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2013 08-05-rango-presentation-white-background


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RAGO presentation Aug. 2013

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2013 08-05-rango-presentation-white-background

  1. 1. July 2013 Ener g y Inc
  2. 2. Forward Looking Statements Except for the statements of historical fact contained herein, the information presented in this document constitutes “forward-looking statements” as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the oil and gas industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements contained in this news release and in any document referred to in this presentation. Forward looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the “SEC”) available at Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company’s filings with the SEC, such as the ability to obtain additional financing, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this presentation, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law. OTCBB: RAGO
  3. 3. RANGO ENERGY is an independent energy company engaged in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas in the United States. We are actively pursuing a strategy of partnering with land and leasehold owners to earn a working interest in projects with sound geology, proven success, and near existing infrastructure to reduce the capital risk associated with oil and gas exploration. CENTRAL CALIFORNIA Recently we signed a Definitive Agreement with Hangtown Energy Inc., based in Carson City, Nevada for a working interest on a total of over 12,000 acres located within three separate oil projects in Central and Southern California. The three Project Areas are the: Kettleman Middle Dome (KMD), the Elk Hills projects located just off Interstate 5 Freeway in the San Joaquin Valley, and the South Tapo Canyon project located closer to Los Angeles in Simi Valley. All three project areas are located within producing oil fields. Rango will provide 100% of the development costs for an initial program of 2 wells per project area, and will receive 100% of the production cash flow from Hangtowns interest until payback is achieved. After payback, Rango’s working interest will revert to 75% of Hangtowns interest for the life of the 6 wells. Further to the initial development program Rango and Hangtown Energy will continue to drill and develop the Project areas jointly to maximize production at each site. Rango Energy – Current Projects OTCBB: RAGO
  4. 4. Two of the Project areas, the Kettleman Middle Dome (KMD) and The Elk Hills projects are located in Kern and Kings Counties, north of Bakersfield, just west of Interstate 5 Freeway. Both of these project sites are located Within areas of known very productive hydrocarbon systems. Nearby production from related fields Are presented in: MMBO = Million Barrels of Oil BBO = Billion Barrels of Oil BCFG = Billion Cubic Feet of Gas TCFG = Trillion Cubic Feet of Gas California OTCBB: RAGO
  5. 5. The KMD Project at over 11,000 acres is the largest of the 3 projects and has the greatest revenue potential. The KMD is part of, and lays in the middle of a northwest trending anticlinal structure that is a known hydrocarbon trap. To date, nearly a Billion Barrels of Oil and 3 Trillion cubic feet of gas have been produced from the North dome and the South Dome (known as Lost Hills) combined. Our main target within the KMD lease area is the >1,000 foot thick oil rich McAdams sandstone formation. Hundreds of such wells producing from the McAdams formation in the North Dome area averaged approximately 2.5 Million Barrels of Oil Equivalent (MMBOE) per well. We anticipate similar per well productivity within the McAdams wells at the KMD California – Kettleman Middle Dome OTCBB: RAGO
  6. 6. OTCBB: RAGO KMD area California – Kettleman Middle Dome
  7. 7. In addition to the prolific McAdams Sandstone formation the KMD lease area hosts several shallower oil rich formations which are the source of production at the South Dome. Presently nearly 2,600 acres of Monterey Shale formation have been outlined at the KMD site. The Monterey Shale is now the subject of much attention within California which is predicting a huge oil boom from production from this formation. At the KMD area the Monterey is over 2,000 ft. thick with oil Shows throughout. Other important oil rich formations include the Vaqueros sandstones and the Kreyenhagen Shale. . Stratigraphic column at the KMD California – Kettleman Middle Dome OTCBB: RAGO Kreyenhagen Shale
  8. 8. Good 3D Currently 3D seismic covers 75% of the KMD area, full coverage is planned which will likely help define the full structure and additional targets. Seismic reflectors delineate the dome structure and formations at the KMD California – Kettleman Middle Dome OTCBB: RAGO
  9. 9. • Elk Hills is one of the largest Oil and Gas producing surface anticlines in North America. • More than 1.3 Billion barrels of Oil were produced in wells adjacent to the project area. Occidental Petroleum implemented a massive gas injection program west of the lease hold. The gas expansion and gravity drainage has driven the oil into the project area. Recent wells drilled in similar ‘down dip’ locations averaged approximately 185,000 barrels per well with one well reporting 900,000 barrels. This is an excellent opportunity to Develop significant reserves at low cost. California – Elk Hills OTCBB: RAGO
  10. 10. • South Tapo Canyon is located closer Los Angeles in Simi Valley • The Project is a 800 acre leasehold in a producing area that has seen significant production since before 1920. The main reservoir of the field is the Sespe sandstone at 6,000 ft deep which hasn not been drilled on the leasehold. There are also additional oil zones, one at 2,500 ft where an estimated 500K barrels can be recovered from 3 wells and a very shallow 500 ft thick oil zone which may hold up to 25 million barrels. California – South Tapo Canyon OTCBB: RAGO
  11. 11. California – Opportunity OTCBB: RAGO (1) EUR = Estimated Ultimate Recovery. (2) Represents all identified well sites at an assumed price of $90/barrel of oil. California Project Summary Rango will receive 100% of Hangtowns working interest in the production of the 6 Wells completed in the Initial Program, after all drilling costs are recovered, our working interest will revert to 75% of the cash flow for the life of the wells based of Hangtowns interest. After the Initial Program, additional wells are to be drilled on a shared cost basis with Innex, the leaseholder and the Hangtown-Rango Joint Venture. Our working interest will be 50% of the Hangtown-Rango Joint Venture. Rango has the right to participate in 3 additional wells at both Elk Hills and South Tapo, as well Rango has maintained the right to participate in ALL additional wells at the Kettleman Middle Dome Project. Acres Initial Program Identified Well Sites EUR(1) Barrels per Well Cost per Well Estimated Gross Revenue Potential(2) Production Formations Kettleman Middle Dome (“KMD”) 11,360 2 >50 >1,000,000 $5MM >$2.0 B McAdams Temblor Vaqueros Kreyenhagen Monterey Shale Elk Hills 360 2 5 150,000 $0.6MM >$65M Scalez Stephens Sandstone Pliocene Gusher Monterey Shale South Tapo 800 2 5 150,000 $0.5MM >$65M Eocene Sespe Several others
  12. 12. Opportunity OTCBB: RAGO Summary Rango is involved in several high quality projects within California. Our main area, the KMD project, is directly within a billion barrel field with numerous oil bearing formations. We are expecting high IP rates within the McAdams sandstone >3,000 BPD. We are 30 to 40 days from potential production and foresee excellent cash flow. Blue Sky on the KMD area is 250 MMBOE recoverable.
  13. 13. Harp Sangha - Chief Executive Officer Mr. Sangha has been involved in the capital markets for over 25 years. Mr. Sangha started his career as Investment Advisor in 1986 and gained his affinity for raising capital for early stage projects in the natural resource field. Mr. Sangha departed this position in March 2006 to apply his unique ability of advancing early stage projects. From April 2006 to June 2011 Mr. Sangha served as a director and as the Chief Executive Officer of Douglas Lake Minerals Inc. (OTCBB: DLKM). During his time at Douglas Lake he successfully combined his access to institutional clients with his ability to identify advanced stage natural resources projects, taking the value of the company to $240 million. Mr. Sangha has also served as Chief Executive Officer, Secretary, and as a director of Sharprock Resources Inc. (OTCBB: SHRK) where he raised capital to explore a preproduction gold project in the Kekura Region in Siberia. He joined Rango Energy, Inc. in 2012 as Chairman of the Board and Chief Executive Officer. Craig Alford – Vice President Mr. Alford has been involved for over 28 years in mineral and oil and gas exploration. Mr. Alford has worked throughout North and South America, several Central Asian Republics, Russia, Australia and Africa. This experience has included independent consulting assignments, and positions within the management of major and junior company exploration companies. Mr. Alford has worked as a consultant for Conoco Philips (COP:NYSE) and Canadian Natural Resources Ltd (CNQ:TSX) within Canada. Mr. Alford holds both a Bachelor of Science (Honours) and a Master of Science in Geology and is a professional geologist registered with the Association of Professional Geoscientists of Ontario (APGO). Sam Sangha - Corporate Development Mr. Sangha began his career as an investment advisor at Global Securities Corporation in 2004 and focused on the natural resource and mining sector where he worked till 2010. Over that period Mr. Sangha built a network of retail and institutional investors across North America and Europe. Mr. Sangha left Global Securities in 2010 and joined Douglas Lake Minerals as head of Investor Relations/Corporate Development. While working at Douglas Lake Minerals, Mr. Sangha focused on financing, investor presentations, and corporate relations. Mr. Sangha currently holds this position with Sharprock Resources and Rango Energy. Herm Rai - Chief Financial Officer Mr. Rai holds a degree in Economics from Simon Fraser University. In 1997 he began his career as an investment advisor and in 2000 joined Global Securities Corporation of Vancouver, British Columbia. His interest and focus quickly turned to the natural resource sector. Mr. Rai spent 12 years cultivating relationships with like-minded investors, both retail and institutional, and joined Douglas Lake Minerals, Inc. in 2009, where he served as its Chief Financial Officer until March of 2011. During this period Mr. Rai helped to advance two project acquisitions by securing over $22 million in financing for early stage exploration and development. Mr. Rai currently serves as Rango Energy Inc.’s Chief Financial Officer. Rango Energy Management OTCBB: RAGO
  14. 14. Vincent Ramirez – CEO Hangtown Energy, Inc. Mr. Ramirez brings over 30 years of notable exploration and development. As part of the Lundin Group and Chairman, Vostochnaya Transnational (AOIL: Swedish Stock Exchange), he managed all financial, development and production activities of an 80-million barrel, 300 staff oil company in Siberia from initial project evaluation through drilling and construction of processing facilities. As a Chief Geologist, Ramirez oversaw all aspects of exploration, production development and asset valuations cumulatively encompassing 6 billion barrels of oil (BBO). As a lead Exploration and Operations Geologist for Shell Oil Company, he oversaw exploration and development operations in Yemen where he took production from zero to 400,000 barrels per day (ultimately yielding 320 MMBO), and supervised production of 120,000 barrels per day in California’s San Joaquin Valley. William Bennett – Petroleum Geoscientist William Bennett is a highly skilled professional petroleum geologist with over 27 years’ experience working within producing fields of Canada, the Middle East, Cuba and the Caribbean. His responsibilities have covered generating new field drill design, and monitoring, coordinating operations, and generating geologic data for a number of producing oil and gas fields. He has extensive experience with post-drill analysis, rock mechanic studies and petrography studies. He has consulted for numerous large and mid-tier oil and gas producers including Sherritt International, Husky Energy and Canadian Natural Resources. At present Mr. Bennett is involved in evaluating new >900 MMBO oil fields within the Middle East. Rango Energy Advisory Board OTCBB: RAGO
  15. 15. Rango Energy Corporate Information Rango Energy, Inc. 400 S. Zang Blvd. Suite 812 Dallas, Texas USA 75208 T: 1.888.224.6039 F: 1.214.441.2679 Trading Symbol: RAGO (OTCBB) Shares O/S: approx. 101 million 52 week Hi/Lo: $0.04 - $0.45 Market Cap (July 23): $37 million OTCBB: RAGO