Calima Energy — Merger or Acquisition (February 2021)
35 slides from Calima Energy's merger presentation, Feb 25, 2021
Slide 1: Merger with Blackspur Oil Corp
MERGER WITH BLACKSPUR OIL CORP BECOMING A LEADING MID-TIER OIL & GAS PRODUCER 25 FEB 2021
Slide 2: Corporate Disclaimer
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 jur
Slide 3: Transaction Highlights
TRANSACTION HIGHLIGHTS Calima Energy (“Calima”) to acquire Blackspur Oil Corp (“Blackspur”), a conventional oil & gas producer in Alberta, Canada. STRATEGY • Increase exposure to rising oil & gas prices and low-cost production to generate cash flow. • 5.4 MMboe PDP reserves (1) SCALE • 22.5 MMboe TP
Slide 4: Transaction Overview
TRANSACTION OVERVIEW TRANSACTION CONSIDERATION OWNERSHIP APPROVALS • Acquisition of 100% of • Consideration of C$17 • Blackspur management • Board of Directors at Blackspur structured as a million with no less than team and two board Calima and Blackspur have Plan of Arrangement. C$12.1 million in C
Slide 5: Equity Raising Overview
EQUITY RAISING OVERVIEW Calima is undertaking an equity placement to raise A$34 million. • Conditional Placement to raise A$29 million (Placement) which remains subject to a shareholder vote to be held at a General Meeting (GM), currently expected to take place on or around 19 April 2021, following
Slide 6: Transaction Rationale: Tier One Jurisdiction
TRANSACTION RATIONALE TIER ONE JURISDICTION • Canada is an established energy market REGIONAL with a supportive energy policy. INFRASTRUCTURE Spectra P/L LNG Canada TCPL Nova P/L 13-26mtpa (Under Construction) Alliance P/L North Mont. Mainline • Strong market fundamentals enhanced by Coastal GasLink
Slide 7: Transaction Rationale: Timing Perfect
TRANSACTION RATIONALE TIMING PERFECT Canadian AECO at a premium to US Henry Hub. Henry Hub / AECO Natural Gas Prices (US$/MMBTU) and WTI 3.5 70 3.0 60 2.5 Henry HuB - AECO Pricing (US$) 50 2.0 WTI (US$) 40 1.5 30 1.0 20 0.5 - 10 (0.5) 0 Jul-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Henry-A
Slide 8: Transaction Rationale: Compelling Acquisition Metrics
TRANSACTION RATIONALE COMPELLING ACQUISITION METRICS Blackspur acquisition at appealing metrics versus ASX and TSX peers with similar production volumes and oil weighting; • EV/2P (1): C$2.66/boe, a ~50% discount to the average TSX and ASX peer group. • EV/Production (1) : C$23,077/boe, a ~40% disco
Slide 9: Transaction Rationale: Significant Cash Flow Generation
TRANSACTION RATIONALE SIGNIFICANT CASH FLOW GENERATION Operating Cash Flow Sensitivity (C$ million) Steady State Production (boe/d) 3,000 5,500 $52 $44 $36 $27 $23 $19 WTI @ $45/bbl WTI @ $50/bbl WTI @ $55/bbl Note: Based on 2021, year end average of drilling 6 Sunburst and 3 Sparky wells based on U
Slide 10: Transaction Rationale: Platform for Material Growth & Upside
TRANSACTION RATIONALE PLATFORM FOR MATERIAL GROWTH & UPSIDE Quality portfolio of Canadian oil & gas projects enabling Calima to fill a void of ASX-listed oil production companies. Today Medium Term Longer Term Additional Growth • Continue development • Grow to 5,500 boe/d2 at • Increase production a
Slide 11: Portfolio Snapshot
PORTFOLIO SNAPSHOT CALIMA LANDS TOMMY LAKES BROOKS THORSBY Status Development Ready Care & Maintenance Blackspur Production Blackspur Production Working Interest (%) 100% 100% 94% 100% (3) (3) Production (boe/d) - - 1,860 740 (1) Reserves PDP - - 3.3 MMboe (68% oil) 2.1 MMboe (49% oil) (1) TP 9.1 MM
Slide 12: Reserves & Resources / Financial Performance
RESERVES & RESOURCES / FINANCIAL PERFORMANCE COMBINED RESOURCE & RESERVE STATEMENT (1) BLACKSPUR RECENT FINANCIAL PERFORMANCE (2) At US$45 WTI Unit Calima Brooks Thorsby Total Key Metrics (boe) Unit Q3 2020 Q1-Q3 2020 Q1-Q3 2019 Proved Developed Producing Mboe Sales Volumes (WI) boe/d 2,373 2,384 3,
Slide 13: Brooks
BROOKS SUMMARY • Blackspur has established a core position of land (~83 net sections across ASSET MAP Anchored Land Position 53,093 net acres in total) and infrastructure that provides the foundation for growth in an area with significant room for expansion • Blackspur has identified, delineated and
Slide 14: Brooks Sunburst Type Curve & Economics
BROOKS SUNBURST TYPE CURVE & ECONOMICS @ US$45 WTI SUNBURST HORIZONTAL TYPE CURVES & ACTUALS TYPE CURVE ECONOMICS (1)(2)(3)(4) 200 BSO Conventional Open Hole (OH) HZ Average - 22 wells BSO Conventional OH HZ Sunburst Type Curve InSite Conventional OH HZ Weighted Average (15 PUDs) 150 Oil Rate (bbl/d
Slide 15: Thorsby
THORSBY SUMMARY ASSET MAP • Consolidated lands (~108 net sections on 63,946 net acres) offer the opportunity Large Consolidated Land to efficiently develop the resource with multi-well pads while reducing overall Base capital costs. • Additional opportunities in the area with Nisku and Duvernay pote
Slide 16: Thorsby Sparky Type Curve & Economics
THORSBY SPARKY TYPE CURVE & ECONOMICS @ $45 WTI AVERAGE HORIZONTAL TYPE CURVES TYPE CURVE ECONOMICS (1)(2) a b c d e New completion design exhibits improved performance INVENTORY BY EUR INTERVAL Blackspur has a total of 89 net Sparky locations of which 28 are currently booked (including 24 PUDs) a)
Slide 17: Production Growth Forecast @ US$50 WTI
PRODUCTION GROWTH FORECAST @ US$50 WTI ANNUAL AVERAGE PRODUCTION (boe/d) 6,000 3 Brooks - PDP 5,000 Thorsby -PDP Brooks - development 4,000 Thorsby - development 3,000 2 2,000 1,000 1 - 2020 2021 2022 2023 2024 2025 Project Production (boe/d) Comments • Consolidated land positions at Brooks (~83 net
Slide 18: Calima Lands & Tommy Lakes Overview
CALIMA LANDS & TOMMY LAKES OVERVIEW SUMMARY (1) ASSET MAP • Calima owns and operates 100% interest in >60,000 acres of Montney drilling rights in British Columbia, with a 10-year continuation lease over 49 sections (33,643 acres) as a result of a successful 2019 drilling campaign. • Calima also owns
Slide 19: Calima Lands & Tommy Lakes Strategy
CALIMA LANDS & TOMMY LAKES STRATEGY Strategy is to prepare the Montney asset for future development while unlocking value short term via joint ventures, partnerships or a corporate transaction. The Montney remains a strategic source for oil & gas for East Canada and the US market as evidenced with t
Slide 20: Improved Commitment to ESG Excellence
IMPROVED COMMITMENT TO ESG EXCELLENCE Clean: Calima’s Montney gas project is likely to be supporting the lowest CO2 emission/tonne LNG project in the world, LNG Canada*. 0.6 GHG Intensity (tCO2e/tLNG) (1) 0.4 0.2 0 Gorgon LNG Darwin LNG Rasgas LNG Qatar LNG Gladstone LNG Woodside LNG Oman LNG Pacifi
Slide 21: Management & Board
MANAGEMENT & BOARD MANAGEMENT Jordan Kevol Braydin Brosseau, Dorn Cassidy Micheal Dobovich Aaron Bauer Mark Freeman CEO & President CFO VP Operations President Business Manager Corporate Secretary • 8 years at Blackspur • 6 years at Blackspur • 6 years at Blackspur • Ex Statoil Canada, 25 years • Ex
Slide 22: Acquisition Funding
ACQUISITION FUNDING Sources A$ million Uses A$ million Equity Placement 29.0 Repay Credit Facility & Provide Working Capital (1) 28.1 Retail Offering 5.0 Transaction & Financing Costs 3.0 Existing Cash (+ loan facilities) 2.0 Max Cash Consideration to Blackspur 4.9 Total 36.0 Total 36.0 Note 1 - Bas
Slide 23: Equity Raising Timetable
EQUITY RAISING TIMETABLE EVENT DATE Trading halt 16th February 2021 Announcement of Transaction and Placement 25th February 2021 Placement opens 25th February 2021 Retail offering opens Early March 2021 Placement closes Early March 2021 Retail offer closes Early April 2021 Blackspur shareholder meet
Slide 24: Key Risks
KEY RISKS This section sets out some key risks associated with any investment in Calima, which may affect the value of shares in Calima. The risks set out are not listed in order of importance and do not constitute an exhaustive list of all risks involved with an investment in Calima. Before investi
Slide 25: Key Risks (cont.)
KEY RISKS (cont.) National Bank of Canada • There is a risk the debt facility and the terms announced in this presentation may not be extended beyond periodic review dates. Debt Financing • In addition to the debt financing described above, Calima may be required to raise additional funds in the fut
Slide 26: Key Risks (cont.)
KEY RISKS (cont.) • Oil and gas operations have inherent risks and liabilities associated with ensuring operations are carried out in a manner that is responsible to the environment. Although Calima operates within the prevailing environmental laws and regulations, such laws and regulations are cont
Slide 27: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in a
Slide 28: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in a
Slide 29: Resource Reserve Disclosures
RESOURCE RESERVE DISCLOSURES • The InSite 2019YE Reserves Report was ran on December 31, 2019 price deck (https://www.insitepc.com/pricing-forecasts). All reserves are quoted net after adjusting for royalty interests. Production for the year ended December 31, 2020 was ~793 mboe (net of royalties).
Slide 30: Forward Looking & Competent Persons Statement
FORWARD LOOKING & COMPETENT PERSONS STATEMENT • This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “in
Slide 31: Appendices
APPENDICES
Slide 32: Debt Terms
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. REPAID Terms Committed Revolving Credit Facility Non-Revolving Credit Facility Revolvin
Slide 33: History of Blackspur
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 th
Slide 34: Abbreviations
ABBREVIATIONS 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 Interest
Slide 35: Contact Us
Contact Us For further information visit www.calimaenergy.com or contact CALIMA ENERGY LIMITED Suite 4, 246-250 Railway Parade, West Leederville WA 6007, Australia Tel: +61 8 6500 3270 Fax: +61 8 6500 3275 glenn@lagral.com mfreeman@calimaenergy.com emason@calimaenergy.com EVOLUTION CAPITAL ADVISORS
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