citadel exploration (coil) investor presentation
DESCRIPTION
Citadel Exploration Investor PresentationTRANSCRIPT
Prepared for August 2014
OTCQB: COIL
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Forward Looking Statements
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This presentation contains forward-looking statements, including without limitation those statements regarding Citadel’s ability to
exploit mining concessions. The statements and discussions contained in this presentation that are not historical facts constitute
forward-looking statements, which can be identified by the use of forward-looking words such as "believes," "expects," "may,"
"intends," "anticipates," "plans," "estimates" and analogous or similar expressions intended to identify forward-looking statements.
Citadel wishes to caution the reader of this presentation that these forward-looking statements and estimates as to future
performance, estimates as to future valuations and other statements contained herein regarding matters that are not historical facts,
are only predictions, and that actual events or results may differ materially. Citadel cannot assure or guarantee you that any future
results described in this presentation will be achieved, and actual results could vary materially from those reflected in such forward-
looking statements. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance
that may arise after the date of this presentation, other than as may be required by applicable law or regulation. Reserve and
Resource Disclosure: Securities and Exchange Commission (“SEC”) rules prohibit a publicly-reporting oil and gas company from
including oil and gas resource estimates in its filings with the SEC, except proved, probable and possible reserves that meet the SEC’s
definition of such terms. Estimates of non-proved and non-probable reserves included herein are not based on SEC definitions and
guidelines and may not meet specific definitions of reserves or resource categories within the meaning of the SPE/SPEE/WPC
Petroleum Resource Management System.
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Executive Summary
Simple Capital Structure (OTCQB: COIL) 30.9MM shares issued (35.4 MM including vested options and warrants) Insider Ownership ~16MM Shares
Founder & CEO: Armen Nahabedian – 4th Generation Oilman Extensive database & knowledge provide first-mover advantage Experienced operator with boots on the ground advantage United States Marine 1999 – 2003; Infantry veteran of Iraq war
CFO: Phil McPherson – 11 Years as a Small Cap E&P Analyst Noted expert on California E&P companies Wall Street Journal “Best on the Street”; Multiple “5-Star” awards
Two Major Prospects Under Development Project Indian: Un-risked potential 100MM Bbls in place Yowlumne: Strategically located adjacent to hundred-million barrel fields
COIL: An Exploration & Production Company Focused on California
The Next Great California Independent
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Project Indian: Drilling January 25, 2014
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Project Indian: California Heavy Oil Background
Heavy oil characterized as less than 18 degrees API, immobile without stimulation
Thermal recovery (steam injection) is the primary stimulation technique
o Steam created using natural gas increases recovery by 15-50% of (OOIP)
Invented in California in 1960 and in continuous use since
60% of California’s daily oil production (~300,000 barrels per day) is via Thermal Recovery
The Majority of California Oil Production is Heavy
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Project Indian: Overview
Analogous to North San Ardo oilfield
o Discovered by Chevron in 1950
o Re-discovered by CEO in 2005 with Salinas Energy
Shallow heavy oil ~11-17 degree API
100% working interest – 80% NRI
More than 100 MMBbls in place; Expect 20% - 40% recovery
688 acres under lease from OXY in San Benito County
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Project Indian: Structure Contour Map
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Project Indian: Cross Section
N S
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Project Indian: Electric Log Of Indian #1-15 Well
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PG&E Gas Transmission Line
PG&E Power
Project Indian
Indian Oil Field: Ideal Thermal Recovery Opportunity
Phase I: CAPEX $500k 1-well pilot cyclic steam project
469-foot well logged 100-foot oil column
Perforated 14 feet 382-396’
Well currently producing 5-7 bbls/pd
11.6 gravity oil / lower viscosity
Phase II: CAPEX $4MM Begin Environmental Impact Report (EIR)
Expanded 4-well pilot steam project
o Includes production and steam facilities
Proximity to PG&E improves economics
o Electric power for pumps
o Natural gas for steam
Multiple points of sale within 100 miles
Low natural gas prices + high oil prices = attractive thermal economics
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Project Indian: Phase II Development Timeline
Long Lead Items Next 12 months
Item Expected Time
in Months Cost
Begin Environmental Impact Report
9-12 ~$250k
Order Steam Generator 9-12 ~$1.5MM
Construct Natural Gas Pipeline 6 ~$250k
Heated Production Tanks 3-6 ~$500k
Reverse Osmosis Water System 3-6 ~$250k
Heated injection/flow lines 3 ~$250k
Drill 4 Additional Vertical wells 2 days each ~$1MM
Total Cost of Phase II ~ $4MM
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Yowlumne
~3,000 gross acres leased by Citadel Exploration.
Yowlumne Area
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Yowlumne: Overview
2-26 AREA OF FOCUS
~3000 Acres gross
LANDSLIDE Family discovered 1985 ~20MM BOE recovered
from 15 wells
YOWLUMNE Discovered 1974
~100MM BOE Recovered
Currently Vintage (OXY)
Recent Activity, Prolific Production & Family Historic Success
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Vintage (OXY) OXY
CENTURY
374M-18 2.2 miles from 2-26
BRY CVX
2 miles
28-12.2 8 miles from 2-26
Spud Aug 2013
318X-127 Spud 11/26
120 Acres 100% NWI
COIL 2-26 12,500’ completed well Ready for stimulation
& testing
New Exploration Near Yowlumne
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Yowlumne: Mud Log
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Yowlumne: Summary
Well 2-26 (100% WI) work-over and/or stimulation candidate in 4Q14
o Estimated CAPEX $250k
2 exploration prospects – 12,000-14,000 ft
o Citadel 80% WI and operator
o CAPEX 2014/2015: $10MM (gross)
o Seismically defined
o Major operators active in the area
o 50MM Bbls un-risked reserve potential
Permits expected 4Q14
Drilling expected 1Q15
Key Takeaways
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Investment Summary
Four Generations of California Oil Expertise
100 identified prospects generated with 2D, 3D and well control data
California Renaissance Opportunity
Premium pricing vs. WTI
Increasing investment from large independents
Limited small-cap opportunity
Two initial projects
Project Indian: 100MM Bbls gross in place
Yowlumne: 2,700 gross acres leased (80% working interest)
Other California opportunities under lease or evaluation
Clean, simple structure
Two Employees: Experienced CEO & CFO
Chairman: Dan Szymanski, geophysicist & 15-year OXY exploration manager
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WHAT’S OLD IS NEW
Headquarters: 417 31st St. Unit A Newport Beach, CA 92663 949-612-8040 Phil McPherson, CFO [email protected]
Geologic Office: 408 Bryant Circle Ojai, CA 93023 805-910-5369 Armen Nahabedian, CEO [email protected]
www.citadelexploration.com
Contact