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Emerald Bay Energy Inc. (TSXV: EBY) is an emerging micro-cap oil and gas producer, based in Calgary, with production properties in South Texas and Central Alberta.Led by a very capable and experienced management team, the Company is redirecting its focus on Texas, as it divests Canadian gas assets. Emerald Bay is assembling a solid land position across multiple prospects in SW Texas, about an hour drive from San Antonio.
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Corporate
Overview
TSX Venture: EBY
May 8, 2014
This disclosure contains forward-looking statements including opinions, assumptions, estimates and expectations of future production, cash flow and earnings. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, the volatility of oil and gas prices, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, changes in oil and gas acquisition and drilling programs, operating risks, production rates, reserve estimates, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities.
Issued and Outstanding 140.7 MM shares
Insider Ownership: 35%
52 week high: $0.06 - low: $0.01
52 week trading volume: 70.1 MM
2014 YTD trading volume: 46.7 MM shares
Shelby Beattie , President and CEO
Over 34 Years industry experience specializing in exploration, production, and project management.
Mike Rice, CFO
Over 15 years of industry experience specializing in energy financing and production operations.
Gibson C. Scott , COO
Over 36 years of global industry experience. Formerly the Canadian Manager of Sperry-Sun Drilling
Services, a directional drilling services company owned by Halliburton.
Andrew Alff, Geologist
Over 36 years of experience in geology with specific domain experience in fault and fracture detection in
Texas.
Bill Locklear, Petroleum Engineer
Over 46 years of specific industry experience related to drilling and completion operations.
Hugh Scott, Landman
Over 30 Years industry experience specializing in mineral rights acquisition and management.
Emerald Bay Energy Inc. (EBY-V), a Canadian oil & gas producer publicly
traded on the TSX Venture Exchange, was founded in 1998 as a Research
and Development entity to develop the patented Lateral Drainhole Drilling
Technology.
In 2005 the Company wound down it’s R&D efforts and transitioned to an
E&P focus for exploration and development of Central Alberta natural gas.
By the time natural gas prices collapsed in 2009 the Company had
established a significant land position in Alberta with over 50 drilling
locations and had grown production to over 200 boe/day.
With Alberta production shut-in due to instability in natural gas prices,
Emerald Bay began the transition to pursue South Texas oil opportunities in
2010.
Current state of Alberta gas wells drilled prior to
2009 ◦ 13 producing wells
◦ 10 shut-in wells
◦ 15-20 drilling locations for future development
Minimal production to keep leases active.
4 well pilot project in-progress
12 wells in 3 areas have been identified if pilot is
successful.
Pilot project to jointly develop, own and operate a
natural gas fired electrical power generation plant
in the Nevis area.
Rated at approximately 980 kW.
4 coal bed methane wells will be used as the fuel
for the power plant.
It is expected to be completed by mid-year 2014.
With over 2 ½ years of planning and development, EBY is
now positioned for growth with plans to exploit numerous
oil opportunities in South Texas.
EBY put in place strategic partnerships with key private
investors and industry partners for Texas acquisitions and
development.
Business model created to acquire a mix of low-risk solid
return with medium-to-high risk exploration.
Management has drilled over 200 wells within the focus
area since 1981
Access to quality services at competitive costs
Finding, development, and operating costs competitive
or better than Canada
Large percentage of land/minerals held privately
Small companies with regional expertise and knowledge
base can assemble a significant land position quickly.
San Antonio Houston
Texas
Austin
EBY/PRI Wooden Horse
Cottonwood Creek
Nash Creek
Holmes Lake
EBY Confidential
Provides the Company with low-risk “oil” targets for
diversification with Central Alberta Gas
100+ “in-fill” drilling targets in Medina County.
“Stacked” zones of interest are: Escondido Olmos Anacacho
Management has extensive experience in the area.
Excellent geologic control with year-around access to
drilling locations
Long life reserves
Oil produced from traps generated by faults
Shale barrier provides the trap on the down thrown side
Fault throws can trap the intervals and provide commercial opportunities with the use of horizontal drilling practices and properly designed facilities to handle fluid quantities
Caldwell, Bastrop, and Guadalupe Counties have been the source of multiple Limestone developments
EBY geologist (Andy Alff) has spent the last 30+ years mapping the fault structures in the region. His discovery of the Edwards “C” zone as a horizontal target fueled the growth of numerous operators such as TPIC, Eagle Energy Trust and North-South Oil.
Guadalupe County
Zones of Interest ◦ Austin Chalk
◦ Buda Limestone
◦ Georgetown
◦ Edwards Limestone
◦ Pearsall Shale
Field size is estimated to be 3000+ acres
1400+ acres currently secured
Average price per acre will be $150 to $350
Activity to date ◦ 3 exploratory wells (1 horizontal and 2 vertical)
◦ 1 disposal well
◦ 5 pay zones tested during the past 8 months
Guadalupe County
Zones of Interest ◦ Navarro
◦ Austin Chalk
◦ Buda
◦ Edwards Limestone
◦ Pearsall Shale
Activity to date ◦ 2 exploratory wells
◦ Testing second interval in Poenitz 1
◦ Testing 1st interval in Poenitz 2
Guadalupe County
Zones of Interest ◦ Pecan Gap
◦ Austin Chalk
◦ Buda
◦ Edwards Limestone
◦ Pearsall Shale
1200+ acres currently secured
Activity to date: ◦ Purchased existing Pecan Gap well on the land. It flows with no
electricity.
◦ Secured a salt water disposal well permit
◦ 3D seismic program in-progress.
Optimum production configuration is 4 producing
horizontal wells and one disposal well.
Low cost of entry provides a possible “company-
maker” scenario if successful.
$3.5 to $4 million total investment in “optimum”
configuration
LOE projected $12+- per barrel (including
transportation)
Expenditure 100% Date Potential
BBLS
Perforation/Stimulation of Kuhn 1H in Edwards “A” $85,000 May 14 75
Mill window and drill HZ well at Imhoff 1 $325,000 June 14 50
3D seismic at Nash Creek & Wooden Horse $194,000 June 14 0
Drill SWD well & Facility at Nash Creek $980,000 July 14 0
Nash Creek 1H $820,000 Jul/Aug 14 125
Kuhn Unit 2H in the Edwards “A” $800,000 Jul/Aug 14 125
2 Navarro/Chalk Wells at Cottonwood Creek $475,000 Q3 14 25
3D Seismic program at Holmes Lake $115,000 Q3 14 0
Total $3,794,000 400
Unit Offering subject to TSX approval
$1.2 -$1.5 million
$0.05 minimum unit price ◦ 1 common share
◦ 1 common share warrant at $0.05 (12 months)
10% broker commission
10% broker warrants (unit for 12 mo @ $0.05)
Anticipated closing: June 6, 2014
Guadalupe County provides for potential
“company-maker” projects with multiple
exploration and development opportunities.
Multiple pay zones tested – ready for
development
PRI project provides a low-risk growth play
funded through cash flow.
Emerald Bay Energy Mike Rice, CFO
CHF Investor Relations Robin Cook
T: +1-416-868-1079