Maverick Drilling & Exploration

Maverick Drilling and Exploration Ltd ("Maverick") is an oil and gas driller and operator focused on low cost prospects. The company has holdings in three developmental oil fields just outside of Houston, Texas.

• 1973 - Maverick commenced operations as an onshore contract oil and gas driller
• 2007 - Acquired an independent drilling rig manufacturing plant based in Dewey, Ohklahoma
• 2007 - Acquired leaseholding interests in the Blue Ridge salt dome field ("Blue Ridge")
• October 2009 - Raised USD2.4m to initiate a 10 well development drilling program at Blue Ridge
• September 2010 - Listed on the ASX
• September 2010 - Acquired oil and gas leases covering 1,625 net acres on and around the Boling Dome field ("Boling")
• February 2011 - Raised AUD9.24m through a share placement
• April 2011 - Acquired an additional 850 net acres at Blue Ridge and 740 net acres at Boling
• June 2011 - Reserves were upgraded. 1P reserves by 59% to 12.4 million barrels ("mmbbls") and 2P reserves 104% to 52.4 mmbbls
• July 2011 - Acquired 672 net acres on and around the Nash Dome field ("Nash")
• December 2011 - Acquired over an additional 2,000 net acres of leases on and around Nash, representing the majority of fairway development drilling left in the field
• January 2012 - Reserves were upgraded, 1P reserves by 127% to 28.1 mmbbls and 2P reserves 39% to 72.8 mmbbls
• January 2012 - Announced the first wells at Boling Dome and Nash Dome were both a success

Maverick is a diversified oil company with existing production and reserves focused on low cost development of low risk drilling prospects. The company's flagship assets are leases and oil reserves that it holds over parts of Blue Ridge, an established producing field located south of Houston, Texas and its wholly owned subsidiary Maverick Drilling Company.

Maverick's operations are located in Texas where the company has a head office in Houston and interest in the following 3 fields:

• Blue Ridge, Fort Bend County, 10 miles south of Texas;
• Boling, Fort Bend County and Wharton County, 50 miles southwest of Houston; and
• Nash, 25 miles southwest of Houston.

(2)

The Maverick Group consists of three businesses:

• Maverick Production Company ("MPC") - A petroleum operating company with internal prospect generation ability and internal workover capability. MPC is the registered operator of oil and gas properties with the Texas Railroad Commission.
• Maverick Drilling Company ("MDC") - A shallow to mid range onshore contract drilling company that has operated in the Gulf Coast region of the US since 1973.
• Maverick Rig Manufacturing Inc ("MRM") - A rig manufacturing and repair facility formed in 2007.

Maverick is focused on the production of oil from key focus areas being salt dome structures.

The company's business model involves reinvesting free cash flow in new wells and field drilling equipment.

Key Asset Interests for the Company include:

• Maverick Production Company
  • Blue Ridge - 1,660 net acres
  • Boling - 4,439 net acres
  • Nash - 2,740 net acres
  • Edwards Reef - 489 net acres
  • Foothold - 465 net acres

• Maverick Drilling Company
  • 6 workover rigs
  • 4 production rigs

The Company's reserves have increased steadilly since listing.

Source: Maverick 2011 Annual Report (4)

As at 14 February 2012: AUD 0.69

Source: Bloomberg

As at 14 February 2012:

As at 14 February 2012:

Source: Bloomberg

As at 14 February 2012: 1.15

Source: Bloomberg

Source: Maverick 2011 Annual report (4)

Source: Maverick 2011 Annual report (4)

Source: Maverick 2011 Annual report (4)

Source: Maverick 2011 Annual report (4)

As at 14 February 2012 Maverick had an Enterprise Value of approximately AUD255m.

Based on Reserves at February 2012 of 1P - 28.1 mmbbls and 2P - 72.8 mmbbls this equates to:

• AUD9.1 per bbl of 1P Reserves; and
• AUD3.5 per bbl of 2P Reserves.

Maverick's Board of Directors:

Don Henrich
Age: 65
Executive Chairman
President, MDC

Don is the president of MDC and has 35 years experience in contract drilling in Texas, Louisiana, Oklahoma, and other areas in the southwest of the United States. Don joined MDC in 1975 as vice president and was named president in 1977. He graduated from Tarleton University in 1968 with a Bachelor of Science degree in Business Administration. Don is a well known driller with extensive expertise in the United States drilling industry.
    
 

Brad Simmons
Age: 56
Executive Director

Brad formerly founded PetroSearch Energy Corporation where he was CEO and chairman of that company until his retirement in December 2004. Previous positions held by Brad include founder and CEO of American Energy Group, Ltd, founder and CEO of Simmons Oil Company, Inc. and Simmons Drilling Company, and founder and CEO of Cottonwood Energy Development Corporation. Brad graduated from Yale University in 1979 with a Bachelor of Science Degree in Administrative Science.
    

Roger Clarke
Age: 63
Vice Chairman and Non Executive Director

Roger is the vice Chairman of the Board and has over 30 years commercial experience in the investment banking industry, with responsibilities in fund management, banking and corporate finance. He is also the chairman of the advisory board of RBS Morgans Limited, and has been involved in a significant number of initial public offerings, capital raisings and corporate transactions. Roger is the chairman of Tissue Therapies Limited and MTA Insurance Ltd and is a director of Trojan Equity Limited. His understanding of the Australian corporate finance sector brings a level of expertise that has proved pivotal in establishing the strategic investment focus of Maverick. Roger holds a Bachelor of Commerce degree and is a Chartered Accountant.
    
Lee Clarke
Age: 42
Non Executive Director

Lee is the principal and director of a private financial advisory and wealth management firm. He has almost 20 years of financial planning and wealth management experience, advising a select group of successful private families and investors. During his career, Lee has been involved in capital raisings and initial public offerings and brings strategic knowledge of the Australian investor market. Lee is a principal member of the Financial Planning Association and a Certified Financial Planner.

Source: Maverick Website - Board (1)

Maverick's Exploration Team:

William L. Chesser
Age: 71
VP Exploration, MD&E
 
William has over 39 years of exploration experience and is an AAPG Certified Petroleum Geologist (No. 4313). He has worked in a broad variety of senior positions including the geological exploration divisions of Cities Service Oil Company, Amerada Hess Corporation and Supron Energy Corporation. William was also employed as Division Exploration Manager for Moore McCormack Energy. His domestic and international experience was broadened by his work with Union Texas Petroleum. His strengths include prolific prospect generation and evaluation. He has consistently utilized creative and unique approaches to exploration. William started and operated his own successful independent oil company, Great Buffalo Energy. William graduated from Brigham  Young University in 1969 with a Bachelor of Science Degree in Geology and completed a Master of Science Degree in Stratigraphy and Sedimentation in 1971. He is also a published author and scientific illustrator.

 
Neil West
Age: 79
Consultant and Special Advisor to MPC

Neil Began his career in the oil and gas industry with Stanolind Oil and Gas in 1955, predecessor to AMOCO. During his career with AMOCO, Neil was promoted in the mid 1970’s to overseeing the Salt Dome Group from 1976 until he retired in 1983. Since his retirement Neil has worked extensively in Oil and Gas consulting throughout the Texas Gulf coast. He began consulting for various operators on Blue Ridge Dome in 1995, and has worked continuously since then assembling an extensive database of logs, core data, structure maps, and field details ranging back to the early 1920’s when field development began. Neil now works with MPC in acquisition research, identifying new potential reservoirs and log and core analysis in the current drilling plan. Neil will also be involved in new prospect analysis and acquisition extending beyond the Blue Ridge Dome Leases.

 
Robert S. Foote
Age: 87
President, Geoscience International Inc.
Special Advisor to MPC

For more than 20 years, Robert S. Foote has been developing the sedimentary residual magnetic field technology. Prior work was with Texas Instruments Inc, Dallas, Texas as Section Head for Data Systems and Earth Science Lab, as well as Group Head for Geo Nuclear Group in their Geoscience Division. He also previously worked with Geodata International President from 1973 to 1984. He was responsible for the operations directed to oil, gas and mineral exploration. Realizing the high cost involved with seismic acquisition, he developed the pre-seismic reconnaissance exploration methods. Robert has published numerous articles on the use of the airborne cesium vapor magnetometer to locate anomalous magnetic field features and their correlation with the magnetic susceptibility of drill cuttings. He holds several patents. Robert holds a BS in Engineering Physics and MS in Nuclear Physics from the University of Illinois as well as extensive course work toward his PHD in Physics from the University of Maryland.

Source: Maverick Website - Exploration Team (1)

Maverick has considerable growth potential from:

• Reserves maturation, developments and discoveries at Blue Ridge;
• Potential reserves bookings and progression at Boling; and
• Potential reserves bookings and progression of the company's Nash acreage.

1. Maverick Website
2. Nash Dome Acquisition Announcement - November 2011
3. Maverick Reserves Upgrade Announcement - January 2012
4. Maverick February 2011 Investor Presentation
5. Maverick 2011 Annual Report
6. Maverick Prospectus