Parex Resources Inc. · TSX:PXT
Parex Resources — Investor Presentation (January 2016)
20 slides from Parex Resources's investor presentation, January 2016
Slide 1: Sustained Performance, Expanding Potential
Sustained Performance Expanding Potential January 2016 Corporate Presentation 1 PAREXRESOURCES.COM | TSX:PXT
Slide 2: Demonstrating Portfolio Flexibility
Demonstrating Portfolio Flexibility Operating Results 2014 2015 Production (bopd) Full Year 22,526 ~27,400 Capital Expenditures US $297 US $120 – $130 (E) Exploration Drilling (# of prospects) 16 5 Discoveries 7 3 Appraisal (# wells) 4 4 Development Drilling (# wells) 18 none Reserves 2P (Dec. 31) 6
Slide 3: 2016 Guidance Flexibility to Adjust
2016 Guidance Flexibility to Adjust : Scenario 1: November 2, 2015(1) Assuming Brent oil price averages ~ $50/bbl in 2016, we are targeting full year: $165MM cash flow $15/bbl cash netback $165MM Capex 30,200 bopd production (10% y-y growth) Scenario 2: January 2016 Flexibility to adjust cap
Slide 4: Upcoming Events
Upcoming Events 1. Feb 8: Reserve Report Release (Independent evaluation) 2. Feb 11: Analysts’ Update (Calgary, in-house 3 hours) 3. Feb 23: Investor Tour Colombia 4. March 8: Q4 & 2015 YE operational & financial results Corporate Presentation: January 2016 4
Slide 5: Track Record of Consistent Growth
Track Record of Consistent Growth Production Growth Debt Adjusted 200 25,000 160 20,000 Production (bopd) Production per share 120 15,000 80 10,000 5,000 40 - 0 2010 2011 2012 2013 2014 2015E Production (bopd) Production per share LHS RHS Reserve Growth Debt Adjusted 120 Possible - LHS 0.80 100 2P -
Slide 6: Progressively Larger Discoveries
Progressively Larger Discoveries Median Llanos Kona Las Maracas Akira / Tigana 100 acres 300 acres 300 acres 500 +1000 acres 2010 2012 2014 Tigana/Jacana Focus Capachos 2016/17 Aguas Blancas 3000->5,000 acres Corporate Presentation: January 2016 6
Slide 7: Consistent Production Growth
Consistent Production Growth LLA-16 LLA-20 Los Ocarros Cabrestero LLA-32 LLA-34 LLA-30 LLA-26 LLA-40 Other 32 28 24 20 16 12 8 4 0 2016FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q4 Q2 Q3 Q4 Q2 Q3 (Est.) 2011 2012 2013 2014 2015 2016 Annual Building Cash Flow & Production Exploration Success Sustai
Slide 8: Parex Cash Netbacks
Parex Cash Netbacks Cash Netback Finance & Other Tax G&A Opex Transportation Royalties Brent Price US $/BBL 125 2016 PRICE SENSITIVITY Realized Price (US $/bbl) 100 75 Brent $ Estimates $60 50 $50 Q3 Brent $51.2/bbl $40 25 $45 $46 $39 $21 $14 $21 $5 $7 $15 $22 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Case 1 Case 2 Ca
Slide 9: Annual Finding, Development & Acquisition Costs
Annual Finding, Development & Acquisition Costs* $70 Profitability = Cash Netbacks > F&D Total Company 2P (Proven + Probable) 2014 3 yr $60 F&D $/bbl $10.92 $14.99 FD&A $/bbl $13.79 $17.16 $50 2015 Drivers: FD&A $/bbl $40 1. Discoveries 2. Performance $30 3. FX: CAD & COP 4. Service Costs $20 $10 $0
Slide 10: 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 Reserves + Possible Probable (mmboe) Production Life Index (mmboe) (mmboe) (mmbbls) 31-Dec -09 - - - - - 31-Dec -10 10.4 5.8 1.1 0.3 - 31-Dec-11 17.6 10.7 4.9
Slide 11: Rumba – 2015 New Discovery
Rumba – 2015 New Discovery 1. Rumba-1 Spud Mar. 25, 2015 Pre Bazar Drill Post Bazar Drill Tested oil 2 zones Mirador 19 API 2. Rumba-2 Appraisal well, 1 km step-out 3. Bazar-2 Successful, 2.2 km step-out 4. Rumba-4 Disposal well 5. Build LTT 2016 production capacity ~4,000 bopd; provides additional
Slide 12: Southern Llanos: Appraising New Discoveries
Southern Llanos: Appraising New Discoveries Cabrestero (100% WI, Operator) CARMENTEA Akira – swing producer LLA-32 2016 exploration well CALONA KANANASKIS LLA-34 LLA 34 (55% WI, Non-operated) Chachalaca TILO MAX Large discoveries at Tua & Tigana Chachalaca -2015 discovery TAROTARO TIGANA Step-out 6
Slide 13: Capachos Farm-in: Ecopetrol Partnership
Capachos Farm-in: Ecopetrol Partnership Capachos (50% WI, Operator)1 Development & exploration opportunities ANH royalty contract Large structure, light oil, 2 mmbbls produced from 2 wells Leverages our strengths: Capachos low cost drilling LLA-10 strong operator working with communities Capac
Slide 14: Magdalena Basin: Next Growth Platform
Magdalena Basin: Next Growth Platform Growth Options: VIM-1 Aguas Blancas Light oil development farm-in on Ecopetrol *LOWER MAGDALENA No. Fields: 43 EUR: 547 mmboe Prod.: 15 mboe/d VIM-1 Acquire 3D seismic Catatumbo VMM-9 *MIDDLE MAGDALENA Environmental Impact Assessment No. Fields: 102 EUR: 3,919 m
Slide 15: Aguas Blancas – Field Background
Aguas Blancas – Field Background Discovery Well: Aguas Blancas (1962, Ecopetrol) 44 mmbo Field Information Cumulative Production: 1 MMBO (28 – 31 API) Solution Gas (Reservoir Pressure ~3,000 psi) Depth: 4,000 – 7,000 feet Main Reservoir: Mugrosa C; net oil pay up to 150 feet Number of wells: 5 (1962
Slide 16: La Cira-Infantas: Production History
La Cira-Infantas: Production History Average Annual Production 65 Sept 2015 60 Target Production 55 50,000 bpd 50 Production (000 bpd) 45 40 35 30 Recent water-flood response 25 20 15 10 5 - 1925 1935 1945 1955 1965 1975 1985 1995 2005 2015 Aguas Blancas is ~2 km south in the same reservoir formatio
Slide 17: 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 Tua Location Corporate Presentation: January 2016 17
Slide 18: Appendix – Block Summary
Appendix – Block Summary # Block Operated/Non-Operated Working Interest Partners Gross Acres Basin 1 LLA-10 Operated 50% Gran Tierra 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 19: Appendix – Summary of Quarterly Results
Appendix – Summary of Quarterly Results (Unaudited) 2015 2014 2013 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 OPERATING Production (thousands of bopd) 27.4 27.0 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 45 56 49 88 60 94 105 103 104 102 106 99 110 B
Slide 20: 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,
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