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Onshore US Field Revitalizaton
May, 2014
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Cautionary Statement
This presentation requires the management of Avanti to make judgments, estimates, and assumptions
about the information provided and contains certain forward-looking statements, all of which are subject
to the usual risk factors and uncertainties associated with the oil & gas exploration and production
business. The information contained herein is provided “as is” without any warranties.
While Avanti believes the expectations reflected herein to be reasonable in light of the information
available to them at this time, the actual outcome may be materially different owing to factors beyond
Avanti’s control or within Avanti’s control where, for example, Avanti decides on a change of plan or
strategy.
Avanti undertakes no obligation to revise any information provided herein to reflect any changes in
Avanti’s expectations or any change in circumstances, events, or Avanti’s plans and strategy.
The recipient of this document acknowledges and agrees that he or she, or any relevant institution, will
not trade Avanti shares for a period of at least three months after receipt of this presentation.
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Corporate Information
Capital Structure
Trading Symbol
TSX.V:AVN
Shares Issued
47,124,243
Options
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3,150,000
Diluted Shares
50,274,243
Year High/Low
$0.385 / 0.08
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The Avanti Management Team
Over 160 Years of Global Oil & Gas Experience
John McIntyre
President and CEO
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Geoscientist with over 27 years of domestic and international experience, including major field development, acquisitions and divestitures,
and successful exploration play and prospect generation with material discoveries
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Most recently was Senior Vice President – International at Forest Oil
Former President and General Manager of Maxus Indonesia, where he was responsible for over 100,000 barrels of oil per day of production
and more than 1,200 employees
Previous roles include Joint Venture Manager for Maxus Argentina and Exploration Manager for Maxus Rockies & Mid-Continent
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Timothy Berge
VP Exploration &
Production
Mark Frascogna
VP Commercial
Affairs
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Over 25 years of exploration and development experience globally with a special focus on Latin America
Former Chief Geophysicist for Forest Oil International
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Experienced international business developer and manager with over 27 years of industry experience
Former Italy Country Manager at Forest Oil, where he generated and managed an Italian portfolio of oil & gas permits, application, and
development activities, including a 60 bcfg development project and a 90 million Euro take or pay gas contract with ENI
Managed several European development projects for Calpine Natural Gas Co., including a 400 MW site for a US$220 million power plant
and an €80 million bid to acquire an ENI E&P subsidiary, for which he was a co-leader
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Ricardo Salomão
Brazil Country
Manager
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Miguel Ramirez
Colombia Country
Manager
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Served as Geological and Geophysics Manager for Forest Oil Alaska
Previous roles include Lead Geophysicist for Exxon Ventures CIS and exploration evaluation in Lower Magdalena, Colombia
Over 37 years of experience in Brazil with Petrobras, where he held various senior roles
Former CEO of Associated Gas Transportation Company (TAG), a 6,645 km natural gas pipeline system in Brazil; managed operations that
produced EBITDA of US$435 million in his last year as CEO
Served as CEO of Brazil-Bolivia Pipeline Transportation Company (TBG), the largest pipeline in South America with 3,150 km of pipeline;
oversaw operations that generated EBITDA of US$300 million in his last year as CEO
Served as Petrobras M&A and New Business Manager
Most recently served as Dean of Petrobras Corporate University
Over 44 years of exploration experience in Latin America, primarily with ExxonMobil
Served as Manager of Central and South America for Exxon Exploration Company, where he oversaw Exxon’s regional exploration efforts
Held various additional senior roles with ExxonMobil, including Country Exploration Manager roles for Colombia, Mexico, and Peru
Former Professor of Petroleum Geology at Universidad Nacional de Colombia and Universidad de América in Bogotá
Currently serves as President of the American Association of Petroleum Geologists for Latin America
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The Avanti Board of Directors
John McIntyre
Director
Bud Knell
Director
Karl Kottmeier
Director
Rommel Gallo
Director
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Geoscientist with over 27 years of domestic and international experience, including major field development, acquisitions and divestitures,
and successful exploration play and prospect generation with material discoveries
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Most recently was Senior Vice President – International at Forest Oil
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Previous roles include Joint Venture Manager for Maxus Argentina and Exploration Manager for Maxus Rockies & Mid-Continent
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A petroleum engineer with more than 33 years of diverse oil and gas experience, including numerous technical, supervisory and managerial
positions in a wide range of areas within an E&P company
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Served as Senior Vice President of Forest Oil, which consistently included annual capital budgets of US$100+ million, net daily production
of over 40,000 barrels of oil equivalent, and management of hundreds of platforms and 30+ onshore fields
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Over 20 years of experience in corporate finance, retail brokerage, and corporate administration
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Founding director and president of Rockgate Capital Corp., a public company listed on the TSX
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Director and officer of Bama Gold Corp. and Falkirk Resources Corp., public companies listed on the TSX-V
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Founder and principal of Contact Financial Corp, a western Canadian investor relations and corporate communications service provider
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Has been involved in over US$20 billion of financial advisory and capital raising roles across industries as an investment banker and
attorney, including more than US$15 billion in the energy industry
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Previously worked at Citigroup’s Global Energy Investment Banking Group and Wells Fargo’s Energy Investment Banking Group, where he
provided financial and strategic advisory services to energy companies around the world with a particular focus on Latin America
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Mr. Gallo earned an A.B. from Princeton University, a J.D. from Columbia University School of Law, and an M.B.A. from the University of
Chicago Booth School of Business
Former President and General Manager of Maxus Indonesia, where he was responsible for over 100,000 barrels of oil per day of production
and more than 1,200 employees
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Directors Cont’d
George J. Donnely
Director
Robert S. Boswell
Special Advisor
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Began his career in the oil and gas industry at Texaco Inc. in 1962 and in the 80’s went on to a distinguished career at Gulf Oil.
Mr. Donnelly was also a founder of, and serves as Chairman of Global Suppliers, a U.S. firm that provides equipment to the petroleum and
chemical industry. He also serves on the board of directors of Parker Drilling Company (NYSE:PKD), a global oilfield services company
Mr. Donnelly is a graduate of the McDonough School of Business at Georgetown University and Columbia University’s Advanced
Management Program
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Experienced oil and gas executive with a strong record of managing and growing both public and private exploration and production companies.
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Former chairman and CEO of Forest Oil Corp., a large independent oil and gas exploration and production company headquartered in Denver,
Colo. Joined Forest Oil's board of directors in 1987, and in 1989, was recruited to be CEO. Became president of Forest Oil in 1993 and CEO in
1995. During this time he worked with members of the Avanti management team - John McIntyre, Bud Knell, Tim Berge & Mark Frascogna.
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Co-founded Laramie Energy I, which raised and invested over $200-million from private equity investors. Project sold to Plains Exploration and
Production for over $1-billion.
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Obtained an MBA degree from the University of Texas at Austin and a BS degree in chemical engineering, magna cum laude, from Vanderbilt
University. Currently a member of the Independent Petroleum Association of America, Colorado Oil & Gas Association, Independent Petroleum
Association of the Mountain States, the All American Wildcatters, and serves on the board of directors of Enerflex Ltd
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Louisiana (field rehabilitation)
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Earlier this year, Avanti Energy Inc. (AVN) entered a strategic agreement with Avanti
Exploration LLC (Avanti Exploration), whereby AVN earned the right, but not the
obligation, to participate in Avanti Exploration’s re-entry and in field drilling projects in
Louisiana. The agreement provides that Avanti Exploration will offer no less than
25% and up to 75% working interest participation to AVN at the same terms and
conditions as offered to other participants.
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Avanti Exploration operates 9 producing wells and two SWD wells in Beauregard
Parish, including a gas gathering system.
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Current total production to Avanti Exploration and its partners is over 220 bopd.
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Avanti Exploration is an affiliate of AVN as a result of common ownership and through
contractual agreement, collectively referred to as “Avanti”.
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It is AVN’s intention to jointly build on Avanti Exploration’s success in Beauregard
Parish, Louisiana by participating in an already established base of production,
operations, and knowledge of the Cockfield Trend.
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Avanti Exploration has achieved superior results from its current field rehab
investment in Louisiana and believes it can repeat such results
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Louisiana
Avanti Exploration
Assets Summary
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Working Interest 100%, NRI 72-75%
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220+ BOD + 25 MCFD current production
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9 producing wells with numerous recompletes
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5 PUD locations for Frio/Cockfield
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Multiple PUD locations for Wilcox in active trend
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2 salt water disposal wells currently taking up to 1200 BWD, significant additional
capacity
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5 miles of 4” gas gathering line from Gordon and 1 mile of 3” gas line from Clear
Creek that connect to Trunkline
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± 1000 acres developed
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All assets are within 12 miles of each other
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Louisiana
Cockfield Trend
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Trend largely discovered and exploited from 1940-1965
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Area where seismic is of limited value
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Detailed field studies indicated by-passed pay and behind pipe reserves
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“Skimming” operation effective due to step change in commodity pricing
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Depletion plan critical to success
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Emerging Wilcox trend by medium to large independent oil companies
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Beauregard Parish, Louisiana
Gordon, Cowpen Creek W, Ragley and Clear Creek Fields
Cowpen Ck W- Disc 1974
1 Producer
3P Reserves .4 BCFG 279 MBO
Clear Ck- Disc 1953
3 Producers 1 SWD
3P Reserves 380 MBO
Ragley- Disc 1954
1 Producer
3P Reserves 60 MBO
Gordon Field- Disc 1944
3 Producers, 1 SWD
3P Reserves 12.3 BCFG 546 MBO
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Facilities Map - Gordon/Cowpen Ck W Field
Gas Meter Skid
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Avanti Gas Gathering Line
TI # 26-2
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OI # 23-2
TI 26 SWD # 1
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OI # 25-1
Gimnick # 27-1
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Facilities Map - Clear Creek Field
Gas Meter Skid
P Cox #1 Re-entry
Cox Facility, P Cox #2 &
W Cox #1
3” Gathering Line
Longbell #1
Longbell SWD # 3
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Field Revitalization
Key aspects of Avanti’s field revitalization expertise are a combination of:
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Detailed Field Studies to Identify Opportunities
• Bypassed pay
• Well production histories
• Drive mechanism
• Water production
Artificial Lift Employment and Optimization
• Jet Pump and ESPs as appropriate
Sand Control
• Gravel packs
Perforations
• Gun type/size
Chemical Programs
• Scale reduction
• Corrosion inhibition
Salt Water Disposal
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Field Revitalization
Why do producing wells flowing naturally go off production in areas of strong aquifer support?
 As water cut increases so does the loading effect
• Depending on oil gravity and water salinity, wells typically
load up at 65-70% water cut and cease production naturally
 As water cut increases so does sand production
• Once sand starts to be produced and perforations are
covered production ceases
The application of artificial lift in combination sand control and efficient salt
water disposal operations allows the exploitation of the remaining field
reserves by taking water cut from 65% to 98%, an improvement in recovery
factor of 30+%
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Case Study – Longbell 1
Barrels/Month
Install
Artificial
Lift
Fix Tubing Leak
& Peforate with
casing guns
Well Flowing Naturally
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Barrels/Month
Case Study – OI 25-1
Well Flowing
Naturally
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Install Artificial Lift
and Gravel Pack
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Avanti Energy Begins Drilling VUA; Miller #1 Well
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Growth Opportunities in Louisiana
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AVN will participate with a 25% working interest in the VUA Sherry Miller Well, a new
development well in an existing field also in Beauregard Parish, Louisiana in 2014
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Avanti Exploration has 5 PUD locations in the Cockfield/Frio and multiple PUD locations in
the Wilcox Cowpen Creek West Field that are being leased now
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Avanti Exploration is working on at least two new re-entry projects in Beauregard Parish,
Louisiana for investment in 2014
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Avanti is currently reviewing additional field redevelopment opportunities in Louisiana.
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Avanti Exploration believes it can double current production from already identified new
projects in Louisiana
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Avanti is seeking to apply its skill set in Colombia and Brazil where larger field rehabilitation
opportunities are becoming available
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Contact Information
Head Office
1450 - 701 W Georgia Street,
Vancouver B.C.
Canada V7Y 1G5
[email protected]
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Mark Frascogna
Vice President Commercial
(601) 942-3030 tel direct
(303) 744-3891 fax
[email protected]
P.O. Box 6660
Denver, CO 80206
Timothy Berge, P.G.
Vice President E&P
(303) 931-8330 tel direct
(303) 744-3891 fax
[email protected]
P.O. Box 6660
Denver, CO 80206
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