Journey Energy, Inc. · TSX:JOY
Journey Energy — Investor Presentation (May 2021)
25 slides from Journey Energy's investor presentation, May 2021
Slide 1: Corporate Presentation May 2021
TSX: JOY OTCQX: JRNGF Corporate Presentation May, 2021 Turning the Corner
Slide 2: Snapshot
Snapshot 7,600 boe/d (1) (46% liquids); 100% unhedged 14% corporate decline go forward; waterfloods and other low decline assets supports sustainability $124 million enterprise value; <$17,000 boe/d 44.0 million basic shares @ $0.90/share; $40 million market cap Forecast Adjusted Funds Flow(2) of $2
Slide 3: Advisories
Advisories FORWARD-LOOKING STATEMENTS AND FINANCIAL MEASURES This presentation contains “forward-looking statements” including estimates of future production, cash flows and reserves, business plans for drilling and exploration, the estimated amounts and timing of capital expenditures, the assumptio
Slide 4: Advisories (con't)
Advisories (con’t) OIL AND GAS ADVISORY The crude oil, natural gas and natural gas liquid reserves and related future net revenue of Journey presented herein were evaluated by GLJ, Journey’s independent reserves evaluators, in accordance with the requirements of National Instrument 51-101 (“NI 51-10
Slide 5: Advisories (cont'd)
Advisories (cont’d) OIL AND GAS ADVISORY (Continued) Initial Production Rates: References herein to average 30-day initial production rates (IP30) and other short-term production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at wh
Slide 6: Why Journey?
Why Journey? Why JOY >150 gross sections of Duvernay lands concentrated in the oil window Duvernay Basin leading performance from three and Duvernay wells Power 4 MW power generation commissioned September 2020; Over 20 year life fueled from Countess gas reserves Sustainable Legacy oil pools
Slide 7: Growth Spending Returns in 2022
Growth Spending Returns in 2022 2019 2020 2021 Operating Highlights Actual Actual Forecast(1) Production Average (boe/d) 9,372 8,379 7,300 - 7,600 Oil and NGLs (%) 48% 46% 46% Corporate Decline Rate (%) 16% 17% 14% Reference Natural Gas AECO ($/MMBtu) $1.80 $2.24 $2.89 Prices Oil WTI ($US/bbl) $57.0
Slide 8: Base – Core Areas Southern Core Area
Base – Core Areas Southern Core Area (~4,000 boe/d; ~39% oil and NGLs(1) ) • Key properties at Skiff, Matziwin, Herronton, Countess and Brooks Edmonton • Waterflood expansion, extensive Red Deer drilling upside • Low decline base production Calgary • Countess Power Generation Newly Commissioned 4 MW
Slide 9: Base - 2020 YE Reserves Summary
Base - 2020 YE Reserves Summary Company Gross (WI) Reserves(1) Oil Gas NGLs Reserve Category Mboe RLI (Mbbl) (Bcf) (Mbbl) Proved Developed Producing 6,894 66.6 2,112 20,102 6.9 Total Proved 11,479 88.9 2,893 29,195 9.7 Proved + Probable Producing 9,593 95.5 2,609 28,120 9.4 Total Proved + Probable 2
Slide 10: Economic Plays
Economic Plays Duvernay >50% average WI in Duvernay commercial DUVERNAY/POWER development including significant 100% WI lands; CONVENTIONAL and infrastructure ownership BASE Power Potential to expand power generation at Countess and install at other properties $3.72/P+P boe FDC(3) at 2020YE; l
Slide 11: Conventional – 25 Years of Drilling
Conventional – 25 Years of Drilling Booked Conventional(3) $184 million in Capital Journey’s inventory includes 189 gross (177 net)(1)(2) horizontal Waterflood oil locations Horizontal Other HZ & Vertical Oil Multi-Stage Only 33% of these locations are booked(2) in our 2020 reserve Oil report Ga
Slide 12: Countess Power Project
Countess Power Project Journey holds 100% WI in the Countess power plant which was commissioned in September 2020 4 MW power generation with fuel gas supplied by the Journey Countess assets Upgradeable to 6 MW with the installation of a third generator unit Connected to the Alberta Power grid
Slide 13: World Class Duvernay – Opportunity and Leverage
World Class Duvernay – Opportunity and Leverage Duvernay Joint Venture and Opportunity Four earning wells on production Joint Venture Wells Journey BPO Journey APO Payout % Two Commitment Wells 3.75% GOR 29.71% 58.33% Two Option Wells No GOR 29.71% 33.33% Over 50% WI in +150 sections along prove
Slide 14: Duvernay – JV Wells Among East Basin Leaders
Duvernay – JV Wells Among East Basin Leaders Source: Journey and Geoscout created March 2021 14
Slide 15: Appendix - Content
Appendix- Content Drilling Economics Drilling Inventory Central Region South Region Duvernay Delineation Central Region Edmonton Strong Governance Red Deer Experienced Management Calgary South Region Environment, Social and Governance 15
Slide 16: Improving Recovery in our Legacy Oil Pools
Improving Recovery in our Legacy Oil Pools $70 CAD/bbl EDM Light Sweet, $60 CAD/bbl WCS, $2.50/MMbtu AECO HZ Drilling Economics(1) Matziwin Cherhill Crystal Poplar Creek Drilling Metric HZ Regional HZ Banff HZ Viking HZ Belly River Glauconite Capital Cost ($millions) $1.8 $2.7 $2.0 $1.9 Estimated Ul
Slide 17: Central Region Conventional
Central Region Conventional Horizontal Oil Well Drilling Locations(2) Booked(1) Unbooked(3) Property Formations Gross Net Gross Net Poplar Creek/ Belly River 5 4.5 9 7.4 Westerose Cherhill Banff 6 5.4 2 1.8 Crystal Viking 6 6 28 27.9 Central Remainder 7 5.5 4 2.5 Total Central Region 24 21.4 43 39.6
Slide 18: South Region Conventional
South Region Conventional Horizontal Oil Well Drilling Locations(1) Booked(2) Unbooked(3) Property Formations Gross Net Gross Net Glauconite, Matziwin 13 13.0 21 20.0 Colony Skiff Sawtooth 16 16.0 14.0 13.9 Glauconite, Countess/Brooks 6 4.0 25 24.0 Sunburst, Pekisko Herronton Elkton 5 4.9 22 20.6 To
Slide 19: Duvernay – Resource Delineation
Duvernay – Resource Delineation 8-16 Vertical Strat for 13-2 hz. Geology & Engineering • Initial well results at or above expectations • Land base, Resource and Value proven through first round of wells • Very large inventory of de-risked locations • Best in basin single digit royalties supports att
Slide 20: Board of Directors - Strong Governance
Board of Directors - Strong Governance Howard Crone Chairman of the Board – Director of Cequence Energy Ltd. and Karve Energy Inc. Also a member of Journey’s Audit, Reserves and Compensation/Governance committees Dana Laustsen Reserves Committee Chair – Independent businessman, former Executive Vice
Slide 21: Experienced Management Team
Experienced Management Team Alex G. Verge, P.Eng., M.Eng. President and Chief Executive Officer, and Director – Previously President and CEO of NuVista Energy, VP Engineering at Bonavista, and senior positions at Poco Petroleums, Rising Resources, Shell, and Gulf. Gerry N. Gilewicz, CPA, CMA Chief F
Slide 22: Environment, Social and Governance
Environment, Social and Governance Environment Journey uses fresh and saline water in operations for drilling, hydraulic fracturing and reservoir pressure maintenance. Approximately 1% of our total water use is classified as fresh water. In 2019, we reused 99.9% of our water withdrawals (from surf
Slide 23: Environment, Social and Governance (Continued)
Environment, Social and Governance (Continued) Identifying and Assessing Climate Related Risks Journey’s management continuously reviews and assesses climate-related risks. We prioritize the risks, assess their potential magnitude and scope, and then consider the potential consequences to the busine
Slide 24: Environment, Social and Governance (Continued) Social
Environment, Social and Governance (Continued) Social Journey takes pride in maintaining its operations with the highest of standards and ensures its suppliers of goods and services do so as well. Journey operates in nine key areas in the province of Alberta and is very active in the communities i
Slide 25: Environment, Social and Governance (Continued) Governance
Environment, Social and Governance (Continued) Governance In recognition of the key role that sustainability plays in our business, Journey has mandated that the Board of Directors (the “Board”) take an active role in evaluating our corporate sustainability strategy, improving our risk management