Centaurus Energy Inc. · TSXV:CTA
Centaurus Energy — Investor Presentation (October 2019)
29 slides from Centaurus Energy's investor presentation, October 2019
Slide 1: Investor Presentation
Investor Presentation October 2019
Slide 2: Forward Looking Statements/Information
Forward Looking Statements/Information Certain statements contained in this presentation of Centaurus Energy Inc. ("Centaurus" or the "Corporation") constitute forward-looking statements or information (collectively "forward-looking statements")within the meaning of the "safe harbour“ provisions of
Slide 3: Overview
OVERVIEW NOROESTE BASIN Centaurus holds properties in four provinces in Argentina where it has a dual prong strategy with a non-operated strategy in the Vaca Muerta and Lower Agrio plays, and an operated strategy to grow its conventional production. The company is implementing horizontal drilling an
Slide 4: Our Vision: 2019 and Beyond
OUR VISION 2019 and Beyond TSX-V: CTA | 4
Slide 5: Our vision is to create value through a balanced portfolio
“ Our vision is to create value through the generation of a balanced portfolio of high-quality oil and gas assets. We are efficiently growing our conventional production in Argentina in proven hydrocarbon areas and are focused on unlocking the development potential of our 80,000 net acre position in
Slide 6: Value Creation Principals
VALUE CREATION PRINCIPALS Geographic Focus Focus on Known Basins Overlooked Assets Low Entry Cost High Working Interests Focus on those areas in Increase prospectivity by being on Significant upside potential by Manage capital commitments Secure high working interests and which you have experience t
Slide 7: Growth Plan
GROWTH PLAN Rapid, Efficient, Focused 5 Year Target Targeting rapid and efficient production growth 20,000 BOE/d in 2023 through diversified assets well suited to Centaurs management. 50% CAGR Proven, Lean, and Financial Footing Regained Efficient and Rapid Growth Focused Management and Improving No
Slide 8: Execution
EXECUTION Leveraging Quality People & Assets 2018 Acquisition of Additional Producing Assets: Reduction of Commitments • Identify conventional drilling prospect - Lotena Formation, Coiron Amargo Norte • Complete acquisition of additional production asset(s) - 100% interest in Palmar Largo (zero upfr
Slide 9: Track Record & Commitment
TRACK RECORD & COMMITMENT An Experienced Management Team Long-term History in International Oil Development: • Management has previous experience at Hispania Petroleum S.A. • Hispania is a private, family-owned energy company that has operated in multiple countries for three generations of the Peñaf
Slide 10: Focus on Argentina
FOCUS ON ARGENTINA Focused Small-to-Mid-Cap Exposure World-class Oil and Gas Resource: Attractive Investment Environment: Demonstrated by presence of super-majors and NOCs Gradualist economic and fiscal policies yielding mixed results, but “crises” complemented by existing conventional production wi
Slide 11: Reserves
RESERVES1 Growing Liquids Reserves Volumes & Value Year-End Gross Reserves After-Tax NPV10 Year-End Gross Reserves (mmBOE) (US$mm) (mmBOE) 20 160 20 Up 47% 140 15 120 18.7 148.7 Up 42% 15 100 12.7 105.0 10 80 Up 33% 10 10.7 60 5 8.1 40 64.9 Up 24% 52.2 Up 34% 20 5 3.6 4.9 19.1 28.1 Up 47% 0 0 Jan-17
Slide 12: Production & Guidance
PRODUCTION & GUIDANCE 5 Year Outlook Diversified Across Two Basins Mainly Operated Production to grow with US$38 million CAPEX budget for 2019 ~75% for development drilling and related activities Target 2023 20,000 Neuquen Noroeste Operated Non-Operated boe/d Oil Weighted and Growing 2,500 Natural g
Slide 13: Cost Reductions
COST REDUCTIONS Supporting Strong Netbacks Company G&A was reduced from $3 million in Q2 2017 to average $1.7 million for last four quarters - 43% reduction TSX-V: CTA | 13
Slide 14: Asset Overview
ASSET OVERVIEW Multiple Blocks in Two Basins Block W.I. Operator Net Acres Province/Basin Valle Morado1 97% Centaurus 47,425 Salta/Noroeste Santa Victoria1 100% Centaurus 516,846 Salta/Noroeste El Chivil 100% Centaurus 30,394 Formosa/Noroeste Surubi 85% Centaurus 77,200 Formosa/Noroeste Palmar Largo
Slide 15: Why Argentina
WHY ARGENTINA A Unique Opportunity Argentina has second largest technically recoverable shale gas resource in the world • Behind only China • 1.2X greater than USA • 1.4X greater than Canada TSX-V: CTA | 15
Slide 16: Vaca Muerta
VACA MUERTA Exposure to one of the World’s Largest Shale Plays1 Exposure to one of the World’s Largest Shale Plays1 • Thickness generally ranging from 100 metres to 500+ metres • Progressively deeper & thicker from east to west in the basin • The Vaca Muerta is oil prone at Coiron Amargo • Centaurus
Slide 17: Vaca Muerta Shale
VACA MUERTA SHALE Play Trends Replicating Early US Shale Growth Rates Rapidly Rising Production 2018 Non-conventional production growth Oil Natural Gas +151% +292% Gas Mcf/d Oil bbl/dd TSX-V: CTA | 17
Slide 18: Vaca Muerta: Recent Developments
VACA MUERTA Vista – Bajada Del Palo Recent Developments in Southern Neuquen - Bajada del Palo Oeste 4 wells 2500 m lateral length started production Wintershall - Aguada Federal - Dec. 23, 2015 (Wintershall website) - Increases WI to 90% in JV with GyP Shell - Cruz de Lorena & Sierras Blancas - 2 ve
Slide 19: Coiron Amargo
COIRON AMARGO Vaca Muerta “Oil Sweet Spot” Position Coiron Amargo Sur Este (CASE): Operated by Pan American Energy (PAE) • Prime Vaca Muerta acreage Multi-well drilling and fracking program starting in 2019 • PAE is owned by Bridas and oil supermajor BP, and is Argentina’s second-largest oil produce
Slide 20: Vaca Muerta Shale – Core Area
VACA MUERTA SHALE – CORE AREA CASE & Area Well Results CAS.x-14 is performing roughly in line with expectations • CAS.x-14 (CASE block, Centaurus 35% W.I.) was completed in March 2018 with a 60-stage hydraulic stimulation of a 1,500 m lateral. • This well performance, as yet without pumping, support
Slide 21: Coiron Amargo Resource Report Summary
CORION AMARGO Resource Report Summary1 • GLJ Resource Report effective Dec. 31, 2017 • 136 MMboe net unrisked recoverable contingent resources (93% Oil) • 160 acres/well spacing unit • 82.5% Development Efficiency • $1,456 Million NPV10% Net Contingent Resources COIRON AMARGO Acres MMbbl Bcf Mmboe N
Slide 22: Coiron Amargo Resource Report Summary
CORION AMARGO Resource Report Summary1 PAE $40 mm loan capacity would cover a majority of cash required to reach free cash flow positive under this rapid development scenario. Avg Net Daily Production (Mbbl/d) Cash Flow Summary Total (Target) Total Wells Drilled # 427 Total Sales Gas Production MMcf
Slide 23: Curamhuele
CURAMHUELE Exploration Block – Stacked Resource Pays Chevron Offset Activity: • Chevron is planning an 8 well appraisal program in 2018 in El Trapial adjacent to Curamhuele with an estimated capex investment of $200 Filo Morado million (S&P Platts) Ch.x-1 El Trapial Yp.x-1 &Yp.x-1001 Opportunities:
Slide 24: Lotena Formation
LOTENA FORMATION Offset Production Aguada del Chañar Gas Cumulative Offset Drilling Moving Towards Coiron Amargo Norte Block (Centaurus 35% W.I.) 3,236 MMcf Centaurus management expects the operator of the Bajada del Palo and Coiron Amargo Norte Bajada del Palo blocks to continue pursuing the play t
Slide 25: Noroeste Basin
NOROESTE BASIN Operated Conventional Production Palmar Largo - (100% Operated - Oil Producing):17 wells have cumulative production of > 45 MMBbls Surubi - (85% Operated – Oil Producing): Proa-2 well has produced > 1.5 MM Bbls in 5 years El Chivil - (100% Operated – Oil Producing): Geological feature
Slide 26: Management Team
MANAGEMENT TEAM History, Experience & Track Record Jose D. Peñafiel - CEO Mr. Penafiel previously managed Hispania Petroleum and its predecessor for 10 years. He has held positions as director of Permtotineft, Hispania's joint venture with Lukoil, and CEO of the Hispania group. He also managed gasol
Slide 27: Board of Directors
BOARD OF DIRECTORS Ralph Gillcrist - Director & Chairman Dr. Gillcrist has been a director of the Company since September 2017 and has more than 30 years of international oil and gas experience acquired in various executive, technical, managerial and operating roles throughout Europe, Africa, Southe
Slide 28: Advisories
ADVISORIES Barrels of Oil Equivalent All calculations converting natural gas to barrels of oil equivalent ("boe") have been made using a conversion ratio of six thousand cubic feet (six "Mcf") of natural gas to one barrel of oil, unless otherwise stated. The use of boe may be misleading, particularl
Slide 29: Gracias
GRACIAS
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