Investor Presentaiton
Daily Production (Boe/d)
Karnes County Results Show Superior Economics
•
Results in Karnes County are some the best in North America
MAGNOLIA
OIL & GAS
•
.
Karnes Eagle Ford and Austin Chalk type curves produce 216,000 and 332,000 barrels of oil, respectively, in their first 12 months of
production supporting paybacks in less than 6 months
Liquids heavy commodity mix with Eagle Ford wells producing 74% oil (86% liquids) (2) and Austin Chalk wells producing 63% oil (80%
liquids) (2)
Karnes has some of the highest U.S. IPS...
...with significant early cumulative
production...
3,000
2,500
2,000
1,500
1,000
Cum. Production (Mboe)
800
600
400
Cum. Cash Flow ($MM)
...resulting in best in class paybacks
$15
$10
$5
5-Month
Payout(3)
6-Month
Payout(3)
200
Oil(2)
Liquids (2)
($5)
500
MGY LEF
74%
86%
19-Month
Payout(3)
MGY AC
63%
80%
RSEG WC
46%
73%
0
0
($10)
0
4
8
12
16
20
24
0
4
8
12
16
20
24
0
4
8
12
16
20
20
Months
Months
Months
MGY Lower EF
MGY Austin Chalk
Note: Magnolia type curves normalized to 5,000' laterals. Projections based on flat $58 WTI and $2.75 Henry Hub pricing.
(1) Source: RSEG, Delaware North Reeves Wolfcamp A curve.
(2) Commodity percentage splits represent first 24 months of production.
(3) All payout figures include assumed 2-month spud to sales delay.
RSEG Delaware Wolfcamp (1)
12
24
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