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APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc.

Rock Energy Inc. · Apr 6, 2015 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 1
    SEIZING THE CHALLENGE Investor Presentation, April 2015
  2. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 2
    This document contains the terms operating netback and total net capital expenditures which do not have any standardized meaning prescribed by GAAP and may not be comparable with the calculation of similar measures for other entities…
  3. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 3
    Funds from operations This document contains the term funds from operations which does not have any standardized meaning prescribed by GAAP and should not be considered an alternative to, or more meaningful than, cash flow from…
  4. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 4
    Focus on plays and reservoirs Develop a foundation of Implement where we can assets with Develop a suite of assets growth through apply emerging predictable that can provide a solid the drill bit and technology to through improve…
  5. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 5
    Find plays Explore new Focus on OIL that are Preserve and technologies exploration scalable and build our to increase and repeatable development recovery development where Rock drilling factors and programs can control inventory…
  6. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 6
    TSX:RE STOCK TRADING Stock exchange TSE Symbol: RE Corporate Current stock price trading range 2.20-2.30/share Profile CAPITAL STRUCTURE Common stock (basic) 47.0 M Common stock (full diluted) 50.0 M Market capitalization 110-115…
  7. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 7
    NET ASSET VALUE (Proved plus Probable) Reserve Value* (M) 216.8 Net Asset Value Undeveloped Land (M) 21.0 and Reserves Net Debt (M) 69.0 Net Assets (M) 168.8 December 31, 2014 Basic Shares (M) 40.4 NAV/Basic Share 4.17 RESERVES…
  8. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 8
    ROCK ENERGY VALUE PROPOSITION Why buy Rock 9
  9. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 9
    1. How is your Balance Sheet Will you be around when prices recover Why Buy Rock 2. What are you doing to get your costs down 4 Questions to think about Can you adapt to survive at these prices 3. What kind of torque does your stock…
  10. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 10
    We enter 2015 with low debt Year end 2014 net debt is 69.0 million Balance Sheet Rock has moved proactively to guard the Proactively protecting shareholder value balance sheet Reduced the 2015 capital program to 25 million Completed a…
  11. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 11
    Declining Cost of Lowering Our Total Cost of Production Production Implementing the EOR project at Cost Initiatives 45 40 0.07 0.23 Mantario in 2015 will reduce our Rock is working to reduce its 5.67 3.16 0.46 royalty rate from…
  12. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 12
    Share Price by Torque in Action Valuation Multiples If oil prices increase by 12.00 2.50 18% from 55.00 US/bbl to 65.00 US/bbl, our funds Torque3 for 1 from operations per share 10.00 Share price and price per 2.00 increases by…
  13. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 13
    Corporate Funds from Sustainability Operations vs. WTI At WTI 55.00US/bbl the company is generating enough funds from Assets 120.00 operations to hold Rocks assets have a low base 100.00 96.3 production flat at 5,000 decline rate…
  14. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 14
    LUSELAND ONWARD ONWARD HZ VIKING PROJECT Rocks Focus and PRAIRIEDALE KERROBERT PLENTY Future DODSLAND NORTH Our Southwest-Saskatchewan oil assets COLEVILLE SMILEY DODSLAND ONGOING EXPLORATION ACTIVITIES…
  15. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 15
    MANTARIO/LAPORTE Foundation of production and cash flow 16
  16. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 16
    VERTICAL TYPE WELL* DCET 700k NPV 1,470k Pay Out 9 months Mantario/Laporte IRR 200% *Assumes GLJ Jan 2015 Price Foundation of production and cash Forecast and EOR royalty of 1%. flow PROCEEDING WITH EOR PROJECT TO MAXIMIZE…
  17. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 17
    2015 Drilling 10 million Mantario/Laporte 3 Vertical locations 2015 Plans 3 Horizontal producers Exploration and development upside B 10 water injector conversions 2015 Facilities 8 million Pipeline gathering system Polymer…
  18. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 18
    Mantario/Laporte Mantario/Laporte Production Forecast Polymer Flood 3,500 (EOR) 3,000 Lower decline rate Polymer injection began on March 2,500 11, 2015, with significantly reduced Production Rate (boe/d) royalties 2,000…
  19. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 19
    ONWARD SASKATCHEWAN VIKING & MANNVILLE PLAYS Growth opportunities through continued development of this light oil, high netback, stacked horizons play
  20. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 20
    Viking Resource Play Mannville Lloyd Oil Current light oil production Current Mannville oil Onward approximately 1,200 bopd production approximately Saskatchewan Light oil, high netback 500 bopd Area is highly prospective for new pools…
  21. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 21
    GAS/OIL CONTACT Onward Viking Play Large drilling inventory 52 HZ DRILLED TO DATE 10 HZ COULD BE DRILLED Q3/Q4 2015 40+ POSSIBLE LOCATIONS FOR 2016 Rock Land Rock Drilled Viking Horizontals to Date (52) Completed Viking…
  22. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 22
    Onward Well Performance Onward Viking 70 15 Stage Fracs vs. 18+ Stage Fracs Well Production ONWARD VIKING TYPE WELL* IP30 50-60 mboe Performance 60 EUR 35 mboe (P+P) More fracs per well is making a DCET 955k big difference 50 NPV…
  23. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 23
    Better production rates Results with new completion techniques are yielding initial production rates 35% better than before Onward Viking Abundance of development opportunities We have validated the play Expanded gas/oil contact 40…
  24. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 24
    NEW 30-SECTION 3D SEISMIC PROGRAM Onward Mannville 3D seismic program to further develop pools and confirm exploration leads EXISTING 3D SEISMIC PROGRAM Rock Land Existing 3D Rock Producing Lloydminster wells New 30 Section…
  25. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 25
    Onward ONWARD MANNVILLE WELL Mannville CHARACTERISTICS VERTICAL HORIZONTAL Typical Well Characteristics Cost (DCET) 650K 800K Reserves (2P) 67 MBOE 97 MBOE Initial Production Rate 50 BOEPD 100 BOEPD IRR 57% 139% NPV (Btax 10%) 760K…
  26. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 26
    Current Status 2015 Plans Onward Current production 500 Interpret 30 section 3D Mannville bopd seismic program Program New Lloyd pool discovered Develop exploration with 11-16 (West Onward) prospects New Bakken pool Review…
  27. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 27
    Netbacks by Play at Various WTI Prices 90.00 Play Type 80.00 Netbacks 70.00 All our plays generate positive 58.39 cash netbacks down to WTI 60.00 45.00 US/bbl 50.00 47.16 40.00 35.93 30.00 24.50 20.00 13.45 10.00…
  28. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 28
    Rock is focused on the higher rate of return projects first Prudent At WTI 45.00-50.00 US/bbl (flat) the Mantario vertical and Stewardship of Onward horizontal Mannville wells generate a ROR 25% Capital As prices exceed WTI 60.00 US/bbl…
  29. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 29
    Economic Drilling Inventory at WTI Prices 700 Drilling 6 6 6 10 10 Inventory 600 22 22 10 22 Economic drilling locations (10% ROR) 500 6 10 Locations Count (10% ROR) 22 400 Onward Hz Mannville Onward Vertical…
  30. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 30
    Total Net Capital Expenditures for 2015 2015 Capital 3MM Onward Viking Budget 4MM 10MM Exploration 25MM 2015 Capex Mantario Drilling 9 Net Wells Planned 8MM Mantario Facilities 32
  31. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 31
    2014 2015 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Actual Forecast Production Avg. (boepd) 4,899 4,988 4,747 5,328 4,991 4,600-5,000 Results and % oil Realized Price (/boe) 94 73.58 95 82.45 95 75.76 97 60.09 95 72.63 95 46.00…
  32. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 32
    Our Assets have a low Our Team has decline rate, Our Balance been through and provide a Sheet is intact this before solid foundation of cash flow We have the Our Stock Assets that We are price has big working hard will give…
  33. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 33
    SUPPLEMENTARY INFORMATION 35
  34. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 34
    Management Team Directors Strong Allen J. Bey Stuart G. Clark Management President and CEO Chairman of the Board Team/Board Jeffery G. Campbell Richard J. S. Wigington Senior Vice President and COO Robert A. Maitland Todd Hirtle…
  35. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 35
    TRADING TSX Stock Symbol RE Market Profile USA - OTC RENFF SHARES OUTSTANDING Basic 47.0 MM Fully diluted 50.0 MM MANAGEMENT & DIRECTORS Basic 7.6% Fully diluted 10.9% RECENT TRADING RANGE 2.20 - 2.30 MARKET CAPITALIZATION…
  36. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 36
    Drilling Results WELLS DRILLED 2012 2013 2014 Heavy Oil 17 (17.0 net) 31 (30.0 net) 30 (30.0 net) Light Oil 10 (10.0 net) 39 (39.0 net) Natural Gas D&A 3 (3.0 net) 4 (4.0 net) 6 (6.0 net) Service Wells 3 (3.0 net) 1 (1.0 net) Nil…
  37. APRIL 2015 INVESTOR PRESENTATION – Rock Energy Inc. – slide 37
    Analyst INVESTOR RESEARCH FIRM RATING ANALYST Coverage FirstEnergy Out Perform B. Fitzmartyn Alta Corp Out Perform T. Matthews Paradigm Capital Buy K. Lin GMP Capital Buy G. Daunheimer Acumen Buy T. Reynolds Dundee Buy C. Ellison…

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