Kelt Exploration Ltd. · TSX:KEL
Kelt Exploration — Investor Presentation (February 2019)
70 slides from Kelt Exploration's investor presentation, Feb 21, 2019
Slide 1: Corporate Presentation
Corporate Presentation February 2019 (updated February 21, 2019) KeltExploration.com David J. Wilson President & Chief Executive Officer Sadiq H. Lalani Vice President & Chief Financial Officer www.keltexploration.com 0
Slide 2: Why Invest in Kelt?
Why Invest in Kelt ? CREATING VALUE DURING DOWNTURNS ● The Kelt management team has a track record of creating shareholder value during downturns, previously during the 2008-2009 period with Celtic Exploration Ltd., eventually sold in February 2013 for $3.2 billion. ● Kelt focuses on long-term growt
Slide 3: Common Share Information
Common Share Information ● Stock Exchange listing TSX ● Trading symbol KEL ● Market capitalization $ 900 million ● 52-week trading range $ 3.97 – $ 10.01 ● Common shares issued ( @ Dec/2018 ) 184.0 million ● Stock options ( 9.8 MM ) & RSUs ( 1.1 MM ) 10.9 million ( 6.0% ) → average exercise price of
Slide 4: Convertible Debentures
Convertible Debentures ● TSX trading symbol KEL.DB ● Principal amount issued $ 90.00 million ● Principal amount outstanding $ 89.91 million ● Coupon / Maturity date 5.0% / May 31, 2021 ● 52-week trading range $ 106.50 – $ 186.05 → D&O’s purchased $14.7 million (16%) of the total Debenture offering.
Slide 5: Insider Commitment
Insider Commitment Insider Purchases Offering / Market Purchases Date Shares (MM) Amount (MM) Price/share $ 13.9 MM Equity Private Placement Feb-2013 3.7 $ 8.7 $ 2.32 $ 94.4 MM Equity Private Placement Apr-2013 5.7 $ 31.5 $ 5.55 $ 92.0 MM Equity Private Placement Aug-2013 0.5 $ 4.0 $ 8.00 $ 19.6 MM
Slide 6: Capital Expenditures
Capital Expenditures 2018 2019 2019/18 ( $ millions ) 2017 Forecast Budget Change Drilling & Completions 154.7 178.5 201.0 + 13% Equipment, Facilities, & 78.0 110.0 60.0 − 45% Pipeline Infrastructure Land, Seismic & Asset Acquisitions 11.6 10.0 9.0 − 10% Capital Expenditures 244.3 298.5 270.0 − 10%
Slide 7: Drilling Program
Drilling Program 2018 Gross 2018 Net 2019 Gross 2019 Net Drills Wells Wells Wells Wells Alberta 16 14.6 9 8.0 British Columbia 19 19.0 25 25.0 Non-operated Properties 0 0.0 0 0.0 Total [1] 35 33.6 34 33.0 2018 Gross 2018 Net 2019 Gross 2019 Net Completions Wells Wells Wells Wells Alberta 21 19.6 9 8
Slide 8: Production Outlook
Production Outlook 2018 2019 2019/18 2017 Forecast Budget Change Oil ( bbls/d ) 6,634 8,500 − 9,100 11,200 − 11,800 30% − 32% NGLs ( bbls/d ) [1] 2,608 3,000 − 3,300 4,300 − 4,600 39% − 43% Gas ( Mcf/d ) 77,330 90,000 − 97,000 105,000 − 112,000 15% − 17% Combined ( BOE/d ) 22,130 27,000 − 28,000 33,
Slide 9: Expected Timing of 2019 Production Additions
Expected Timing of 2019 Production Additions Expected Expected Production Expected Number PROJECT On-stream (IP30) Range Oil/NGLs (IP30) of Wells Date BOE/d Percentage Inga (5-9/4-9) 24-well pad 6 Q2 2019 5,800 − 6,200 60% − 65% Fireweed (B-33-I/A-34-I) pad [1] 5 Q3 2019 5,200 − 5,500 60% − 65% Wemb
Slide 10: Product Mix
Product Mix Production Operating Income Operating Income 2018 Realized Price Split (MM) Split Oil & NGLs $ 62.63/bbl 42% $ 176.3 84% Gas $ 3.19/Mcf 58% $ 33.3 16% Total $ 37.44/BOE 100% $ 209.6 100% Production Operating Income Operating Income 2019 Realized Price Split (MM) Split Oil & NGLs $ 57.89/
Slide 11: Annual Production Growth (since inception)
Annual Production Growth ( since inception ) PRODUCTION ( BOE / d ) 45,000 CAGR since 2013 = 43% 40,000 33,500 − 35,000 34,500 27,000 − 30,000 28,000 25,000 17,500 − 22,130 18,600 20,947 20,000 18,577 15,000 – 16,100 15,000 12,888 12,756 13,168 11,879 10,000 8,419 15,500 − 11,500 – 16,400 5,000 3,96
Slide 12: Annual Production per Share Growth (since inception)
Annual Production per Share Growth ( since inception ) PRODUCTION PER MILLION SHARES ( BOE / d ) 250 CAGR since 2013 = 22% 200 174 − 179 148 − 153 150 120 121 125 91 − 97 105 82 − 88 100 73 77 76 69 53 50 81 − 85 42 63 − 68 43 45 52 36 0 11 2013 2014 2015 2016 2017 2018 [E] 2019 [E] Oil / NGLs Gas 1
Slide 13: Commodity Prices
Commodity Prices ( CA$, unless otherwise specified ) 2017 2018 (E) 2019 Budget YOY Change WTI Crude Oil ( USD/bbl ) [1] US $ 50.95 US $ 67.50 US $ 67.50 − CLS Crude Oil ( CAD/bbl ) [2] $ 61.85 $ 70.93 $ 66.97 − 6% WTI-CLS Basis Differential ($4.28 or 6%) ($16.28 or 19%) ($19.43 or 22%) + 19% NYMEX N
Slide 14: Gas Market Risk Management
Gas Market Risk Management GAS MARKET DIVERSIFICATION ● The Company has taken a diversified approach to selling its natural gas in order to reduce exposure to single market risk. ● Kelt has entered into several contracts that result in price exposure to various gas price hubs in North America. ● Est
Slide 15: North American Natural Gas Hubs
North American Natural Gas Hubs Kelt 2019 Gas Netback Forecast Station 2 Hub Price [1] Netback [2] Netback [2,3] Gas Hub % US$/MMBtu US$/Mcf CA$/Mcf AECO Sumas NYMEX 3.00 Empress Emerson Kingsgate Waddington Dawn 21% 2.90 2.01 2.58 Boston Chicago 37% 2.85 1.76 2.25 Stanfield Dawn Opal Malin Ventura
Slide 16: Hedging
Hedging Commodity Index Term Quantity Fixed Price NYMEX to Dawn Basis Jan/2019 to Natural Gas 10,000 MMBtu/d Minus US$0.0975/MMBtu Differential Dec/2019 NYMEX to Chicago Basis Jan/2019 to Natural Gas 10,000 MMBtu/d Minus US$0.14/MMBtu Differential Oct/2019 Nov/2018 to Natural Gas Sumas 7,500 MMBtu/d
Slide 17: 2019 Commodity Price Sensitivities
2019 Commodity Price Sensitivities Kelt Kelt Kelt CAD/USD 2019 Oil Price NGLs Price Gas Price Exchange Rate Forecast minus 10% minus 10% minus 10% minus CAD 0.05 Kelt Oil Price ( CAD/bbl ) 67.01 60.31 - 10% 67.01 n/c 67.01 n/c 64.43 - 4% Kelt NGLs Price ( CAD/bbl ) 33.70 33.70 n/c 30.33 - 10% 33.70
Slide 18: 2019 Discretionary Capital Expenditures
2019 Discretionary Capital Expenditures Approximately $40.0 million of capital expenditures that is currently included in the 2019 Budget could be deferred to 2020 if realized commodity prices in 2019 are significantly lower than currently forecasted: 2019 Impact to 2019 Forecasted Capital Average P
Slide 19: 2019 Pro-forma Commodity Prices
2019 Pro-forma Commodity Prices ( CA$, unless otherwise specified ) 2019 Budget 2019 Pro-forma Difference Percent Change WTI Crude Oil ( USD/bbl ) [1] US $ 67.50 US $ 55.00 − 12.50 − 19% CLS Crude Oil ( CAD/bbl ) [2] $ 66.97 $ 63.75 − 3.22 − 5% WTI-CLS Basis Differential ($19.43 or 22%) ($8.85 or 12
Slide 20: Netbacks
Netbacks 2019/18 2019 ( $ / BOE ) 2017 2018 (E) 2019 (E) Change Pro-forma Revenue/Price 31.51 37.56 37.50 − 36.10 Realized hedging gain ( loss ) ( 0.13 ) 0.02 0.13 + 550% 0.12 Royalties ( % of revenue/price ) ( 9.3% ) ( 9.4% ) ( 10.2% ) + 9% ( 10.4% ) Transportation expense ( 3.13 ) ( 3.79 ) ( 3.99
Slide 21: Financial Outlook
Financial Outlook 2018 2019 2019/18 2019 2017 Forecast Budget Change Pro-forma Revenue ( $ MM ) 257.6 375.8 473.9 + 26% 449.5 Operating income ( $ MM ) [1] 123.4 209.6 261.5 + 25% 241.8 Adj. funds from operations ( $ MM ) [1] 108.0 193.0 240.0 + 24% 220.0 Per share – diluted ( $/share ) 0.61 1.04 1.
Slide 22: Core Areas
Core Areas Fort St. John ( BC ) : Inga/Fireweed & Oak/Flatrock ● Stacked Montney light oil and condensate-rich gas ● Doig condensate-rich gas Grande Prairie ( AB ) : Fort St. John Pouce Coupe/Progress, Valhalla/La Glace & Grande Prairie Pipestone/Wembley ● Stacked Montney light oil Grande Cache ● Mo
Slide 23: Kelt Land Fairway
Kelt Land Fairway Fireweed Corporate Land Holdings Inga August Net Net Flatrock 2018 Acres Sections Stoddart Oak Developed 224,313 351 Fort Undeveloped 636,727 995 St. John Total 861,040 1,346 Pouce Coupe Progress Montney Rights Spirit River Net Net Acres Sections Valhalla / La Glace British Columbi
Slide 24: Kelt Montney Framework
#2 kelt exploration Kelt Montney Framework Inga / Fireweed Oak / Flatrock ; Pouce Coupe Progress La Glace Pipestone / Wembley A A! A A A A lei hh ll — Proven Productive Montney Horizons 3 ae %* Kelt Future Exploratory Horizons Within Core Areas 23
Slide 25: British Columbia Montney Lands
British Columbia Montney Lands Land (Montney Rights) Gross: 368,038 acres ( 575 sections ) Net: 363,087 acres ( 567 sections ) Fireweed Operations Stoddart ● Kelt has been successful delineating the Flatrock Upper and Middle Montney at Inga/Fireweed. ● Kelt is pleased with the initial results from I
Slide 26: British Columbia Montney Wells
British Columbia Montney Wells PRODUCTION RESERVES Kelt British Columbia Montney Drills Typical Well EUR’s Top 10 IP30 Wells ( gross sales, BOE/d ): Inga/Fireweed Upper Montney (UM) (1) Fireweed 00/C-31-I/94-A-12 UM 2,068 ( 68% oil/ngls ) Sproule 2P EUR = 795 MBOE: (2) Inga 02/15-33-087-23W6 MM 2,06
Slide 27: B.C. - Stacked Montney Resource Potential
B.C. - Stacked Montney Resource Potential THE MONTNEY CUBE ● Kelt has been successful MULTIPLE STACKED MONTNEY HORIZONS delineating the Upper and Middle Montney at Inga/Fireweed. ● Initial results from the Montney IBZ have been encouraging and Kelt will continue with its delineation program in this
Slide 28: Inga 6-Section / 3-Pad / 72-Well Development Plan
Inga 6-Section / 3-Pad / 72-Well Development Plan ● Kelt’s 2018/2019 capital expenditures to include 24 drills at Inga from the Company’s first 24-well multi-layer Montney cube pad that will include 8 Upper, 8 IBZ and 8 Middle Montney wells. ● Wells in each Montney interval will be spaced at approxi
Slide 29: Inga / Fireweed Montney Lands
Inga / Fireweed Montney Lands A-65-I MM B-90-A UM LAND (Montney Rights) 02/A-65-I UM 03/A-65-I UM (sfc C-10-H) 220 gross sections ( 218 net sections ) B-65-I UM (sfc B-33-I) C-26-A UM A-58-I UM (sfc D-A79-I) (sfc A-6-A) C-85-I UM 2019 DRILLING PLANS (sfc A-65-I) 00/15-25 MM → Remaining 19 wells from
Slide 30: Inga / Fireweed Upper & Middle Montney CGR
Inga / Fireweed Upper & Middle Montney CGR (Condensate : Gas Ratio) 02/14-24 IP30 – 1,609 BOE (CGR - 402 bbls/MMcf) 1 Year Cum = 268,000 BOE 24 Well Pad 24 Well Pad 00/14-24 IP30 – 1,412 BOE (CGR - 278 bbls/MMcf) 1 Year Cum = 202,000 BOE 02/15-33 IP30 - 2,066 BOE (CGR - 509 bbls/MMcf) 1 Year Cum = 2
Slide 31: Inga Gas Processing & Liquids Handling
Inga Gas Processing & Liquids Handling KELT FACILITY (“Inga 2-10 Facility”): ● The Company is currently constructing a 100 MMcf/d compression, dehydration, liquids handling and frac water facility located at Inga which is expected to be in operation by January 2019. ● The Inga 2-10 Facility will com
Slide 32: Inga / Fireweed Upper Montney Type Curve
Inga / Fireweed Upper Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 795 MBOE 54% Oil/Ngls 46% Gas 10 15 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Month Note: [1] S
Slide 33: Inga / Fireweed Middle Montney Type Curve
Inga / Fireweed Middle Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 645 MBOE 59% Oil/Ngls 41% Gas 10 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Month Note: [1] See
Slide 34: Oak / Flatrock Montney Lands
Oak / Flatrock Montney Lands LAND 00/7-3 Montney Rights: (sfc 10-27) Gross: 206,913 acres ( 323 sections ) Net: 205,641 acres ( 321 sections ) 02/13-13 (sfc 13-12) OPERATIONS ● Oil and gas exploration activity targeting the Upper Montney (D4 / D5) at depths of 1,500 to 02/6-2 (sfc 14-11) 1,600 metre
Slide 35: Alberta Montney Lands
Alberta Montney Lands LAND Montney Rights: Gross: 174,560 acres ( 273 sections ) Net: 150,195 acres ( 235 sections ) Pouce OPERATIONS Coupe ● Kelt continues with development of the Lower-Middle Progress (D1) and the Middle (D2) Montney at Pouce Coupe. The first five-well pad was completed Q117. The
Slide 36: Alberta Montney Wells
Alberta Montney Wells PRODUCTION RESERVES Kelt Alberta Montney OIL Drills Typical Well EUR’s Top 10 IP30 Wells ( gross sales, BOE/d ): Pouce Coupe Montney OIL Sproule (1) Pouce Coupe 03/07-18-078-11W6 LMM (D1) 2,045 ( 66% oil/ngls ) 2P EUR = 600 MBOE*: (2) Pouce Coupe 02/06-18-078-11W6 MM (D2) 2,004
Slide 37: Pouce Coupe / Progress
Pouce Coupe / Progress 15-13 MM OPERATIONS 920 BOE/d IP30 (KEL 50%) ● Kelt recently completed its first well 14-14 MM 875 BOE/d IP30 (03/5-18) at Pouce Coupe in the Upper- Pouce (KEL 50%) Middle Montney (D4). Coupe Progress 02/5-18 LMM 02/6-18 03/7-18 04/7-18 00/3-9 00/8-9 Progress 1-8 MM (KEL 50%)
Slide 38: Pouce Coupe / Progress Montney Oil Type Curve
Pouce Coupe / Progress Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well 2P EUR Type Curve [2] Well Count 1,000 2P EUR [2] 600 MBOE 45% Oil/Ngls 100 55% Gas 10 15 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 Month Note: [1] See “Appendix” for list of wel
Slide 39: Valhalla / La Glace and Wembley / Pipestone
Valhalla / La Glace and Wembley / Pipestone OPERATIONS ● Ownership in pipeline infrastructure, minor interests in gas plants and 100% interest in the Kelt La Glace Facility Kelt 14-29 La Glace which has a handling capacity of 3,500 bbls/d of oil and 20 Facility Encana (100% WI) 1-5 MM Sexsmith MMcf/
Slide 40: La Glace Montney Oil Type Curve
La Glace Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 590 MBOE 61% Oil/Ngls 39% Gas 10 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Month Note: [1] See “Appendix
Slide 41: 2017 Montney Development Wells – Paybacks
2017 Montney Development Wells – Paybacks Drill & Actual Cumulative to Dec 31, 2017 [3] Remaining to Payback [4] Last Month’s Initial Production Payback Production Complete Operating Well Test Start Operating Operating Production Period Rate at Cost Production Income Date Date Income Netback Estimat
Slide 42: Net Asset Value
Net Asset Value Dec/31 Dec/31 % ( millions ) 2017 2018 change P&NG reserves, NPV10% BT 2,111.5 3,128.6 + 48% Decommissioning obligations, NPV10% BT [1] ( 12.8 ) ( 9.0 ) − 29% Undeveloped land 239.1 279.7 + 17% Net bank debt ( 136.7 ) ( 196.4 ) + 44% Proceeds from exercise of stock options [2] 60.4 6
Slide 43: Future Considerations
Future Considerations Kelt: ● The Company has numerous potential future drilling opportunities on its existing lands that will provide for continued growth in the years to come. ● The Company has amassed vast Montney acreage in new plays to complement its existing development Montney lands. ● The Co
Slide 44: Management
Management David J. Wilson, President & CEO Sadiq H. Lalani, Vice President & CFO Douglas J. Errico, Vice President, Land Alan G. Franks, Vice President, Production Bruce D. Gigg, Vice President, Engineering David A. Gillis, Vice President, Finance Douglas O. MacArthur, Vice President, Operations Pa
Slide 45: Board of Directors
Board of Directors Robert J. Dales Lead Director, Compensation (Chair), Audit, Reserves Geri L. Greenall Reserves (Chair), Audit, Nominating William C. Guinan Chairman of the Board, HSE Michael R. Shea Nominating (Chair), Compensation, Reserves Neil G. Sinclair Audit (Chair), Compensation, HSE, Nomi
Slide 46: Appendix
Appendix ● Quarterly Forecast of 2019 WTI Oil & NYMEX Gas Prices ● Behind Pipe Production and DUCs ● Quarterly Production Growth ● Quarterly Cash Costs ● Reserves FD&A Costs plus Future Development Capital ● Spirit River − Charlie Lake Light Oil/Gas Property ● Grande Cache – Cretaceous Gas Property
Slide 47: Kelt's 2019 Oil Price Forecast
Kelt’s 2019 Oil Price Forecast ( CA$/bbl ) ( US$/bbl ) 100.00 100.00 KELT Realized WTI 95.00 ( 2018 Average = CA$71.32 ) ( 2018 Average = US$67.50 ) ( 2019 Average = CA$67.01 ) ( 2019 Average = US$$67.50 ) 95.00 90.00 85.00 90.00 80.00 80.56 80.63 85.00 75.00 74.46 70.38 70.00 68.17 80.00 65.00 63.4
Slide 48: Kelt's 2019 Gas Price Forecast
Kelt’s 2019 Gas Price Forecast ( CA$/Mcf ) ( US$/MMBtu ) 4.50 4.50 KELT Realized NYMEX Henry Hub ( 2018 Average = CA$3.19 ) ( 2018 Average = US$2.95 ) 4.00 ( 2019 Average = CA$3.28 ) 4.07 ( 2019 Average = US$3.00 ) 3.99 4.00 3.50 3.20 3.15 3.09 3.00 3.50 2.80 2.90 3.25 2.56 3.20 2.50 3.10 2.93 2.90
Slide 49: Behind Pipe Production and DUCs
Behind Pipe Production and DUCs The following wells are expected to be drilled The following wells are expected to be drilled but not & completed as at December 31, 2018, completed (DUCs) as at December 31, 2018. These wells are however, production from these wells is not expected to be completed in
Slide 50: Quarterly Production Growth
Quarterly Production Growth ( BOE / d ) PRODUCTION 36,000 Oil Ngls 32,000 Gas 28,000 24,000 20,000 16,000 12,000 8,000 4,000 0 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 Q4 49
Slide 51: Quarterly Cash Costs
Quarterly Cash Costs ( $ / BOE ) CONTROLLING COSTS 22.00 G&A 20.00 Interest Production & Transportation 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 Q4 50
Slide 52: Reserves
Reserves NPV 10% BT Dec/31/2017 Dec/31/2018 Percent Dec/31/2017 ( MMBOE ) ( MMBOE ) Change ( $ MM ) Proved Developed 37.9 40.7 + 7% $ 481 Producing Total Proved 133.0 158.4 + 19% $ 1,499 Proved plus Probable 235.6 302.7 + 28% $ 3,129 ( P+P ) Oil / Ngls ( P+P % ) 43% 43% Gas ( P+P% ) 57% 57% Notes: [
Slide 53: Finding, Development & Acquisition Costs
Finding, Development & Acquisition Costs Proved + As at December 31, 2018 Proved Probable 2018 capital expenditures + change in FDC ( $M ) 381,046 596,004 Reserve additions, net ( MBOE ) 35,298 76,905 FD&A cost ( $/BOE ) 10.80 7.75 2018 operating netback ( $/BOE ) 20.56 20.56 Recycle ratio ( looking
Slide 54: Sproule P+P Reserves – FDC
Sproule P+P Reserves – FDC December 31, 2018 FDC ( $MM ) Net HZ Wells Alberta Montney wells 332 59 B.C. Montney wells 744 140 TOTAL Montney wells 1,076 199 Other formation wells 355 77 Other expenditures 43 - TOTAL 1,474 276 Abbreviations: [1] FDC is per the evaluation report prepared by Sproule Ass
Slide 55: Spirit River – Charlie Lake
Spirit River – Charlie Lake Land 13-34 Gross: 30,560 acres ( 48 sections ) CL Pad: 14-22 (60%) 15-22 (60%) Net: 23,151 acres ( 36 sections ) 13-33 16-22 (60%) Charlie Lake: 20.25 net sections 16-11 H2O Disposal Charlie Lake: Gamma Ray Density Porosity Worsley (O) Y J Upper 4-15 CL Pad: (60%) 13-23 (
Slide 56: Grande Cache
Grande Cache LAND Modern 13-4 Gross: 128,160 acres ( 200 sections ) Narraway 135 MMcf/d Gas Plant IP30: 9 MMcf/d Falher/Wilrich TOU 4-29 IP30: 20 MMcf/d Net: 90,824 acres ( 142 sections ) OPERATIONS (7% WI) Falher/Wilrich ● Low decline Cretaceous natural gas production ● Ownership interests in gas g
Slide 57: 2017 B.C. Inga Doig Development Wells – Paybacks
2017 B.C. Inga DOIG Development Wells – Paybacks ● Kelt drilled two Doig wells in 2017 where 2P Type Curves target an IP30 of 2,000 BOE/d (26% gas / 74% oil/ngls) and EURs of 1,080 MBOE (49% gas / 51% oil/ngls). ● Kelt has 31 (28.4 net) future 2P HZ development locations booked as inventory in the D
Slide 58: Inga / Fireweed Upper Montney Type Curve
Inga / Fireweed Upper Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 795 MBOE 54% Oil/Ngls 46% Gas 10 15 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Month 00/06-07-088-22W6/0 00/07-12-0
Slide 59: Inga / Fireweed Middle Montney Type Curve
Inga / Fireweed Middle Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 645 MBOE 59% Oil/Ngls 41% Gas 10 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Month 00/07-17-087-23W6/0 00/09-27-088
Slide 60: Pouce Coupe / Progress Montney Oil Type Curve
Pouce Coupe / Progress Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 2P EUR Type Curve* Well Count 1,000 2P EUR* 600 MBOE 45% Oil/Ngls 100 55% Gas * Sproule has a 795 MBOE and a 514 MBOE type curve. Kelt is using a blend of the two curves. 10 15 10 5 0 1 3 5 7 9 11 13 15
Slide 61: La Glace Montney Oil Type Curve
La Glace Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 590 MBOE 61% Oil/Ngls 39% Gas 10 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Month 00/01-27-074-08W6/0 00/02-28-074-08W6/0 00
Slide 62: Abbreviations
Abbreviations GAAP: Canadian generally accepted accounting principles as set out in the CPA Canada Handbook – Accounting. IFRS: International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB’). FFO: Funds from operations WTI: West Texas Intermediate CLS:
Slide 63: Disclaimer
Disclaimer Forward Looking Statements Certain statements included in this corporate presentation (the “Presentation”) constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purp
Slide 64: Disclaimer
Disclaimer The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in this Presentation, and such variation may be material. The Company and its management believe that the FOFI has been prepared on a r
Slide 65: Disclaimer
Disclaimer Risks and Uncertainties Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the
Slide 66: Disclaimer
Disclaimer Oil and Gas Advisories Barrel of Oil Equivalent Presentation This Presentation contains various references to the abbreviation BOE which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand
Slide 67: Disclaimer
Disclaimer Reserves Unless otherwise specified, reserve estimates disclosed in this Presentation were prepared by Sproule Associates Limited (“Sproule”) in accordance with National Instrument 51- 101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and the Canadian Oil and Gas Evalua
Slide 68: Disclaimer
Disclaimer Financial Advisories All dollar amounts are referenced in Canadian dollars, except when otherwise noted. Non-GAAP Financial Measures and Other Key Performance Indicators This Presentation contains certain financial measures, as described below, which do not have standardized meanings pres
Slide 69: Disclaimer
Disclaimer Other Key Performance Indicators Production per common share: is calculated by dividing total production by the basic weighted average number of common shares outstanding, as determined in accordance with GAAP. NPV10% BT: the anticipated net present value of the future net cash flow befor
Slide 70: Corporate Presentation
Corporate Presentation KeltExploration.com Kelt Exploration Ltd. Suite 300, East Tower 311 – Sixth Avenue SW Calgary, Alberta Canada T2P 3H2 Phone: 403-294-0154 Fax: 403-291-0155 Website: www.KeltExploration.com 69
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