Rubellite Energy Corp. · TSX:RBY

Rubellite Energy — Investor Presentation (January 2023)

28 slides from Rubellite Energy's investor presentation, Jan 17, 2023

  1. Slide 1: Rubellite Energy Inc. Corporate Overview

    Rubellite Energy Inc. Corporate Overview January 17, 2023

  2. Slide 2: Background

    Background Newly created, growth-focused, pure play Clearwater company (TSX:RBY) Since 2018, Perpetual / Rubellite has executed 50+ separate transactions to assemble access to 345 net sections across the Clearwater fairway  Rubellite acquired all of Perpetual’s Clearwater Assets for total considera

  3. Slide 3: Investment Highlights

    Investment Highlights Robust growth opportunity in the prolific Clearwater play  High growth, pure play Clearwater explorer/producer  ~345 net sections of prospective Clearwater lands and ~200 Development / Step-out drilling Expanding locations Pure Play  Multiple exploration prospects captured w

  4. 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, > 1,000 wells have been drilled, growing play production from nil to ~118,000 bbl/d by Q4 2022 • ~80% of production at Marten Hills and Nipisi • Addit

  5. Slide 5: Rubellite Asset Profile

    Rubellite Asset Profile 345 net sections of prospective land; ~200 development / step-out Clearwater locations Asset Map Asset Summary: Land Well Count Production Area Net Net Q4 2022 (sections)(1) (producing)(3) (bbl/d)(4) Figure Lake 120.9 19.0 915 Cadotte Ukalta 35 25.0 860 Cranberry Lake Marten

  6. Slide 6: Southern Clearwater

    Southern Clearwater Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway RBY Play History Ukalta –Development with Secondary Zone Exploration  Six 6-leg wells on production at RBY Figure Lake inception  25 (25.0 net) wells onstream (Dec 2022)  836 bbl/d (Dec 2022) 

  7. Slide 7: Rubellite Asset Profile | Ukalta

    Rubellite Asset Profile | Ukalta 2022 Focused on Primary Zone Development, Pool Extensions and Secondary Zone Evaluation Asset Map Asset Summary Working Interest: 100% Current Production: ~820 bbl/d heavy oil  Jan 1 – 15, 2023 Field Estimate  25 Primary Zone multi-laterals on sales production 2022

  8. Slide 8: Rubellite Asset Profile | Figure Lake

    Rubellite Asset Profile | Figure Lake Pool Extension-focused drilling program in H2 2022 to delineate Development location inventory Asset Map Asset Summary Working Interest: 100% Current Production: ~1,400 bbl/d heavy oil Exploratory  Jan 1 – 15, 2023 Field Estimate North Pad  23 multi-laterals o

  9. Slide 9: Rubellite Asset Profile | Figure Lake

    Rubellite Asset Profile | Figure Lake Ongoing drilling results will further refine Figure Lake type curve Type Curve and Production Results Type Curve Assumptions Assumptions Figure Lake Development wells (6-leg multi-lateral -8,400 m McDaniel Year End  16 wells on production for 30+ day total) 202

  10. Slide 10: Rubellite Asset Profile | Marten Hills

    Rubellite Asset Profile | Marten Hills Developing to Maximize Value Asset Map Asset Summary Working Interest: 30%  3 gross sections at 50% BPO / 30% APO WI Net Production(1): 480 bbl/d heavy oil  Jan 1 – 15, 2023 Field Estimate 2022 Strategy:  Develop with 8 – 9 leg open hole multi-laterals • 1,4

  11. Slide 11: Rubellite Asset Profile | Marten Hills

    Rubellite Asset Profile | Marten Hills Strong production performance from Q4 2022 drilling program Type Curve and Production Results Type Curve Assumptions Assumptions Marten Hill Q4 Development Wells (8-leg multi-lateral -11,200 m McDaniel Year End  3 (0.9 net) wells drilled in Q4 2022 – 9 leg mul

  12. Slide 12: Peavine/Dawson - Northern Clearwater Exploration

    Peavine/Dawson - Northern Clearwater Exploration Planning to drill up to 4 gross evaluation wells in winter 2023 Asset Map Opportunity Summary Peavine/Dawson/Seal area attracting significant attention from industry  2022 Crown land sale bonuses > $90 million  Significant drilling activity planned

  13. Slide 13: Rubellite Guidance

    Rubellite Guidance Exploration and Development plan is fully funded at current strip prices Guidance (November 10, 2022) Development Parameters Q4 2022E 2022E Q1 2023E  Single pad batteries with minimal infrastructure Development Capital Expenditures(1)(3)  Oil sales from new wells forecast approx

  14. Slide 14: Risk Management

    Risk Management WCS price protection on an average of 200 bbl/d in 2023 at ~$85.99 Cdn/bbl Risk Management Philosophy and Strategy Current WTI and WCS hedge positions (as at January 13, 2023) 22-Oct 22-Nov 22-Dec Q1/23 Q2/23 Q3/23 Q4/23  Physical forward sales contracts and financial WTI USD/bbl Sw

  15. Slide 15: 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  Minimal fresh water usage Land  Surface footprint minimized with multi-well pad development Environme  Onsite drill cutting cleanin

  16. Slide 16: 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 Tamara MacDonald, In

  17. Slide 17: 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 Capitalizatio Clearwater n and Risk Asset Base Mitigation Fully Funded Management Development Alignment Unlocking a

  18. Slide 18: 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

  19. Slide 19: Slide Notes

    Slide Notes Slide 1 1. Current shares outstanding as at January 13, 2023, 2.4 million share awards outstanding and 4.0 million share purchase warrants (5-year term; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financial Measures”

  20. Slide 20: Slide Notes (continued)

    Slide Notes (continued) Slide 5 1. See “Drilling Locations” in the Advisories Slide 6 2. See “Drilling Locations” in the Advisories 3. Capital is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories Slide 7 4. See “Drilling Locations” in the Advisories Slide 8 5. "McDani

  21. Slide 21: Slide Notes (continued)

    Slide Notes (continued) Slide 9 1. See “Drilling Locations” in the Advisories 2. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 3. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserves

  22. Slide 22: Slide Notes (continued)

    Slide Notes (continued) Slide 12 1. Development and Exploration Capital expenditures is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. Heavy oil wellhead differential is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. Cash co

  23. Slide 23: Slide Notes (continued)

    Slide Notes (continued) Slide 13 1. Prices reported are the weighted average prices for the period 2. Western Canadian Select (“WCS”) 3. Hedge positions current to January 16, 2023. Full hedge positions by product are as follows: Commodity price risk management As at J anuary 13, 2023, the Company h

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Advisories

    Advisories 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”, “Rubellite Guidance”, “Rubellite Management”, “Ru

  27. Slide 27: Advisories (continued)

    Advisories (continued) Drilling Locations This presentation discloses Rubellite’s estimated drilling locations in two categories: (i) booked locations and (ii) unbooked development / step-out locations. Booked locations are proved and probable locations, are derived from the McDaniel Reserve Report

  28. Slide 28: Advisories (continued)

    Advisories (continued) Third Party Information This presentation includes market, industry and economic data which was obtained from various publicly available sources and other sources believed by Rubellite to be true. Although Rubellite believes it to be reliable, it has not independently verified

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