Calima Energy — Investor Presentation (November 2021)
26 slides from Calima Energy's investor presentation, November 2021
Slide 1: Investor Update
INVESTOR UPDATE FREE CASH FLOW, GROWTH-FOCUSED CANADIAN OIL & GAS PRODUCER NOVEMBER 2021
Slide 2: Corporate Disclaimer
2 CORPORATE DISCLAIMER This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Calima Energy Ltd (the “Company”) - in any j
Slide 3: Calima Highlights
3 CALIMA HIGHLIGHTS • September 2021 Quarter results: Highlights of the current 2022 plan • 3,290 boe/d production average 2022 Preliminary Guidance • Sales of A$17.8 million WTI US$/bbl $70 $80 $90 • Earnings of A$8.4 million Average annual production (boe/d) 5,500 5,500 5,500 Exit Production (boe/
Slide 4: A 'Must-Own' Calima Opportunity
4 A ‘MUST-OWN’ CALIMA OPPORTUNITY Quality Free-Cash Flowing Assets, Low-Leverage and Significant Exposure to rising oil and gas prices through Future Montney Development + Access to Global LNG Markets PRODUCTION GROWTH Continue development drilling to achieve ~4,500 boe/d1 Increase production above
Slide 5: Corporate Snapshot
5 CORPORATE SNAPSHOT Calima is a Returns-Focused Growth Producer with Top Tier Assets, Positive Cash Flow and is ESG Goal Orientated FINANCIAL INFORMATION ASX Trading Symbol CE1 YEAR END PRODUCTION PDP Shares Outstanding (basic) 514 million FORECAST RESERVES2 Current share price Analyst target range
Slide 6: 2021 Current Guidance / Outlook
6 2021 CURRENT GUIDANCE / OUTLOOK Funding the Capital Program Internally with Cash Flow and Generating Free Cash Flow with No Debt Forecast In 2022 Differentiates Calima from Peers FORECAST 1 May - Dec ’21 2022 Exit Production ~4,500 boe/d ~5,600 boe/d Average Production ~3,400 boe/d ~5,500 boe/d Ad
Slide 7: Robust EBITDA with Torque to Rising Energy Prices
7 ROBUST EBITDA WITH TORQUE TO RISING ENERGY PRICES Calima is well positioned to benefit from a strengthening commodity price environment STRONG TORQUE TO COMMODITY PRICES EDITDA1 Sensitivity to WTI (US$/BBL) $100 $95 $81 $80 $66 $59 $60 $50 $41 $40 $20 $- WTI - US$70/bbl WTI - US$80/bbl WTI - US$90
Slide 8: Strong Management & Board
8 STRONG MANAGEMENT & BOARD LEADERSHIP Jordan Kevol Braydin Brosseau Mark Freeman Managing Director & CEO CFO & VP Finance - Canada Finance Director - Australia • 8 years at Blackspur • 6 years at Blackspur • >20 years oil and gas development and (Founder & CEO) • 14+ years Canadian E&P experience c
Slide 9: Environmental: Commitment to Responsible Operations
9 COMMITMENT TO RESPONSIBLE OPERATIONS • Brooks and Thorsby assets have very low CO2 in reservoir with the average less than 2%, minimizing the potential future costs or need to purchase carbon credits in becoming a net zero emitter ENVIRONMENTAL • Montney gas will support the lowest CO2 emission/to
Slide 10: Cash Flowing Asset Base with Long-Term Upside
10 CASH FLOWING ASSET BASE WITH LONG-TERM UPSIDE Medium oil weighted production delivers consistently high corporate netback Brooks (94% working interest) Thorsby (100% working interest) Reserves (1P + Drilling 2P (mmboe) Inventory 37 231 21.4 101 Identified 10.6 mmboe 10.9 locations (2P) 130 (2P) (
Slide 11: 2021 Field Activity
11 2021 FIELD ACTIVITY Drilling at our 2-29-19-13W4 oil battery 30 days 90 days post post Drill Time Completion Tie-In Clean-Up flowback clean-up 10-15 5-20 5-10 IP90 2-3 days days IP30 type days days curve Drone footage of 15-23-18-14W4, 10-20-20-16W4, and 2-29-19-13W4 oil batteries Full Brooks Dev
Slide 12: Brooks
12 BROOKS • Large resource in place with multiple oil pools identified, delineated and developed • ~83 net sections across 53,093 net acres in total, with year-round access and 57 wells drilled to date • Owned and operated infrastructure with capacity for sizeable production growth • 140 net locatio
Slide 13: Brooks Economics
13 BROOKS BROOKS ECONOMICS 1,2,3,4 Sunburst Type Curve Economics Sunburst Conventional Sunburst Conventional Sources: Company disclosure, geoSCOUT $60 WTI $70 WTI • Open hole Sunburst wells have top tier economics EUR – Oil & Liquids/Well Mbbl 168 168 RESOURCE at current pricing (no fracs) EUR – Gas
Slide 14: Thorsby Field Activity
14 THORSBY FIELD ACTIVITY Calfrac Sandstorm units Thorsby 16-5 Battery and Leo Frac Operation Typical Sparky drilling and production timeframes 30 days 90 days Full Thorsby Development post post Drill Time Completion Tie-In Clean-Up flowback clean-up IP90 8-12 12-15 5-20 20-30 type days days IP30 cu
Slide 15: Thorsby
15 THORSBY • 3 Thorsby development wells were drilled in Q3 2021 and targeting tie-in and flow-backs mid-November • Additional 3 Thorsby North wells being considered (50% WI) • ~108 net sections on 63,946 net acres total • 11 wells drilled to date - results competitive with other Leo 1 economic WCSB
Slide 16: Thorsby Economics
16 THORSBY THORSBY ECONOMICS 1,2 Tier 1 (a) Sparky Type Curve Economics Tier 2 (b) Illustrative 40 Sources: Company disclosure, geoSCOUT T/Stage (c) $70 WTI $70 WTI $70 WTI • Significant type curve outperformance in the Sparky EUR – Oil & Liquids/Well Mbbl 318 283 360 Formation RESOURCE EUR – Gas/We
Slide 17: Calima's Footprint in the Montney
17 CALIMA’S FOOTPRINT IN THE MONTNEY • 100% interest in >60,000 acres of Montney drilling rights in BC, with 10-year continuation lease over 49 sections (33,643 acres) due to successful 2019 drilling campaign • Owns Tommy Lakes facilities and pipeline infrastructure with replacement cost estimated a
Slide 18: Calima – Future Development Opportunity
18 CALIMA – FUTURE DEVELOPMENT OPPORTUNITY • Strategy to prepare for future development while unlocking value short term via joint ventures, partnerships or an asset transaction • Montney remains a strategic source for oil & gas for Eastern Canada and the US market as evidenced with the recent wave
Slide 19: Contact Us
Contact Us For further information visit www.calimaenergy.com or contact: CALIMA ENERGY LIMITED HEADOFFICE - BLACKS PUR AUS TRALIANOFFICE - CALIMA Suite 1000, 205 5 Ave SW 4/ 246-250 Ra ilwa y P a ra de, Calgary, AB T2P 2V7, Canada West Leederville WA 6007 Phone: +1-403-460-0031 P hone: +61 8 6500 3
Slide 20: Appendices
CALIMA ENERGY Appendices
Slide 21: Relative Economics for Leading North American Oil Plays
IRR (%) ASX: CE1 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% 500% CE1 Sunburst Conventional CE1 Sparky (Tier 1) Clearwater Marten Hills/Nipisi CE1 Sparky (Tier 2) Mississippian Conventional Viking Hz. Dodsland ERH CE1 Sunburst Frac'd Charlie Lake Half-Cycle Rate of Return Conventional Heavy Oil H
Slide 22: Debt Terms
22 DEBT TERMS At the Close of the Blackspur Transaction, Calima Will Repay the Existing Non-Revolving and Revolving Credit Facilities and Establish a Committed Revolving Credit Facility with National Bank of Canada. Interest Pricing Grid Terms Committed Revolving Credit Facility Canada Prime Rate +
Slide 23: History of Blackspur
23 HISTORY OF BLACKSPUR • Private equity backed, founded through the recapitalization of Eiger Energy Ltd. 2012 • Average production of ~80 boe/d • Drilled 3 (3 net) wells and delivered C$1.3 million in operating cash flow 2013 • Exit production of ~250 boe/d and ~20 net sections of land • Completed
Slide 24: Glossary
24 GLOSSARY Abbreviation Description Abbreviation Description WI Working Interest B Prefix – Billions C Contingent Resources – 1C/2C/3C – low/most likely/high MM Prefix - Millions NRI Net Revenue Interest (after royalty) M Prefix - Thousands Net Working Interest after Deduction of Royalty Interests
Slide 25: Glossary
25 GLOSSARY Terms Description Adjusted EBITDA Adjusted EBITDA is calculated as net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortisation, and adjusted to exclude certain non-cash, extraordinary and non-recurring items primarily relating to barga
Slide 26: Glossary
26 GLOSSARY Terms Description Net Debt: Net debt is defined as cash plus receivables and prepaid expenses, less payables and bank indebtedness NGL: Natural Gas Liquids; hydrocarbon components of natural gas that can be separated from the gas state in the form of liquids Net Debt/EBITDA (Leverage): a
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