Calima Energy — Investor Presentation (June 2021)
29 slides from Calima Energy's investor presentation, June 2021
Slide 1: Investor Update
INVESTOR UPDATE FREE CASH FLOW GROWTH FOCUSED CANADIAN OIL & GAS PRODUCER JUNE 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: The New Calima
3 THE NEW CALIMA • Conventional oil & gas producer focused on REGIONAL INFRASTRUCTURE MONTNEY generating free cash flow from the responsible Spectra P/L LNG Canada development of high-quality assets in Western 13-26mtpa (Under Construction) TCPL Nova P/L Alliance P/L Canada North Mont. Mainline Coas
Slide 4: Corporate Snapshot
4 CORPORATE SNAPSHOT Calima is a returns-focused growth producer with top tier assets, positive cash flow and an ESG focus FINANCIAL INFORMATION ASX Trading Symbol CE1 MAY-DEC ‘21 AVG. PDP SHAREHOLDER GROUP PRODUCTION FORECAST RESERVES2 Shares Outstanding (basic) 10.268 billion Market Cap on Close @
Slide 5: 2021-2022 Current Guidance / Outlook
5 2021 – 2022 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 FORECAST1 2021 Guidance by Quarter 4,500 16 May - Dec ’21 Calendar 2021 2022 4,000 14 3 Sunburst wells 3,500 Ave
Slide 6: Demonstrated ESG Excellence
6 DEMONSTRATED ESG EXCELLENCE ENVIRONMENTAL • Brooks and Thorsby assets have very low CO2 in reservoir at 2% and 0% respectively, minimizing the potential future costs or need to purchase carbon credits in becoming a net zero emitter • Montney gas will support the lowest CO2 emission/tonne LNG proje
Slide 7: Demonstrated ESG Excellence
7 DEMONSTRATED ESG EXCELLENCE SOCIAL GOVERNANCE • Continue to target zero lost time incidents and • Majority independent board with diversity of exceed regulatory requirements to minimize skillset, backgrounds and experience including both environmental impacts and provide all employees Canadian and
Slide 8: Relative Valuation Offers Opportunity
8 RELATIVE VALUATION OFFERS OPPORTUNITY Relative to ASX and TSX-listed peers, Calima has significant re-rating potential EV/2P Multiple 20 18 16 14 ASX Peer Average 12x 12 10 8 TSX Peer Average 7x Calima 6 4.4x 4 2 Karoon Horizon Cooper Energy Senex Energy Gear Tamarack Cardinal Surge Hemisphere Cal
Slide 9: Committed to Returns-Focused Growth for Shareholders
9 COMMITTED TO RETURNS-FOCUSED GROWTH FOR SHAREHOLDERS TODAY MEDIUM TERM LONGER TERM UPSIDE OPPORTUNITY Continue development Grow to 5,500 boe/d2 at Increase production above Acquire offsetting sections drilling to achieve ~3,300 Brooks and Thorsby by YE 5,500 boe/d through through Crown and freehol
Slide 10: Robust EBITDA with Torque to Rising Energy Prices
10 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 EDITDA (C$MM) Sensitivity to WTI (US$/BBL)1 $100 $90 $80 $73 $58 $60 $47 $40 $31 $25 $20 $- WTI - US$60/bbl WTI - US$70/bbl WTI
Slide 11: Strong Management & Board
11 STRONG MANAGEMENT & BOARD LEADERSHIP Jordan Kevol Braydin Brosseau Mark Freeman Managing Director & CEO CFO & VP Finance - Canada CFO & Corporate Secretary - Australia • 8 years at Blackspur • 6 years at Blackspur • >20 years oil and gas development and (Founder & CEO) • 14+ years Canadian E&P ex
Slide 12: Cash Flowing Asset Base with Long-Term Upside
12 CASH FLOWING ASSET BASE WITH LONG-TERM UPSIDE BROOKS THORSBY Medium Oil Weighted Production Delivers Consistently High Corporate Netback Area Detail Area Detail 2,2151 Boe/d 6851 Boe/d 94% Working interest 100% Working interest 147 / 35 Net identified / net booked locations 101 / 28 Net identifie
Slide 13: Brooks
13 BROOKS B.C. AB • 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 48 wells drilled to date • Owned and operated infrastructure with capacity for sizeable production growth • 147 net
Slide 14: Brooks Economics
14 BROOKS BROOKS ECONOMICS 1,2,3,4 Sunburst Type Curve Economics Sunburst Conventional Frac’d • Open hole Sunburst wells have top tier economics Sources: Company disclosure, geoSCOUT $60 WTI $60 WTI at current pricing (no fracs) EUR – Oil & Liquids/Well Mbbl 168 198 RESOURCE EUR – Gas/Well MMcf 301
Slide 15: Thorsby
15 THORSBY • ~108 net sections on 63,946 net acres total Legend Calima Land Calima Wells • 11 wells drilled to date - results competitive Calima pipelines Major Roads with other economic WCSB plays Calima Facilities HZ Wells Non-op gas plants • Multi-well pads reduce overall capital costs Non-op pip
Slide 16: Thorsby Economics
16 THORSBY THORSBY ECONOMICS 1,2 Sparky Type Curve Economics Illustrative 40 • Significant type curve outperformance in the Sparky Sources: Company disclosure, geoSCOUT Tier 1 (a) $60 WTI Tier 2 (b) $60 WTI T/Stage (c) $60 WTI Formation EUR – Oil & Liquids/Well Mbbl 323 288 364 RESOURCE • Additional
Slide 17: 2021 Field Activity
17 2021 FIELD ACTIVITY • Drilling at our 2-29-19-13W4 oil battery • Drone footage of 15-23-18-14W4 and 10-20-20-16W4 oil batteries Bantry 2-29 oil battery and H2Sweet plant Countess 10-20 oil battery Bantry 15-23 oil battery and Sunburst Drilling rig pictured – open hole Sunburst Waterflood in the S
Slide 18: 2021 Field Activity
18 2021 FIELD ACTIVITY Drilling rig move into 2-29 battery site Bantry 2-29 oil battery and H2Sweet plant Bantry 2-29 water disposal building and tank farm Open hole Sunburst drill Overhead drone shot of the Bantry 2-29 battery Drilling an open hole Sunburst well in Brooks Countess 10-20 oil battery
Slide 19: World-Class Montney Play
19 WORLD-CLASS MONTNEY PLAY • Among the highest rates of return hydrocarbon basins in North America • Diversity of hydrocarbons with light oil, liquids rich natural gas and dry gas • Strong market fundamentals enhanced by three world class LNG projects • Large resource endowment across three high qu
Slide 20: Calima's Footprint in the Montney
20 CALIMA’S FOOTPRINT IN THE MONTNEY • 100% interest in >60,000 acres of Montney drilling rights in B.C. AB 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 est
Slide 21: Calima - Future Development Opportunity
21 CALIMA – FUTURE DEVELOPMENT OPPORTUNITY RIGHTS TO LARGE RESOURCE IN PLACE, PROVIDING FOR LONG-TERM VALUE • 192.1 MMboe (2C) resources1 (based on McDaniels & Associates best estimate gross unrisked contingent resource) • 2C resource elevated to Development Pending category; will be recategorized a
Slide 22: Asset-Enhancing Upside Opportunities
22 ASSET-ENHANCING UPSIDE OPPORTUNITIES Asset base offers numerous enhancement projects and value creating opportunities BROOKS • Waterflood - implemented at the Brooks Sunburst J2J pool, highlighting secondary recovery potential of the asset base • Land Acquisition - potential to add offsetting ~49
Slide 23: The 'Must-Own' Calima Opportunity
23 THE ‘MUST-OWN’ CALIMA OPPORTUNITY Unique opportunity to own a company Calima can quickly respond to rising with quality free-cash flowing assets, low- energy prices by accelerating its drilling leverage and significant upside potential programs given the Company’s ability to provided by future Mo
Slide 24: Contact Us
Contact Us For further information visit www.calimaenergy.com or contact CALIMA ENERGY LIMITED HEAD OFFICE - BLACKSPUR AUSTRALIAN OFFICE - CALIMA Suite 1000, 205 5 Ave SW 4/246-250 Railway Parade, Calgary, AB T2P 2V7, Canada West Leederville WA 6007 Phone: +1-403-460-0031 Phone: +61 8 6500 3270 Jord
Slide 25: Appendices
ENERGY CALIMA Appendices
Slide 26: Debt Terms
26 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 27: Capital Budget
27 CAPITAL BUDGET CALENDAR 2021 CAPITAL BUDGET: C$23.2mm $6.0 mm Maintenance $2.2 mm 3 Sunburst wells capital in Mar/21 (already executed) $6.0 mm Maintenance and waterflood capital $5.5 mm 5 (4.5 net) Sunburst wells in June & July $9.5 mm 3 (3 net) Sparky wells at Thorsby in August $17.2mm Total de
Slide 28: History of Blackspur
28 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 29: Abbreviations
29 ABBREVIATIONS 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 Inter