Kelt Exploration Ltd. · TSX:KEL
Kelt Exploration — Investor Presentation (September 2018)
68 slides from Kelt Exploration's investor presentation, September 2018
Slide 1: Corporate Presentation September 2018
Corporate Presentation September 2018 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 $ 1.6 billion ● 52-week trading range $ 5.69 – $ 10.01 ● Common shares issued ( @ Aug/2018 ) 184.0 million ● Stock options ( 7.9 MM ) & RSUs ( 1.1 MM ) 9.0 million ( 4.9% ) → 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 $ 133.51 – $ 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 2018/17 ( $ millions ) 2016 2017 Forecast Change Drilling & Completions 47.4 154.7 170.0 + 10% Equipment, Facilities, & 28.5 78.0 95.0 + 22% Pipeline Infrastructure Land, Seismic & Asset Acquisitions 28.3 11.6 12.5 + 8% Capital Expenditures 104.2 244.3 277.5 + 14% Property
Slide 7: Drilling Program
Drilling Program 2017 Gross 2017 Net 2018 Gross 2018 Net Drills Wells Wells Wells Wells Alberta 16 15.0 14 12.6 British Columbia 13 13.0 16 16.0 Non-operated Properties 11 3.2 6 0.4 Total 40 31.2 [1] 36 29.0 2017 Gross 2017 Net 2018 Gross 2018 Net Completions Wells Wells Wells Wells Alberta 15 14.0
Slide 8: 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 are not expected to be completed i
Slide 9: Reserves
Reserves LIQUIDS WEIGHTING CONTINUES TO GROW: ● 2017 proved plus probable reserve additions, before dispositions, were weighted 63% to oil/ngls and 37% to gas compared to 40% and 60% respectively in 2016. ● The 2018 drilling program will continue to target oil and condensate rich Montney wells. Oil
Slide 10: Finding, Development & Acquisition Costs
Finding, Development & Acquisition Costs Proved + As at December 31, 2017 Proved Probable 2017 capital expenditures + change in FDC ( $M ) 315,436 343,953 Reserve additions, net ( MBOE ) 32,837 49,592 FD&A cost ( $/BOE ) 9.61 6.94 2017 operating netback ( $/BOE ) 15.28 15.28 Recycle ratio ( looking
Slide 11: Production Outlook
Production Outlook 2018 2018/17 2016 2017 Forecast Change Oil ( bbls/d ) 5,070 6,634 9,300 − 9,800 40% − 48% Ngls ( bbls/d ) [1] 2,709 2,608 3,200 − 3,500 23% − 34% Gas ( mcf/d ) 79,009 77,330 92,000 − 95,000 19% − 23% Combined ( BOE/d ) 20,947 22,130 28,000 − 29,000 27% − 31% Per MM Shares ( BOE/d
Slide 12: 2018 Product Mix
2018 Product Mix Production 2018 Forecast Income Split ( $MM ) Split Oil & Ngls 45% 206.8 91% Gas 55% 20.5 9% Operating income 100% 227.3 100% G&A and interest expense ( 17.3 ) Funds from operations 210.0 11
Slide 13: Commodity Prices
Commodity Prices ( CA$, unless otherwise specified ) 2016 2017 2018 (E) YOY Change WTI Crude Oil ( USD/bbl ) [1] US $ 43.32 US $ 50.95 US $ 67.50 + 32% CLS Crude Oil ( CAD/bbl ) [2] $ 52.79 $ 61.85 $ 79.59 + 29% NYMEX Natural Gas ( USD/mmBtu ) US $ 2.43 US $ 3.07 US $ 2.90 − 6% DAWN Gas Daily Index
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. ● Es
Slide 15: Annual Production Growth (since inception)
Annual Production Growth ( since inception ) PRODUCTION ( BOE / d ) 35,000 CAGR since 2013 = 48% 30,000 28,000 - 29,000 25,000 22,130 20,947 15,300 – 20,000 18,577 15,800 15,000 12,888 12,756 13,168 11,879 10,000 8,419 12,500 – 5,000 3,961 9,242 13,300 6,698 7,779 3,148 4,337 0 813 2013 2014 2015 20
Slide 16: Annual Production per Share Growth (since inception)
Annual Production per Share Growth ( since inception ) PRODUCTION PER MILLION SHARES ( BOE / d ) 200 CAGR since 2013 = 24% 153 - 159 150 121 125 120 105 84 - 87 100 73 77 76 69 53 50 42 68 - 73 45 52 36 43 11 0 2013 2014 2015 2016 2017 2018 [E] Oil / NGLs Gas 15
Slide 17: Netbacks
Netbacks 2018/17 ( $ / BOE ) 2016 2017 2018 (E) Change Revenue/Price 24.08 31.51 39.06 + 24% Realized hedging gain ( loss ) 0.02 ( 0.13 ) − − Royalties ( % of revenue/price ) ( 8.6% ) ( 9.3% ) ( 10.8% ) + 16% Transportation expense ( 2.86 ) ( 3.13 ) ( 3.59 ) + 15% Production expense ( 9.29 ) ( 10.05
Slide 18: Financial Outlook
Financial Outlook 2018 2018/17 2016 2017 Forecast Change Revenue ( $ MM ) 184.6 257.6 406.3 + 58% Operating income ( $ MM ) [1] 75.7 123.4 227.3 + 84% Adj. funds from operations ( $ MM ) [1] 58.4 108.0 210.0 + 94% Per share – diluted ( $/share ) 0.34 0.61 1.14 + 87% Capital expenditures, net ( $ MM
Slide 19: 2018 Commodity Price Sensitivities
2018 Commodity Price Sensitivities Kelt Kelt CAD/USD 2018 Oil/NGLs Price Gas Price Exchange Rate Forecast minus 10% minus 10% minus CAD 0.05 WTI Crude Oil ( USD/bbl ) 67.50 60.69 - 10% 67.50 n/c 67.50 n/c NYMEX Natural Gas ( USD/MMBtu ) 2.90 2.90 n/c 2.70 - 7% 2.90 n/c Exchange Rate ( CAD/USD ) 1.28
Slide 20: 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 21: 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 22: 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 23: 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
Slide 24: B.C. - Stacked Montney Resource Potential
B.C. - Stacked Montney Resource Potential MULTIPLE STACKED MONTNEY HORIZONS ● Kelt has been successful delineating the Upper and Middle Montney at Inga/Fireweed. ● Initial results from the IBZ Montney have been encouraging and Kelt will continue with its delineation program in this formation in 2018
Slide 25: Inga 6-Section / 3-Pad / 72-Well Development Plan
Inga 6-Section / 3-Pad / 72-Well Development Plan ● Kelt’s 2018 capital expenditure budget to include 6 drills at Inga which will ultimately be part of a 24-well pad made up of 8 Upper, 8 Middle and 8 IBZ Montney wells ● Wells in each Montney interval will be spaced at approximately 270 metres apart
Slide 26: Inga / Fireweed Montney Lands
Inga / Fireweed Montney Lands Land (Montney Rights) A-65-I MM 02/A-65-I UM 03/A-65-I UM B-90-A UM (sfc C-10-H) 220 gross sections ( 218 net sections ) B-65-I UM (sfc B-33-I) A-58-I UM C-26-A UM (sfc A-6-A) Operations C-85-I UM (sfc D-A79-I) 00/15-25 MM (sfc A-65-I) ● Delineation drilling to date has
Slide 27: Inga Processing
Inga Processing Kelt Facility: ● The Company is currently constructing a 100 MMcf/d compression, liquids handling and frac water facility to be in operation by January 2019. ● The facility will compress raw gas that will be delivered to the Townsend AltaGas Facility where a 99 MMcf deep cut (C3+) pl
Slide 28: 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 29: 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 30: 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 31: 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 has commenced development of the Lower-Middle Progress and the Upper-Middle Montney at Pouce Coupe. The first five-well pad was completed Q117. The secon
Slide 32: 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 ): (1) Pouce Coupe Montney OIL: (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 33: Pouce Coupe / Progress
Pouce Coupe / Progress Abbreviations: 15-13 MM UM = Upper Montney 920 BOE/d IP30 (KEL 50%) UMM = Upper-Middle Montney MM = Middle Montney (may also be referred to as “Montney H”) 14-14 MM LMM = Lower-Middle Montney (may also be referred to as “Montney 875 BOE/d IP30 Pouce (KEL 50%) Sexsmith”) Coupe
Slide 34: 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 35: Valhalla / La Glace and Pipestone / Wembley
Valhalla / La Glace and Pipestone / Wembley ● Drilling has been focused on the Middle Montney. Upper Montney also productive - tested in the 15-33 Kelt 14-29 well. La Glace Facility Encana ● Ownership in pipeline infrastructure, minor (100% WI) Sexsmith 1-5 Gas Plant interests in gas plants and 100%
Slide 36: 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 37: 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 38: 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 39: Net Asset Value
Net Asset Value Dec/31 Dec/31 % ( millions ) 2016 2017 change P&NG reserves, NPV10% BT 1,730.7 2,111.5 + 22% Decommissioning obligations, NPV10% BT [1] ( 9.5 ) ( 12.8 ) + 35% Undeveloped land 212.5 239.1 + 13% Net bank debt ( 138.0 ) ( 136.7 ) − 1% Proceeds from exercise of stock options [2] 29.7 60
Slide 40: 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 41: Management
Management David J. Wilson, President & CEO Sadiq H. Lalani, Vice President & CFO Douglas J. Errico, Vice President, Land Patrick Miles, Vice President, Exploration Douglas O. MacArthur, Vice President, Operations Alan G. Franks, Vice President, Production Bruce D. Gigg, Vice President, Engineering
Slide 42: 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 43: Appendix
Appendix ● Abbreviations ● 2018 Forecasted Commodity Prices ● Quarterly Forecast of 2018 WTI & NYMEX Prices ● Quarterly Production Growth ● Quarterly Cash Costs ● Map of North American Natural Gas Hubs ● Gas Marketing & Transportation Contracts ● Sproule Reserves Plus Future Development Capital ● Gr
Slide 44: 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 45: 2018 Forecasted Commodity Prices
2018 Forecasted Commodity Prices ( CA$, unless otherwise specified ) Jan-Jun Jul-Dec (E) 2018 (E) WTI Crude Oil ( USD/bbl ) [1] US $ 65.50 US $ 69.48 US $ 67.50 CLS Crude Oil ( CAD/bbl ) [2] $ 76.30 $ 82.82 $ 79.59 NYMEX Natural Gas ( USD/MMBtu ) US $ 2.81 US $ 3.00 US $ 2.90 DAWN Gas Daily Index (
Slide 46: Kelt's 2018 Oil Price Forecast
Kelt’s 2018 Oil Price Forecast ( CA$/bbl ) ( US$/bbl ) 85.00 85.00 KELT Realized ( 2018 Average = CA$76.84 ) 80.56 80.00 78.26 79.24 80.00 WTI ( 2018 Average = US$67.50 ) 75.00 75.00 70.00 68.96 70.00 70.00 68.05 68.16 65.00 65.13 65.00 62.91 60.21 60.00 60.00 56.80 55.00 55.40 55.00 51.92 53.22 50.
Slide 47: Kelt's 2018 Gas Price Forecast
Kelt’s 2018 Gas Price Forecast ( CA$/Mcf ) ( US$/MMBtu ) 4.00 4.50 KELT Realized ( 2018 Average = CA$2.89 ) NYMEX ( 2018 Average = US$2.90 ) 3.50 3.52 4.00 3.47 3.20 3.10 3.00 3.50 3.25 2.79 3.13 2.63 3.12 2.50 2.97 2.56 3.00 2.91 2.88 2.87 2.33 2.74 2.00 2.50 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 [E] Q4 [
Slide 48: Quarterly Production Growth
Quarterly Production Growth ( BOE / d ) PRODUCTION 32,000 Oil Ngls 28,000 Gas 24,000 20,000 16,000 12,000 8,000 4,000 0 2014 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 47
Slide 49: 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 2014 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 48
Slide 50: North American Natural Gas Hubs
North American Natural Gas Hubs Kelt 2018 Gas Netback Forecast Station 2 Hub Price Netback Gas Hub % US$/MMBtu US$/Mcf AECO Sumas Empress Emerson Dawn 25% 2.85 1.93 Kingsgate Waddington Chicago 24% 2.80 1.54 Stanfield Boston Opal Dawn Malin 16% 2.35 1.52 Malin Marcellus Ventura Chicago Sumas 16% 2.1
Slide 51: Kelt Gas Firm Transportation Contracts
Kelt Gas Firm Transportation Contracts Transportation Supply Term Volume (MMcf/d) Delivery Location Nov / 1 / 2017 – Oct / 31 / 2018 10.3 [2] Alliance Receipt Point May / 1 /2018 – Oct / 31 / 2018 9.3 Alliance Receipt Point Nov / 1 / 2018 – Oct / 31 / 2019 14.2 [2] Alliance Receipt Point Apr / 1 / 2
Slide 52: Kelt Gas Marketing Sales Contracts
Kelt Gas Marketing Sales Contracts Volume Physical Sales Market Term (MMcf/d) Delivery Hub Market Price Nov/1/17 – Oct/31/27 [1] 23.7 DAWN DAWN USD Daily Index Nov/1/17 – Oct/31/20 15.0 NIT MALIN USD NGI FOM Index less US$0.70/MMBtu Nov/1/17 – Oct/31/18 3.0 Station 2 SUMAS USD Monthly Index less US$
Slide 53: Reserves
Reserves NPV 10% BT Dec/31/2016 Dec/31/2017 Percent Dec/31/2017 ( MMBOE ) ( MMBOE ) Change ( $ MM ) Proved Developed 34.5 37.9 + 10% $ 423 Producing Total Proved 108.2 133.0 + 23% $ 1,093 Proved plus Probable 194.1 235.6 + 21% $ 2,112 ( P+P ) Oil / Ngls ( P+P % ) 37% 43% Gas ( P+P% ) 63% 57% Notes:
Slide 54: Sproule P+P Reserves – FDC
Sproule P+P Reserves – FDC December 31, 2017 FDC ( $MM ) Net HZ Wells Alberta Montney wells 176 37 B.C. Montney wells 638 103 TOTAL Montney wells 814 140 Other formation wells 342 74 Other expenditures 7 - TOTAL 1,163 214 Notes: [1] FDC is per the evaluation report prepared by Sproule Associates Lim
Slide 55: 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 56: 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 57: 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 58: 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 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: 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 66: 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 67: 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 68: 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 67
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