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Roil corporate presentation 11-26-13-reduced

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ROIL Presentation

ROIL Presentation

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  • 1. DISCLAIMER   FORWARD LOOKING STATEMENTS AND OTHER MATTERS THE FINANCIAL AND OPERATING PROJECTIONS CONTAINED HEREIN REPRESENT CERTAIN ESTIMATES OF RICHFIELD OIL AND GAS COMPANY (“RICHFIELD” OR THE “COMPANY”) AS OF THE DATE HEREOF. RICHFIELD’S INDEPENDENT PUBLIC ACCOUNTANTS HAVE NOT EXAMINED, REVIEWED OR COMPILED THE PROJECTIONS AND, ACCORDINGLY, DO NOT EXPRESS AN OPINION OR OTHER FORM OF ASSURANCE WITH RESPECT THERETO. FURTHERMORE, NEITHER RICHFIELD NOR ITS MANAGEMENT CAN GIVE ANY ASSURANCE THAT THE PROJECTIONS CONTAINED HEREIN ACCURATELY REPRESENT RICHFIELD’S RESULTS OF OPERATIONS OR FINANCIAL CONDITION. SOME OF THESE ASSUMPTIONS INEVITABLY WILL NOT MATERIALIZE AND UNANTICIPATED EVENTS MAY OCCUR THAT COULD AFFECT RICHFIELD’S RESULTS. THEREFORE, RICHFIELD’S ACTUAL RESULTS ACHIEVED DURING THE PERIODS COVERED BY THE PROJECTIONS WILL VARY AND MAY VARY MATERIALLY FROM THE PROJECTED RESULTS. THESE VARIATIONS COULD MATERIALLY AFFECT RICHFIELD’S ABILITY TO MAKE PAYMENTS WITH RESPECT TO ANY OF ITS OUTSTANDING AND/OR FUTURE DEBT SERVICE OBLIGATIONS. UNLESS OTHERWISE NOTED, THE FORECASTED INDUSTRY AND MARKET DATA CONTAINED IN THE ASSUMPTIONS FOR THE PROJECTIONS ARE BASED UPON MANAGEMENT ESTIMATES AND INDUSTRY AND MARKET PUBLICATIONS AND SURVEYS. THE INFORMATION FROM INDUSTRY AND MARKET PUBLICATIONS HAS BEEN OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT THERE CAN BE NO ASSURANCE AS TO THE ACCURACY OR COMPLETENESS OF THE INCLUDED INFORMATION. RICHFIELD HAS NOT INDEPENDENTLY VERIFIED ANY OF THE DATA FROM THIRD-PARTY SOURCES, NOR HAS RICHFIELD ASCERTAINED THE UNDERLYING ECONOMIC ASSUMPTIONS RELIED UPON THEREIN. THESE MATERIALS ARE BEING SUPPLIED TO YOU SOLELY FOR YOUR INFORMATION AND FOR USE AT THE PRESENTATION. THIS PRESENTATION AND THESE MATERIALS MAY NOT BE REPRODUCED, REDISTRIBUTED OR PASSED ON, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, BY ANY MEDIUM OR FOR ANY PURPOSE. 1
  • 2. Company  Overview  
  • 3. INVESTMENT  HIGHLIGHTS   Low  Risk  Assets   Superior  Well  Economics   Liquids-­‐Rich  Asset  Base  with   Signiicant  Upside  Potential   Proprietary  Database  and  Research   Technology   Best  in  Class  Geological  Team     Strong  Management  Team  with   Proven  Track  Record   •  Fields  with  long  production  histories  and  signiicant  well  control   •  Documented  pay  in  areas  with  low  historical  recovery  due  to  antiquated  methods   •  Signiicant  inventory  of  low-­‐cost,  high-­‐return  behind  pipe  and  offset  opportunities   •  Well  costs  range  from  $0.25  -­‐  $0.50  million,  with  26  MBoe  EUR  per  zone   •  Additional  performance-­‐based  upside  of  80  MBoe  per  well  in  the  Arbuckle  Formation   •  Re-­‐work  and  new  drill  type  wells  produce  IRR’s  of  329%  and  126%,  respectively   •  •  •  •  1,656  MBoe  Proved  Reserves  (95%  oil)  -­‐  5,447  MBoe  2P  Reserves  (91%  oil)   $33.9  million  Proved  PV-­‐10  ($158.3  million  2P  PV-­‐10)   Additional  unbooked  potential  in  horizontal  Mississippian  well  locations   World  class  upside  in  Utah  acreage  in  the  Navajo  Sandstone,  Mancos  Shale,   Mississippian,  and  other  formations   •  Database  of  over  300,000  wells  –  most  comprehensive  Kansas  dataset   •  Allows  for  rapid  identiication  and  evaluation  of  potential  acquisitions   •  Proven  strategy  originally  developed  by  the  Richield  management  team   •  Award-­‐winning  geologists  with  over  208  years  of  combined  experience  in  analyzing   drilling  and  development  opportunities  in  Kansas  and  Utah   •  Experts  in  exploring  for  and  producing  from  reservoirs  that  are  not  in  capillary   pressure  equilibrium  and  subject  to  damage  from  standard  drilling  techniques   •  Expertise  in  overthrust  geology  in  Rockies   •  Demonstrated  a  unique  ability  to  identify,  evaluate  and  develop  undercapitalized  assets   •  Found  in  excess  of  1  BBoe  of  reservoirs  in  the  UT  /  WY  overthrust  belt   •  Pioneered  the  dewatering  production  methods  now  in  use  throughout  Kansas  and   Oklahoma,  by  many  operators   3
  • 4. HIGHLY  EXPERIENCED  MANAGEMENT  TEAM   Alan  D.  Gaines:  Chairman  of  the   Board  of  Directors   •  30  years  experience  as  an  energy  investment  and  merchant  banker,  and  has  participated  in   the  raising  of  debt  and  equity  inancing  in  excess  of  $100  billion   •  Chairman,  and  Founder  of  Dune  Energy,  Inc.  since  its  formation  in  May  2001  through  April   2011  and  CEO  form  inception  though  May  2007   Douglas  C.  Hewitt:  President  and   CEO   •  27  years  in  managing  all  aspects  of  oil  company  development,  including  geological   analysis,  design  and  implementation  of  advanced  engineering,  ield  management  and   inance   •  Founder  &  CEO  of  publicly  traded  HEGCO  Canada,  an  oil  &  gas  exploration  company   (1995-­‐2000),  Iron  Thunder  Drilling  (1998),  Nemaha  Services  (1991),  Hewitt  Energy   Group,  Inc.  (1988),  and  New  Century  Petroleum  (1986)   Glenn  G.  MacNeil:  CFO  and  Director   •  Over  30  years  in  public  accounting  and  CFO  positions  for  the  oil  and  gas  and  inancial   services  industries,  internationally   •  Served  as  an  oficer  and  director  for  numerous  private  and  public  companies   •  Lead  roles  in  acquisitions,  divestitures,  turnaround  situations  and  start-­‐up  businesses   Michael  A.  Cederstrom:  General   Counsel  and  Corporate  Secretary   •  Practiced  law  since  1980,  over  17  years  experience  advising  oil  and  gas  companies  in  all   areas  including  leasing,  environmental  and  regulatory  compliance  and  securities  matters   •  Practiced  law  with  Dexter  &  Dexter  Attorneys  at  Law  from  2004  to  2008   •  Served  as  the  General  Counsel  and  CFO  of  HEGCO  Canada,  Inc.  from  1997  to  2002   George  T.  Ulrich:  Controller   •  28  years  experience  in  public  and  private  companies  in  senior  accounting  roles,  including   15  years  with  Iomega  Corporation   •  Signiicant  experience  in  SEC  reporting  and  ilings  for  public  companies   David  K.  Detton:  Land  and  Legal   •  Licensed  Utah  attorney  since  1976,  former  partner  in  two  of  the  100  largest  U.S.  law  irms   •  Managed  land  teams  for  over  $1  B  in  acquisitions  of  oil  &  gas  companies   •  Managed  company’s  recent  acquisitions  of  over  12,000  acres  of  mineral  rights  and  10,000   acre  feet  of  water  rights   4
  • 5. DISTINGUISHED  BOARD  OF  DIRECTORS   John  J.  McFadden:  Independent   Director   Joseph  P.  Tate:  Independent   Director   Thomas  R.  Grimm:  Independent   Director   •  38  years  of  experience  in  the  investment  banking  industry   •  Served  with  The  First  Boston  Corporation  /  Credit  Suisse  First  Boston  in  corporate  inance   and  public  inance,  including  as  Vice  President  and  Treasurer.    Served  as  Sr.  Managing   Director  of  Cambridge  Holding  and  Cambridge  Partners,  LLC   •  40  years  of  entrepreneurial  experience   •  Founded  Valley  Sanitation  and  merged  with  10  other  waste  businesses  to  form  Superior   Services,  Inc.   •  In  1996,  as  President  and  Chairman,  completed  a  successful  IPO  on  the  NASDAQ   •  In  1999,  Superior  was  sold  to  Vivendi,  a  French  conglomerate  for  over  $1  billion   •  Brings  many  years  of  top-­‐level  business  and  entrepreneurial  experience  to  the  Company's   Board   •  From  1998  to  2002,  Mr.  Grimm  served  as:  President  and  CEO  of  Sam's  Club  as  well  as   Executive  Vice  President  of  Wal-­‐Mart  Stores  Inc.,  based  in  Bentonville,  Arkansas   •  Mr.  Grimm  served  as  the  CEO  of  Pace  Membership  Warehouse,  a  subsidiary  of  Kmart   Stores  Inc.   •  Founder,  President  and  CEO  of  Price  Savers  Membership  Warehouse,  which  achieved  one   billion  dollars  in  sales  in  its  last  year  prior  to  being  acquired  by  Kmart  Stores  Inc.   5
  • 6. BEST  IN  CLASS  TECHNICAL  TEAM   Monty  Hoffman:  Production   Geologist   Raina  Powell:  Production  Geologist   Bill  Alexander:  Petroleum  Engineer   •  From  2007  to  2009,  served  as  SVP  of  Exploration  for  Hunter  Energy,  LLC   •  From  1990  to  present,  has  served  as  President  of  Safford  Exploration  -­‐  resulted  in  the   discovery  of  the  1  MMBO  Thief  Creek  Field  in  the  Wyoming  Thrust  Belt  for  Anshutz  Corp.   •  From  1976  -­‐  1990  worked  for  Chevron,  supervised  the  development  of  Whitney  Canyon  -­‐   Carter  Creek  ields,  and  served  as  District  Geologist  of  the  Mid-­‐Continent  District   •  From  1976  -­‐  1990  worked  for  Chevron  in  various  roles,  including  the  geologic  negotiations     with  partners  in  Painter  and  East  Painter  ields   •  Since  1990,  has  served  as  a  Staff  Geologist  for  Safford  Exploration,  Inc.   •  Experience  in  several  Wyoming  basins,  in  the  Williston  Basin,  and  in  Texas  and  Kansas   •  From  2003  to  2005,  served  as  Senior  Staff  Geologist  for  Nautilus  Resources;  supervised   the  Gebo  Field,  which  doubled  from  500  BOPD  to  1000  BOPD   •  Over  60  years  of  oil  and  gas  experience   •  From  1960  to  1974,  served  as  a  drilling  and  completions  engineer  and  ield  engineer  with   Shell  Oil  Company   •  Also  served  in  various  engineering  roles  with  Kirby  Exploration,  Alexander  Drilling,   Natomas  North  America,  and  Pennaco  Resources  Company   Paul  Lamerson:  Consulting   Geologist   •  Over  50  years  of  oil  and  gas  experience   •  Currently  with  Safford  Exploration,  where  he  served  with  the  team  responsible  for  the   discovery  of  the  1  MMBO  Thief  Creek  Field  in  the  Wyoming  Thrust  Belt   •  From  1956  to  1989,  served  as  a  geologist  for  Chevron  where  he  was  part  of  the  team  who   discovered  Ryckman  Creek  (1976),  Painter  Reservoir  (1977),  East  Painter  Reservoir   (1978),  Whitney  Canyon-­‐Carter  Creek  (1977),  and  Glasscock  Hollow  (1980)  ields   Jeremiah  J.  Burton:  Geologist   •  15  Years  of  Oil  and  Gas  Experience  in  the  Mid-­‐Continent  and  the  Rockies,    including  work   for  Flying  J  Oil  &  Gas,  and  permitting  work  for  Anadarko  in  Alaska.   •  10  years  with  Richield  and  its  Predecessors,  including  the  initial  identiication,     evaluation,  and  development  of  Richield’s  current  Mid-­‐Continent  Properties.   •  Helped  Develop  Richield’s  Proprietary  exploration  database   6
  • 7. COMPANY  SUMMARY   !  North  American  exploration  and  production  company  based  in  Salt  Lake  City,  Utah   "  Publicly-­‐traded  on  the  OTCQX  U.S.  Premier  Market;  Ticker  Symbol:  ROIL   "  Incorporated  April  2011,    simultaneous  with  the  merger  with  Hewitt  Petroleum,  Inc.   !  Unique  balance  of  low-­‐risk  assets  with  immediate  cash  low  impact  and  long-­‐term  upside:   "  "  "  "  Kansas  -­‐  Low-­‐risk,  low-­‐cost,  high  return  assets   Wyoming  –  Low-­‐risk,  moderate  cost,  high  return  assets   Independence  Project,  Mancos  Shale  -­‐  Moderate  risk,  high  upside   Central  Utah  Overthrust  –High  Risk,  high  upside   !  Development  strategy  focuses  on  increasing  value  through  exploitation  of  existing  and  future  assets   "  Drilling    program  includes  re-­‐work  and  new  drill  operations,  as  follows:   o  Kansas    -­‐    94  New  Drills  and    26  Recompletions,  for  production   o  Wyoming    -­‐  One  Recompletion  and  One  New  Drill   o  Utah  –  One  Recompletion  and  102  New  Drills     !  Central  Utah  Overthrust  acreage  provides  signiicant  upside  potential  through  Mancos  Shale  exposure   "  Approximately  11,639  acres  with  unbooked  resource  potential  in  the  Navajo  Sandstone,  Mancos  Shale,  and  deep   Mississippian  formations  (108  potential  drilling  locations)  -­‐  89.5%  WI    in  Twin  Creek  or  Deeper,  and  44.25%  WI   above  Twin  Creek,  in  the  HUOP  Freedom  Trend  Prospect  and  59.6%  WI  in  the  Liberty  Prospect.   "  20,000    acres  prospective  for  the  Mancos  Shale  (31  potential  drilling  locations)  –  3%  Working  Interest   7
  • 8. Kansas  Asset  Overview  
  • 9. EXPLORE  AND  RESEARCH  SYSTEM  (“EARS”)   !  Proprietary  database  that  includes  well  data  from  several  public  and  private  sources   Production  history  charts   !  Data  on  300,000+  wells  drilled  in  the  mid-­‐continent  since  the  1920s   !  Invested  over  $3  million  in  unique  strategic  advantage  which  allows  Richield  to:   "  Allocate  capital  to  best  drilling  targets   "  Identify  and  evaluate  acquisition  targets   Well  data   Well  logs  &  cross-­sections   Most  Comprehensive  Source  of  Kansas  Production,  Completion,  and  Geological  Data   9
  • 10. MAJOR OPERATORS IN KANSAS   RichSield  Leaseholds  and  Major  Kansas  Operators   RichSield  Properties   Nemaha   Anticline   Cambridge   Arch   Legend       Salina  Basin   Hugoton   Embayment  of  the   Anadarko  Basin   Forecast   City  Basin   Central     Kansas     Uplift   Bourbon   Arch   Sedgwick   Basin   Cherokee   Basin   Operator   Apache   Chesapeake   Encana   Sandridge   Shell   Gorham  Field   •     1,218  acres   •     45  locations   Trapp  Field   •     160  acres   •     7  locations     Koelsch  Field   •     480  acres   •     10  locations   Perth  Field   •     480  acres   •     10  locations     South  Haven  Field   •     248  acres   •     5  locations   Richield  Leases   !  Richield’s  acreage  is  located  in  the  heart  of  the  Central  Kansas  Uplift   "  2,506  acres   "  79  total  drilling  and  workover  locations   Source:  Company  ilings,  PLS  Oil  &  Gas  Database   10
  • 11. CENTRAL  KANSAS  UPLIFT  OVERVIEW   Unproduced  Oil  and  Gas  Zones   Arbuckle  Overview   !  Main  target  is  the  Arbuckle  formation,  a  water-­‐drive   reservoir  system  that  has  yielded  2.4  billion  barrels   since  the  late-­‐1920s   !  Typically  outit  new  or  recompleted  Arbuckle  wells   with  high  volume  submersible  pumps   "  Typical  well  will  produce  10-­‐40  BOPD  and  with   proper  well  density,  these  oil  rates  can  increase   !  Untapped  Potential   2009  Halliburton  TMD  Log,  Gorham  Field   "  Formation  has  been  produced  almost  exclusively   from  its  topmost  layer   "  Productive  lower  Arbuckle  intervals  exist  in  every   major  CKU  ield.      These  zones  were  only   sporadically  produced—mainly  due  to  a  lack  of   information  sharing  among  an  unsophisticated,   under-­‐capitalized  producer  base   !  Behind  Pipe  Reserves   "  Recent  cased  hole  logs  on  Richield’s  wells  identify   signiicant  new  reserves  in  two  of  Central  Kansas’   largest  ields   2009  Halliburton  TMD  Log,  Trapp  Field   11
  • 12. GORHAM  FIELD   Operating  Region   RichSield  Development  Plan   !  A  geological  report  on  a  Gorham  Field  well  log   indicates  over  50’  of  pay   "  Only  the  top  2’  –  5’  of  the  Arbuckle  has   been  produced  in  the  entire  ield   !  1,218  Net  Acres   !  Average  WI  /  NRI  100%  /  80%   !  $19.1  million  drilling  plan   !  45  Total  well  Locations   "  35  Production  wells   "  10  SWD  wells   12
  • 13. KOELSCH  FIELD   Operating  Region   Field  Description   !  Field  was  discovered  in  1952  and  abandoned   in  1957,  leaving  3.9  –  6.4  MMBoe  recoverable   !  480  Net  Acres   !  Average  WI  /  NRI  85.5%  /  67.5%   !  $7.4  million  drilling  plan   !  12  Total  well  Locations   "  10  Production  wells   "  2  SWD  wells   13
  • 14. TRAPP  FIELD   Operating  Region   Field  Description   !  Focus  area  is  the  highest  part  of  the  structure   "  Wells  historically  experienced  the  highest   IPs,  highest  EURs,  and  most  recoverable   reserves   "  Should  the  pilot  project  prove  successful,   ROIL  can  expand  to  the  entire  ield   !  160  Net  Acres   !  Average  WI  /  NRI  100%  /  78%   !  $2.8  million  drilling  plan   !  9  Total  well  Locations   "  7  Production  wells   "  2  SWD  wells   14
  • 15. PERTH  FIELD   Operating  Region   Field  Description   !  Estimated  12.6  MMBoe  of  reserves  in  place,   representing  recovery  eficiency  of  only  15%   "  ROIL  estimates  recovery  eficiencies  of  up   to  40%   "  Acquired  properties  to  redrill  and  produce   the  remaining  recoverable  reserves  of  2  to   3  MMBoe   !  480  Net  Acres   !  Average  WI  /  NRI  85%  /  66.3%   !  $8.5  million  drilling  plan   !  16  Total  well  Locations   "  13  Production  wells   "  3  SWD  wells   15
  • 16. SOUTH  HAVEN  FIELD   Operating  Region   Field  Description   !  Estimated  5.5  MMBoe  of  reserves  in  place,   representing  recovery  eficiency  of  only  10%   "  ROIL  estimates  recovery  eficiencies  of  up  to   40%   "  Acquired  properties  to  redrill  and  produce   the  remaining  recoverable  reserves  of  1.5  to   2.0  MMBoe   !  248  Net  Acres   !  Average  WI  /  NRI  100%  /  79%   !  $4.9  million  drilling  plan   !  8  Total  well  Locations   "  6  Production  wells   "  2  SWD  wells   16
  • 17. Utah  and  Wyoming  Asset  Overview  
  • 18. Central Utah Overthrust— a String of Pearls North American Overthrust (Rocky Mountains): •  40%  of  world  oil  reserves  are  arrayed  along  thrust  belts.   •  The  North  American  Thrust  Belt  runs  from  Alaska  (Prudhoe   Bay)  to  Mexico  (Cantrell  Field).   !  Four  billion  barrels  of  oil-­‐equivalent  (BOE)  found  in   Canadian  Overthrust.   National and state parks Extreme volcanism Hogback  Ridge   !  National  and  state  parks,  great  depths  and  extreme   volcanism  have  limited  activity  in  Montana  and   northwestern  Wyoming   !  Two  billion  BOE  found  in  northeast  Utah  and   southwest  Wyoming  in  1970’s  and  80’s   •  Two  large  reported  discoveries  on  both  the  Paxton  and  the   Gunnison  Thrust  conirm  productivity  of  Central  Utah   Overthrust.       !  Covenant  Field,  discovered  in  2003/4,  has  estimated   150  million  Bbls  with  13  million  BO  produced  to  date.   Modiied  from  Moulton  and  Pinnell,  2006   !  Providence  Field,  discovered  in  2008,  multi  pay   system,  has  estimated  reserves  several  times  larger   than  the  Covenant  Field   18
  • 19. Central Utah Overthrust—Source and Migration Pathway Modified from Willis 1999 It is estimated that a few trillion barrels of oil, or more, were generated from Mississippian aged (359-318 million year old) source rocks, mostly likely the Chainman Shale, in western Utah and Nevada. However, only 65 billion barrels have been found in Utah’s Tar sands. •  Oil found in the Covenant Field has a different source. Mississippian Source Basin Several Trillion barrels of Oil Generated •  The HPI Liberty #1 discovered pristine Mississippian Oil from this large source basin, for the first time. Tar sands Liberty Field Freedom Trend Prospect •  This identifies a migration pathway from Western Utah, into the Central Utah Overthrust. Tar sands Only 65 Billion barrels of oil Tar sands are accounted for in Utah’s Providence Field Tar Sands Covenant Field Tar sands •  There are many more undrilled structural closures in the central Utah over-thrust, the largest of which is Richfield’s HUOP Freedom Trend Prospect. •  That prospect covers 11 contiguous miles on the northern end of the Gunnison Thrust. Mississippian Oil Migration Pathway and trapped oil Modified from Schelling 2007 19
  • 20. UTAH  AND  WYOMING  ASSET  OVERVIEW   Hogback Ridge Prospect WYOMING   Existing   Wells Drilling   Locations Working   Interest 64.3%                  -­‐                          140 89.5%  20,000                              1                                31 3.0%                561                    -­‐                                16 100.0%                946                                  11 100.0%        1,511                    -­‐                                      9 100.0%                640                              1                                      1 80.0% Spring  V alley  Prospect  (WY)                160                    -­‐                                      1 100.0%      T otal (Existing Production)                            -­‐ Graham  Reservoir  Field  (WY) Graham Reservoir Field                            1 Hogback  Ridge  Prospect  (UT) (32 MMBOE Produced)                160   Edwin  Prospect  (UT) American Quasar Pineview Field 74.7% Pine  Springs  Prospect  (UT) (208 MMBOE Produced)                                      9 Independence  Prospect  (UT) Anschutz Ranch Fields                  -­‐ HUOP  Fredom  T rend  Prospect  (UT)  11,639   (Active Oil Seep)        1,025   Liberty  Prospect  (UT) Spring Valley Prospect Acres Liberty  Prospect  (UT) (Acreage Offsetting Past Production) Richfield  Properties  36,642                              3                          218 !  Liberty  #1  Discovery  Well  –  Drilled  in  2010     "  Logs  and  testing  demonstrated  over  1,200  gross  feet  of  interconnected   fractures  in  Jurassic  Twin  Creek  Limestone  and  427  feet  of  oil  saturated   deeper  Navajo  Sandstone   Liberty Prospect !  Freedom  Trend  Prospect   (1,200+ feet of highly fractured pay) Pine Springs and Edwin Prospects (Gas Shows in Pine Springs) Freedom Trend Prospect "  Gravity  maps  show  prominent  super-­‐structural  anomalies   "  105  miles  of  2-­‐D  seismic  shows  three,  overlapping  structural  closures  in  the   Independence Prospect (Navajo SS and Tununk Sh. “Billion Barrel Potential” Floyd Moulton) (Tununk Shale with Flowing Tests) Wolverine Providence Field (450+ MMBOE Reserves) Twin  Creek-­‐Navajo   "  Extensive  Geochemcial  Anomalies  due  to  hydrocarbons,  cover  the  same   structures  identiied  by  gravity  and  seismic.   !  Independence  Project  –  Drilling  operations  are  anticipated  to  begin  Q4  2013,  or   Q1  2014,  in  the  organically  rich,  Tununk  member  of  the  Lower  Mancos  Shale   !  Hogback  Ridge  (UT-­‐  WY  Overthrust)  –  New  acreage  has  been  acquired,   Wolverine Covenant Field (150 MMBO Reserves) Modified from Willis 1999 offsetting  a  past  producing  well.    Geological  research  and  lease  acquisition  is   ongoing   20
  • 21. HUOP FREEDOM TREND PROSPECT 6,000 feet 9,000 feet 12,000 feet North   Gravity  maps  show  prominent   structural  anomalies—similar  to   those  in  the  Covenant  and   Providence  ields  but   substantially  larger.     Multi-­‐spectral  satellite   photography  reveals  Freedom   Trend  acreage  to  be  among  the   most  hydrocarbon-­‐saturated  on   the  Overthrust.   2D  seismic  shows  three,  overlapping   structural  closures  in  the  Twin  Creek-­‐ Navajo.    One  engineering  study  found   potential  gross  reservoir  volume  in   excess  of  several  billion  barrels.   21
  • 22. HUOP Freedom Trend Prospect •  Richfield's position covers the largest identified undrilled structure in the Central Utah Overthrust. •  We anticipate a discovery in three stacked Navajo formations, 1,000+ feet thick each, filled to spill point. •  The Freedom Trend prospect is in the Mississippian oil migration path. 13,000 feet in Fountain Green Prospect. Initial test well, to Covenant Field Cross Section Source: Wolverine Gas & Oil Corp. 150 million Barrels of Oil Jurassic will target three repeated sections of Twin CreekNavajo with the untested sourcing Mississippian super giant. Providence Field Cross Section Source: Wolverine Gas & Oil Corp. Categorized as several times larger than Covenant Field Richfield’s Freedom Trend Cross Section Source: Hewitt Petroleum/Richfield Oil & Gas. Categorized Seismically as several times larger than Providence Discovery Wolverine  Gas  and  Oil  Company’s  Covenant  Field  and   subsequent  Oxy/Wolverine  Providence  ield  discoveries  in   2003/4  and  2008,  show  important  similarities  with  Fountain   Green.       22
  • 23. HUOP Freedom Trend Prospect - Cretaceous Reservoirs The  Cretaceous-­‐Tertiary  unconformity  is  in  a  position  to  be  an   excellent  trap  for  hydrocarbons  in  the  Cretaceous  Backthrust.   Proposed Location High Energy Wedge Unconformity Cretaceous Backthrust • There is a High Energy Wedge (HEW), intersecting the top of the Cretaceous backthrust in Fountain Green. • This appears to be a collapsed zone with extensive natural fracturing. • The HEW is about 2,500’ thick, covers about 17 Square miles. The potential reserves of this system are as large as the Navajo potential. • The HEW is up-dip of where the Tununk Shale is currently generating hydrocarbons High Energy Wedge delineated by blue faults This structure map of the Emery Fm, is based off of 2-D Seismic, and is overlaid with our Geochemical anomaly survey. It is extremely interesting to note that the Geochemical anomalies are outlined by the faults (in blue) that delineate the High Energy Wedge. 23
  • 24. Independence Project – Mancos (Tununk) Shale •  In 1976, Hansen Oil drilled the Moroni #1A, to a TD of 21,260’, looking for a Mississippian Objective •  Circulation was lost in the naturally fractured Tununk Shale (Lower Mancos) at 11,551’. Oil flowed continuously to the pits. It took 4 months to drill past it and set casing. The well was later plugged. •  In 1998 Cimarron drilled a horizontal Sidetrack in the Tununk with 6 failed laterals. •  Limited perforations in the Tununk, through the stuck drill pipe, have tested as much as 720 BOPD, but Severe mechanical constrictions and LCM’s have combined to make this discovery well inoperative in it’s current condition. Tununk  Core  Fragment   from  Irons  #1,  Sanpete   Co.  UT,  Showing  Silt  and   Sand  stringers   interbedded  within  the   shale   Utah  during  the  late  Cretaceous   Moroni #1-AXZ Gas Flare 20,800 Units When the Horizontal was being drilled, Lost Circulation Materials were recovered over 300’ from where they were put in the ground during the 1976 drilling operations. This shows extreme natural fracturing. The extreme nature of the fracturing at the Moroni #1 AXZH is confirmed by the Dipole Shear Anisotropy log at right. Because Richfield’s acreage is on the Western side of the Tununk play, close to where the shoreline was, there are fewer clays, and more quartz, which allows the shale to be fractured and maintain those fractures. 24
  • 25. Mancos Shale and Others Compared Bakken  Shale   North  Dakota,  Montana,  Canada     150  feet  thick   10,500  feet  deep   11%  Total  Organic  Carbon   .500  Pressure  Gradient   85  feet  of  interbedded  siltstone   and  sandstone   Requires  Hydraulic  Fracturing   Oil  Prone   Independence  Project   Mancos  Shale  (Tununk)  Utah     600-­‐3,000’  feet  thick   11,550  Feet  Deep   7%  Total  Organic  Carbon   .660  Pressure  Gradient   180  feet  of  interbedded   siltstone  and  sandstone   Extensive  Natural  Fractures   Oil  &  Gas  Prone   Eagle  Ford  Shale   Texas     200  feet  Thick   11,500  feet  deep   4.5%  Total  Organic  Carbon   .650  Pressure  Gradient   Requires  Hydraulic  Fracturing   Oil  &  Gas  Prone   A  good  shale  play  is  deSined  by  having  total  organic  carbon  (“TOC’s)   greater  than  2%,  high  thermal  maturity  and  a  brittle  nature  that  can   be  fractured.    Natural  Fractures  eliminate  the  need  for  Hydraulic   Fracturing,  saving  money  reducing  possible  environmental/political   issues.     The  Tununk  member  of  the  Mancos  shale  is  thick,  has  high  TOC’s,   interbedded  sandstones,  natural  fractures,  and  a  high  pressure   gradient,  which  should  yield  a  higher  than  average  recovery  factor.         Utica  Shale   Ohio,  Pennsylvania,  West  Virginia     140  feet  thick   7,500  –  9,500  feet  deep   7%  Total  Organic  Carbon   .46  Pressure  Gradient   Tuscaloosa  Marine  Shale   Louisiana,  Mississippi     200  feet  thick   10,000  –  15,000  feet  deep   1%  -­‐  4%  Total  Organic  Carbon   .7  Pressure  Gradient   25
  • 26. Contact Information OTCBB: ROIL 175 South Main, Suite 900 Salt Lake City, Utah 84111 Phone: (801) 519-8500 www.richfieldoilandgas.com