International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Merger or Acquisition (September 2017)
18 slides from International Petroleum Corp. (british Columbia)'s merger presentation, September 2017
Slide 1: A Transformational Acquisition
International Petroleum Corp. Internationally Focused Upstream Company A Transformational Acquisition September 2017 NC00034 09.17 NC00032 NC00005Vr1 - 25/09/17 - 25/09/17
Slide 2: Transaction Highlights
International Petroleum Corp. Transaction Highlights “ Delivering on our promise: An acquisition of a high quality asset; with significant ” upside resource potential; at a favourable point in the cycle; with no dilution to shareholders Acquiring Cenovus operated interest in Suffield/Alderson assets
Slide 3: Suffield Acquisition Rationale
Suffield Acquisition Rationale IPC Position High quality conventional oil and gas producing assets No growth capital invested for many years Fully operated with high calibre Cenovus team transferring with the assets Low decline assets with significant resource and development upside Low cost operati
Slide 4: Suffield Location Map
International Petroleum Corp. Suffield Location Map Commanding, difficult-to-replicate land position Over 800,000 acres of shallow gas rights and over 100,000 acres of petroleum rights Land position shared with Canadian forces base Long history of shared access rights Cenovus Land Position and Key O
Slide 5: Reserves and Contingent Resources Impact
International Petroleum Corp. Reserves and Contingent Resources Impact Material reserves and contingent resources increases ~190 MMboe of reserves and contingent resources (3.4x increase) Reserves life index of 11.4 years for Suffield compared to 8.1 years IPC Reserves Impact Contingent Resources Im
Slide 6: Reserves and Resources Distribution as at 31.12.2017
International Petroleum Corp. Reserves and Resources Distribution as at 31.12.2017 Unrisked Best Estimate 2P Oil Reserves 2P Gas Reserves Contingent Resources 26.6 MMboe 73.0 MMboe 46.1 MMboe Undeveloped Developed EOR: Water Flood & ASP Non Producing Oil Drilling Undeveloped Developed Non Producing
Slide 7: Production Outlook
International Petroleum Corp. Production Outlook 40,000 Further upside potential with higher gas prices 35,000 Inventory of opportunities to maintain guidance range through 2020 30,000 >3x increase IPC production 20,000 guidance 11,000 10,000 9,000 0 NCF00034 p01 09.17 2017 2018 2019 2020 6
Slide 8: Suffield Acquisition Opportunity: Oil Production Performance
Suffield Acquisition Opportunity Oil Production Performance For past 12 years, Suffield oil development has been undercapitalised After the formation of Encana, oil development slowed due to company focus on gas development Since Cenovus ownership, Suffield drilling has remained low given corporate
Slide 9: Suffield Acquisition Opportunity: Gas Production Performance
Suffield Acquisition Opportunity Gas Production Performance Suffield & Alderson gas development halved from 2007 to 2008 and ceased by 2010 Historic peak provides excess capacity for future development Low production decline rate of ~10% Suffield Gas 50,000 Encana Operator Cenovus Operator 11,000 45
Slide 10: Oil Development Drilling Potential: South Gibson Lake Field Example
South Gibson Lake Field Oil Development Drilling Potential South Gibson Lake Field Example Existing horizontal wells Proposed new horizontal wells Example of low risk infill and step-out drilling 44 drilling locations booked in 2P reserves YYY UU N2N Dakota Ram Hill Jenner Easy Coulee East Easy Coul
Slide 11: Enhanced Oil Recovery Potential
Enhanced Oil Recovery Potential ASP Flooding 1 1 Process proven in YYY and UU pools YYY UU Ram N2N 2 Dakota Hill Jenner Easy Coulee East Easy 2 N2N expansion project ready for execution Coulee Facility construction nearly completed North Dieppe 3 Only requires drilling and facility commissioning Deb
Slide 12: People & Management
International Petroleum Corp. People & Management Highly experienced organisation transferring from Cenovus with local knowledge and operating capability Senior country management Operational staff Asset management experts Corporate support functions at the option of IPC Strong HSE culture NCF00034
Slide 13: Financial Highlights
International Petroleum Corp. Financial Highlights Cash consideration of CAD 512 million CAD 500 million at closing less working capital adjustments (closing target before year end 2017 subject to regulatory approvals) CAD 12 million deferred payment, at end June 2018 Contingent consideration amount
Slide 14: Strong Financial Performance
International Petroleum Corp. Strong Financial Performance Acquired assets generate strong Net Operating Income(1): CAD 96 million in 2016 (26,000 boepd) CAD 319 million in 2014 for 32,500 boepd production showing high leverage to higher commodity prices Low cost assets at < 10 CAD/boe production co
Slide 15: Transaction Financing
International Petroleum Corp. Transaction Financing Financing of the acquisition From internally generated cash flows New credit facilities Commitment from BMO Capital Markets CAD 325 million credit facilities in respect of Suffield assets Reserves based lending facility increased to USD 200 million
Slide 16: Corporate Strategy
International Petroleum Corp. Corporate Strategy Deliver operational and HSE excellence Half year production exceeding midpoint guidance 99% facility uptime on Bertam FPSO and good performance in France No HSE incidents Maintain financial resilience under low oil prices Net debt of 35.3 MUSD followi
Slide 17: Advisories
ADVISORIES Forward-Looking Statements This press release may contain statements and information which constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events,
Slide 18: International Petroleum Corp.
International 1 Petroleum Corp.
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