Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (March 2024)
33 slides from Rubellite Energy's investor presentation, Mar 14, 2024
Slide 1: Corporate Overview
Rubellite Energy Inc. Corporate Overview March 14, 2024
Slide 2: Corporate Profile
Corporate Profile Growth-focused, pure play Clearwater E&P company (TSX:RBY) Since inception in 2021, Rubellite has grown from 350 bbl/d to >4,500 bbl/d and assembled access to 530 net sections across the Clearwater fairway ▪ Rubellite acquired all of Perpetual’s Clearwater Assets for total consider
Slide 3: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater play ▪ Growth-focused, pure play Clearwater E&P company Expanding ▪ Access to over 530 net sections of prospective Clearwater lands Pure Play ▪ Multiple exploration prospects captured with material location inventory potentia
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, close to 1,600 wells have been drilled, growing play production from nil to >130,000 bbl/d by year-end 2023 • ~75% of production at Marten Hills and N
Slide 5: Rubellite Asset Profile
Rubellite Asset Profile 477 net sections of prospective land; ~240 development / step-out Clearwater locations Asset Map Asset Summary Land Well Count Production Q4 2023 Area (net sections)(1) (net producing)(2) (bbl/d)(3) Figure Lake/Edwand 243.1 59.0 3,400 Cadotte Ukalta 34.0 26.0 534 Marten Hills
Slide 6: Corporate Performance: Operational Momentum Continues
Corporate Performance Operational Momentum Continues Adjusted Funds Flow and Sales Production (bbl/d) Q4 2023 Production By Area 5,000 4,450 – 4,500 bbl/d(1) 20,000 3 Marten Hills Adjusted Funds Flow ($M) 4,000 16,000 534 272 Production (bbl/d) Figure Lake / 3,000 12,000 Edwand 2,000 8,000 Ukalta 1,
Slide 7: 2023 Reserves Highlights
2023 Reserves Highlights Focused capital spending program at Figure Lake achieving strong reserve additions 2023 Corporate Reserves Additions Reserves Growth(1) ▪ TPP increased 56% year-over-year 18,000 ▪ TPP per Debt Adjusted Share increased 23% year-over-year 16,000 ▪ TPP additions replaced 5.8 ti
Slide 8: 2023 Net Present Value of Reserves
2023 Net Present Value of Reserves Reserve additions through the drill bit drove 50% increase in NPV10 value year-over-year YE 2023 Reserve Value NPV(10) $MM(1) $116 $148 $58 PDP PUD Probable TP $206 MM ($3.30/share) TPP $322 MM ($5.15/share) 1. Proved Developed Producing (PDP), Proved Undeveloped (
Slide 9: Southern Clearwater
Southern Clearwater Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway Play History Figure Lake – Development & Step-out Delineation Fueling RBY Growth ▪ 3,400 bbl/d Q4 2023 sales, including 436 bbl/d sales contribution from Acquired Lands for the quarter ▪ One 2.5-le
Slide 10: Acquisition
Acquisition P&S executed October 19, 2023 – Closed November 8, 2023 Acquisition Summary ❑ Purchase Price: $34.0 MM – Effective Oct 1, 2023 ❑ Production: 800 bbl/d (estimated at closing November 8, 2023) ▪ 15 producing wells in Greater Figure Lake ▪ Contributed 436 bbl/d to RBY Q4 2023 sales producti
Slide 11: Rubellite Asset Profile | Greater Figure Lake
Rubellite Asset Profile | Greater Figure Lake Pool Development and Extension Asset Map Asset Summary Working Interest: 100% Q4 2023 Production: 3,400 bbl/d heavy oil ▪ 59.0 net multi-laterals on sales production (including 3 exploratory wells at Figure Lake Skeleton and Alpen) 2023 Activity ▪ Drille
Slide 12: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake 2023 Development Results Outperforming Type Curve; Q4/23 Step-outs expanding development inventory Type Curve and Production Results Type Curve Assumptions Assumptions Tier 1 Tier 2 2023 Development Drilling Results (8-leg multi-lateral ~9,500m) McDaniel PUD McD
Slide 13: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta Evaluating Enhanced Recovery and Secondary Zones Asset Map Asset Summary Working Interest: 100% Q4 2023 Production: 534 bbl/d heavy oil ▪ 26 gross (26.0 net) Primary Zone multi-laterals on sales production ▪ Harvest free cash flow to fund growth at Figure lake Prospe
Slide 14: 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 (0.9 net) sections ▪ Converted to after payout working interest May 1, 2023 Q4 2023 Production: 272 bbl/d heavy oil ▪ 11 gross (3.3 net) wells on p
Slide 15: Dawson - Northern Clearwater Exploration
Dawson - Northern Clearwater Exploration Encouraging early results at Dawson Asset Map Opportunity Summary Dawson Exploration: ▪ 1 earning well (50% WI) drilled in Q1 2023 • ~7,500m horizontal open hole • IP30 81 bbl/d ▪ 5-16 well on production in Q1 2023 for 47 days at an average rate of 80 bbls/d
Slide 16: Rubellite Guidance
Rubellite Guidance Development plan funded out of Adjusted Funds Flow at current strip prices Guidance (March 14, 2024) Development Parameters ▪ Single pad batteries with minimal infrastructure Q1 2024 2024 ▪ Oil sales from new wells forecast approximately 5 weeks E&D Capital Expenditures (1)(2)(3)
Slide 17: Commodity Price Risk Management
Commodity Price Risk Management Price protection on an average of 2,617 bbl/d at an average WCS price of ~$84.48 Cdn/bbl over the balance of 2024 2024 Oil Price Management Commodity Price Hedge Positions (as at March 14, 2024) Current RBY Hedges Q2 24 Q3 24 Q4 24 Cal 25 WTI CAD/bbl Swap 3,000 80% Vo
Slide 18: 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 therefore minimal fresh water usage Land ▪ Surface footprint minimized with multi-well pad development Environment ▪ Onsite drill cutti
Slide 19: 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 20: 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 21: 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 22: Slide Notes
Slide Notes Slide 1 1. Current shares outstanding as at March 14, 2024, 3.7 million share awards outstanding and 4.0 million share purchase warrants (expire October 5, 2026; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financial M
Slide 23: 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 netback per boe" is determined by deducting royalties, production and operating expenses, and transportation costs form oil and natural gas revenue, a
Slide 24: Slide Notes (continued)
Slide Notes (continued) Slide 6 1. Capital is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. “Operating netback per boe" is determined by deducting royalties, production and operating expenses, and transportation costs form oil and natural gas revenue, as determ
Slide 25: Slide Notes (continued)
Slide Notes (continued) Slide 7 1. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 2. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserves, prepared by McDaniel with an effective date
Slide 26: Slide Notes (continued)
Slide Notes (continued) Slide 11 1. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 2. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserves, prepared by McDaniel with an effective date
Slide 27: Slide Notes (continued)
Slide Notes (continued) Slide 15 1. See “Drilling Locations” in the Advisories 2. Development and exploration capital expenditures is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. Heavy oil wellhead differential is a non-GAAP measure. See “Non-GAAP and Other Fi
Slide 28: Slide Notes (continued)
Slide Notes (continued) Slide 16 1. Prices reported are the weighted average prices for the period 2. Western Canadian Select (“WCS”) 3. Adjusted funds flow is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 4. Capital is a non-GAAP measure. See “Non-GAAP and Other
Slide 29: 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 30: 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 31: Advisories (continued)
Advisories (continued) 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”, “Expierenced Management and Independen
Slide 32: Advisories (continued)
Advisories (continued) Oil and Gas Industry Metrics This presentation contains certain oil and gas industry metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not
Slide 33: Advisories (continued)
Advisories (continued) Reserve Estimates The reserves estimates contained in this presentation are as at December 31, 2023 and are based on based on an independent reserves evaluation report prepared by McDaniel & Associates Consultants Ltd. in accordance with NI 51-101. It should not be assumed tha
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