Bayswater Exploration & Production - DUG Permian Conference July 13, 2021
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Bayswater Exploration & Production
DUG Permian Conference
July 13, 2021
ABOUT BAYSWATER
• Denver Based Oil and Gas Exploration and Production Company
─ Founded in 2004
─ Management team with over 250 years of oil and gas experience: land, geoscience, engineering, and
operations
─ Owner/operator model - no intermediate portfolio manager
─ Single layer of fees; management fees cover majority of Management company overhead
─ Successfully raised and deployed over $1.1 billion since 2010 across 4 funds
• Strategy / Approach
─ Focused on highest quality resource plays in the US (Northern Midland; Delaware; DJ Basin
Wattenberg)
o Those with lowest break-even costs, best development economics; a robust competitive service
sector, and a healthy arena of strategic buyers of quality assets
─ Value Creation via Reserves Promotion
o Acquiring undeveloped leasehold in low risk or proven areas, drilling horizontal wells, hydraulically
fracturing those wells, then producing and selling (hedged) oil and gas
─ Majority of capital spending is for follow-on drilling and completion activities
1
─ isESG
Past performance focused:
not indicative Endowment
of future results. See performance byand Foundation
fund and Preqin benchmarks Investor
in Appendix C.Base
See Important Disclosures
2 at the end of this
presentation.
BAYSWATER NATURAL RESOURCE FUNDS: 2010 - PRESENT
Fully Realized Active
Fund I Fund II Fund III Fund IV
Commitments $105 million $250 million $390 million $356 million
Year Closed/Realized 2010 / 2017 2012 / 2017 2017 / 2020 /
Focus Area DJ Basin / Wattenberg DJ Basin / Wattenberg Northern Midland Basin Northern Midland Basin
San Joaquin Delaware Minerals Delaware Minerals
DJ Basin / Wattenberg DJ Basin / Wattenberg
Pension Funds
Bayswater Fund Hallmarks
Fund to Funds
• Blind Pools College Endowments
• Narrowly Defined Strategic Fairways Foundations
• Modest Use of Leverage ~ 1.0x EBITDA
• Hedge to Protect Project Returns
• Recycle Cash Flow
• Investor Returns via Asset Sales
Family Offices Fund III & IV LP Base
3
BAYSWATER COMPANY ASSETS
DJ Basin Wattenberg
• Active Operations since 2009
• Assembled over 50,000 acres in
Core Wattenberg; drilled 400+
wells
• Five strategic exits 2014-2017
• Current position:
─ 20,900 net acres
─ 154 company operated
producing HZ wells
─ 65 DUCs
─ 12,500 BOEPD
─ Ongoing HZ drilling and
completion program
─ 2021 Capex: $180 MM
─ 2022 Capex: $178 MM
─ YE 2022 exit rate:
26,325 MBOEPD
See Important Disclosures at the end
4 of this presentation.
BAYSWATER - PERMIAN ASSETS
Bayswater
Permian
Diversified Permian strategy
consisting of a combination of
Delaware Minerals and Howard
County operated assets
Howard County
Operated Assets
Delaware Minerals
See Important Disclosures at the end
5 of this presentation.
DELAWARE MINERALS PORTFOLIO
• 10,900 net royalty acres
• 1,080 producing wells
CEN
• 200 DUCs and Permits
• Currently - 5 active rigs
TRA
• 2019 peak - 22 active rigs
MID
• Top Operators (of 60+)
L
─ Occidental
BAS
LAN
DEL ─ Exxon
IN P
─ Diamondback
D
AW
─ Chevron
LAT
AR E
• Top Projects include
FOR
─ Poker Lake
─ Harrison Ranch
M
• 2021 Pro-forma
─ EBITDA - $20.4 MM
─ Net Production - 1400 BOEPD
See Important Disclosures at the end
6 of this presentation.
BAYSWATER - FEAST PROJECT
HOWARD COUNTY, TX
See Important Disclosures at the end
7 of this presentation.
HOWARD COUNTY - OPERATED ASSETS
• 2016 technical study (based upon historical vertical well
development) - began leasing step-out “Tier Two”
Wolfcamp acreage
• High liquid percentage, combined with low leasing
costs and low DC&E costs, yielded attractive project
economics 27,600 Acres
• Existing oil and gas infrastructure, friendly regulatory
environment, access to services and qualified workforce
• Repeatable type curve performance was original
underwriting risk
• Since 2016, over 250 eastern horizontal laterals have
been completed in four separate benches yielding solid
“Tier One” economic performance and a well
documented type curve Bayswater Leasehold
See Important Disclosures at the end
8 of this presentation.
UNIQUE GEOLOGIC POSITION
Ho
rse
s ho
eA
toll • Uniquely positioned - situated between two large carbonate
buildups which both shed abundant sediment into basin
─ Horseshoe Atoll (HA, underlying)
─ Eastern Shelf (ES, adjacent/overlying)
ent • Area targeted based on Wolfcamp B rock properties (Shale-
b a ym
p Em focused)
o lfcam
W ─ Source rocks continually present
s cock
s ─ Consistent heat flow/maturation
Gla ose
N ─ Highly oil saturated rock (both shale and carbonate)
─ Substantial vertical well performance (both shale and
carbonate)
Average Resistivity - Wolfcamp B
See Important Disclosures at the end
9 of this presentation.
HOWARD COUNTY DEVELOPMENT PROGRESSION
Play has expanded rapidly to the east in the
last three years with no significant drop in
well results
(27,600 acres)
2021 YTD
(18,000 acres)
1550 Resources Laterals
(10,000 acres)
2020
(8,000 acres) 2018
2016 Bayswater Leasehold
See Important Disclosures at the end
* Current acreage position shown on all maps 10 of this presentation.DIVERSIFY PORTFOLIO INTO TX
Operations group excited about “banana-belt” operating conditions in TX!
See Important Disclosures at the end
11 of this presentation.RECENT M&A ACTIVITY (HOWARD COUNTY)
Laredo / Sabalo transaction May 2021
• $715 million
• 14,500 BOEPD Pure Acquisition Corp à HighPeak Energy
• 21,000 acres • De-SPAC 8/23/2020
• 120 operated locations; 150 non- • HPK begins trading 8/24/2020
operated locations • 51,000 acres - 91% operated
• 85% Oil
Surge / Grenadier transaction Mar 2021
• $420 million
• 9,000 BOEPD
• 18,000 net leasehold acres Bayswater Leasehold
• Operated inventory of ~120 high-quality /
economic future drilling locations
See Important Disclosures at the end
* Per press releases 12 of this presentation.BAYSWATER - CAPITAL DEPLOYMENT METRICS
Operating Stats
• 37 HZ producers (22 Op & 15 Non-Op)
• DUCs (10 Op & 4 Non-Op)
• YE Exit - 51 HZ producers
• 1-2 active rigs for 2021 and 2022
Bayswater Leasehold
See Important Disclosures at the end
13 of this presentation.BAYSWATER – ACTUAL AND PRO-FORMA OPERATING METRICS
Pro-forma Stats
• Capex
2021 - $154M
2022 - $201M
• Exit Rates
2021 - 8,700 BOEPD
2022 - 17,100 BOEPD
See Important Disclosures at the end
14 of this presentation.INFRASTRUCTURE BUILT FOR YEARS OF GROWTH
• 1.3 million BBLs of frac-water storage
• Landowner agreements for water supply
• 4 company-owned water disposal wells
• Pipeline interconnected to 3rd party water disposal
• 85% of oil gathering via pipeline
• Multiple gas takeaway options See Important Disclosures at the end
15 of this presentation.BAYSWATER SWD DESTINATION - 100% ON PIPE
Q2 2021 - 70% of Volume
to Bayswater SWD
Q1 2020 - 95% of Volume
to Commercial SWD
Bayswater SWD = $0.15/BBL avg
Bayswater SWD
Commercial SWD
See Important Disclosures at the end
16 of this presentation.FORT KNOX PAD - DRILLING COMPLETED JULY 1
Fort Knox Pad
2,6
40’
• 8 wells total (16 well per mile density)
• 12.5 average days from spud to RR (per well)
• Average lateral length = 10,643’
• Simul-frac ops starting in August See Important Disclosures at the end
17 of this presentation.BAYSWATER – WELL PERFORMANCE
2021 Program Wells Howard County - Operator Comparison
WFMP A Wells Set of 8 Core
2018 Test Wells
WFMP B Wells Operators
WFMP B - Type Curve (892 MBOE)
Bayswater WFMP A&B - Type Curve Avg
IRR @ $60/BBL = 85%
IRR @ $70/BBL = 110%
Narrow bandwidth of historic production
proves consistent and repeatable results
Bayswater Leasehold
* Assumes $5.5M CAPEX, exit in 3 years at PV12.5, $1.50/MCF, NGL = 30% of WTI, no deducts or diffs; See Important Disclosures at the end
drill one month, frac next, one month delay, then TIL 18 of this presentation.
** All wells normalized to 10,000’INVENTORY OF HIGH QUALITY LOCATIONS - 95% OPERATED
WFMP A LSBY
• 178 Upper WFMP and LSBY Locations
• Additional WFMP D Upside Locations
WFMP B
2023+ Development
20,000 BOE/d 122 remaining locations
2022 Dev
2021 Dev
PDP & DUCs
See Important Disclosures at the end
19 of this presentation.IMPORTANT DISCLOSURES
THIS PRESENTATION CONTAINS "FORWARD-LOOKING STATEMENTS." ALL STATEMENTS, OTHER THAN
STATEMENTS OF FACT, THAT ADDRESS ACTIVITIES, EVENTS OR DEVELOPMENTS THAT BAYSWATER OR ITS
MANAGEMENT INTEND, EXPECT, PROJECT, BELIEVE OR ANTICIPATE WILL OR MAY OCCUR IN THE FUTURE
ARE FORWARD-LOOKING STATEMENTS. ALTHOUGH WE BELIEVE FORWARD-LOOKING STATEMENTS ARE
BASED UPON REASONABLE ASSUMPTIONS, SUCH STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES, AND OTHER FACTORS, WHICH MAY CAUSE THE ACTUAL RESULTS OR PERFORMANCE OF
BAYSWATER TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS OR PERFORMANCE EXPRESSED
OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. IN CONSIDERING THE PERFORMANCE
INFORMATION CONTAINED HEREIN, PROSPECTIVE INVESTORS SHOULD BEAR IN MIND THAT PAST OR
PROJECTED PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS, AND THERE CAN BE
NO GUARANTEE THAT BAYSWATER WILL ACHIEVE COMPARABLE RESULTS. YOU ARE CAUTIONED NOT TO
PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING
STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE, AND ACTUAL RESULTS,
DEVELOPMENTS AND BUSINESS DECISIONS MAY DIFFER FROM THOSE ENVISAGED BY OUR FORWARD-
LOOKING STATEMENTS. EXCEPT AS REQUIRED BY LAW, WE UNDERTAKE NO OBLIGATION TO UPDATE
SUCH STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES ARISING AFTER THE DATE OF THIS
PRESENTATION, AND WE CAUTION INVESTORS NOT TO PLACE UNDUE RELIANCE ON ANY SUCH
FORWARD-LOOKING STATEMENTS.
20BAYSWATER EXPLORATION & PRODUCTION
2021 DUG PERMIAN
GABY
See Important Disclosures at the end
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