Frontera Energy Corporation · TSX:FEC
Frontera Energy — Investor Presentation (May 2021)
31 slides from Frontera Energy's investor presentation, May 2021
Slide 1: Frontera Energy Corporate Presentation May 2021
Frontera Energy Corporate Presentation May 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: 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 7: Company Snapshot
COMPANY SNAPSHOT Capital Structure (As at Mar 31, 2021) ($U.S.) Credit ratings Long-term debt ($MM) $337 Outlook: Negative 14 (+) Total Lease Liabilities ($MM) $14 24 S&P Issuer Rating: B+ (+)Risk Management Liabilities, net ($MM) $10 = Consolidated Total Indebtedness excl. 2025 Puerto Bahia debt ($
Slide 8: First Quarter 2021 Operational & Financial Results
FIRST QUARTER 2021 OPERATIONAL & FINANCIAL RESULTS Q1 2021 Q4 2020 % Chg. Heavy Crude Oil Production (Boe/d) 20,997 21,074 0% Light and Medium Crude Oil Production (Boe/d) 18,685 19,756 (5%) Conventional Natural Gas Production (Mcf/d) 5,227 6,356 (18%) Total Production before royalties (Boe/d) 40,59
Slide 9: Q1 2021 Quarterly Results
Q1 2021 QUARTERLY RESULTS Capital expenditures, production and transportation costs Production Capital Expenditures ($MM) Transportation cost ($/boe) Production cost ($/boe) 9
Slide 10: Q1 2021 Quarterly Results: Sustainable Operational Performance
Q1 2021 QUARTERLY RESULTS Sustainable Operational Performance Net Sales($MM) EBITDA($MM) and EBITDA Margin (%) Netback ($/boe) CFFO ($/boe) 10
Slide 11: 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 12: 2021 Capital Program and Guidance
2021 CAPITAL PROGRAM AND GUIDANCE(5) 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
Slide 13: Hedging Program 2021
HEDGING PROGRAM 2021 Frontera has hedged ~50% of its production for the remainder of 2021. Three Ways Put Spread Put Total Volume Hedged 617 641 612 730 728 695 478 478 478 13
Slide 14: Our Portfolio
OUR PORTFOLIO (1) Large diversified asset base STRONG COLOMBIAN BASE EXCITING EXPLORATION UPSIDE • Quifa • Lower Magdalena Valley • Guatiquia • Offshore Guyana • Cubiro • Ecuador • CPE-6 14 1. Remediation and abandonment work is underway in Peru
Slide 15: Core Assets
CORE ASSETS
Slide 16: Quifa
QUIFA 2021 Operational Plan In 2021, the Company plans to drill 19 wells in Quifa. At this activity level, development costs at Quifa, its largest field, have been lowered to $8/boe in 2021, down 60% from $20/boe in 2019. Contract Name Quifa Contract Contract Type Association Contract Contract Term E
Slide 17: CPE-6
CPE-6 2021 Operational Plan The Company plans to drill 15 wells in CPE-6 in 2021. Frontera expects steady production volumes in the heavy oil business unit, backstopped by production from CPE-6 that is expected to increase by approximately 40% this year due to further drilling and construction of ad
Slide 18: Guatiquia
GUATIQUIA 2021 Operational Plan The Company plans to drill two wells in the Coralillo field in 2021 as part of the continued development of the Guatiquia block. Contract Name Guatiquia Contract Contract Type Exploration & Production Contract Term Expiry August 2035 2020 Production (SBR) 10,850 bbl/d
Slide 19: Exciting Exploration Upside
EXCITING EXPLORATION UPSIDE
Slide 20: Guyana
GUYANA Exciting exploration opportunities ● Frontera, through its joint venture with CGX, plans to spud the Kawa-1 exploration well early in the third quarter of 2021 targeting, to an approximate depth of 6,500 metres and targeting the Campanian-Santonian Zones. ● In the Demerara block, the Company
Slide 21: Lower Magdalena Valley
LOWER MAGDALENA VALLEY Oil, natural gas and liquids opportunities • Successful La Belleza-1 exploration well tested over 4,600 boe/d with limited drawdown. Regulatory approval to extend the current VIM-1 block boundaries by ~32,000 acres was recently received. • On the VIM-1 Block, the joint venture
Slide 22: Ecuador
ECUADOR Perico and Espejo blocks (Frontera 50% / Geopark 50%) • Proven hydrocarbon basin near existing production and infrastructure. • Prospective, low-risk exploration blocks located in Sucumbíos Province in the north-eastern part of Ecuador, in the Oriente basin, and have a total area of approxim
Slide 23: Infrastructure
INFRASTRUCTURE
Slide 24: Oleoducto de los Llanos Orientales
OLEODUCTO DE LOS LLANOS ORIENTALES Frontera holds a 21% Indirect Equity Interest ● 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/Par
Slide 25: 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 26: Transportation
TRANSPORTATION Pipeline Interest & Notes on Pipeline Km Capacity FEC Transportation Rights (bbl/d) BIC Origin: Araguaney 226 120,000 43.03% equity interest in Bicentenario Destination: Banadia 1.2% working interest pursuant to a construction and operation contract. OAM The Company has transportation
Slide 27: ESG
ESG
Slide 28: Committed to ESG
COMMITTED TO ESG Environment Social Governance •Working in harmony with the •Operating with excellence and •Acting consistently and transparently environment ensuring the health and well-being of our employees •Employing the best talent and Our promoting respect of human rights commitments for our i
Slide 29: 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 30: Board of Directors
BOARD OF DIRECTORS Engaged and active in unlocking shareholder value Gabriel de Alba • Managing Director and Partner of The Catalyst Capital Group Inc. Chairman • International experience restructuring public and private companies, unlocking value for investors • Former President of the Colombian As
Slide 31: Frontera Energy
< FRONTERA ENERGY