Headwater Exploration Inc. · TSX:HWX
Headwater Exploration — Investor Presentation (April 2024)
24 slides from Headwater Exploration's investor presentation, April 2024
Slide 1: Headwater Exploration Inc. Corporate Presentation
Headwater Exploration Inc. CORPORATE PRESENTATION TSX:HWX April 2024
Slide 2: Capitalization, Guidance and Business Strategy
CAPITALIZATION, GUIDANCE AND BUSINESS STRATEGY Outlook Capitalization 2024 Original 2024 Revised Average Daily Production Guidance (1) Guidance (1) (2) Headwater Exploration Inc. TSX HWX Annual Daily Production (boe/d) 20,000 20,000 Share Price (April 4th, 2024) $/sh. $8.35 Fourth Quarter Daily Prod
Slide 3: Regional Clearwater Area
REGIONAL CLEARWATER AREA Total Land Holdings >520 net sections with 59.5 sections added YTD 2024 Cadotte Evi Greater Peavine (Seal, Peavine) 51.5 sections (100% WI) 5 Locations planned for 2024 Nampa Walrus Slave Seal Greater Nipisi (Heart River, Little Horse, West Nipisi) 124.5 sections (100% WI) 3
Slide 4: Headwater Exploration & Development Strategy
HEADWATER EXPLORATION & DEVELOPMENT STRATEGY 1,049 Identified Clearwater Locations Total Clearwater OOIP of 3.9 Billion Barrels 5 539 1,303 448 505 237 1,793 91 Marten Hills Core Marten Hills West West Nipisi Greater Peavine Marten Hills Core Marten Hills West West Nipisi Greater Peavine Development
Slide 5: Year End 2023 Reserves Summary
YEAR END 2023 RESERVES SUMMARY Year Over Reserves F&D including Heavy Oil Gas Total Recycle Reserve Category Year Change Replacement FDC (1) Ratio (2) Mbbl MMcf Mboe (%) (%) $/boe Proved Producing 18,218 23,119 22,071 33% 183% 19.17 2.3 Total Proved 28,050 26,802 32,517 54% 273% 18.61 2.4 Total Prov
Slide 6: Marten Hills Core Secondary Recovery
MARTEN HILLS CORE SECONDARY RECOVERY Multi-Layer Support Pilot injector supporting Two Bench Design Blue: Three Bench Design 02/12-08-075-24W5, 4,000 1,600 Oil (bbl/d) Green: Two Bench Design strong injectivity indicates Injection (bbl/d) Expected Primary Forecast secondary recovery can be GOR (scf/
Slide 7: Marten Hills West Secondary Recovery
MARTEN HILLS WEST SECONDARY RECOVERY Marten Hills West Pilots – Utilizing Marten Hills Core Learnings W/2 07-076-02W5 Pattern 600 1,800 Oil (bbl/d) 2024 Secondary Recovery Expansion Injection (bbl/d) GOR (scf/bbl) 500 1,500 400 1,200 Rate (bbl/d) GOR (scf/bbl) 300 900 200 600 100 300 0 0 Jan-22 Apr-
Slide 8: Marten Hills West – Clearwater A Sandstone
MARTEN HILLS WEST – CLEARWATER A SANDSTONE Continued Step-out Success; Continuing Secondary Recovery Clearwater A Sandstone 2023 West Marten Hills Secondary Recovery • 46 Planned locations in the CLWT A MHW Secondary Recovery Pilots Section 07-76-02W5 Sandstone for 2024 • Full section implementation
Slide 9: Marten Hills West Exploration
MARTEN HILLS WEST EXPLORATION Multi-Zone Clearwater Potential within Marten Hills West 00/14-19-076-02W5 CLWTR F Multiple Clearwater Zones Strong inflow with high water cuts Up-dip winter access follow up planned for Q1 2025 CLEARWATER E 00/04-35-076-02W5 CLWTR E CLWT E IP15: 155 bbl/d @ 24 API • 00
Slide 10: Greater Nipisi – 124.5 Sections
GREATER NIPISI – 124.5 SECTIONS Clearwater Development & Multiple Clearwater Exploration Prospects 100/13-17-078-09W5 IP30: 166 bbl/d 100/14-17-078-09W5 IP60: 187 bbl/d 103/04-04-078-09W5 IP30: 155 bbl/d Utikuma Heart River FLHR D follow up – Q4 2024 West Nipisi Little Horse CLWTR C Strat Test 100/0
Slide 11: Greater Peavine
GREATER PEAVINE Multiple Productive Falher Sands and Bluesky Prospect Test Seal FLHR B 0007-07-083-15W5 FLHR B FLHR D StingWray 465 IP90: 106 bbl/d FLHR C 00/13-06-083-15W5 FLHR B FLHR D Multi-lateral FLHR D IP90: 70 bbl/d FLHR D BLSK FLHR C 03/13-06-083-15W5 Seal FLHR B FLHR B IP90: 116 bbl/d 2024
Slide 12: Handel – West Central Saskatchewan
HANDEL – WEST CENTRAL SASKATCHEWAN W4 Mannville Heavy Oil Exploration W4 Mannville Heavy Oil • Large contiguous land block accumulated: • 55.75 Sections • Lloyd test: 101/01-30-035-18W3: • Open-hole, single-leg horizontal • Encountered 1000m of excellent quality reservoir across the lateral 101/01-3
Slide 13: Why Headwater
WHY HEADWATER Add incremental prospects through strategic land acquisitions and M&A •Added 59.5 sections of land YTD 2024 in the Clearwater area, total Clearwater area lands now exceeding 520 net sections •Added 22 sections of non-Clearwater lands YTD 2024, total Non-Clearwater lands now exceeding 1
Slide 14: Appendix
Headwater Exploration Inc. Appendix TSX:HWX
Slide 15: McCully Producing Asset
MCCULLY PRODUCING ASSET Dry Gas with 100% owned infrastructure and limited liability McCully Asset Daily Production 25.0 20.0 New Brunswick MNP pipeline Production mmscf/d 15.0 10.0 Nova Scotia 5.0 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 HWX Realized
Slide 16: Experienced Team – Management and Directors
EXPERIENCED TEAM – MANAGEMENT AND DIRECTORS Headwater Exploration Inc. Neil Roszell, P. Eng. ▪ Former President, CEO and/or Executive Chairman and founder of Raging River Exploration Inc., Wild Stream Exploration Inc. and Executive Chairman Wild River Resources Ltd. Jason Jaskela, P. Eng. ▪ Former C
Slide 17: Slide Notes
SLIDE NOTES Slide 1 1. Assumptions used in the 2024 guidance include: WTI of US$75.30, WCS of Cdn$79.70/bbl, AGT of US$5.05/mmbtu, AECO of Cdn$1.95/GJ, foreign exchange rate of Cdn$/US$ of 0.74, blending expense of WCS less $2.20, royalty rate of 18.8%, operating and transportation costs of $13.45/b
Slide 18: Forward Looking Statements Advisory
ADVISORIES Forward Looking Statements Advisory This investor presentation of Headwater Exploration Inc. ("Headwater") contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of Canadian securities laws. All statements other
Slide 19: Development Strategy Advisory
ADVISORIES Development Strategy Advisory Advisory Relating to Development Strategy (Slide 3) The Company has presented herein a two-year development strategy. The development strategy is based on a number of assumptions as presented in such slides including, without limitation: the required reinvest
Slide 20: Non-GAAP Advisory
ADVISORIES Non-GAAP Advisory NON-GAAP MEASURES AND RATIOS Non-GAAP Financial Measures This investor presentation contains the terms “adjusted funds flow from operations (“AFFO”) or Atax funds flow”, Capital expenditures or capital program “adjusted working capital”, “capital expenditures or capital
Slide 21: Non-GAAP Advisory
ADVISORIES Non-GAAP Advisory Non-GAAP Ratios Reinvestment Rate Management believes the reinvestment rate is a useful measure to analyze the ratio of funds generated by the Company and used for reinvestment and is calculated as total capital expenditures divided by AFFO. Post dividend free cash flow
Slide 22: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories TYPE CURVE INFORMATION AND WELL ECONOMICS Headwater has presented certain type curve information and well economics for certain development, exploration and waterflood wells in the Clearwater area. The type curve information and well economics presented are
Slide 23: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories BARRELS OF OIL EQUIVALENT The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy
Slide 24: Certain Oil and Gas Advisories
ADVISORIES Certain Oil and Gas Advisories MARKET, INDEPENDENT THIRD PARTY AND INDUSTRY DATA ADVISORY Certain market, independent third party and industry data contained in this presentation is based upon information from government or other independent industry publications and reports or based on e
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