Kelt Exploration Ltd. · TSX:KEL
Kelt Exploration — Investor Presentation (July 2018)
66 slides from Kelt Exploration's investor presentation, July 2018
Slide 1: Corporate Presentation July 2018
Corporate Presentation July 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 – $ 9.30 ● Common shares issued ( @ June/2018 ) 183.5 million ● Stock options ( 8.3 MM ) & RSUs ( 0.7 MM ) 9.0 million ( 4.9% ) → average exercise price of
Slide 4: Convertible Debentures
Convertible Debentures ● TSX trading symbol KEL.DB ● Principal amount outstanding $ 90.0 million ● Coupon / Maturity date 5.0% / May 31, 2021 ● 52-week trading range $ 133.51 – $ 176.00 → D&O’s purchased $14.7 million (16%) of the total Debenture offering. Conversion privilege: Each debenture will b
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 13 11.6 British Columbia 13 13.0 18 18.0 Non-operated Properties 11 3.2 6 0.4 Total 40 31.2 37 30.0 2017 Gross 2017 Net 2018 Gross 2018 Net Completions Wells Wells Wells Wells Alberta 15 14.0 15 1
Slide 8: 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 9: 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 10: Production Outlook
Production Outlook 2018 2018/17 2016 2017 Forecast Change Oil ( bbls/d ) 5,070 6,634 10,000 − 10,600 51% − 60% Ngls ( bbls/d ) [1] 2,709 2,608 3,300 − 3,600 27% − 38% Gas ( mcf/d ) 79,009 77,330 90,000 − 96,000 16% − 24% Combined ( BOE/d ) 20,947 22,130 28,500 − 29,500 29% − 33% Per MM Shares ( BOE/
Slide 11: 2018 Product Mix
2018 Product Mix Production 2018 Forecast Income Split ( $MM ) Split Oil & Ngls 47% 212.0 91% Gas 53% 19.8 9% Operating income 100% 231.8 100% G&A and interest expense ( 16.8 ) Funds from operations 215.0 10
Slide 12: Commodity Prices
Commodity Prices ( CA$, unless otherwise specified ) 2016 2017 2018 (E) YOY Change WTI Crude Oil ( USD/bbl ) [1] US $ 43.32 US $ 50.95 US $ 65.00 + 28% WTI Crude Oil ( CAD/bbl ) [2] $ 52.79 $ 61.85 $ 78.11 + 26% NYMEX Natural Gas ( USD/mmBtu ) US $ 2.43 US $ 3.07 US $ 2.90 − 6% DAWN Gas Daily Index
Slide 13: 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 14: Annual Production Growth (since inception)
Annual Production Growth ( since inception ) PRODUCTION ( BOE / d ) 35,000 CAGR since 2013 = 49% 30,000 28,500 - 29,500 25,000 22,130 20,947 15,000 – 20,000 18,577 16,000 15,000 12,888 12,756 13,168 11,879 10,000 8,419 13,300 – 14,200 5,000 3,961 9,242 6,698 7,779 3,148 4,337 0 813 2013 2014 2015 20
Slide 15: Annual Production per Share Growth (since inception)
Annual Production per Share Growth ( since inception ) PRODUCTION PER MILLION SHARES ( BOE / d ) 200 CAGR since 2013 = 25% 155 - 165 150 121 125 120 105 82 - 88 100 73 77 76 69 53 50 73 - 78 42 45 52 36 43 11 0 2013 2014 2015 2016 2017 2018 [E] Oil / NGLs Gas 14
Slide 16: Netbacks
Netbacks 2018/17 ( $ / BOE ) 2016 2017 2018 (E) Change Revenue/Price 24.08 31.51 38.78 + 23% Realized hedging gain ( loss ) 0.02 ( 0.13 ) − − Royalties ( % of revenue ) ( 8.6% ) ( 9.3% ) ( 10.5% ) + 13% Transportation expense ( 2.86 ) ( 3.13 ) ( 3.26 ) + 4% Production expense ( 9.29 ) ( 10.05 ) ( 9.
Slide 17: Financial Outlook
Financial Outlook 2018 2018/17 2016 2017 Forecast Change Revenue ( $ MM ) 184.6 257.6 410.5 + 59% Operating income ( $ MM ) [1] 75.7 123.4 231.8 + 88% Adj. funds from operations ( $ MM ) [1] 58.4 108.0 215.0 + 99% Per share – diluted ( $/share ) 0.34 0.61 1.17 + 92% Capital expenditures, net ( $ MM
Slide 18: 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 ) 65.00 58.40 - 10% 65.00 n/c 65.00 n/c NYMEX Natural Gas ( USD/MMBtu ) 2.90 2.90 n/c 2.70 - 7% 2.90 n/c Exchange Rate ( CAD/USD ) 1.27
Slide 19: 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 20: Kelt Land Fairway
Kelt Land Fairway Fireweed Corporate Land Holdings Inga May/8 Net Net Flatrock 2018 Acres Sections Stoddart Oak Developed 222,271 347 Fort Undeveloped 644,512 1007 St. John Total 866,783 1,354 Pouce Coupe Progress Montney Rights Spirit River Net Net Acres Sections Valhalla / La Glace British Columbi
Slide 21: British Columbia Montney Lands
British Columbia Montney Lands Land (Montney Rights) Gross: 345,148 acres ( 539 sections ) Net: 340,196 acres ( 532 sections ) Fireweed Operations ● Kelt has been successful delineating the Stoddart Flatrock Upper and Middle Montney at Inga/Fireweed. ● Kelt is pleased with the initial results from I
Slide 22: 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 23: 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 24: Inga 6-Section / 3-Pad / 72-Well Development Plan
Inga 6-Section / 3-Pad / 72-Well Development Plan ● Kelt has increased its 2018 capital expenditure budget to include 6 new 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 approximat
Slide 25: Inga / Fireweed Montney Lands
Inga / Fireweed Montney Lands B-90-A UM Land (Montney Rights) (sfc C-10-H) A-58-I UM 220 gross sections ( 218 net sections ) (sfc D-A79-I) C-26-A UM 00/15-25 MM (sfc A-6-A) Operations ● Delineation drilling to date has been focused 02/15-25 UM C-85-I UM 03/15-25 MM (sfc A-65-I) 04/15-25 UM 05/15-25
Slide 26: 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 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 27: 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 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 “A
Slide 28: Oak / Flatrock Montney Lands
Oak / Flatrock Montney Lands LAND 02/13-13 (sfc 13-12) Montney Rights: Gross: 182,087 acres ( 285 sections ) Net: 180,814 acres ( 283 sections ) OPERATIONS 00/7-3 (sfc 10-27) ● Oil and gas exploration activity targeting the Upper Montney (D4 / D5) at depths of 1,500 to 1,600 metres. ● Expectations a
Slide 29: Alberta Montney Lands
Alberta Montney Lands LAND Montney Rights: Gross: 173,280 acres ( 271 sections ) Net: 148,915 acres ( 233 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 30: 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 2,045 ( 66% oil/ngls ) 2P EUR = 600 MBOE * (2) Pouce Coupe 02/06-18-078-11W6 UMM 2,004 ( 68% oil/
Slide 31: Pouce Coupe / Progress
Pouce Coupe / Progress Abbreviations: 15-13 MM UM = Upper Montney 920 BOE/d IP30 (KEL 50%) MM = Middle Montney UMM = Upper-Middle Montney (may also be referred to as “Montney H” 14-14 MM or “Montney D2”) 875 BOE/d IP30 Pouce (KEL 50%) LMM = Lower-Middle Montney (may also be referred to as “Montney S
Slide 32: 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 100 45% Oil/Ngls 55% 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]
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 2018 Forecasted Commodity Prices
2018 Forecasted Commodity Prices ( CA$, unless otherwise specified ) Jan-Mar Apr-Dec (E) 2018 (E) WTI Crude Oil ( USD/bbl ) [1] US $ 62.91 US $ 65.69 US $ 65.00 CLS Crude Oil ( CAD/bbl ) [2] $ 74.77 $ 79.20 $ 78.11 NYMEX Natural Gas ( USD/MMBtu ) US $ 2.87 US $ 2.91 US $ 2.90 DAWN Gas Daily Index (
Slide 44: Kelt's 2018 Oil Price Forecast
Kelt’s 2018 Oil Price Forecast ( CA$/bbl ) ( US$/bbl ) 80.00 80.00 KELT Realized ( 2018 Average = CA$71.74 ) 75.00 74.33 75.00 WTI ( 2018 Average = US$65.00 ) 72.08 71.58 70.00 70.00 68.16 66.74 65.34 65.00 65.13 65.00 65.00 62.91 60.21 60.00 60.00 56.80 55.00 55.40 55.00 51.92 53.22 50.00 48.29 50.
Slide 45: Kelt's 2018 Gas Price Forecast
Kelt’s 2018 Gas Price Forecast ( CA$/Mcf ) ( US$/MMBtu ) 4.00 4.00 KELT Realized ( 2018 Average = CA$2.89 ) NYMEX ( 2018 Average = US$2.90 ) 3.50 3.52 3.50 3.47 3.25 3.20 3.13 3.00 2.97 2.90 3.00 3.00 2.91 2.87 2.92 2.83 2.79 2.75 2.69 2.50 2.50 2.33 2.00 2.00 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 [E] Q3 [E]
Slide 46: 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 [E] 45
Slide 47: 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 [E] 46
Slide 48: 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 26% 2.75 1.94 Kingsgate Waddington Chicago 22% 2.70 1.72 Stanfield Boston Opal Dawn Malin 16% 2.35 1.59 Malin Marcellus Ventura Chicago Sumas 17% 2.2
Slide 49: Kelt Gas Firm Transportation Contracts
Kelt Gas Firm Transportation Contracts Transportation Supply Term Volume (MMcf/d) Upstream Hub Nov/1/17 – Oct/31/18 10.3 [2] Alliance Receipt Point Nov/1/17 – Oct/31/20 [1] 2.0 [2] Alliance Receipt Point Apr/1/18 – Oct/31/20 [1] 2.1 [2] Alliance Receipt Point Nov/1/17 – Oct/31/18 10.1 TNLH Receipt P
Slide 50: 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 51: 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 52: 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 53: Grande Cache
Grande Cache LAND Modern 13-4 Gross: 130,270 acres ( 204 sections ) Narraway 135 MMcf/d Gas Plant IP30: 9 MMcf/d Falher/Wilrich TOU 4-29 IP30: 20 MMcf/d Net: 93,384 acres ( 146 sections ) OPERATIONS (7% WI) Falher/Wilrich ● Low decline Cretaceous natural gas production ● Ownership interests in gas g
Slide 54: 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 55: 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 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 00/07-12-088-
Slide 56: 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 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 00/09-27-088-23
Slide 57: 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 100 45% Oil/Ngls 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
Slide 58: 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 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: 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 66: 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 65