Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (May 2023)
29 slides from Rubellite Energy's investor presentation, May 11, 2023
Slide 1: Corporate Overview
Rubellite Energy Inc. Corporate Overview May 11, 2023
Slide 2: Corporate Profile
Corporate Profile Newly created, growth-focused, pure play Clearwater company (TSX:RBY) Since 2018, Perpetual / Rubellite has executed 50+ separate transactions to assemble access to 345 net sections across the Clearwater fairway ▪ Rubellite acquired all of Perpetual’s Clearwater Assets for total co
Slide 3: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater play ▪ High growth, pure play Clearwater explorer/producer Expanding ▪ ~345 net sections of prospective Clearwater lands and ~200 Development / Step-out drilling locations Pure Play ▪ Multiple exploration prospects captured w
Slide 4: Clearwater Play Landscape
Clearwater Play Landscape Amongst the best single well economics of any play in North America Clearwater Play Evolution Clearwater Play ▪ Since 2017, > 1,250 wells have been drilled, growing play production from nil to ~123,000 bbl/d by Q2 2023 • ~75% of production at Marten Hills and Nipisi • Addit
Slide 5: Rubellite Asset Profile
Rubellite Asset Profile 345 net sections of prospective land; ~200 development / step-out Clearwater locations Asset Map Asset Summary: Land Well Count Production Area Net Net Q1 2023 (sections)(1) (producing)(3) (bbl/d)(4) Figure Lake 120.9 25.0 1,775 Cadotte Ukalta 35 26.0 754 Cranberry Lake Marte
Slide 6: Corporate Performance
Corporate Performance Gaining Operational Momentum and Focus Production (bbl/d) Current Production By Area 3,500 Q1 2023 439 3,000 22 2,990 bbl/d 754 2,500 100% Heavy Oil 2,000 1,500 1,000 1,775 500 0 Marten Hills Other Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Figure Lake Ukalta Operating Exp
Slide 7: Southern Clearwater
Southern Clearwater Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway RBY Play History Ukalta – Development with Secondary Zone Exploration Figure Lake ▪ Six 6-leg wells on production at RBY inception ▪ 26 (26.0 net) wells onstream Q1 2023 ▪ 754 bbl/d Q1 2023 sales ▪
Slide 8: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta Evaluating Enhanced Recovery and Secondary Zones Asset Map Asset Summary Working Interest: 100% Q1 2023 Production: 754 bbl/d heavy oil ▪ 26 Primary Zone multi-laterals on sales production 2022 Strategy ▪ Evaluate optimal well design (number of laterals, overall leng
Slide 9: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake Pool Development and Extension Asset Map Asset Summary Working Interest: 100% Q1 2023 Production: 1,775 bbl/d heavy oil ▪ 28 multi-laterals on sales production including 3 exploration wells 2023 Strategy ▪ Grow production with sweet-spot focused drilling program
Slide 10: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake Ongoing drilling results refining Figure Lake type curve Type Curve and Production Results Type Curve Assumptions Assumptions Tier 1 Tier 2 (8-leg multi-lateral ~9,000m) McDaniel PUD McDaniel PPUD McDaniel PAUD YE 2022 (1) YE 2022 (1) YE 2022 (1) Figure Lake Dev
Slide 11: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | Marten Hills Secondary Recovery Schemes to Maximize Recovery and Value Asset Map Asset Summary Working Interest: 30% ▪ 3 gross sections at 50% BPO / 30% APO WI Q1 2023 Production(1): 439 bbl/d heavy oil ▪ Converted to after payout working interest May 1, 2023 2022 Strategy
Slide 12: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | Marten Hills Strong production performance from Q4 2022 drilling program Type Curve and Production Results Type Curve Assumptions Assumptions: Lower Stack Clearwater McDaniel PPUD Marten Hill Q4 2022 Development Wells (8-leg multi-lateral, 12,800m) YE 2022(1) ▪ 3 (0.9 net)
Slide 13: Peavine/Dawson - Northern Clearwater Exploration
Peavine/Dawson - Northern Clearwater Exploration Drilled 3 exploration wells in winter 2023 Asset Map Opportunity Summary Peavine/Dawson area extremely active ▪ 2022 Crown land sale bonuses > $90 million ▪ Significant competitor drilling activity through Q1 2023 Peavine Exploration: ▪ Farm-in & Opti
Slide 14: Rubellite Guidance
Rubellite Guidance Development plan is funded out of Adjusted Funds Flow at current strip prices Guidance (May 11, 2023) Development Parameters ▪ Single pad batteries with minimal infrastructure Q1 2023 2023 ▪ Oil sales from new wells forecast approximately two months post Development Capital Expend
Slide 15: Risk Management
Risk Management WCS price protection on an average of 1,177 bbl/d in Q2-Q4 2023 at ~$82.47 Cdn/bbl Risk Management Philosophy and Strategy Current WTI and WCS hedge positions (as at May 11, 2023) Q2/23 Q3/23 Q4/23 Cal/24 ▪ Physical forward sales contracts and financial derivatives WTI USD/bbl Swap u
Slide 16: ESG Excellence
ESG Excellence Strong ESG performance driven by living our values Water ▪ No fracture stimulation required in Clearwater play with multi-lateral drilling technology ▪ Minimal fresh water usage Land ▪ Surface footprint minimized with multi-well pad development ▪ Onsite drill cutting cleaning and oil-
Slide 17: Experienced Management and Independent Board of Directors
Experienced Management and Independent Board of Directors Cost-effectively managed under a Management and Operating Services Agreement with Perpetual Overview of MSA with Perpetual Independent Board of Directors (Non-Executive) ▪ Full overlap of Perpetual and Rubellite Executive Officers Tamara MacD
Slide 18: Creating Differentiated Value for Shareholders
Creating Differentiated Value for Shareholders Fully funded growth opportunity in the prolific Clearwater play Robust Organic Production Growth Profile Expanding Conservative Pure Play Capitalization Clearwater and Risk Asset Base Mitigation Fully Funded Management Development Alignment and Unlockin
Slide 19: Additional Information
Additional Information Sue Riddell Rose, President & CEO Ryan Shay, Vice President, Finance & CFO 3200, 605 – 5 Avenue SW Calgary, Alberta Canada T2P 3H5
Slide 20: Slide Notes
Slide Notes Slide 1 1. Current shares outstanding as at May 11, 2023, 2.4 million share awards outstanding and 4.0 million share purchase warrants (5-year term; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in t
Slide 21: Slide Notes (continued)
Slide Notes (continued) Slide 5 1. “Net asset value” is non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. “Operating expense per boe" is comprised of production and operating expense, as determined in accordance with IFRS, divided by the Company's total sales oil pro
Slide 22: Slide Notes (continued)
Slide Notes (continued) Slide 10 1. See “Drilling Locations” in the Advisories 2. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 3. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserve
Slide 23: Slide Notes (continued)
Slide Notes (continued) Slide 13 1. Development and exploration capital expenditures is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. Heavy oil wellhead differential is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. "Royalt
Slide 24: Slide Notes (continued)
Slide Notes (continued) Slide 14 1. Prices reported are the weighted average prices for the period 2. Western Canadian Select (“WCS”) 3. Hedge positions current to May 11, 2023. Full hedge positions by product are as follows: Slide 16 1. G&A per BOE is a non-GAAP ratio. See “Non-GAAP and Other Finan
Slide 25: Advisories
Advisories General The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of the Company and of the information contained
Slide 26: Advisories (continued)
Advisories (continued) Non-GAAP and Other Financial Measures (continued) “Capital expenditures”, “Capital”, “E&D capital expenditures”, “Development capital expenditures”, or “Exploration capital expenditures” are used to measure its capital investments compared to the Company’s annual capital budge
Slide 27: Advisories
Advisories Forward Looking Information Certain information in this presentation including management's assessment of future plans and operations, and including, without limitation. The information contained under the headings “Investment Highlights”, “Rubellite Guidance”, “Rubellite Management”, “Ru
Slide 28: Advisories (continued)
Advisories (continued) Drilling Locations This presentation discloses Rubellite’s estimated drilling locations in two categories: (i) booked locations and (ii) unbooked development / step-out locations. Booked locations are proved and probable locations, are derived from the McDaniel Reserve Report
Slide 29: Advisories (continued)
Advisories (continued) Third Party Information This presentation includes market, industry and economic data which was obtained from various publicly available sources and other sources believed by Rubellite to be true. Although Rubellite believes it to be reliable, it has not independently verified