Parex Resources Inc. · TSX:PXT
Parex Resources — Investor Presentation (July 2015)
23 slides from Parex Resources's investor presentation, July 2015
Slide 1: Leveraging Portfolio Flexibility
Leveraging Portfolio Flexibility July 2015 Corporate Presentation PAREXRESOURCES.COM | TSX:PXT
Slide 2: Snapshot
Snapshot Operating Results Q2 2015 Production ~27,000 bopd 2015 Production Guidance 26,500 – 26,700 bopd 2014 Production 22,526 bopd Reserves 2P (December 31, 2014) 68.4 MMboe(1) 2P Reserve Life Index (RLI) of 7.1 years Capital Structure Market capitalization at CAD $10.00/share ~Cdn$1,498 MM CAGR
Slide 3: Track Record of Consistent Growth
Track Record of Consistent Growth Production Growth Debt Adjusted Reserve Growth Debt Adjusted 27,000 195 Production (bopd) 120 Possible - LHS 0.80 LHS 22,000 155 100 2P - LHS Reserves (MMboe) Production per share Production (bopd) Production per share Reserves per share RHS 0.60 17,000 80 3P Reserv
Slide 4: Grow & Diversify Production
Grow & Diversify Production LLA-16 LLA-20 Los Ocarros Cabrestero LLA-32 LLA-34 LLA-30 Other 27 24 21 Bopd (000) by block 18 15 12 9 6 3 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Est. 2010 2011 2012 2013 2014 2015 Annual Having a Building Cash Flow Exploration Sustainability Building
Slide 5: Colombian Cash Netbacks
Colombian Cash Netbacks Operating Opex & Royalties Brent Price Netback Transportation US $/BBL 140 120 $9 Realized Price (US $/bbl) $8 $8 $8 $15 100 $12 $8 $14 $8 $26 $14 $12 $14 $15 $7 $26 $29 $29 $11 80 $22 $23 $27 $26 $22 $29 $29 $28 $28 $28 $30 60 Q1 Brent $7 $55/bbl $4 40 $82 $28 $71 $67 $71 $7
Slide 6: Annual FD&A Including FDC
Annual FD&A Including FDC $70 Total Company 2P (Proven + Probable) 2014 3 yr F&D $/bbl $10.92 $14.99 FD&A $/bbl $13.79 $17.16 $60 1 Year $/bbl 3 Year $/bbl $50 FD&A $/bbl $40 $30 $20 $10 $0 2010 2011 2012 2013 2014 Leveraging Portfolio Flexibility 6
Slide 7: 2P Reserves MMBO: Llanos Plains Structural Pool Sizes
Llanos Plains Structural Pool Sizes (IHS) 60 Pmean = 3.9 MMBO P50 = 2.0 MMBO 50 2P Reserves MMBO Good fit to a logarithmic distribution – Mature distribution 40% of discoveries made since 2010 40 Conforms to Parex Llanos initial assumption Parex discoveries include Kona, Las Maracas 30 Parex S
Slide 8: Llanos Stratigraphic Pools: Significant Gaps in the 20-90 MMBO Range
Llanos Stratigraphic Pools: Significant Gaps in the 20-90 MMBO Range 2008 * 160 140 2P Reserves MMBO 2010 120 1989 * 100 Tigana Guadalupe & Mirador likely both fit into this gap 80 60 40 2011 2010 2007 * 2013 2012 20 * Drilled on structural anomalies but now acknowledged to have a significant strati
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 + Possible Probable (mmboe) Production Reserves (mmboe) (mmboe) (mmbbls) Life Index 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: 2015 Guidance: Self Funded 18% Growth
2015 Guidance: Self Funded 18% Growth Brent Oil Price Scenario ≥$60 per barrel (USD millions) Maintenance Capital $70-$75 Exploration:8 Commitment Wells + 2 LLA-32 Prospects $75-$80 2015 Base Capital $145-$155 2015 Growth: Rumba Discovery + LLA-34 $33 Positioning Capital – 2016 Growth: Magdalena Bas
Slide 11: 2015 Exploration Drilling Program
2015 Exploration Drilling Program # Prospect/Well Block Timing / Status 1 Rumba-1 LLA-26 Tested 2,158 bopd from Mirador 2 Bazar-1 LLA-26 Drilling (exploration satellite to Rumba) 3 Rumba-2 LLA-26 Rumba / Bazar follow-up 4 Taringa-1 Cebucan Following LLA-26 5 Tautaco-1 LLA-10 Following Cebucan 6 Capa
Slide 12: Rumba – Operations Plan
Rumba – Operations Plan 1. Rumba-1 Spud Mar. 25, 2015 Tested oil 2 zones Mirador 19 API Final rates 2,158 bopd Producing ~800 bopd 2. Bazar-1 Drilling Une target 3. Build LTT 4. Appraisal Well Leveraging Portfolio Flexibility 12
Slide 13: Southern Llanos: New Play Trends
Southern Llanos: New Play Trends Cabrestero (100% WI, Operator) CARMENTEA Akira – swing producer Carcayú LLA-32 CALONA LLA 34 (55% WI, Non-operated) Guepardo KANANASKIS Xorop LLA-34 Large discoveries at Tua & Tigana Chenchena TILO MAX Significant development focus for 2015+ TAROTARO TIGANA LLA-32 (7
Slide 14: LLA-32: Exploring the Trend
LLA-32: Exploring the Trend Kananaskis-1 Mirador: IP = 5000 bopd 30 API Une: High liquids gas Valley fill trap with Further testing down dip water ? required Leveraging Portfolio Flexibility 14
Slide 15: Parex Exploration Life Cycle
Parex Exploration Life Cycle Develop Acquire Test Initial Expand Exploitation Concept Land Concept Development Land Traditional LLA-26, Cebucan 3-Ways Low Side Cabrestero, LLA-34, LLA-10 Closures Stratigraphic LLA-30, LLA-32, Akira, Tigana Traps New Plays Magdalena Basin, Llanos Deep, Capachos Fully
Slide 16: Magdalena Basin: Opportunity to Accelerate
Magdalena Basin: Opportunity to Accelerate Cesar Growth Options: VIM-1 Rancheria VIM-1 Acquire 3D seismic Lower Magdalena Drill in 2016 VMM-9 Catatumbo EIA underway VMM-11 Leverage 3D seismic acquired in 2014 Middle Accelerate drilling into 2015 Magdalena Morpho Light oil, tight sand VMM-9 Warehouse
Slide 17: Lower Magdalena: VIM-1
Lower Magdalena: VIM-1 Take advantage of the 50% lower cost to acquire 405 km2 3D seismic in VIM-1 Block provides exposure to: 2015 Proposed 3D Light oil play (e.g. El Dificil field 44-47API) The Porquero Turbidite Gas/Condensate play Anticipate 2016 Drill Targets at 12,000’–14,000’ Low Transp
Slide 18: Middle Magdalena Basin: New Play Concepts
Middle Magdalena Basin: New Play Concepts VMM-9 & VMM-11 (100% WI, Operator) Testing of new play concepts: 1. Tertiary Structure Cold heavy oil production (CHOPS) Fairway OPON Conventional structure/sub-thrust (CHOPS) 2. Subcrop La Luna unconventional play Plays 4. La Luna Build on management’s
Slide 19: Capachos Farm-in: Ecopetrol Partnership
Capachos Farm-in: Ecopetrol Partnership Capachos (50% WI, Operator)1 Capachos Development & exploration opportunities ANH royalty contract Large structure, light oil, 2 mmbbls produced from 2 wells Leverages our strengths: low cost drilling strong operator working with communities LLA-10 LLA-1
Slide 20: 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 20
Slide 21: 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 22: Appendix – Summary of Quarterly Results
Appendix – Summary of Quarterly Results (Unaudited) 2015 2014 2013 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 OPERATING Production (thousands of bopd) 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 49 88 60 94 105 103 104 102 106 99 110 Brent Price ($/bbl) 55
Slide 23: 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,