Frontera Energy Corporation · TSX:FEC
Frontera Energy — Investor Presentation (August 2022)
29 slides from Frontera Energy's investor presentation, August 2022
Slide 1: Frontera Energy Corporate Presentation August 2022
Frontera Energy Corporate Presentation August 2022
Slide 2: Company Overview
COMPANY OVERVIEW
Slide 3: Corporate Overview
CORPORATE OVERVIEW ● Frontera Energy Corporation is a Canadian public company listed on the Toronto Stock Exchange (TSX: FEC). ● The Company is involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, including related investment
Slide 4: Key Advantages and Value Creation Opportunities
KEY ADVANTAGES AND VALUE CREATION OPPORTUNITIES Strong Balance Sheet ● $675 - $700 million operating EBITDA(1) at $100/bbl average Brent for the year with significant FCF ● Refinanced bonds, secured additional lines of credit and unrestricted cash ● Pipeline arbitration reduced contingent liabilities
Slide 5: Corporate Snapshot
Capital Structure (As at June 30, 2022) ($U.S.) ($MM) (+) Long-term debt(1) $408 (2) (+) Total Lease Assets $4 (3) (-) Risk Management assets, net $2 = Consolidated Total Indebtedness excluding Unrestricted Subsidiaries(4) $410 (-) Cash & Cash Equivalents(5) $241 = Net Debt excl. Puerto Bahia Debt $
Slide 6: 2P Reserves Reconciliation
NPV 10 NPV10 Reserves (Dec 31, 2021) MMboe Before tax After tax $MM $MM Net Proved Developed Producing (PDP) 30 774 609 Net Proved Developed not Producing (PDNP) 9 236 187 Proved Undeveloped (PUD) 70 1,101 862 Net Proved (1P) 109 2,110 1,659 Net Probable 58 926 590 Net Proved + Probable (2P) 167 3,0
Slide 7: 2022 Capital Guidance
2022 Full Year Guidance Guidance Metrics Unit Previous Revised (6) Average Daily Production boe/d 40,000 - 43,000 41,000 - 43,000 Production Cost (1) $/boe $11.00 - $12.00 $11.00 - $12.00 Transportation Cost (2) $/boe $10.00 - $11.00 $10.00 - $11.00 $575 - $625 $675 - $700 Operating EBITDA (3) $MM @
Slide 8: Second Quarter 2022 Results
SECOND QUARTER 2022 RESULTS Unit Q2 2022 Q1 2022 %Change Heavy crude oil production (bbl/d) 21,455 21,214 1% Light and medium crude oil production (bbl/d) 17,348 17,248 1% Conventional natural gas production (mcf/d) 10,374 9,530 9% Natural gas liquids (boe/d) 963 966 0% Total Production (boe/d) 41,5
Slide 9: Risk Management Strategy
RISK MANAGEMENT STRATEGY ● Frontera uses derivative commodity instruments to manage exposure to price volatility by hedging a portion of its oil production. ● The Company aims to protect 40%-60% of estimated production to preserve revenue generation and the Company's position while maximizing upside
Slide 10: Core Upstream Assets
CORE UPSTREAM ASSETS
Slide 11: Quifa
QUIFA Frontera Operated, 60% WI ASSET OVERVIEW Contract Name Quifa Contract Contract Type Association Contract Contract Term Expiry December 2031 Net Acreage 149,152 Annual SBR Prod (boed) 15,730 (boed) Working Interest 60% (operator) / 70% of costs Partner Ecopetrol Base Royalty Rate 6% to 25%(1) 2
Slide 12: CPE-6
CPE-6 Frontera Operated, 100% WI ASSET OVERVIEW Contract Name CPE-6 Contract Type Evaluation & Production Contract Term Expiry January 2042 Net Acreage 169,626 Annual SBR Prod (boed) 3,610 (boed) Working Interest 100% Base Royalty Rate 6% to 25%(1) 2022 GUIDANCE Frontera plans to drill 3 producer we
Slide 13: Guatiquia
GUATIQUIA Frontera Operated, 100% WI ASSET OVERVIEW Contract Name Guatiquia Contract Contract Type Exploration & Production Contract Term Expiry August 2035 Net Acreage 11,086 Annual SBR Prod (boed) 8,517 (boed) Working Interest 100% Base Royalty Rate 6% to 25%(1) 2022 GUIDANCE Frontera plans to dri
Slide 14: Opportunities in Colombia
OPPORTUNITIES IN COLOMBIA Oil, natural gas and liquids opportunities ASSET OVERVIEW Contract Name El Dificil VIM-22 VIM-46 VIM-1 Contract Type Production Production Production Expl. & Production Net Acreage 22,077 412,330 74,799 71,024 Working Interest 100% 100% 100% 50% 2022 GUIDANCE At VIM-1, (Fron
Slide 15: Ecuador
ECUADOR Perico block (Frontera 50% W.I. and operator) and Espejo block (50% W.I. non-operator) ASSET OVERVIEW Contract Name Perico Espejo Contract Type Exploration Exploration Net Acreage 8,859 7,826 Working Interest 50% 50%% - Drilling of four wells - Drilling of four wells - 3D seismic acquisition
Slide 16: Guyana
GUYANA (1) Potentially transformational valuation creation catalyst ASSET OVERVIEW Petroleum Prospecting License Contract type (PPL) Gross acreage (2) Corentyne: 862,600 Working interest in the block 68.0% Equity ownership in CGX Energy (TSXV:OYL) 76.98% Consolidated interest 92.63% Q2’22 RESULTS On
Slide 17: Guyana: Integrated Kawa-1 Results
GUYANA Integrated Kawa-1 Results Hydrocarbons were encountered in multiple zones extending from 15,216’ in the Maastrichtian to 21,547’ in the 1 Coniacian. Sand encountered over this interval indicated the presence of hydrocarbons. 228 feet of net pay is associated with five primary zones. Independen
Slide 18: Guyana: North Corentyne Prospectivity
GUYANA North Corentyne Prospectivity Western Complex (targeted with Wei-1): Central Area (being evaluated): Eastern Complex (drilled): ● Wei-1 well will target light oil in intervals ● Similar prospects identified in ● Kawa-1 reached TD January 27, 2022 similar to pay zones in Kawa discovery Maastric
Slide 19: Infrastructure
INFRASTRUCTURE
Slide 20: Oleoducto de los Llanos Orientales
OLEODUCTO DE LOS LLANOS ORIENTALES Frontera holds a 21% Indirect Equity Interest (1) ● Transports the Company’s heavy crude oil from the Quifa SW and Cajua fields to Coveñas export terminal via OCENSA ● 260 km of 24” pipeline with throughput capacity of 300,000 Bbl/d ● Connected to Llanos 34 (GeoPark
Slide 21: Puerto Bahia
PUERTO BAHIA Unique asset, combining a liquids terminal with a dry cargo facility, in a strategic location ● Puerto Bahia is a maritime terminal strategically located in the Cartagena bay with a natural depth of 18 mts allowing to handle deep draft vessel. ● Manages over 55kbpd of oil and oil produc
Slide 22: ESG
ESG
Slide 23: We Are Building a Sustainable Future
WE ARE BUILDING A SUSTAINABLE FUTURE OUR ESG STRATEGY - In 2020 we redefined our sustainability strategy and our commitments are now focused on environmental, social and governance factors (ESG). E - We set quantifiable medium- and long-term goals that allows us monitoring the organization’s progress.
Slide 24: Achieved 98% of 2021 ESG Goals
ACHIEVED 98% OF 2021 ESG GOALS - Neutralization of emissions: Exceeded emission neutralization goal and achieved an average of 41% scope 1 emissions - Protection & Preservation: We restored and reforested new 764 hectares and carried ENVIRONMENTAL out maintenance actions in protection areas covering
Slide 25: 2022: Committed to ESG Performance
2022: COMMITTED TO ESG PERFORMANCE ENVIRONMENTAL SOCIAL GOVERNMENT - A thriving tomorrow for all - - We are all integrity influencers - - A greener & cleaner future - Climate change Health and safety Outstanding business ethics - Neutralize 50% annual average - Improve by 20% health and safety - Cont
Slide 26: Top Tier Board and Management Team
TOP TIER BOARD AND MANAGEMENT TEAM Engaged and actively unlocking shareholder value Experienced Board of Directors ...And Management Team GABRIEL DE ORLANDO • Managing Director and Partner of The Catalyst ALBA(2) Capital Group Inc. CABRALES • Leader in the Colombian energy sector and CEO of Chairman
Slide 27: TSX: FEC.TO
TSX: FEC.TO Colombia Calle 110 N° 9 – 25 Piso 16 Bogotá, Colombia PBX: +57 1 511 2000 PBX: +57 1 745 1001 Calgary 1610, 222 – 3 Avenue SW Calgary, AB Canada T2P 0B9 PBX: +1 403 705 8814 www.fronteraenergy.ca Follow us on: Frontera Energy Corp. @FronteraEnergy @FronteraEnergy
Slide 28: Advisories
ADVISORIES Forward-Looking Information - This presentation contains forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to activities, events or developments that Frontera Energy Corporation (“Frontera” or the “Company”) believes, expects o
Slide 29: Advisories
ADVISORIES Non-IFRS and Other Measures - This presentation contains financial terms that do not have standardized definitions in International Financial Reporting Standards ("IFRS"), including Operating EBITDA, Capital Expenditures, Operating Netback, Net Sales Realized Price, Transport Cost per Boe,
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