International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Merger or Acquisition (October 2018)
19 slides from International Petroleum Corp. (british Columbia)'s merger presentation, Oct 10, 2018
Slide 1: Transformational Corporate Acquisition of BlackPearl Resources Inc.
International Petroleum Corp. Internationally Focused Upstream Company Transformational Corporate Acquisition of BlackPearl Resources Inc. October 10, 2018 NCF00092 p01 10.18
Slide 2: Transaction Highlights
Transaction(1) Highlights “Delivering on our strategy: Second acquisition of quality assets in Canada, with significant upside resource potential and the financial strength to accelerate long term growth and value creation for all shareholders” Acquiring BlackPearl operated interests in Canada: conv
Slide 3: Transaction Rationale
Transaction Rationale IPC Position Material conventional low decline production guidance of 32.5 to 34 Mboepd in 2018 Highly cash flow generative with Brent oil price exposure (1H 2018 OCF of MUSD 153 and net debt reduced by MUSD 100)(1) Highly developed reserve base (90% of 2P reserves value is dev
Slide 4: Quality Diversified Asset Portfolio
Quality Diversified Asset Portfolio Forecast 2018 Production 2% Canada France Saskatchewan 10% Alberta BlackPearl assets Athabasca IPC assets Oil sands / heavy oil region Blackrod Paris Basin 17% 37% Peace River Villeperdue Facilities Cold Lake France Aquitaine Basin 15% Onion Lake Mooney Thermal he
Slide 5: 2P Reserves
2P Reserves(1) Long cycle 300 291.5 >2x 291.5 40 reserve base 37.0(2) 100% Oil 26% 250 Gas 30 162.4 200 Favorable RLI MMboe Years 150 20 129.1 74% Short cycle +7y 17.6(2) 58% Oil reserve base 100 Gas 10.6(2) 10 50 42% Oil NCF00092 p05 10.18 0 0 IPCO PXX IPCO/PXX IPCO PXX IPCO/PXX 1) As at December 3
Slide 6: Reserve Maturity
Reserve Maturity(1) 2P 2P 2P 45 295 340 39% Infill wells development well development well in Canada locations locations +ASP 67% 88% 61% PDP 33% PDP 12% PDP IPCO PXX IPCO/PXX NCF00092 p06 10.18 1) As at December 31, 2017, see Reader Advisory 6
Slide 7: Contingent Resources
Contingent Resources(1) 900 852.9 >13x 852.9 5% Gas 800 700 745 (Blackrod) 600 MMboe 500 400 95% Oil 300 Gas 200 Oil 100 63.4 44 (Other) 39% Gas 61% Oil NCF00092 p07 10.18 0 IPCO PXX IPCO/PXX 1) As at December 31, 2017, see Reader Advisory. Contingent resources are unrisked 7
Slide 8: Reserves and Contingent Resources
Reserves and Contingent Resources(1) More than 1 billion barrels of oil equivalent of resources 1,200 1,143.9 1,143.9 ~6x 12% Gas 1,000 800 100% 951.4 Oil MMboe 600 88% Oil 400 Gas 200 192.5 Oil 70% Gas 30% Oil NCF00092 p08 10.18 0 IPCO PXX IPCO/PXX 1) As at December 31, 2017, see Reader Advisory. C
Slide 9: Production
Production 60 od +50% kr ac Bl 50 12 45 100% 40 Oil 40% 32.5 - 34.0 Gas Mboepd 30 54% Gas 20 60% 10 46% Oil Oil 0 - IPCO PXX IPCO/PXX IPCO/PXX IPCO/PXX IPCO/PXX IPCO/PXX 2018 2018 2018 2019 2020 2021 2022 NCF00092 p09 10.18 Oil Gas IPC BlackPearl 9
Slide 10: 2P Net Asset Value (NAV)
2P Net Asset Value (NAV) 3,000 2,850 2,850 69 PXX 355 IPCO 2,500 2,426 2,000 1,699 58% discount to combined core NAV MUSD 1,500 1,010 1,000 PXX 494 500 1,151 IPCO 516 0 IPCO PXX IPCO/PXX IPCO/PXX IPCO/PXX IPCO+PXX 2P Asset Value 2P Asset Value 2P Asset Value Net Debt(2) Core 2P NAV(1) Market Cap(3)
Slide 11: Canadian Macro Supply and Pipeline Egress
Canadian Macro Supply and Pipeline Egress Brent, WTI, WCS and realised oil prices Bertam Realised oil price WCS Spot France Realised oil price Brent Spot Suffield Realised oil price WTI Spot Brent, WTI & WCS Spot Price (USD/bbl) 90 7.5 W. CAN current rail loading capacity (1,044) Brent 7.0 Keystone
Slide 12: BlackPearl Onion Lake Thermal
BlackPearl Onion Lake Thermal Alberta Saskatchewan BlackPearl assets IPC assets Oil sands / heavy oil region 100% operated by BlackPearl Onion Lake Thermal heavy oil Canada Conventional heavy oil Phase I commenced production in 2015: 6,000 bopd Phase II commenced steam injection in Q1 2018 Onion Lak
Slide 13: BlackPearl Blackrod - SAGD Project
BlackPearl BlackRod - SAGD Project Alberta Saskatchewan BlackPearl assets IPC assets Oil sands / heavy oil region BlackRod Canada 100% operated by BlackPearl 745 MMboe of contingent resources(1) Regulatory approval for 80,000 bopd project > 20 year reserve life at 80,000 bopd 5 year pilot programme
Slide 14: People and Management
People and Management Highly experienced organisation transferring from BlackPearl with local knowledge and operating capability Senior country management - Chris Hogue (VP Operations) and Ed Sobel (VP Exploration) Operational staff Asset management experts Strong HSE culture John Festival (BlackPea
Slide 15: Approval and Timing
Approval and Timing Transaction recommended by management and Boards of IPC and BlackPearl IPC management and Lundin family as shareholders of IPC commitment to vote in favour of transaction BlackPearl management, Lundin family and Burgundy Asset Management as shareholders of BlackPearl commitment t
Slide 16: IPC and BlackPearl Combination Highlights
IPC and BlackPearl Combination Highlights Creating company with >1 billion USD market cap Reserves and resources >1 billion boe with >17 years Reserve Life Index(1) Clear short term line of sight to >50 Mboepd production Longer term potential >100 Mboepd with Blackrod Financially resilient combined
Slide 17: Reader Advisory
Reader Advisory Important Information This presentation is not an offer to sell or a solicitation of any offer to buy any securities issued by IPC or BlackPearl in any jurisdiction where such offer or sale would be unlawful. Copies of this presentation are not being made and may not be distributed o
Slide 18: Reader Advisory
Reader Advisory Disclosure of Oil and Gas Information This presentation contains references to estimates of gross 2P reserves attributed to IPC’s and BlackPearl’s oil and gas assets. Gross reserves are the total working interest reserves before the deduction of any royalties and including any royalt
Slide 19: International Petroleum Corp.
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International Petroleum — Merger or Acquisition (October 2018) on 6ix