International Petroleum Corp. (british Columbia) · OMXSTO:IPCO

International Petroleum Corp. (british Columbia) — International Petroleum — Q3 2017 Earnings Presentation

24 slides from International Petroleum Corp. (british Columbia)'s earnings presentation, Nov 7, 2017

  1. Slide 1: Operations and Financial Update First Nine Months 2017

    Operations and Financial Update First Nine Months 2017 Mike Nicholson, CEO Christophe Nerguararian, CFO November 7, 2017 NCF00042 Q3 p01 07.17

  2. Slide 2: Corporate Strategy

    International Petroleum Corp. Corporate Strategy Deliver operational excellence Maintain financial resilience under low oil prices Maximize the value of our resource base Grow through M&A NCF00042 Q3 p02 07.17 1

  3. Slide 3: First Nine Months Update

    International Petroleum Corp. First Nine Months Update Strong HS&E performance – No material incidents Production to end September of 10,400 boepd exceeds mid-point guidance by 4% – Underpinned by strong operational and reservoir performance across all assets – >99% uptime on Bertam year to date – B

  4. Slide 4: 2017 Production

    International Petroleum Corp. 2017 Production Year to date production 10,400 boepd – 4% above mid-point guidance 2017 production guidance revised – 10,000 to 10,500 boepd net – Safe and successful shutdown on Bertam completed as planned – Strong performance across all assets IPC Net Production 2017

  5. Slide 5: Contingent Resources and 2017 Capital Programme

    International Petroleum Corp. Contingent Resources and 2017 Capital Programme Renewed focus on organic growth: 17.5 MMboe of contingent resources Capital expenditure forecast – Guidance reduced from MUSD 38 to MUSD 33 – 2 infill wells in Malaysia (1.7 MMboe net contingent resources) - Capital costs

  6. Slide 6: Malaysia Bertam Development Upside

    Malaysia Bertam Development Upside Bertam Field Map Low risk infill drilling (2 wells) – Partner approval and rig contract secured – Spud expected during the fourth quarter – Capital cost saving due to - Optimization of scope and costs A15 2016 infill - Reduced rig and service rates compared to fore

  7. Slide 7: France – Villeperdue West Development

    Villeperdue Dogger Depth Map France – Villeperdue Paris Basin 5,000m West Development France OWC 3D seismic data acquisition completed October 2017, Undeveloped field extension processing in 4Q17/1Q18 Villeperdue Deep prospect Undeveloped western extension of Villeperdue 4.1 MMboe contingent resourc

  8. Slide 8: Growth through M&A

    International Petroleum Corp. Growth through M&A “ Delivering on our promise – An acquisition of a high quality asset; with significant upside resource potential, at a favourable point in the cycle, with no dilution to shareholders ” Acquiring Cenovus operated interest in Suffield/Alderson assets (1

  9. Slide 9: Suffield Acquisition Location Map

    Suffield Acquisition Location Map Commanding, difficult-to-replicate land position Over 800,000 acres of shallow gas rights and over 100,000 acres of petroleum rights Cenovus Land Position and Key Oil Pools Northwest Territories Nunavut Yukon Alberta British Edmonton Columbia Saskatchewan Calgary Me

  10. Slide 10: Suffield Acquisition Reserves and Resources Distribution

    Suffield Acquisition Reserves and Resources Distribution as at December 31, 2017 Unrisked Best Estimate 2P Oil Reserves 2P Gas Reserves Contingent Resources 26.6 MMboe 73.0 MMboe 46.1 MMboe Undeveloped Developed EOR: Water Flood & ASP Non Producing Oil Drilling Undeveloped Developed Non Producing De

  11. Slide 11: Suffield Acquisition Reserves and Contingent Resources Impact

    Suffield Acquisition Reserves and Contingent Resources Impact Material reserves and contingent resources increases ~190 MMboe of reserves and contingent resources (3.4x increase) Reserves life index of 11.4 years for Suffield compared to 8.1 years IPC Reserves Impact Contingent Resources Impact 160

  12. Slide 12: Suffield Acquisition People and Process

    Suffield Acquisition People and Process Highly experienced organization transferring from Cenovus with local knowledge and operating capability Senior country management Operational staff Asset management experts Corporate support functions Strong HSE culture Transition and integration program on tr

  13. Slide 13: First Nine Months 2017 Financial Highlights

    First Nine Months 2017 Financial Highlights NCF00031 finQ3 p01 11.17 12

  14. Slide 14: Third Quarter 2017 Financial Highlights

    Third Quarter 2017 Financial Highlights Third Quarter Nine Months 2017 2017 Production (boepd) 9,200 10,400 Average Dated Brent Oil Price (USD/boe) 52.08 51.84 Operating costs (USD/boe) 1 18.71 14.92 Operating cash flow (MUSD) 1 28.9 101.2 EBITDA (MUSD) 1 26.4 95.9 Net result (MUSD) 2.2 13.7 NCF0003

  15. Slide 15: Third Quarter 2017 Financial Results: Operating Cash Flow

    Third Quarter 2017 Financial Results Operating Cash Flow 1 120 120 110.8 100 100 101.2 80 80 Million USD 60 60 40 40 38.9 20 28.9 20 0 0 Q3 Q3 Nine Months Nine Months 2017 2016 2017 2016 NCF00031 finQ3 p03 11.17 1 Non-IFRS Measure, see MD&A 14

  16. Slide 16: Third Quarter 2017 Financial Results: EBITDA

    Third Quarter 2017 Financial Results EBITDA 1 120 120 100 108.9 100 95.9 80 80 Million USD 60 60 40 40 38.4 20 26.4 20 0 0 Q3 Q3 Nine Months Nine Months 2017 2016 2017 2016 NCF00031 finQ3 p04 11.17 1 Non-IFRS Measure, see MD&A 15

  17. Slide 17: Third Quarter 2017 Financial Results

    Third Quarter 2017 Financial Results 160 160 Revenue 140 140 MUSD 148.4 10,400 boepd Production costs MUSD 47.1 120 Operating costs USD 14.92/boe 120 100 100 MUSD 101.3 Million USD Depletion 80 80 MUSD 64.3 60 Exploration and business development costs 60 MUSD 1.7 Financial items 40 MUSD 12.8 40 Gro

  18. Slide 18: Third Quarter 2017 Netback

    Third Quarter 2017 Netback 1 (USD/boe) Third Quarter Nine Months 2017 2017 Average Dated Brent Oil Price (USD/boe) 52.08 51.84 Revenue 56.52 52.12 Cost of operations -16.77 -13.12 Tariff and transportation -0.99 -0.96 Production taxes -0.95 -0.84 Operating costs 2 -18.71 -14.92 Inventory movements -

  19. Slide 19: Third Quarter 2017 Operating Costs

    Third Quarter 2017 Operating Costs 1 USD/boe USD/boe 24 24 20 20 Q2 Guidance USD 17.20/boe Q3 Guidance 16 16 USD 16.20/boe 12 12 8 8 4 4 0 0 NCF00031 finQ3 p08 11.17 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Actual Actual Actual Forecast 1 Non-IFRS Measure, see MD&A 18

  20. Slide 20: Third Quarter 2017 G&A / Financial Items

    Third Quarter 2017 G&A / Financial Items (MUSD) Third Quarter Nine Months 2017 2017 G&A 2.3 5.4 G&A – depreciation 0.2 0.9 G&A Expense 2.5 6.3 Third Quarter Nine Months 2017 2017 Interest expense 0.5 0.7 Foreign exchange loss, net -0.6 8.7 Unwinding of site restoration discount 0.9 2.7 Amortization

  21. Slide 21: First Nine Months 2017 Net Debt

    First Nine Months 2017 Net Debt 1 (MUSD) MUSD Exploration & Evaluation 120 MUSD -4.1 Financial 120 MUSD -1.9 100 100 Development MUSD -7.0 G&A LUPE WC 80 MUSD -3.1 MUSD -35.4 80 60 60 Operating Cash Flow 40 MUSD 101.2 40 20 20 Opening Cash 1 Jan 2017 0 0 MUSD 13.4 Suffield acquisition deposit Share

  22. Slide 22: Concluding Remarks

    International Petroleum Corp. Concluding Remarks First nine months production of 10,400 boepd, 4% ahead of guidance – Revised full year guidance: 10,000 to 10,500 boepd net Operating cost 1 guidance reduced to 16.2 per boe for full year 2017 Strong operating cash flow 1 generation of MUSD 101.2 over

  23. Slide 23: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS Important Information This presentation does not contain or constitute an invitation or an offer to acquire, sell, subscribe for or otherwise trade in shares or other securities of IPC. This presentation has not been approved by any regulatory authority and is not a prospe

  24. Slide 24: International Petroleum Corp.

    International 1 Petroleum Corp.

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