Journey Energy, Inc. · TSX:JOY
Journey Energy — Investor Presentation (September 2021)
24 slides from Journey Energy's investor presentation, September 2021
Slide 1: Corporate Presentation – Turning the Corner
TSX: JOY OTCQX: JRNGF Corporate Presentation September, 2021 Turning the Corner
Slide 2: Snapshot
Snapshot 8,100 boe/d(1) (45% liquids); 100% unhedged Strategic relationship with AIMCo; Sole lender and largest shareholder 14% corporate decline go forward; waterfloods and other low decline assets supports sustainability $125 million enterprise value; ~$15,500 boe/d 47.5 million basic shares @ $1.
Slide 3: Why Journey?
Why Journey? 128 gross sections of Duvernay lands concentrated in the oil window Duvernay Basin leading performance from three and Duvernay wells Power 4 MW power generation commissioned September 2020; >20 year project fueled by Countess long life, dry gas reserves Growing Legacy oil pools
Slide 4: Base – Core Areas
Base – Core Areas Southern Core Area (~3,900 boe/d; ~40% oil and NGLs(1) ) • Key properties at Skiff, Matziwin, Herronton, Countess and Brooks Edmonton • Waterflood expansion, extensive Red Deer drilling upside • Low decline base production Calgary • Countess Power Generation 4 MW power generation f
Slide 5: Corporate Growth Returns in 2022
Corporate Growth Returns in 2022 2019 2020 2021 Operating Highlights Actual Actual Forecast(1) Production Average (boe/d) 9,372 8,379 7,600 – 7,900 Oil and NGLs (%) 48% 46% 45% Corporate Decline Rate (%) 16% 17% 14% Reference Natural Gas AECO ($/mcf) $1.80 $2.24 $3.20 Prices Oil WTI ($US/bbl) $57.02
Slide 6: Economic Plays
Economic Plays Duvernay 50% average WI in Duvernay commercial DUVERNAY/POWER development including significant 100% WI lands; CONVENTIONAL and infrastructure ownership BASE Power Potential to expand power generation at Countess and install at other properties $3.72/P+P boe FDC(3) at 2020YE; lo
Slide 7: Conventional – Significant Development Inventory
Conventional – Significant Development Inventory Booked Conventional(3) $184 million in Capital Journey’s inventory includes 189 gross (177 net)(1)(2) horizontal Waterflood oil locations Horizontal Other HZ & Vertical Oil Multi-Stage Only 33% of these locations are booked(2) in our 2020 reserve
Slide 8: Countess Power Project
Countess Power Project Journey holds 100% WI in the Countess power plant which was commissioned in September 2020 4 MW power generation with fuel gas supplied by the Journey Countess long life, dry gas assets Upgradeable to 6 MW with the installation of a third generator unit Connected to the
Slide 9: World Class Duvernay – Opportunity and Leverage
World Class Duvernay – Opportunity and Leverage Duvernay Joint Venture and Opportunity JV Initial Development Phase ends late August 2022 Capital participation option on wells drilled during initial phase Significant ownership in infrastructure and processing Duvernay oil window sweet spot w
Slide 10: Duvernay – JV Wells Among East Duvernay Leaders
Duvernay – JV Wells Among East Duvernay Leaders Source: Journey and Geoscout created March 2021 10
Slide 11: Appendix- Content
Appendix- Content Drilling Economics Drilling Inventory Central Region South Region Duvernay Delineation Central Region Edmonton Strong Governance Red Deer Experienced Management Calgary South Region Environment, Social and Governance Advisories 11
Slide 12: Improving Recovery in our Legacy Oil Pools
Improving Recovery in our Legacy Oil Pools $70 CAD/bbl EDM Light Sweet, $60 CAD/bbl WCS, $3.15/MMbtu AECO HZ Drilling Economics(1) Matziwin Cherhill Crystal Poplar Creek Drilling Metric HZ Regional HZ Banff HZ Viking HZ Belly River Glauconite Capital Cost ($millions) $1.8 $2.7 $2.0 $1.9 Estimated Ul
Slide 13: Central Region Conventional
Central Region Conventional Horizontal Oil Well Drilling Locations(2) Booked(1) Unbooked(3) Property Formations Gross Net Gross Net Poplar Creek/ Belly River 5 4.5 9 7.4 Westerose Cherhill Banff 6 5.4 2 1.8 Crystal Viking 6 6 28 27.9 Central Remainder 7 5.5 4 2.5 Total Central Region 24 21.4 43 39.6
Slide 14: South Region Conventional
South Region Conventional Horizontal Oil Well Drilling Locations(1) Booked(2) Unbooked(3) Property Formations Gross Net Gross Net Glauconite, Matziwin 13 13.0 21 20.0 Colony Skiff Sawtooth 16 16.0 14.0 13.9 Glauconite, Countess/Brooks 6 4.0 25 24.0 Sunburst, Pekisko Herronton Elkton 5 4.9 22 20.6 To
Slide 15: Duvernay – Resource Delineation
Duvernay – Resource Delineation 8-16 Vertical Strat for 13-2 hz. Geology & Engineering • Initial well results at or above expectations • Land base, Resource and Value proven through first round of wells • Very large inventory of de-risked locations A • Best in basin single digit royalties supports a
Slide 16: Board of Directors - Strong Governance
Board of Directors - Strong Governance Craig Hansen Chairman of the Board – Independent businessman, President and Chief Executive Officer of Zargon Oil & Gas Ltd. and its predecessor, Zargon Energy Trust. Also a member of Journey’s Reserves and Compensation/Governance committees Dana Laustsen Reser
Slide 17: Experienced Management Team
Experienced Management Team Alex G. Verge, P.Eng., M.Eng. President and Chief Executive Officer, and Director – Previously President and CEO of NuVista Energy, VP Engineering at Bonavista, and senior positions at Poco Petroleums, Rising Resources, Shell, and Gulf. Gerry N. Gilewicz, CPA, CMA Chief F
Slide 18: Environment, Social and Governance
Environment, Social and Governance Environment Journey uses fresh and saline water in operations for drilling, hydraulic fracturing and reservoir pressure maintenance. Approximately 1% of our total water use is classified as fresh water. In 2019, we reused 99.9% of our water withdrawals (from surf
Slide 19: ESG – Identifying and Assessing Climate Related Risks
Environment, Social and Governance (Continued) Identifying and Assessing Climate Related Risks Journey’s management continuously reviews and assesses climate-related risks. We prioritize the risks, assess their potential magnitude and scope, and then consider the potential consequences to the busine
Slide 20: ESG – Social
Environment, Social and Governance (Continued) Social Journey takes pride in maintaining its operations with the highest of standards and ensures its suppliers of goods and services do so as well. Journey operates in nine key areas in the province of Alberta and is very active in the communities i
Slide 21: ESG – Governance
Environment, Social and Governance (Continued) Governance In recognition of the key role that sustainability plays in our business, Journey has mandated that the Board of Directors (the “Board”) take an active role in evaluating our corporate sustainability strategy, improving our risk management
Slide 22: Advisories
Advisories FORWARD-LOOKING STATEMENTS AND FINANCIAL MEASURES Thi s present ati on cont ai ns “ for war d- l ooki ng state ments” i ncl udi ng esti mat es of fut ur e pr oducti on, cash fl ows and reserves, busi ness pl ans f or drilli ng and ex pl or ati on, the esti mat ed a mounts and timi ng of c
Slide 23: Advisories (Continued)
Advisories (Continued) OIL AND GAS ADVISORY The crude oil, nat ural gas and nat ural gas liq ui d reserves and rel ated f ut ur e net revenue of Jour ney present ed her ei n wer e eval uated by GLJ, Jour ney’ s i ndependent reserves eval uat ors, i n accor dance wi t h the req uire ments of Nati ona
Slide 24: Advisories (Continued)
Advisories (Continued) OIL AND GAS ADVISORY (Continued) I niti al Pr oducti on Rat es: Ref erences her ei n to average 30- day i niti al pr oducti on rates (I P30) and ot her short- ter m pr oducti on rates are usef ul i n confir mi ng the presence of hydr ocar bons, however, such rates are not dete
Journey Energy — Investor Presentation (September 2021) on 6ix