Calima Energy — Investor Presentation (September 2021)
30 slides from Calima Energy's investor presentation, September 2021
Slide 1: Investor Update
INVESTOR UPDATE FREE CASH FLOW, GROWTH-FOCUSED CANADIAN OIL & GAS PRODUCER SEPTEMBER 2021
Slide 2: Corporate Disclaimer
2 CORPORATE DISCLAIMER This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Calima Energy Ltd (the “Company”) - in any j
Slide 3: The New Calima
3 THE NEW CALIMA • July Statistics: • 3,291 boe/d production • A$4.9m gross revenue • A$2.5m net operating netback • Currently drilling 3 Thorsby wells expected production Dec 2021 of 4,500 boe/d • Self funding capital development program from cash flow and a debt facility of C$25 million • Analysts
Slide 4: A 'Must-Own' Calima Opportunity
4 A ‘MUST-OWN’ CALIMA OPPORTUNITY Quality Free-Cash Flowing Assets, Low-Leverage and Significant Exposure to rising oil and gas prices through Future Montney Development + Access to Global LNG Markets PRODUCTION GROWTH Continue development drilling to achieve ~4,500 boe/d1 Increase production above
Slide 5: Corporate Snapshot
5 CORPORATE SNAPSHOT Calima is a Returns-Focused Growth Producer with Top Tier Assets, Positive Cash Flow and is ESG Goal Orientated FINANCIAL INFORMATION ASX Trading Symbol CE1 YEAR END PRODUCTION PDP SHAREHOLDER GROUP Shares Outstanding (basic) 513 million FORECAST RESERVES2 Current share price An
Slide 6: 2021 Current Guidance / Outlook
6 2021 CURRENT GUIDANCE / OUTLOOK Funding the Capital Program Internally with Cash Flow and Generating Free Cash Flow with No Debt Forecast In 2022 Differentiates Calima from Peers FORECAST1 May - Dec ’21 2022 Exit Production ~4,500 boe/d ~5,500 boe/d 3 Sunburst wells in Mar/21 (already Average Prod
Slide 7: Robust EBITDA with Torque to Rising Energy Prices
7 ROBUST EBITDA WITH TORQUE TO RISING ENERGY PRICES Calima is well positioned to benefit from a strengthening commodity price environment STRONG TORQUE TO COMMODITY PRICES EDITDA (C$MM) Sensitivity to WTI (US$/BBL)1 $100 $83 $80 $68 $60 $53 $50 $41 $40 $32 $20 $- WTI - US$60/bbl WTI - US$70/bbl WTI
Slide 8: Relative Valuation Offers Opportunity
8 RELATIVE VALUATION OFFERS OPPORTUNITY Relative to ASX and TSX-listed peers, Calima has significant re-rating potential EV/2P Multiple1 18 16 14 12 ASX Peer Average 11x 10 8 TSX Peer Average 8x 6 Calima 4.4x 4 2 Horizon Karoon Cooper Energy Senex Energy Calima Tamarack Gear Cardinal Hemisphere Surg
Slide 9: Relative Economics for Leading North American Oil Plays
IRR (%) ASX: CE1 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% 500% CE1 Sunburst Conventional CE1 Sparky (Tier 1) Clearwater Marten Hills/Nipisi CE1 Sparky (Tier 2) Mississippian Conventional Viking Hz. Dodsland ERH CE1 Sunburst Frac'd Charlie Lake Half-Cycle Rate of Return Conventional Heavy Oil H
Slide 10: Strong Management & Board
10 STRONG MANAGEMENT & BOARD LEADERSHIP Jordan Kevol Braydin Brosseau Mark Freeman Managing Director & CEO CFO & VP Finance - Canada Finance Director - Australia • 8 years at Blackspur • 6 years at Blackspur • >20 years oil and gas development and (Founder & CEO) • 14+ years Canadian E&P experience
Slide 11: Asset-Enhancing Upside Opportunities
11 ASSET-ENHANCING UPSIDE OPPORTUNITIES Asset base offers numerous enhancement projects and value creating opportunities Waterflood - implemented at the Brooks Sunburst J2J pool, highlighting secondary recovery potential of the asset base BROOKS Land Acquisition - potential to add offsetting ~50 net
Slide 12: Cash Flowing Asset Base with Long-Term Upside
12 CASH FLOWING ASSET BASE WITH LONG-TERM UPSIDE Medium oil weighted production delivers consistently high corporate netback Brooks (94% working interest) Thorsby (100% working interest) Reserves (1P + Drilling 2P (mmboe) Inventory 37 231 21.4 101 Identified 10.6 mmboe 10.9 locations (2P) (2P) 130 (
Slide 13: Brooks
13 BROOKS • Large resource in place with multiple oil pools identified, delineated and developed • ~83 net sections across 53,093 net acres in total, with year-round access and 57 wells drilled to date • Owned and operated infrastructure with capacity for sizeable production growth • 140 net locatio
Slide 14: Brooks Economics
14 BROOKS BROOKS ECONOMICS 1,2,3,4 Sunburst Type Curve Economics Sunburst Conventional Sunburst Conventional Sources: Company disclosure, geoSCOUT $60 WTI $70 WTI • Open hole Sunburst wells have top tier economics EUR – Oil & Liquids/Well Mbbl 168 168 RESOURCE at current pricing (no fracs) EUR – Gas
Slide 15: 2021 Field Activity
15 2021 FIELD ACTIVITY Drilling at our 2-29-19-13W4 oil battery 30 days 90 days post post Drill Time Completion Tie-In Clean-Up flowback clean-up 10-15 2-3 5-20 5-10 IP90 days days IP30 type days days curve Drone footage of 15-23-18-14W4, 10-20-20-16W4, and 2-29-19-13W4 oil batteries Full Brooks Dev
Slide 16: 2021 Field Activity
16 2021 FIELD ACTIVITY Drilling Rig Move Into 2-29 Battery Site Bantry 2-29 Oil Battery and H2Sweet Plant Bantry 2-29 Water Disposal Building and Tank Farm Open Hole Sunburst Drill Overhead Drone Shot of the Bantry 2-29 Battery Drilling an Open Hole Sunburst Well in Brooks Countess 10-20 Oil Battery
Slide 17: Thorsby
17 THORSBY Leo 6 • 3 Thorsby development wells are being drilled and targeting tie-in for Q4. Leo #1 has been drilled, Leo #2 is drilling ahead Leo 4 • Additional 3 Thorsby North wells being considered (50% WI) Leo 5 • ~108 net sections on 63,946 net acres total • 11 wells drilled to date - results
Slide 18: Thorsby Economics
18 THORSBY THORSBY ECONOMICS 1,2 Tier 1 (a) Sparky Type Curve Economics Tier 2 (b) Illustrative 40 T/Stage (c) Sources: Company disclosure, geoSCOUT $70 WTI $70 WTI $70 WTI • Significant type curve outperformance in the Sparky EUR – Oil & Liquids/Well Mbbl 318 283 360 Formation RESOURCE EUR – Gas/We
Slide 19: World-Class Montney Play
19 WORLD-CLASS MONTNEY PLAY • Among the highest rates of return hydrocarbon basins in North America • Diversity of hydrocarbons with light oil, liquids rich natural gas and dry gas which can enhance returns • Optimal reservoir characteristics with size and thickness predictability (>1,000 feet in th
Slide 20: Calima's Footprint in the Montney
20 CALIMA’S FOOTPRINT IN THE MONTNEY • 100% interest in >60,000 acres of Montney drilling rights in BC, with 10-year continuation lease over 49 sections (33,643 acres) due to successful 2019 drilling campaign • Owns Tommy Lakes facilities and pipeline infrastructure with replacement cost estimated a
Slide 21: Calima – Future Development Opportunity
21 CALIMA – FUTURE DEVELOPMENT OPPORTUNITY • Strategy to prepare for future development while unlocking value short term via joint ventures, partnerships or an asset transaction • Montney remains a strategic source for oil & gas for Eastern Canada and the US market as evidenced with the recent wave
Slide 22: Contact Us
Contact Us For further information visit www.calimaenergy.com or contact: CALIMA ENERGY LIMITED HEAD OFFICE - BLACKSPUR AUSTRALIAN OFFICE - CALIMA Suite 1000, 205 5 Ave SW 4/246-250 Railway Parade, Calgary, AB T2P 2V7, Canada West Leederville WA 6007 Phone: +1-403-460-0031 Phone: +61 8 6500 3270 Jor
Slide 23: Appendices
ENERGY CALIMA Appendices
Slide 24: Environmental
24 COMMITMENT TO RESPONSIBLE OPERATIONS • Brooks and Thorsby assets have very low CO2 in reservoir with the average less than 2%, minimizing the potential future costs or need to purchase carbon credits in becoming a net zero emitter ENVIRONMENTAL • Montney gas will support the lowest CO2 emission/t
Slide 25: Debt Terms
25 DEBT TERMS At the Close of the Blackspur Transaction, Calima Will Repay the Existing Non-Revolving and Revolving Credit Facilities and Establish a Committed Revolving Credit Facility with National Bank of Canada. Interest Pricing Grid Terms Committed Revolving Credit Facility Canada Prime Rate +
Slide 26: Capital Budget
26 CAPITAL BUDGET CALENDAR 2021 CAPITAL BUDGET: C$23.2mm (May – Dec $C20m) $6.0 mm Maintenance $2.2 mm 3 Sunburst wells capital in Mar/21 (already executed) $6.0 mm Maintenance and waterflood capital $5.5 mm 5 (4.5 net) Sunburst wells in June & July $9.5 mm 3 (3 net) Sparky wells at Thorsby in Augus
Slide 27: History of Blackspur
27 HISTORY OF BLACKSPUR • Private equity backed, founded through the recapitalization of Eiger Energy Ltd. 2012 • Average production of ~80 boe/d • Drilled 3 (3 net) wells and delivered C$1.3 million in operating cash flow 2013 • Exit production of ~250 boe/d and ~20 net sections of land • Completed
Slide 28: Glossary
28 GLOSSARY Abbreviation Description Abbreviation Description WI Working Interest B Prefix – Billions C Contingent Resources – 1C/2C/3C – low/most likely/high MM Prefix - Millions NRI Net Revenue Interest (after royalty) M Prefix - Thousands Net Working Interest after Deduction of Royalty Interests
Slide 29: Glossary
29 GLOSSARY Terms Description Adjusted EBITDA Adjusted EBITDA is calculated as net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortisation, and adjusted to exclude certain non-cash, extraordinary and non-recurring items primarily relating to barga
Slide 30: Glossary
30 GLOSSARY Terms Description Net Debt: Net debt is defined as cash plus receivables and prepaid expenses, less payables and bank indebtedness NGL: Natural Gas Liquids; hydrocarbon components of natural gas that can be separated from the gas state in the form of liquids Net Debt/EBITDA (Leverage): a
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