Frontera Energy Corporation · TSX:FEC
Frontera Energy — Investor Presentation (November 2021)
36 slides from Frontera Energy's investor presentation, November 2021
Slide 1: Frontera Energy Corporate Presentation November 2021
Frontera Energy Corporate Presentation November 2021
Slide 2: Advisories
ADVISORIES This presentation contains forward-looking statements or “forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, which involve known and unknown risks, uncertainties, and other factors that may because the actual r
Slide 3: Advisories
ADVISORIES This presentation contains future oriented financial information and financial outlook information (collectively, “FOFI”) within the meaning of applicable securities laws, (including, without limitation, statements regarding expected average production, production costs, transportation cost
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Company Overview
COMPANY 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 investments
Slide 6: Company Snapshot
COMPANY SNAPSHOT Capital Structure (As at September 30, 2021) ($U.S.) Credit ratings (+) Long-term debt ($MM) $391 Outlook: Stable 1,4 (+) Total Lease Liabilities ($MM) $8 (+) Risk Management Liabilities, net ($MM)2,4 $2 S&P Issuer Rating: B+ = Consolidated Total Indebtedness excl. 2025 Puerto Bahia
Slide 7: Proven and Diverse Asset Base
PROVEN AND DIVERSE ASSET BASE With longevity that generates value-focused production and cash flow from across the portfolio Key Advantages and Value Creation Opportunities Tightened and $130MM Lowering field ✔ Advantaged transportation/ logistics structure which provides Increased Development breakev
Slide 8: 2020 Year End Reserves Results
2020 YEAR END RESERVES RESULTS Achieved a Finding & Achieved a net 2P Reserve Increased 2P Reserve Life Development ("F&D") cost of Replacement Ratio of 154% Index to 10.3 years $3.38/boe Evolution of net 2P reserves (MMboe) 2P Reserve Life Index Evolution (years) NPV 10 NPV10 Reserves (Dec 31, 2020
Slide 9: Robust Reserve Base and Healthy RLI
ROBUST RESERVE BASE AND HEALTHY RLI Source: Public filings. Reserves data as of December 31,2020. 9
Slide 10: Focus on Cost Reductions, Margin Improvement, and Efficiencies
FOCUS ON COST REDUCTIONS, MARGIN IMPROVEMENT, AND EFFICIENCIES Production by Source (kboe/d) Realized Price and Operating Netback (US$/boe) Operating Cost (US$/boe) Capital Expenditures (US$ MM) 10
Slide 11: Focus on Cost Reductions, Margin Improvement, and Efficiencies
FOCUS ON COST REDUCTIONS, MARGIN IMPROVEMENT, AND EFFICIENCIES Sales Volume, net of purchases (kboe/d) Field Breakeven ($/boe) and Prices ($/boe) Evolution Corporate Breakeven ($/boe) Full Cycle Breakeven ($/boe) 1. Calculated as difference between Oil and gas sales per boe vs. Brent (does not inclu
Slide 12: Ample Financial Flexibility, Conservative Capital Structure
AMPLE FINANCIAL FLEXIBILITY, CONSERVATIVE CAPITAL STRUCTURE Total Revenue (US$ MM) Operating EBITDA (US$ MM) and EBITDA margin(%) Total Debt (US$ MM) Total Cash (US$ MM) 12
Slide 13: 2021 Focus
2021 FOCUS Delivering value-focused production and cash flow 1 from the Company's Colombian operations. 2 Achieving continuous operational improvements and greater cost efficiencies across the business 3 Advancing the Company’s exciting exploration portfolio in Colombia, Ecuador and Guyana 4 Executing
Slide 14: 2021 Capital Program and Guidance
2021 CAPITAL PROGRAM AND GUIDANCE Focused on four key areas: 1. Colombia Development – development capital focused on the Company's strong Colombian base. 2. Colombia & Ecuador Exploration – drilling two exploration wells in the VIM-1 block in 2021; and to complete seismic and preparatory work in Ec
Slide 15: Focus on Risk Management
FOCUS ON RISK MANAGEMENT Hedges Portfolio (4Q 2021/ 1Q 2022) Oil Hedges Ceiling and Floors (US$/boe) ZCC 2% 3-ways 5% Put Spreads 3.6 35% mmbl Puts 58% Notional Instrument Term Strike Benchmark Amount/ Volume Type /bbl) 3-ways Oct-Dec 21 37/47/62.9 Brent 180,000 Put Spread Oct-Dec 21 40/50 Brent 1,2
Slide 16: Hedging Program 2021
HEDGING PROGRAM 2021 Frontera Q4 hedges do not materially cap upside price potential Three Ways Put Spread Put Total Volume Hedged, Kbbl 718 695 715 16
Slide 17: Our Portfolio
OUR PORTFOLIO (1) Large diversified asset base STRONG COLOMBIAN BASE EXCITING EXPLORATION UPSIDE • Quifa • Offshore Guyana • CPE-6 • Ecuador • Guatiquia • Lower Magdalena Valley 17 1. Remediation and abandonment work is underway in Peru
Slide 18: Core Assets
CORE ASSETS 18
Slide 19: Quifa
QUIFA Q3 Operational Update ● Current production is ~16,300 bbl/d (including both Quifa and Cajua). ● Frontera drilled one new injector well and converted one inactive well into an injector well, which the Company expects will contribute to increased production volumes from the Block through year-en
Slide 20: CPE-6
CPE-6 Q3 Operational Update ● Current production is ~5,000 bbl/d due to continued drilling and construction of additional water-handling facilities. ● In June 2021, the Agencia Nacional de Hidrocarburos agreed to extend the Hamaca Field by 115,869 net acres to the north of the current CPE-6 boundary
Slide 21: Guatiquia
GUATIQUIA Q3 Operational Update ● Successfully completed the Coralillo-4 and Coralillo-5 wells in the Coralillo field, which are producing over 720 bbl/d. ● A third well in Coralillo (Coralillo-9) is currently being completed. Contract Name Guatiquia Contract Contract Type Exploration & Production Co
Slide 22: Exciting Exploration Upside
EXCITING EXPLORATION UPSIDE
Slide 23: Guyana
GUYANA Potentially transformational valuation creation catalyst ● Over 1.4 million gross acres in one of the hottest offshore exploration basins in the world, de-risked with extensive 3D seismic survey data, basin modelling and biostratigraphic studies ● Kawa-1 exploration well successfully spudded
Slide 24: Guyana
GUYANA Potentially transformational valuation creation catalyst ● North Corentyne is in a highly favorable location near the mouth of the Berbice Canyon, where large Santonian and Campanian fans have been delineated on newly acquired 3D seismic. ● Kawa-1 is targeting stacked sands in a fan complex;
Slide 25: Lower Magdalena Valley (VIM-1)
LOWER MAGDALENA VALLEY (VIM-1) Oil, natural gas and liquids opportunities • VIM-1 Block (Frontera 50% W.I., Parex 50% W.I. and operator) the Planadas-1 exploration well has been drilled to a measured depth of ~13,700 feet in Cretaceous aged crystalline basement. • The well was drilled 6.3 kilometers
Slide 26: Ecuador
ECUADOR Perico and Espejo blocks (Frontera 50% / Geopark 50%) • in the Perico block (Frontera 50% W.I. and operator, GeoPark 50% W.I.), environmental licensing is complete and road construction is underway in advance of spudding the Jandaya-1 exploration well in early December 2021 . • In the Espejo
Slide 27: Infrastructure
INFRASTRUCTURE 27
Slide 28: 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/P
Slide 29: Puerto Bahia
PUERTO BAHIA Unique asset, combining a liquids terminal with a dry cargo facility, in a strategic location Liquid Bulk Terminal Operational capacity of 2.6 MMbbl, distributed amongst eight storage tanks with blending functionalities. 8 loading and unloading stations and a liquid jetty with 2 docking
Slide 30: Transportation
TRANSPORTATION Pipeline Interest & Notes on Pipeline Km Capacity FEC Transportation Rights (bbl/d) BIC (1) 43.03% equity interest in Bicentenario Origin: Araguaney 226 120,000 Destination: Banadia 1.2% working interest pursuant to a construction and operation contract. OAM The Company has transporta
Slide 31: ESG
ESG 31
Slide 32: Committed to ESG
COMMITTED TO ESG Committed to conducting business safely and in a socially, environmentally, and ethically responsible manner 2021 ESG Focus Areas - Emissions: Neutralize 40% of emissions through carbon credits of voluntary conservation projects to reduce carbon footprint ENVIRONMENTAL - Water: redu
Slide 33: Frontera Continues to Advance its ESG Strategy
FRONTERA CONTINUES TO ADVANCE ITS ESG STRATEGY Q3'21 Update on Frontera's ESG deliverables ENVIRONMENTAL SOCIAL GOVERNANCE ● Frontera has planted ● Frontera is 110 hectares of ● Frontera is integrating strengthening its local biological corridors to ESG-related risks within suppliers program, preser
Slide 34: Board of Directors
BOARD OF DIRECTORS Engaged and actively unlocking shareholder value Gabriel de Alba Chairman • Managing Director and Partner of The Catalyst Capital Group Inc. Chair of Compensation • International experience restructuring public and private companies, unlocking value for investors and Human Resourc
Slide 35: Proven Management Team
PROVEN MANAGEMENT TEAM Leadership with global experience and deep regional knowledge • Former Vice Minister of Energy of the Ministry of Mines and Energy in Colombia between 2013 and Orlando Cabrales Segovia 2014 CEO • Former President of the Agencia Nacional de Hidrocarburos ("ANH") from 2011 to 20
Slide 36: Contact us
Contact us at: ir@fronteraenergy.ca Follow us on:
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