Q2 Q2 20 2013 Presentation 14 August 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.
Q2 Highlights Oil sale of 41,130 bbls in Q2 (26,803 in Q1) Sales Average oil price USD 96.68/ bbl in Q2 (USD 102.46 in Q1) Operations are contributing positive to EBITDA Operations 2 nd steam generator operational Production build-up Post 30.06 New appraisal well, well 35-452, drilled in July 2
Financial Highlights Q2 2013 Q2 2012 % change Oil sale (bbls) 41 130 4 450 824 % Achieved Oil Price ($/bbl) 96,68 100,34 -4 % Revenues, MUSD 2,946 0,328 798 % COGS, MUSD -1,706 -0,388 340 % OPEX (other opex and salary), MUSD -1,039 -1,307 -21 % Other income/expenses*, MUSD 3,465 0,000 EBITDA, MUSD 3,666 -1,367 -368 % Depreciation, MUSD -0,961 -0,447 115 % Capital expenditure, MUSD 2,013 4,904 -59 % Cash position (as per 30.06), MUSD 7,338 1,043 604 % Book equity (as per 30.06), MUSD 40,381 33,491 21 % Unaudited * Provision of calculated loss compared to MTM value (market to market) on Credit Suisse facility 3
Profit & Loss (MUSD) Q2 2013 Q2 2012 Comment Revenues 2,946 0,328 Increase in revenues due to production from additional wells. Production cost -1,706 -0,388 Increased activity including a new steam generator and new wells completed for production Salaries -0,577 -0,247 Depreciation -0,961 -0,447 In Q4 12 implemented a unit of production (UOP) depreciation profile Other operating expenses -0,462 -1,060 High costs in Q2 12 related to listing on Oslo Axess and 3rd party financing Other expenses 3,465 Reduced previous loss on MTM value on Oil swap agreement Credit Suisse facility Operating profit / EBIT 2,704 -1,814 Net financial items 0,186 2,673 Material variations due to change in USD/NOK exchange rate Taxes -1,382 0 Tax is calculated based on the effective tax rate for 2012. Net profit/(loss) 1,508 0,859 Unaudited 4
Balance Sheet Assets (MUSD) 30.06.2013 30.06.2012 Comment Deferred tax assets 1,5 Deferred tax assets recorded in the Balance Sheet from Q4 12 Fixed Assets 53,3 25,8 Increase due to investments for oil production Production Rights in oil field 7,4 7,6 Other non-current assets 5,0 1,5 Third parties' share of investments (10 % owners) Note 6 in interim report Total non-current assets 67,2 35,0 2,0 Cash USD 7 mill, Receivables USD 5,1 million (incl 2.6 mill related to prepaid Total Current Assets 12,6 steam operating expenses) Total assets 79,8 37,0 Equity and Liabilities (MUSD) 30.06.2013 30.06.2012 Comment Equity 40,4 33,5 Long Term Liabilities 34,5 1,8 Credit Suisse, bond issue, derivatives and liability to previous owner Short Term Liabilities 4,9 1,7 Including USD 3.6 million related to accrued interest to Credit Suisse and Bond Issue Total equity and liabilities 79,8 37,0 Unaudited 5
Cash Flow Cash flow from operating activities 30.06.2013 30.06.2012 Cash flow from operations -3,276 -2,948 Interest paid -1,659 -0,020 Taxes paid 0 0 Net cash from operating activites -4,935 -2,968 Cash flow from investing activities Purchase of tangible fixed assets -6,853 -10,452 Loans to third parties -0,658 -1,245 Net cash flow from investing activities -7,511 -11,697 Cash flow from financing activities Issue of ordinary shares 11,536 0 Bond Issue 0 0 Credit Suisse facility -1,400 0 Net cash from financing activities 10,136 0 Net change in cash, cash equivalents and bank ove -2,309 -14,665 Cash, cash equivalents and bank overdrafts as of 1 Janu 10,876 14,757 Exchange rate gain-/loss on cash, cash equivalents and -1,228 0,951 Cash, cash equivalents and bank overdrafts at end 7,338 1,043 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 (2P) estimated to 53.8 MMBbls San Joaquin Basin west of Bakersfield, California – Competent Person’s Report by Gaffney, Cline and Associates – 0.7 MMBbls (approx 1.2%) 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 3.51 5.15 5.60 (MMBbls) 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 • Effective NRI is 78.35% to Crudecorp (net after royalty) property, hereunder deeper Etchegoin, Monterey and Carneros 7
Initial development through Cyclic Steam Circulation The “Huff and puff” method 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 Continuous 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
Q1 activity A 7-phased development plan is currently in place Growth through investments in extra production wells Phase 1 - 4 Phase 5B Phase 5A Phase 6-7 • Steam flood • Steam flood pilot • Steam flood expansion • Steam flood • Area close to well 463 • 4 horiz. prod. wells • Area close to well 463 expansion • 5 (+1) vert prod. wells • 48 vert prod. wells and 452 • 60 – 72 prod. wells • 6-18 vert prod. wells • 2 steam injt. wells • 29 steam injt. wells • 48 injection wells • 2 - 10 steam injt. wells 2015-2016 Operational Operational Q4-2013 Possible Q2 2014 o 44 production wells and 27 steam injection wells hooked up and operational o The Company is close to implementing a pilot expansion in the area surrounding well 463 o Process for Right of Way for water pipeline ongoing (lower operating costs) o Planning for oil export pipeline o Optimization of operations 9
Production Q2 (incl. July) - Steam injection ramp up in May, coinciding with higher steam injection pressure - Approximately 55% of wells are under continuous steam influence by end of June - Production is progressing as planned, with some delays of operational nature in Q1 following through to Q2. - Post 30.06.13: Slightly lower steam volumes due to change over to larger pumps on wells and drilling operations
Results from Well 463 Encountered 3 Etchegoin reservoir sands Younger Etchegoin deposit The well log corresponds well with an anomalous amplitude on the seismic dataset The 463 well has now been production tested for 2 months, and the test indicate a SOR = 1.5 to 2.0 for first cycle (versus SOR = 6-8 for current development)
Well 452 objectives (drilled July 2013) Primary objective Verify if the geological structure in well 463 was repeated in the second fault Block to the North, as suggested by a coherent seismic amplitude zone which matched the well log in 463. Result: Found a repeat geological structure of 463. The 452 well has not been production tested, but looks very promising for development. Secondary objective Verify if there are hydrocarbons in a deeper Etchegoin structure, which on-laps the down dip Etchegoin structure, currently being produced from. Result: Found an 8 ft oil sand. The result strengthens the assumption of a basal Etchegoin sand in the area.
Well 452 objectives (2)
New development area NEW AREA FOR DEVELOPMENT
Proposed development plan (Northeast Shallow Etchegoin) PHASE 5A Drill 5 production wells + 2 injectors in the 463 block in Q3 2013; 452 block Prove the area and business model for a larger development in the area Increase short term production PHASE 5B 463 block Drill up to 28 production wells in 463 and 452 block in Q2/Q3-2014; Phase 5B may be split into two seperate projects
Planned exploratory drilling in Q4 2013 • There are several potential exploration targets, between 6,000 and 14,000 ft depth • The Company has applied for drilling permits • In the drilling permit, the Company has undertaken to conduct certain environmental surveys; which are on-going
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