Baron Energy, Inc.
Investor Presentation
April 1, 2015
Forward-Looking Statements
Certain statements contained herein regarding future expectations, access to public capital markets, plans for
acquisitions and dispositions, oil and gas reserves, exploration, development, production and pricing may be
regarded as "forward-looking statements" within the meaning of the Securities Litigation Reform Act. They are
subject to various risks, such as operating hazards, drilling risks, the inherent uncertainties in interpreting
engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail
in the Company's periodic reports and other documents filed with the SEC. Actual results may vary materially.
Any number of 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 costs and results of drilling and
operations, the timing of production, mechanical and other inherent risks associated with oil and gas
production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties
about reserve estimates, environmental risks and other risks and uncertainties set forth in Company's periodic
reports and other documents filed with the SEC. The Company undertakes no obligation to publicly update or
revise any forward-looking statements.
4/1/2015
www.baronenergy.com
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Company
Baron Energy, Inc. (TKR: BROE) is an independent petroleum company engaged in the
acquisition, development, and production of crude oil and natural gas in North America. We
leverage the substantial experience of our management team to acquire, operate, and grow
a portfolio of low-risk producing oil and gas properties with meaningful near-term upside and
long-term production.
4/1/2015
www.baronenergy.com
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Investment Highlights
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Seasoned management team; significant operational experience
Large asset base; mostly oil; horizontal wells
Long-lived reserves
Production ramp up to begin in June 2015
>100 possible future wells/laterals/recompletions
Aligned with an energy capital provider
Manageable debt
Working to become fully SEC reporting and trade on the OTC
4/1/2015
www.baronenergy.com
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Company Highlights
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Seasoned oil and gas management team
Operated only properties
228 BOEPD (150 BOEPD net); 84% oil; 16 producers
Multi-year well inventory of low-risk, long-term production
> 100 possible future wells/laterals/recompletions
> 8,600 gross acres
Multiple pay zones in most wells
Manageable debt with 18-30 month payoffs
Management owns 35% of the company; provides shareholder alignment
Aligned with an energy capital provider
4/1/2015
www.baronenergy.com
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Company Overview
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HQ in San Marcos, Texas
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Pink Sheets: BROE
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Common shares outstanding (est): 130 million/15 million float
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Current price (4/1/15): $0.075/share
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3 month average volume: 10,844 shares/day
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52 week range: $0.02 - $0.15/share
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Current Market Cap: $9.75 million
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Total Debt (est): $11.2 million (includes VPP)
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www.baronenergy.com
4/1/2015
www.baronenergy.com
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Management Team
Ronnie L. Steinocher, PE
Chairman, President and CEO
Lisa P. Hamilton
Executive Vice President, CFO
and Director
Management team has
worked together for more
than 23 years
4/1/2015
• 35 years of oil and gas experience including 18 years with a major oil
company and 14 years as owner/operator
• Extensive experience in drilling, engineering, production operations,
business development, and general management
• Licensed Professional Engineer in Texas since 1985
• 34 years of oil and gas experience including 20 years with a major oil
company and 14 years as owner/operator
• Extensive experience in finance, land, contracts, production operations,
business development, and general management
• BS in Business and Commerce with Highest Honors
• Business development; North America and International
• Acquisitions/Divestments; > 100 transactions since 2002
• Drilling and production operations
• Private and public companies
www.baronenergy.com
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Board of Directors
Ronnie L. Steinocher, PE | Chairman, President & CEO
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35 years of oil and gas experience; 18 years with a major oil company; 14 years as owner/operator
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Extensive experience in drilling, engineering, production, business development, and general management
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BS in Architecture, The University of Texas at Arlington; BS in Civil Engineering, The University of Texas at Austin
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Licensed professional engineer in Texas since 1985; member of Society of Petroleum Engineers since 1983
Lisa P. Hamilton | Executive Vice President, CFO and Director
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34 years of oil and gas experience; 20 years with a major oil company; 14 years as an owner/operator
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Extensive experience in finance, land, contracts, operations, business development, and general management
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BS in Business and Commerce with Highest Honors, University of Houston - Downtown
Jay D. Squiers, CFA | Independent Director
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28 years experience in law, underwriting and portfolio management, securities, energy lending, investment
evaluations, and portfolio management
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Managing Director and member of the fund Investment Committee at Petro Capital Energy Funds, Dallas, Texas
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AB magna mum laude in Economics, Princeton University; JD with Honors – Order of the Coif, The University of
Texas at Austin School of Law
4/1/2015
www.baronenergy.com
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Current Status Company-Wide
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Baron operates 100% of all properties
$215,000/month revenue (pre VPP)
75-100% WI (working interest) ownership; 56.25-77% NRI (net royalty interest)
150 BOEPD net; 84% oil
16 producers; 2 SWD wells
8,691 acres gross
Up to 100 future new wells/recompletions/laterals; multi-year drilling inventory
Reserve life > 40 Years
4/1/2015
www.baronenergy.com
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Production Focus Areas
N
TEXAS
HQ San Marcos
County of Operations
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www.baronenergy.com
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Planned Work Programs 2-3Q 2015
Timing
Well/
Formation
Gross Cost
(MM$)
Net Cost
(MM$)
Est Work
Days
Est IP
BOPD
Avg BOPD
Year 1
2Q
Austin Chalk
Recompletion
$0.75
$0.67
17
250
180
2Q
Flippen
Sand
$0.28
$0.21
10
40
30
3Q
Austin Chalk
Recompletion
$0.85
$0.82
19
250
180
3Q
Austin Chalk
Horizontal Well
$1.20
$1.20
27
200
130
3Q
Flippen
Sand
$0.22
$0.17
10
40
30
3Q
Flippen
Sand
$0.22
$0.17
10
40
30
$3.52
$3.24
820
580
Total
4Q Program dependent upon results of 2-3Q
4/1/2015
www.baronenergy.com
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Production and Projected
Production and Projected
35,000
Drilling Program to begin in June 2015
to ramp-up production
Gross BOEPD
30,000
25,000
20,000
Frio
County
Taylor
County
15,000
10,000
5,000
0
4Q
1Q
2Q
3Q
4Q
2014-2015
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www.baronenergy.com
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2015 Targets
 Continue development of properties 2-4Q
 Drill 3-4 Austin Chalk horizontal wells/recompletions
 Drill 1-3 Flippen Sand shallow vertical oil wells
 Complete geological/engineering evaluation of all properties
 ID potential recompletions and future drilling locations
 Develop 3P reserve estimates
 Become fully SEC compliant; trade on the OTC exchange
 Complete audited financials
 Complete SEC filings
 Complete divestment of non-core properties
 Sell by 4Q (pending market conditions)
 Maintain current low-cost G&A structure
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www.baronenergy.com
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Frio County, South Texas
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100% operated properties
89.1-100% WI/64.15%-77% NRI
Gross 160 BOPD/200 MCFPD/200 BOEPD (133 BOEPD net)
14 producers; 87% Oil; 320-acre well spacing
8,082 gross acres; 8 producing leases
Multi-year drilling inventory
– Multiple production targets (Olmos Sand, San Miguel, Austin Chalk, Eagle Ford Shale, Buda Lime,
Pearsall Shale)
• Horizontal wells
– 100-500 BOPD/well IP’s; 50M-300MBO/well EUR
• Vertical wells
– 30-100 BOPD/well IP’s; 30M-150MBO/well EUR; 40 acre/well spacing
– Possible down-spacing to 20 acre/well
Reserve life > 40 years
4/1/2015
www.baronenergy.com
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Austin Chalk Section
Austin Chalk has three
productive zones: B-1,
B-2, and Lower Chalk
5,150’ Top of Chalk
Upper Chalk B-1
Upper Chalk B-2
Lower Chalk
5,500’ Base of Chalk
Eagle Ford Shale
4/1/2015
www.baronenergy.com
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First Horizontal Recompletion
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December 2014 Baron’s first
horizontal recompletion in the Austin
Chalk
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96% WI; Baron operated
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2,800’ lateral
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Drilling rigs must be capable of
drilling 5,000 ‘ plus lateral wells
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Up to 80 future new wells and
recompletions
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> 40 years of reserve life
4/1/2015
www.baronenergy.com
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Production Systems
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Horizontal wells IP at 100-500 BOPD
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50,000 to 150,000 BO EUR per lateral
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Large pump jacks are required to
move substantial volumes of fluid
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Both single lateral and dual lateral
wells
4/1/2015
www.baronenergy.com
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Taylor County, Central Texas
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100% operated properties
75% WI/54.75% NRI
Gross 30-35 BOPD gross / 17-20 BOPD net
2 producers; 1 SWD; 100% Oil
609 contiguous acres; 2 producing leases
Possible future well locations
– Flippen Sand Formation at 2,900’
– 10-acre spacing
– Open hole completions
– 30-60 BOPD/well IP’s; 20-40 MBbl/well EUR
– 3 PUD locations permitted to drill; 3 future possible locations
Reserve life > 20 years
4/1/2015
www.baronenergy.com
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Taylor County, Central Texas
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Shaffer Leases, Taylor County, Texas
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Baron operated with 75%WI
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Shallow oil wells with long-lived production
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Field has been on production for more than
40 years
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A number of future in-field drilling locations
on 10 acre spacing; 3 permitted for drilling
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Open hole completions should provide high
initial production rates for new drills
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>20 years of reserve life
4/1/2015
www.baronenergy.com
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Acquisition Focus Area
Baron Energy, Inc.
HQ in San Marcos, Texas
4/1/2015
www.baronenergy.com
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Austin Chalk Trend
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Baron is focused on the Austin Chalk
trend
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Future acquisition priorities ,
preferences would be on trend in the
Austin Chalk
4/1/2015
www.baronenergy.com
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Acquisition Criteria for Producing
Properties
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Operated properties only; prefer 100% WI
Current production > 200 BOEPD per project
Focus on oil production
Less than 10,000 feet well depth
Multiple pay zones
Upside via drilling, recompletions, and horizontal wells
Long-term production life > 20 years
4/1/2015
www.baronenergy.com
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Company Contact
Baron Energy, Inc.
300 S. C.M. Allen Parkway, Suite 400
San Marcos, Texas 78666-2278
Phone: 512-392-5775
Fax: 512-392-7238
[email protected]
Brad Holmes, Investor Relations
Houston, Texas
(713) 654-4009
[email protected]
4/1/2015
www.baronenergy.com
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