Petro-victory Energy Corp Class A · TSXV:VRY
Petro-victory Energy Corp Class A — Investor Presentation (July 2022)
32 slides from Petro-victory Energy Corp Class A's investor presentation, July 2022
Slide 1: Petro-Victory Energy Investor Presentation – July 2022
Petro-Victory Energy Investor Presentation – July 2022 Investor Presentation – July 2022 © Petro-Victory Energy
Slide 2: Disclaimer (1)
Disclaimer (1) Forward Looking Statements: COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material In the interests of providing Petro-Victory Energy Corp. (“Petro-Victory” or the “Company”) potential investors with adverse effect on global e
Slide 3: Disclaimer (2)
Disclaimer (2) “reserves” are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable Non-IFRS Measures: from known accumulations, as of a given date, based on (a) analysis of drilling, geological, geophysical, and engineering data; Certain financia
Slide 4: Disclaimer (3)
Disclaimer (3) Market, Independent Third-Party and Industry Data: Certain market, independent third-party and industry data contained in this presentation is based upon information from government or other independent industry publications and reports or based on estimates derived from such publicat
Slide 5: Highlights
Highlights ▪ Break-up of 70-year monopoly Unique opportunity ▪ c.US$75 billion divestiture program ▪ Onshore fields with discovered resource but low recovery rates to Low-risk production Why date in global context Onshore Brazil? ▪ Brent-correlated pricing with high netbacks Attractive economics ▪ L
Slide 6: Corporate overview
Corporate overview Corporate details Capitalization Share price (TSX.V: VRY) • Listed on TSX Ventures (TSX.V:VRY), since 2014 IPO C$ US$ Shares outstanding (#) 17.9mm 17.9mm 8.00 • Headquartered in Dallas, USA Current price ($/sh) 2.50 1.95 Market cap ($mm) 44.9 35.0 Key statistics Debt ($mm) 6.2 4.
Slide 7: Leadership Group
Board and management team with over 300 years of experience Richard Gonzalez Richard Lane Daniel Wray Diego Monteiro Jose Andrade Chairman / CEO Chief Operating Officer Chief Financial Officer Brazil Operations Manager Brazil Finance Manager • Founded Petro-Victory Energy • Delivers expertise in all
Slide 8: Why onshore Brazil?
Why onshore Brazil? Onshore production decline Recovery to date is low Competitive environment 300 60% production decline 3,500 Private Equity between 2000 and 2021 Bovespa-listed: RECV3 3,000 43% Market cap: US$1.4bn 250 Onshore Offshore Onshore Production (mbbl/day) Offshore Production (mbbl/day)
Slide 9: Pillars of our strategy
Pillars of our strategy 1 2 3 Technical Operational Financial Identify Drill Generate Cashflow Quantify Test Profitability Certify reserves Produce Reinvest Investor Presentation – July 2022 9 © Petro-Victory Energy
Slide 10: Portfolio overview
Portfolio overview Summary Production outlook for 4 of 39 blocks 3,000 Blocks: 39 2,500 Acres: 257,604 2,000 2 boe/d 1 1,500 1,000 500 - Jan-22 Jan-23 Jan-24 Jan-25 Alto Alegre Andorinha São João Trapia Trapia Gas *Based on 100% WI for São João # Basin Fields / Areas Working interest 2P Reserves* (m
Slide 11: Trading at a substantial discount to reserve value
Trading at a substantial discount to reserve value Reserve values per share NAV per share for different reserve categories (C$) 18.00 C$17.8/sh – Current price 86% below NAV NPV10 NPV10 C$/Fully diluted 1P mboe* C$/Share NAV 3P (US$mm)* (C$mm) share NAV Andorinha 545 24.2 31.0 1.73 1.16 16.00 São Jo
Slide 12: Key assets – Potiguar basin
Key assets – Potiguar basin Andorinha and Canto do Amaro fields Potiguar basin Basin summary Canto do Amaro (100% 3R) • Over 1 billion barrels produced • 150mmbbl produced since 2000 across >70 onshore fields • 7mbbl/d March 2022 production rate • First discovery 1979 New Petro-Victory licenses • Cu
Slide 13: Experts at building value in our core basin
Experts at building value in our core basin Summary • Petro-Victory is one of the largest acreage holders in the Potiguar basin, Brazil’s prominent onshore oil producing region • Recent expanded its position to 37 blocks in the Potiguar • Track-record of taking low-cost entry positions and deliverin
Slide 14: Forward work program
Forward work program 2022 2023 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Andorinha Alto Alegre Production Testing Preparation for 4 well drilling program Completion of 4 well development drilling campaign Start of 7 well development drilling campaign São João Prepar
Slide 15: 12-month work program to add substantial value
12-month work program to add substantial value 80 US$6.2mm US$69.8mm 70 US$5.8mm Barreirinhas (São João) 60 US$3.5mm Potiguar (Andorinha) US$12.4mm Well NPV-10 (US$ mm) 50 US$3.4mm 40 US$9.4mm US$3.6mm 30 US$6.3mm US$5.8mm 20 US$6.4mm 10 US$6.0mm US$0.1mm US$0.9mm 0 Andorinha São João PDP Trapia PDP
Slide 16: Andorinha field – overview
Andorinha field – overview Introduction Near-term well targets • More than 13.30 million barrels petroleum initially in place* Well Type 2P Reserves* Comment • Infrastructure in place from GALP development program in 2011-2014 PVE-1 New 138 mboe Higher up structure than GALP-01 which produced from n
Slide 17: Andorinha field – development plan
Andorinha field – development plan Summary • Production base established, ramping up production • 20 well development plan to drain 2.95mmbbl • Development plan to sustain average production of 1,300bbl/d for 3-year plateau (Dec 2022 – Nov 2025) N Top Reservoir Depth Key areas Area Wells Commentary
Slide 18: Successful portfolio growth
Successful portfolio growth Summary • Secured 19 new blocks (100% WI) in the onshore Potiguar Basin through its participation in the Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil (“ANP”) 3rd Oferta Permanente (“Permanent Offer Round”) • Acquisition of the blocks adds an additi
Slide 19: Next steps – continuing to deliver value across the portfolio
Next steps – continuing to deliver value across the portfolio High ranking opportunities POT-T-564 Drill ready prospect inventory • Identify undervalued and underdeveloped oil and gas assets Best estimate • Quantify the potential of the assets and add value by Prospect Primary target Well TD undisco
Slide 20: Appaloosa – 2023 drilling target to unlock value
Appaloosa – 2023 drilling target to unlock value Near-term drilling target identified POT-T-564 Drill ready prospect - Appaloosa • 637,000 boe Mean Recoverable • Expected to analogous to Andorinha regarding hydrocarbon type and reservoir performance • Well Depth 2km • Chance of Success – 51% • Targe
Slide 21: Scalability
Scalability Scope for growth • 12-month work program: • Provides access to substantial part of Petro-Victory’s 2P reserve value (within just 2 of 38 licenses) • Also delivers substantial cash flow to contribute to ongoing work to unlock 257,604 acres • Initial focus on areas with proved and probable
Slide 22: Capital structure
Capital structure Top holders Fully diluted share capital Shareholder Shares held (Ord. + Rest.) % Total outstanding shares Instrument Price Quantum Comment ACAM 3,200,000 17.85% Ordinary Shares - 14,679,464 Excluding restricted - 2,289,694 Collateral against in-kind ORIII investment Oppenheimer Res
Slide 23: Key metrics / comparables
Key metrics / comparables Net Debt 2021 TMX Top Venture 50 performance – Energy Benchmarking LATAM peers Market cap US$1,297 US$1,244 mm mm US$973 US$943 mm Brazil pure plays mm US$493 Share price Share price mm US$189 US$183 US$133 Rank Company Ticker % change mm mm US$60 US$34 31/12/2020 31/12/202
Slide 24: ESG commitment
ESG commitment E S G Environmental Social Governance Petro-Victory has developed a corporate governance Petro-Victory is committed to conducting its Petro-Victory is determined to maintain a high-level model and business philosophy that actively business and affairs with honesty, integrity and in of
Slide 25: Andorinha Solar Project
Andorinha Solar Project Summary • Petro Victory has signed a contract with local renewable energy provider Taldi Engenharia for the installation of a solar array at its Andorinha oil field • First renewable project being undertaken by an oil company in the State of Rio Grande do Norte to generate re
Slide 26: Investment highlights
Investment highlights Onshore Brazil opening to independent E&P Early mover advantage ✓ Petrobras divestments have opened up a unique opportunity ✓ Petro-Victory have been active in Brazil since 2016, establishing a ✓ Brazilian government prioritising onshore oil and gas dedicated presence in 2017 ✓
Slide 27: Appendix
Petro Vic Appendix Investor Presentation – July 2022 27 © Petro-Victory Energy
Slide 28: Statutory rights of action (1)
Statutory rights of action (1) Securities legislation in certain of the provinces of Canada may deem this presentation to be an offering memorandum and accordingly provide memorandum that was amended and delivered in accordance with such legislation has a right to withdraw from the agreement to purc
Slide 29: Statutory rights of action (2)
Statutory rights of action (2) These rights are not available for a purchaser that is: (a) a Canadian financial institution, meaning either: (i) an association governed by the Cooperative The Newfoundland Act provides a number of limitations and defences in respect of such rights. Where a misreprese
Slide 30: Reserve reconciliation
Reserve reconciliation Reserves as at 31 December 2021 Reserves (mboe) Andorinha Carapitanga São João Alto Alegre Trapia Total 100% 100% 50% 100% 100% GALP-06 ALG-01 ALG-03 ALG-04 ALG-05 PVE-01 PVE-02 PVE-03 QX-01 TR-02 TR-04 TR-06 TR-07 TR-08 TR-09 SJ-01 SJ-06 SJ-11 Other Other Total Total Total
Slide 31: Brazil fiscal terms
Brazil fiscal terms Brazil fiscal terms compared to other concession systems Global O&G government take proportions Country Brazil (onshore) Colombia Norway T&T UK USA (Texas) 100 Low High Low High Low High Low High Low High Low High 90 Royalties 5.0% 10.0% 6.0% 25.0% -% -% 12.5% 12.5% -% -% -% 28.0
Slide 32: Thank you
Thank you Investor Presentation - 2022 Investor Presentation – July 2022 © Petro-Victory Energy
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