the future for royalty owners - home | north dakota ......sep 17, 2019 · well count: 3,372 rig...

THE FUTURE FOR ROYALTY OWNERSJOEL BROWN, PRESIDENT

KROWN ENERGY GROUP | MINERALTRACKER

SEPTEMBER 17, 2019

KROWN ENERGY GROUP | MINERALTRACKER

Jeff KummerHometown: Watford City, ND

➢ Colorado School of Mines, Petroleum Engineering

➢ EOG Resources, MBI Energy Services, Wave Petroleum, McKenzie Energy Partners

➢ Oil & Gas Investor “20 under 40” recipient (2013)

➢ Oil & Gas Research Council, Vice Chairman (2016-18)

➢ UND Petroleum Engineering Advisory Council, Chairman (2014-17)

Joel BrownHometown: Watford City, ND

➢ University of North Dakota, Petroleum Engineering

➢ Formation Energy, MBI Oil & Gas, McKenzie Energy Partners

➢ McKenzie County Job Development Authority

➢ RoughRider Fund Committee

➢ Save the Maah Daah Hey Board of Directors

Well Count: 3,372

Rig Count: 15

Oil Produced: 31,356,101

2001

North Dakota

$23.58

2002

Well Count: 3,386

Rig Count: 11


$23.98

North Dakota

2003

Well Count: 3,363

Rig Count: 14


North Dakota

$29.28

2004

Well Count: 3,339

Rig Count: 17


North Dakota

$38.87

2005

Well Count: 3,391

Rig Count: 25


North Dakota

$52.21

2006

Well Count: 3,554

Rig Count: 39


North Dakota

$56.64

2007

Well Count: 3,767

Rig Count: 43


North Dakota

$64.65

2008

Well Count: 4,221

Rig Count: 75


North Dakota

$90.70

2009

Well Count: 4,631

Rig Count: 53


North Dakota

$53.20

2010

Well Count: 5,332

Rig Count: 126


Cum. Oil (since 2009)

191,813,358 BBLS

North Dakota

$70.18

2011

Well Count: 6,479

Rig Count: 182



344,193,610 BBLS

North Dakota

$89.09

2012

Well Count: 8,357

Rig Count: 200



586,513,092 BBLS

North Dakota

$84.18

2013

Well Count: 10,015

Rig Count: 185



898,808,460 BBLS

North Dakota

$90.18

2014

Well Count: 12,124

Rig Count: 190



1,293,454,871 BBLS

North Dakota

$83.68

2015

Well Count: 13,119

Rig Count: 91



1,723,005,765 BBLS

North Dakota

$41.19

2016

Well Count: 13,336

Rig Count: 37



2,100,818,367 BBLS

North Dakota

$36.74

2017

Well Count: 14,324

Rig Count: 56



2,491,507,089BBLS

North Dakota

$46.92

2018

Well Count: 15,666

Rig Count: 66



2,951,933,991 BBLS

North Dakota

$60.63

2019 YTD

Well Count: 16,568

Rig Count: 64



3,236,302,972 BBLS

North Dakota

$53.13

PAST 10 YEARS…

➢ Wells Drilled ~ 12,000

➢ D&C Cost ~ $100 Billion

➢ Oil Produced

3.2 Billion barrels

➢ Gross Revenue

$207 Billion

➢ Royalty Paid (Net)

$35 Billion

WHAT DOES THE FUTURE HOLD?

➢ 40k-60k New Wells

➢ Growth is Justified

➢Reserves & Economics

➢ Opportunities

➢Re-frac

➢Enhanced Oil Recovery

➢Abundant, Cheap Nat. Gas

➢ Challenges to Overcome

➢ Labor Shortages

➢ Natural Gas Infrastructure

➢Oil Transportation

Source: ND Pipeline Authority

OIL RESERVES: BAKKEN & THREE FORKS

Bakken/Three Forks Oil Recovered to Date: ~ 3 Billion barrels

2008 USGS Est.3.7 Billion barrels

2013 USGS Est.7.4 Billion barrels

79%

21%

2018 Industry Est.30 – 40 Billion barrels

40%

60%

10%

90%

IMPROVING WELL PERFORMANCE

EUR = Estimated Ultimate Recovery

350 MBO

670 MBO

ECONOMICS

• 2013 Well

• EUR = 360,000 BBL

• AFE = $9.5MM

• Oil Price = $100/BBL

• Payout: 2.6 Years

• ROI: 2.4

• 2019 Well

• EUR = 670,000 BBL

• AFE = $7.5MM

• Oil Price = $50/BBL

• Payout: 1.9 Year

• ROI: 2.9

-$15,000,000

-$10,000,000

-$5,000,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240

Cum

ula

tive C

ash F

low

Months on Production

Cash Flow Projection

2019 Well

2013 Well

REFRACS

• 103 Refracs Analyzed

• Average Reserves Added: 370,000 BBL

• 91% Economically Successful

• Average ROI: 4.1 (Assumes $4M Cost)

CONTACT US

Krown Energy Group

PO Box 2924

500 2nd Ave SW

Watford City, ND 58854

Jeff Kummer

(701) 580-6501

[email protected]

Joel Brown

(701) 570-1504

[email protected]

the future for royalty owners - home | north dakota ......sep 17, 2019 · well count: 3,372 rig...

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