Parex Resources Inc. · TSX:PXT
Parex Resources — Investor Presentation (December 2015)
19 slides from Parex Resources's investor presentation, December 2015
Slide 1: Leveraging Portfolio Flexibility
Leveraging Portfolio Flexibility December 2015 Corporate Presentation PAREXRESOURCES.COM | TSX:PXT
Slide 2: Demonstrating Portfolio Flexibility
Demonstrating Portfolio Flexibility Operating Results 2014 2015 Production (bopd) Full Year 22,526 27,400 (E) Capital Expenditures US $297 US $140 – 145 (E) Exploration Drilling (# of prospects) 16 5 Discoveries 7 3 Appraisal (# wells) 4 4 Development Drilling (# wells) 18 none Reserves 2P (Dec. 31)
Slide 3: 2016 Guidance: Built for Lower Prices
2016 Guidance(1): Built for Lower Prices Brent Oil Price Scenario $50 per barrel Estimated USD millions Maintenance Capital (4 wells + Facilities) $50 Capachos Block Development (3 wells) $35 Exploration Growth Commitments (10 wells + Seismic) $80 2016 Base Capital $165 Incremental Growth Capital Sc
Slide 4: Track Record of Consistent Growth
Track Record of Consistent Growth Production Growth Debt Adjusted 28,000 200 23,000 160 Production (bopd) Production per share 18,000 120 13,000 80 8,000 3,000 40 -2,000 2009 2010 2011 2012 2013 2014 2015E 0 Production (bopd) Production per share LHS RHS Reserve Growth Debt Adjusted 120 Possible - L
Slide 5: Consistent Production Growth
Consistent Production Growth LLA-16 LLA-20 Los Ocarros Cabrestero LLA-32 LLA-34 LLA-30 LLA-26 LLA-40 Other 32 28 24 20 16 12 8 4 0 2016FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q4 (Est.) Q2 Q3 Q4 Q2 Q3 (Est.) 2011 2012 2013 2014 2015 2016 Annual Building Cash Flow & Production Exploration Success
Slide 6: 2015 Drilling Results
2015 Drilling Results Exploration Drilling # Well Timing Discovery Comments 1 Rumba-1 Q1 Successful; producing up to 4,000 bopd 2 Zoro Rojo-1 Q1 x D&A 3 Chachalaca-1 Q3 Potential oil zones in Mirador Formation, tested 1,045 bopd 4 Guepardo-1 Q3 x D&A 5 Jacana-1 Q3 Positive Mirador/Guadalupe, tested
Slide 7: Parex Cash Netbacks
Parex Cash Netbacks Cash Netback Finance & Other Tax G&A Opex Transportation Royalties Brent Price US $/BBL 125 2016 PRICE SENSITIVITY Realized Price (US $/bbl) 100 75 Brent $ Estimates $60 50 $50 Q3 Brent $51.2/bbl $40 25 $45 $46 $39 $21 $14 $21 $5 $7 $15 $22 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Case 1 Case 2 Ca
Slide 8: Annual Finding, Development & Acquisition Costs
Annual Finding, Development & Acquisition Costs* $70 Profitability = Cash Netbacks > F&D Total Company 2P (Proven + Probable) 2014 3 yr $60 F&D $/bbl $10.92 $14.99 FD&A $/bbl $13.79 $17.16 $50 FD&A $/bbl $40 $30 $20 $10 $0 2010 2011 2012 2013 2014 1 Year $/bbl 3 Year $/bbl * Include Future Developme
Slide 9: Portfolio Supports the Path to Growth
Portfolio Supports the Path to Growth Track record of progressing reserves* from 3P to cash flow Proved +Probable Proved + Proved Annual 2P Reserves + Possible Probable (mmboe) Production Life Index (mmboe) (mmboe) (mmbbls) 31-Dec -09 - - - - - 31-Dec -10 10.4 5.8 1.1 0.3 - 31-Dec-11 17.6 10.7 4.9
Slide 10: Rumba – 2015 New Discovery
Rumba – 2015 New Discovery 1. Rumba-1 Spud Mar. 25, 2015 Pre Bazar Drill Post Bazar Drill Tested oil 2 zones Mirador 19 API 2. Rumba-2 Appraisal well, 1 km step-out 3. Bazar-2 Successful, 2.2 km step-out 4. Rumba-4 Disposal well 5. Build LTT 2016 production capacity ~4,000 bopd; provides additional
Slide 11: Southern Llanos: Appraising New Discoveries
Southern Llanos: Appraising New Discoveries Cabrestero (100% WI, Operator) Akira – swing producer CARMENTEA 2016 exploration well LLA-32 CALONA KANANASKIS LLA 34 (55% WI, Non-operated) LLA-34 MAX Chachalaca TILO Large discoveries at Tua & Tigana Chachalaca -2015 discovery Step-out 6 km at Jacana TIG
Slide 12: Capachos Farm-in: Ecopetrol Partnership
Capachos Farm-in: Ecopetrol Partnership Capachos (50% WI, Operator)1 Development & exploration opportunities ANH royalty contract Large structure, light oil, 2 mmbbls produced from 2 wells Leverages our strengths: Capachos low cost drilling LLA-10 strong operator working with communities Capac
Slide 13: Magdalena Basin: Next Growth Platform
Magdalena Basin: Next Growth Platform Growth Options: VIM-1 VIM-1 Acquire 3D seismic *LOWER MAGDALENA No. Fields: 43 EUR: 547 mmboe Prod.: 15 mboe/d VMM-9 Environmental Impact Assessment underway Catatumbo *MIDDLE MAGDALENA VMM-11 No. Fields: 102 EUR: 3,919 mmboe Prod.: 168 mboe/d Drill in 2016 on 2
Slide 14: Aguas Blancas – Field Background
Aguas Blancas – Field Background 44 mmbo Discovery Well: Aguas Blancas (1962, Ecopetrol) Field Information Cumulative Production: 1 MMBO (28 – 31 API) Solution Gas (Reservoir Pressure ~3,000 psi) Depth: 4,000 – 7,000 feet Main Reservoir: Mugrosa C; net oil pay up to 150 feet 332 mmbo Number wells: 5
Slide 15: La Cira-Infantas: Aguas Blancas Analog
La Cira-Infantas: Aguas Blancas Analog Average Annual Production 65 Sept 2015 60 Target Update 55 50,000 bpd 50 Production (000 bpd) 45 40 35 30 25 20 15 10 5 - 1925 1935 1945 1955 1965 1975 1985 1995 2005 2015 Source: Colombia Ministry of Mining and Energy Leveraging Portfolio Flexibility 15
Slide 16: Wrap-Up: What We Do
Wrap-Up: What We Do Core Competencies 1. Identify and acquire large prospective resources 2. Engage stakeholder 3. Focus on being a low cost operator Rumba-1 Location Leveraging Portfolio Flexibility 16
Slide 17: Appendix – Block Summary
Appendix – Block Summary # Block Operated/Non-Operated Working Interest Partners Gross Acres Basin 1 LLA-10 Operated 50% Petro America 189,544 Llanos 2 LLA-16 Operated 100% N/A 157,611 Llanos 3 LLA-17 Operated 63% Geopark 108,726 Llanos 4 LLA-20 Operated 100% N/A 144,292 Llanos 5 LLA-24 Operated 100
Slide 18: Appendix – Summary of Quarterly Results
Appendix – Summary of Quarterly Results (Unaudited) 2015 2014 2013 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 OPERATING Production (thousands of bopd) 27.4 27.0 26.7 22.5 26.5 25.2 19.9 18.4 15.9 17.3 16.2 15.5 14.4 Average realized prices, prior to hedging 45 56 49 88 60 94 105 103 104 102 106 99 110 B
Slide 19: Legal Advisory How to Reach Us
Legal Advisory How to Reach Us Certain statements in this document are “forward-looking statements”. Forward-looking statements are frequently characterized by words such as “prospective”, “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “forecast”, or other similar words,
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