Prairie Provident Resources, Inc. · TSX:PPR
Prairie Provident Resources — Shareholder Meeting (June 2021)
24 slides from Prairie Provident Resources's shareholder meeting presentation, June 2021
Slide 1: Corporate Presentation AGM June 2021
Corporate Presentation AGM June 2021
Slide 2: Why Invest in PPR?
WHY INVEST IN PPR? Significant “torque” to rising oil and gas prices at the current share price • 2020 AFF(1)/share(2) = $0.10 Upside potential – YE 2P NAV/share = $0.80 NAV/share(1)(2) US$60 WTI (Flat) US$70 WTI (Flat) 1P $0.31 $1.00 2P $1.43 $2.22 Diverse asset portfolio with deep inventory of dri
Slide 3: Three core areas: Michichi, Princess, Evi
ALBERTA Three core areas make up ~95% of PPR’s production EVI ~1,100 BOE/D Michichi • Proven low-risk horizontal Banff development • Large drilling inventory(1) • Field operating netback of $13.45/boe(1)(2) OTHER Princess ~250 BOE/D • Multi-zone potential in the Lithic Glauc, Detrital and Ellerslie
Slide 4: Drilling Inventory with Excellent Economics
DRILLING INVENTORY WITH EXCELLENT ECONOMICS Princess Princess Princess Evi Average Type Well Economics(1)(2) Glauconite(3) Ellerslie(3) Detrital(3) Michichi Banff(3) Evi Slave Point(3) Waterflood(3)(4) Drill, Complete, Equip & Tie-in ($MM) $2.0 $2.2 $1.0 $2.0 $2.1 $5.0 Production, IP30 (boe/d) 460 b
Slide 5: 2021 Return to Development at Princess
2021 RETURN TO DEVELOPMENT AT PRINCESS 2021 Production Estimate: 1,350 boe/d (65% oil and liquids)(1) 2021 Activity: • 2 wells drilled and completed in Q1 and online in Q2 14-12 Glauconite • 10-13 horizontal well tested the emerging Ellerslie play Q3 Drill • 11-22 horizontal well continues PPR’s Gla
Slide 6: Princess Ellerslie
PRINCESS ELLERSLIE Successfully drilled our 1st Ellerslie well 102/10-13-018-11W4 Total D/C/T Capital: $2.3 MM(1) IP30: 205 BOE/D (63% oil) (2) Estimated 1P EUR: 225 MBOE(3) 1P F&D: $10.22/boe 2P F&D: $7.19/boe IP30 Capital Efficiency: $11,700/boed 1P Recycle Ratio(4): 3.2x 2P Recycle Ratio(4): 4.5x
Slide 7: Princess Glauconite
PRINCESS GLAUCONITE Drilled the 1st Glauconite well of 2021 102/11-22-018-11W4 Total D/C/T Capital: $2.3 MM IP30: 530 BOE/D (42% oil)(1) Estimated 1P EUR: 330 MBOE(2) 1P F&D: $6.97/boe 2P F&D: $4.80/boe IP30 Capital Efficiency: $4,340/boed 1P Recycle Ratio(3): 4.7x 2P Recycle Ratio(3): 6.8x Initial
Slide 8: Michichi
MICHICHI 7-16 Banff IP30: 205 BOE/D 2021 Production Estimate: Banff Injector 1,730 boe/d (42% oil and liquids)(1) 2020 Activity: • Drilled 1 Banff horizontal well at 7-16-32-17W4 • Converted 1 horizontal well at 3-3-32-17W4 to initiate a pilot waterflood project, which also lowered operating costs F
Slide 9: Evi
EVI Otter WF 2021 Production Estimate: 1,100 boe/d (98% oil and liquids)(1) 2020 Activity: Main WF • An additional 0.8 MMBOE of PDP reserves booked at year-end 2020 Expansion due to improved waterflood recovery Future Outlook: • Further advance waterflood development • Optimize current waterflood pa
Slide 10: 2021 Production Forecast
2021 PRODUCTION FORECAST(1)(2) 8,000 Additions from Capital Program 7,000 Base Production 6,000 5,000 4,000 boe/d 3,000 Development Capital: $11.0 MM Estimated 2P Reserve Additions: 1,635 MBOE 2,000 Estimated IP Production Adds: 1,625 BOE/D 1,000 0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Au
Slide 11: 2021 Guidance
2021 GUIDANCE Index Change Change in AFF 2021 Guidance (C$MM) Production Boe/d 4,400 WTI US$ 1.00/bbl 0.7 Operating Expense ($MM & $/boe) 34.4 21.42 US$ 5.00/bbl 2.6 Gross Cash G&A ($MM & $/boe) 7.0 4.36 MSW Diff C$1.00/bbl 0.5 Drilling, completion and tie-in capital ($MM & net wells) 11.0 4.0 WCS D
Slide 12: Active Risk Management
ACTIVE RISK MANAGEMENT A rolling 24-month program balancing price protection and upsides participation ~55% & 40% hedged of forecast 2021 & 2022 volumes 2,000 6,000 Oil Hedges Gas Hedges 5,000 Hedged Oil Volume (bbl/d) Hedged Gas Volume (GJ/d) 1,500 4,000 1,000 3,000 2,000 500 1,000 - - Q1 2021 Q2 2
Slide 13: ARO Reduction & Full Disclosure
ARO REDUCTION & FULL DISCLOSURE • Committed $3.5MM of capital budget to ARO • Participating in AER’s Area Based Closure (ABC) program, a commitment to spend on inactive liability on an area-by-area basis, driving efficiency • Received a total of $3.7MM under Alberta Site Rehabilitation Program (SRP)
Slide 14: Management Team and Board
MANAGEMENT TEAM AND BOARD Management Board of Directors Tony Berthelet, President & CEO Patrick R. McDonald, Chairman President & CEO at PPR, COO at Gran Tierra Energy, CEO at Strategic Oil & Gas, Vice President, Development and Operations at Obsidian Energy Tony Berthelet Mimi Lai, Executive Vice P
Slide 15: Appendix
APPENDIX PRAIRIE PROVIDENT RESOURCES.
Slide 16: Reserves by Type
RESERVES BY TYPE Michichi Evi Princess 15.7 MMBOE 8.1 MMBOE 3.5 MMBOE 69 Locations 40 Locations 6 Locations 4,019 MBOE 4.0 MMBOE ,746 MBOE 4.0 MMBOE 4.1 MMBOE 1.8 MMBOE 1.7 MMBOE 0. 2 MMBOE 1,790 MBOE 11.4 MMBOE 11,419 MBOE 0.1 MMBOE Proved + Probable Developed Producing (P+PDP) Proved + Probable Un
Slide 17: Value by Reserve Type
VALUE BY RESERVE TYPE Michichi Evi Princess NPV10 $134.7 MM NPV10 $79.7 MM NPV10 $42.1 MM 4,019 MBOE $18.4 MM $31.6 MM $974 $24.3 M 2,205 MBOE 1,746 MBOE $1.0 MM $18.4 M 4,061MMMBOE $17.8 MM $24.3 MM $1.1 MM $60.3 $102.0 MM $60.3 M 4,682 MBOE 1,790 MBOE $17.8 M 11,419 MBOE 3,969 MBOE Proved + Probab
Slide 18: Prairie Provident
About PRAIRIE PROVIDENT Reserves Value $218 MM YE 2020 Proved + Probable NPV10 Value(1) Including 100% of ARO Net Debt(2) $116 MM Q4 2020 Net Asset Value(2) $102 MM NAV(2)/Share $0.80 Basic Common Shares of 128MM (1) See Reserves Data Disclosure under “Advisories” (2)18See Oil and Gas Metrics and No
Slide 19: Capital Structure
CAPITAL STRUCTURE Capitalization (as at June 25, 2021, unless noted otherwise) Prairie Provident Resources Inc. TSX PPR Share Price $/share 0.075 Market Capitalization (basic) $MM 9.6 Common Shares Outstanding (basic) MM 128.0 Dilutive Instruments (exercise price, if applicable) Warrants ($0.0192/sh
Slide 20: Advisories
ADVISORIES Oil and Gas Metrics and Non-IFRS Measures This presentation includes reference to certain metrics and measures commonly used in the oil and gas industry but which do not have standardized meanings or methods of calculation under International Financial Reporting Standards (IFRS), the Cana
Slide 21: Advisories
ADVISORIES Oil and Gas Metrics and Non-IFRS Measures (Continued) Type Well Information. This presentation provides indicative information regarding type wells for the Company. Type well information reflects Prairie Provident's current operating experience in relation to wells of the indicated types,
Slide 22: Advisories
ADVISORIES Forward Looking Information Certain information included in this presentation constitutes forward-looking information within the meaning of applicable Canadian securities laws. Statements that constitute forward-looking information relate to future performance, events or circumstances, ar
Slide 23: Advisories
ADVISORIES Reserves Data Disclosure Figures provided in this presentation as to proved reserves and probable reserves volumes, and net present value of related future net revenue, are estimates of such volumes and values as at December 31, 2020 based on an evaluation by Sproule Associates Limited, i
Slide 24: Prairie Provident Corporate Information
Prairie Provident Corporate Information HEAD OFFICE STOCK EXCHANGE LISTING: Prairie Provident Resources Inc. TSX: PPR 1100, 640 – 5th Avenue SW Calgary, Alberta T2P 3G4 LEGAL COUNSEL: Bennett Jones LLP TONY BERTHELET, PRESIDENT & CEO 403-292-8071 MIMI LAI, EXECUTIVE VP & CFO RESERVE ENGINEERS: Sprou
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