chalker energy partners lp 2007 ipaa private capital conference n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chalker Energy Partners, LP 2007 IPAA Private Capital Conference PowerPoint Presentation
Download Presentation
Chalker Energy Partners, LP 2007 IPAA Private Capital Conference

Loading in 2 Seconds...

play fullscreen
1 / 16

Chalker Energy Partners, LP 2007 IPAA Private Capital Conference - PowerPoint PPT Presentation


  • 118 Views
  • Uploaded on

Chalker Energy Partners, LP 2007 IPAA Private Capital Conference. Houston, Texas January 2007. Background on Chalker?. Chalker I Formed in December 2003 Built an East Texas Focused Company Exceptional Operational & Geological Team Total Equity Commitment of $25MM from QEP II

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chalker Energy Partners, LP 2007 IPAA Private Capital Conference' - ryder-hardin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chalker energy partners lp 2007 ipaa private capital conference

Chalker Energy Partners, LP2007 IPAA Private CapitalConference

Houston, TexasJanuary 2007

background on chalker
Background on Chalker?
  • Chalker I Formed in December 2003
  • Built an East Texas Focused Company
  • Exceptional Operational & Geological Team
  • Total Equity Commitment of $25MM from QEP II
  • Sold to Forest Oil for $225MM, Closed 3/31/06
  • Chalker II Up and Running
the chalker i team
The Chalker I Team

Alan Smith President & CEO

Tom Campbell EVP & COO

Gary Hall VP – Geoscience

Larry Tolleson VP – Operations

Janie Isbell Sr. Engineering Tech

Gayla Massey Sr. Executive Assistant

chalker i strategy
Chalker I Strategy
  • Initially an Acquire/Exploit Approach in Tight Gas Sand Basins
  • Evolved into Drilling Strategy in East Texas
  • Focus in Cotton Valley Sands
  • Utilize Relationships & Local Knowledge to Access Opportunities
  • Leverage Engineering, Operational & Geological Strengths
  • Creative Deal Structures
why tight gas basins multiple pays
Why Tight Gas Basins & Multiple Pays?
  • Longer Life Assets with Predictable Reserves
  • Higher Margin Assets – Lower Operating Costs
  • Few Dry Holes Drilled – Basin Centered Gas, Stacked Pays
  • East Texas Stratigraphy

- Rodessa - Cotton Valley A-D Sands

- Pettet - Bossier

- Travis Peak - Cotton Valley Lime

  • Technology has Enhanced Reserve Recoveries
focus areas
Focus Areas

Panhandle

4 County Drilling Area

East Texas

South Texas

chalker i results
Chalker I Results
  • Made 17 Producing Property Acquisitions - $17MM
  • Acquired 16,000 Net Acres in Cotton Valley - $6MM
  • Gained Access to Three Drilling Rigs
  • Drilled 42 Wells, 30 Operated, All Successful
  • Spent $46MM Through the Drill Bit, Avg F&D $1.40/Mcfe
slide10

Reserves & Production Summary

Production

Proved Reserves

2004 YE15.7 Bcfe, 58% Gas

2005 YE112.8 Bcfe, 90% Gas

2004 2005 2006

chalker i sale
Chalker I Sale
  • Proved Up Acreage Thru the Drill Bit
  • Excellent Market Fundamentals
  • Simmons & Griffis Ran a Formal Process
  • Forest Preempted with Signed PSA on 2/9/06
  • Sales Price - $225MM
    • Reserve Cost - $2.32/Mcfe (Announced)
    • Production Multiple - $19,900/Mcfed (Announced)
  • Outstanding Results
    • ROI – 7.4X
    • IRR – 331%
lessons learned
Lessons Learned
  • We can Make Money in Up or Down Cycle – Must Adjust Acquisitions & Drilling Allocations
  • In Drilling Mode, Land Function Highly Critical
  • Deal Creativity is Very Important
  • Geographically Focused Asset Base Adds Significant Premium at Exit
  • Equity Partner Can & Did Add Value in Managing Leverage, Risk Management, Exit Deal Structure & As a Technical Sounding Board
chalker ii formation strategy
Chalker II Formation & Strategy
  • Smith is Chairman of Chalker II, Full-Time at Quantum
  • Doug Krenek Joined Chalker Team, April 1, 2006 as President & CEO
  • Equity Commitment of $50MM from QEP III, $7MM from Management and Other Investors
  • Continued Focus in East Texas & Other Tight Gas Basins in Texas
  • Leverage Off of Technical Knowledge in Focus Areas
  • Be Opportunistic!
the chalker ii team
The Chalker II Team

Alan Smith Chairman

Doug Krenek President & CEO

Gary Hall VP – Geoscience

Larry Tolleson VP – Operations

Bill Dukes VP - Land

Janie Isbell Sr. Engineering Technician

chalker ii update
Chalker II Update
  • Closed Two Acquisitions - $50MM
    • $45MM Acquisition in Rusk County
    • $5MM Acquisition in North Texas
  • Total Net Acerage – 35,000 Acres
    • East Texas – 13,000 Acres
    • Houston County – 14,000 Acres
    • North Texas – 8,000 Acres
  • Current Production – 4.5 Mmcfed
  • Four Rigs Running in East Texas
  • 2007 Drilling Capex - $60MM