Tuktu Resources Ltd · TSXV:TUK
Tuktu Resources — Investor Presentation (October 2024)
24 slides from Tuktu Resources's investor presentation, October 2024
Slide 1: Positioned for Success in Light Oil through drilling in the Deep Basin
Positioned for Success in Light Oil through drilling in the Deep Basin TSXV: TUK October 2024
Slide 2: Positioned for Accelerated Growth in the Southern Alberta Deep Basin
Positioned for Accelerated Growth in the Southern Alberta Deep Basin ✓ Expansive Land Holdings: A material presence with 167 gross (161 net) sections, offering significant development potential. ✓ Stable Production Base: A combined production rate of ~ 530 barrels of oil per day (net), and ~ 320 BOE
Slide 3: Driving Competitive Advantage with Innovation and Expertise
Driving Competitive Advantage with Innovation and Expertise ✓ Innovation: Accomplished Team and Board that has a record of finding and developing plays which have fallen out of favor with many other producers (…we are not just another Montney producer). ✓ New pools/new areas: We operate in regions t
Slide 4: Best-in-Class Acquisition Transactions
Best-in-Class Acquisition Transactions Historic Acquisition Metrics ($/BOE/d) (after Athena Capital) Long-Term Reserve Development Upside on existing Asset Base Acquisition 3: Current Asset Acquisition Reserves and Net Present Value of Future Net Revenue(1,2,5) • PDP 0.31 MMbbl, $5.5 million NPV10%
Slide 5: Well positioned across 4 repeatable plays with 100+ Locations
Well positioned across 4 repeatable plays with 100+ Locations Tuktu owns 167 gross sections (161 net sections), mostly in light oil-prone reservoirs in the deep basin(1) Foothills Deep Basin Deep Basin, light oil play 1&2 (1) Foothills, gas play 4 Gas prone structured Cretaceous reservoirs, with TUK
Slide 6: Southern Alberta Deep Basin: Repeatable light oil drilling inventory
Southern Alberta Deep Basin: Repeatable light oil drilling inventory • Recently announced oil discovery is within an over-pressured, deep basin envelope that is up to 250 m thick • “Bakken” and Banff reservoirs feature variable, cumulative production volumes related to reservoir quality and to fract
Slide 7: 39 days of production history on Tuktu's Deep Basin oil discovery
39 days of production history on Tuktu’s Deep Basin oil discovery • Vertical, stimulated well bore (25-ton slick water frac) • Sustained production under rod pump with minimal decline over the first 39 days (15.3 Mbbl produced during that time)(1) • 31.5 API oil • Less than 20% draw-down (appears ra
Slide 8: Discovery ranks amongst the top 1% of IP30 for vertical wells
Discovery ranks amongst the top 1% of IP30 for vertical wells placed on production in the Deep Basin since January 2020 • Tuktu’s vertical discovery ranks in the top 1% of all vertical wells drilled in the Deep Basin since January 2020, with an IP30(1) of >400 bbls/d • Production profile suggests hi
Slide 9: Tuktu – Oil Discovery Analogues in the Alberta Basin
Tuktu – Oil Discovery Analogues in the Alberta Basin 9 million BBL, 27 API Oil Ferguson Field (approx. values) (1,2) Ferguson Field (southern Alberta) Fully developed field Active Wells: 43 Ave Por: 9% Thickness: 12m Initial Pressure: 10,200 kpa Average Depth: 1290 m Pressure gradient: 7.8 kpa/m API
Slide 10: Banff Reservoir: A comparison with Tuktu's Play 1
Banff Reservoir: A comparison with Tuktu’s Play 1 Cessford 53 sections (33,606 acres; 13,600 ha) Vertical producer (281 Mbbl) 7.5 Million Bbls (1) water Oil and gas Ferguson 3m at 9% 44 sections (27,923 acres; 11,300 ha) vertical well example; all producing wells are HZ 9 millions Bbls (1) 8-12 m 9%
Slide 11: Banff Reservoir: Structural influence on Play 2
Banff Reservoir: Structural influence on Play 2 Schematic fault array to demonstrate enhanced permeability fairways across land base (2) An early mover with a competitive advantage in a producing play • Some wells purchased in Acquisition 3 have produced over 400 Mbbl (1) due to enhanced natural fra
Slide 12: Other fairways within Tuktu's portfolio: Plays 3 and 4
Other fairways within Tuktu’s portfolio: Plays 3 and 4 Play 3 • Fractured reservoirs in leading fold Foothills Pincher Creek structures structures yield exceptional results 01-11 vertical well • In a report by TD issued during the Stolberg drilling (2010), analysts concluded these to be the most eco
Slide 13: Development Plan
Development Plan 2025-2027(4) Q2 2025 – Q4 2025 (1) Post-Acquisition(1) Q4 2024 - Q2 2025 • Ongoing drilling of deep basin light inventory Total CAPEX(2,3) of $2 - 6MM • Ongoing well workovers and • Execute Horizontal oil well in other artificial lift installation of wells light oil pools, targeting
Slide 14: Development Plan: Recompletion/workover/re-entry program
Development Plan (1) Recompletion/workover/re-entry program ̶ production adds (1) See “Advisories – Oil and Gas Advisories – Initial Production Rates”; “Advisories – Forward Looking Information Advisories – Pro Forma Development Plan” 14
Slide 15: Current Capitalization
Current Capitalization TSXV: TUK Current Stock Price (1) $0.12 Basic Shares (MM) 142.9 Market Capitalization ($MM) $17.1 Working Capital (2) $0.7 Enterprise Value ($MM)(3) $17.8 Options MM Price Proceeds(MM) Expiry 1.00 $0.08 $0.08 03/23/2027 4.65 $0.15 $0.70 07/25/2027 0.95 $0.15 $0.14 12/13/2027 6
Slide 16: Background: Management Team
Background: Management Team • 25+ years experience, including the founding of five previous oil and gas companies with assets both in Canada and globally, with direct experience in the Foothills via Talisman Tim De Freitas Energy Inc. (“Talisman”) and Ikkuma, in addition to a breadth of experience a
Slide 17: Background: Corporate Governance
Background: Corporate Governance • Bob Dales was founder and co-founder of Kelt Exploration Ltd., Celtic Exploration Ltd., Peyto Bob Dales Exploration and Development Corp., Amarok Energy Inc., and Manitok, with decades of Chairman of the Board public company experience in the oil and gas sector at
Slide 18: Background: About Tuktu Resources Ltd.
Background: About Tuktu Resources Ltd. • Industry leading technical and operational team with direct experience owning and developing profitable assets. Experienced • Team has successfully executed a junior growth model twice previously at Manitok Energy Corp. (“Manitok”) and Ikkuma Management Team
Slide 19: Background: Track Record of Success of Tuktu Team Members
Background: Track Record of Success of Tuktu Team Members July 2010 to Oct. 2013 May 2014 to Dec. 2018 Dec. 2018 to Jan. 2021 • Went public via an amalgamation with private • Went public via a reverse take-over of a public • Mr. de Freitas, in addition to other members of the company, previously hav
Slide 20: Background: Acquisition 3 Metrics
Background: Acquisition 3 Metrics Purchase Price ("P")(1,6) $3MM Adjusted Purchase Price(2) $1.5MM Adjusted Purchase Price/2023 Estimated Annualized NOI(3,6,7) 0.7 X 12 Month Trailing Operating Expenses $33.95/bbl 2023E Production(3) 165 bbl/d 2023 Est. Annualized NOI(3,8) $2.2MM Cost Per Flowing Ba
Slide 21: Advisories
Advisories All amounts in this document are stated in Canadian dollars unless otherwise specified. FORWARD-LOOKING INFORMATION ADVISORIES Certain information contained in this document may constitute forward-looking statements and information (collectively, "forward-looking statements") within the m
Slide 22: Advisories
Advisories PRO FORMA DEVELOPMENT PLAN The Company has presented herein an illustrative pro-forma development plan (the “Development Plan”) in respect of Tuktu's assets, including the assets acquired pursuant to Acquisition 1, Acquisition 2 and Acquisition 3 (as further described on Slide 13). The De
Slide 23: Advisories
Advisories • NOI/Share, non-GAAP ratio Management considers NOI/Share a key performance measure of the Company. NOI/Share is determined by dividing NOI by the shares outstanding on an undiluted basis. • Enterprise Value to Debt Adjusted Cash Flow ("EV/DACF"), non-GAAP ratio Management considers EV/D
Slide 24: Advisories
Advisories INITIAL PRODUCTION RATES: References in this document to IP or IP30 rates, other short-term production rates or initial performance measures relating to new wells are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such we
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