Headwater Exploration Inc. · TSX:HWX
Headwater Exploration — Investor Presentation (May 2024)
24 slides from Headwater Exploration's investor presentation, May 2024
Slide 1: Corporate Presentation
Headwater Exploration Inc. CORPORATE PRESENTATION TSX:HWX May 2024
Slide 2: Capitalization, Guidance and Business Strategy
CAPITALIZATION, GUIDANCE AND BUSINESS STRATEGY Outlook Capitalization 2024 Original 2024 Revised Average Daily Production Guidance (1) Guidance (1) (2) Headwater Exploration Inc. TSX HWX Annual Daily Production (boe/d) 20,000 20,000 Share Price (May 9th, 2024) $/sh. $7.62 Fourth Quarter Daily Produc
Slide 3: Regional Clearwater Area
REGIONAL CLEARWATER AREA Total Land Holdings 525 net sections with 61.5 net sections added YTD 2024 Cadotte Evi Greater Peavine (Seal, Peavine) 53.6 sections (Net) 6 Locations planned for 2024 Nampa Multi-zone potential from Falher and Bluesky horizons Walrus Slave Seal Greater Nipisi (Heart River,
Slide 4: 2024 Exploration
2024 EXPLORATION Successful Q1 Program Added > 1.5 Years of Inventory Handel - Saskatchewan Winter access area, both Greater Nipisi wells shut in prematurely • 3D Seismic shoot late Q3 due to unseasonal warm • Follow up multi-lateral tests Q4 2024 00/06-36-076-16W5 weather early March or Q1 2025 Hea
Slide 5: Headwater Exploration & Development Strategy
HEADWATER EXPLORATION & DEVELOPMENT STRATEGY 1,227 Identified Clearwater Area Locations Clearwater Area OOIP of 4.6 Billion Barrels 5 129 636 539 449 1,288 495 1,793 149 345 Marten Hills Core Marten Hills West West Nipisi Greater Peavine Bluesky Marten Hills Core Marten Hills West West Nipisi Greate
Slide 6: Marten Hills Core Secondary Recovery
MARTEN HILLS CORE SECONDARY RECOVERY Multi-Layer Support Two Bench Design Blue: Three Bench Design 4,000 Oil (bbl/d) 1,600 Green: Two Bench Design Injection (bbl/d) Expected Primary Forecast GOR (scf/bbl) 3,500 1,400 3,000 1,200 2,500 1,000 Rate (bbl/d) GOR (scf/bbl) Under 2,000 800 secondary recove
Slide 7: Marten Hills West Secondary Recovery
MARTEN HILLS WEST SECONDARY RECOVERY Marten Hills West Pilots – Utilizing Marten Hills Core Learnings W/2 07-076-02W5 Pattern 600 1,800 Oil (bbl/d) 2024 Secondary Recovery Expansion Injection (bbl/d) Completed in March 2024 GOR (scf/bbl) 500 1,500 400 1,200 Rate (bbl/d) GOR (scf/bbl) 300 900 200 600
Slide 8: Marten Hills West – Clearwater Sandstone
MARTEN HILLS WEST – CLEARWATER SANDSTONE Continued Step-out Success; Continuing Secondary Recovery Clearwater A Sandstone MHW Secondary Recovery Section 07-76-02W5 • Full section implementation • 44 Planned locations in the CLWT Sandstone for 2024 02/15-02-076-03W5 • First Marten Hills West full sec
Slide 9: Marten Hills West Exploration
MARTEN HILLS WEST EXPLORATION Multi-Zone Clearwater Potential within Marten Hills West Multiple Clearwater Zones 00/14-19-076-02W5 CLWT F Strong inflow with high water cuts CLEARWATER E CLWT F Up-dip winter access follow up 00/04-35-076-02W5 CLWT E planned for Q1 2025 CLWT E IP15: 155 bbl/d @ 24 API
Slide 10: Greater Nipisi – 125 Sections
GREATER NIPISI – 125 SECTIONS Clearwater Development & Multiple Clearwater Exploration Prospects 100/14-17-078-09W5 IP60: 187 bbl/d 100/13-17-078-09W5 IP30: 166 bbl/d 103/04-04-078-09W5 IP30: 155 bbl/d Utikuma Heart River FLHR D follow up – Q4 2024 West Nipisi Little Horse CLWT C Strat Test 100/09-2
Slide 11: Greater Peavine
GREATER PEAVINE Multiple Productive Falher Sands and Bluesky Prospect Test Seal FLHR B 02/08-08-083-15W5 FLHR B StingWray 00/08-08-083-15W5 Drilling in Q2 2024 FLHR D StingWray FLHR C Recovering Load Fluid 02/07-07-083-15W5 FLHR B StingWray Current Rate: 200 bbl/d Land Acquisition 30% Net WI on 7 Se
Slide 12: Handel – West Central Saskatchewan
HANDEL – WEST CENTRAL SASKATCHEWAN W3 Mannville Heavy Oil Exploration W3 Mannville Heavy Oil • Large contiguous land block accumulated: • 57.75 Sections • Lloyd test: 101/01-30-035-18W3: • Open-hole, single-leg horizontal 101/01-30-035-18W3 • Encountered 1000m of excellent quality reservoir across t
Slide 13: Why Headwater
WHY HEADWATER Add incremental prospects through strategic land acquisitions and M&A •Added 61.5 sections of land YTD 2024 in the Clearwater area, total Clearwater area lands now exceeding 525 net sections •Added 24 sections of non-Clearwater lands YTD 2024, total Non-Clearwater lands now exceeding 1
Slide 14: Appendix
Headwater Exploration Inc. Appendix TSX:HWX
Slide 15: McCully Producing Asset
MCCULLY PRODUCING ASSET Dry Gas with 100% owned infrastructure and limited liability McCully Asset Daily Production 25.0 20.0 New Brunswick MNP pipeline Production mmscf/d 15.0 10.0 Nova Scotia 5.0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 HWX Realized
Slide 16: Experienced Team – Management and Directors
EXPERIENCED TEAM – MANAGEMENT AND DIRECTORS Headwater Exploration Inc. Neil Roszell, P. Eng. Former President, CEO and/or Executive Chairman and founder of Raging River Exploration Inc., Wild Stream Exploration Inc. and Executive Chairman Wild River Resources Ltd. Jason Jaskela, P. Eng. Former C
Slide 17: Slide Notes
SLIDE NOTES Slide 1 1. Assumptions used in the 2024 guidance include: WTI of US$76.25, WCS of Cdn$83.88/bbl, AGT of US$5.11/mmbtu, AECO of Cdn$1.88/GJ, foreign exchange rate of Cdn$/US$ of 0.73, blending expense of WCS less $2.20, royalty rate of 19.0%, operating and transportation costs of $13.45/b
Slide 18: Forward Looking Statements Advisory
ADVISORIES Forward Looking Statements Advisory This investor presentation of Headwater Exploration Inc. ("Headwater") contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of Canadian securities laws. All statements other
Slide 19: Development Strategy Advisory
ADVISORIES Development Strategy Advisory Advisory Relating to Development Strategy (Slide 4) The Company has presented herein a two-year development strategy. The development strategy is based on a number of assumptions as presented in such slides including, without limitation: the required reinvest
Slide 20: Non-GAAP Advisory
ADVISORIES Non-GAAP Advisory NON-GAAP MEASURES AND RATIOS Non-GAAP Financial Measures This investor presentation contains the terms “adjusted funds flow from operations (“AFFO”) or Atax funds flow”, Capital expenditures or capital program “adjusted working capital”, “capital expenditures or capital
Slide 21: Non-GAAP Advisory
ADVISORIES Non-GAAP Advisory Non-GAAP Ratios Reinvestment Rate Management believes the reinvestment rate is a useful measure to analyze the ratio of funds generated by the Company and used for reinvestment and is calculated as total capital expenditures divided by AFFO. Post dividend free cash flow
Slide 22: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories TYPE CURVE INFORMATION AND WELL ECONOMICS Headwater has presented certain type curve information and well economics for certain development, exploration and waterflood wells in the Clearwater area. The type curve information and well economics presented are
Slide 23: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories BARRELS OF OIL EQUIVALENT The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy
Slide 24: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories MARKET, INDEPENDENT THIRD PARTY AND INDUSTRY DATA ADVISORY Certain market, independent third party and industry data contained in this presentation is based upon information from government or other independent industry publications and reports or based on e
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