have a direct
    bearing on our operating results, performance and
    financial condition.

14
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