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May 2015 Annual General Meeting – Parex Resources, Inc.

Parex Resources, Inc. · May 12, 2015 · 29 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. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 1
    Parex Resources Inc. Annual General Meeting May 12, 2015
  2. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 2
    2014 Achievements 1. Expanded Core Llanos Position Verano acquisition: increased working interest on LLA-32 & LLA-34 2. Added 2nd Core Area: Magdalena Basin VMM-9 & VIM-1 3. Strengthened Balance Sheet Redeemed convertible debentures…
  3. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 3
    Re-visit: Are we adding value 2012 2013 2014 Notes Production bopd 11,407 15,854 22,526 Q115 26,729 bopd 2P Reserves mmboe 16 32 68 3P =104 mmboe FD&A (2P Incl. FDC) Recycle Ratio 39.64 15.75 13.79 (USD) 1.5x RLI (years) 3.5 5.1 7.1…
  4. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 4
    Monthly Rate of Return PXT vs. TSX Composite/Energy Index (Total Returns) 400% 350% PXT 300% 250% 200% 150% 100% S&P TSX 50% 0% S&P Energy Index -50% Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 *Initial PXT Share…
  5. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 5
    Annual Themes Year Theme Delivery 2010 Find Oil Kona Q4: Production 11,342 bopd & 2011 Build Cash Flow & Production operating netback 71.24/bbl 2012 Exploration Success Discover Las Maracas + Akira 2013 Achieve Sustainability 2P…
  6. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 6
    Leveraging Portfolio Flexibility 1. Large Conventional, Early Stage of Development Oil Fields Minimal maintenance capital Significant development drilling inventory 2P 62 locations 3P 86 locations 2P FDC of 5.28/bbl 2. Significant…
  7. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 7
    5 year Plan: Strategic Intents 1. Provide Consistent Growth of: Reserves, Production and Cash flow Absolute and per share 2. Maintain or Improve Sustainability RLI target 6-9 years Maintain development inventory 2+ years Sustain…
  8. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 8
    Portfolio Supports the Path to Growth Track record of progressing reserves* from 3P to cash flow Proved +Probable Proved + Proved Annual 2P + Possible Probable (mmboe) Production Reserves (mmboe) (mmboe) (mmbbls) Life Index 31-Dec…
  9. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 9
    Parex Model Foundation Assets Shareholder Value Capabilities Balance Sheet 2015 Annual General Meeting 9
  10. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 10
    Parex Model Core Strategy Assets Reserve Report Exploration Portfolio Business Development Shareholder Value Capabilities Balance Sheet 2015 Annual General Meeting 10
  11. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 11
    Parex Model Core Strategy Balance Sheet 80 MM Net WC 200 MM FFO 200 MM Bank Facility Shareholder Value Assets Capabilities 2015 Annual General Meeting 11
  12. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 12
    Parex Model Core Strategy Capabilities Executive Commitment Bench Strength Rigorous Process Core Competencies Shareholder Value Balance Sheet Assets 2015 Annual General Meeting 12
  13. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 13
    Parex Exploration Life Cycle Develop Acquire Test Initial Expand Exploitation Concept Land Concept Development Land Traditional LLA-26, Cebucan 3-Ways Low Side Cabrestero, LLA-34, LLA-10 Closures Stratigraphic LLA-30,…
  14. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 14
    Exploration Life BARRANQUILA SANTA MARTA Cycle is Repeatable CARTAGENA LOWER MAGDALENA(2) No. Fields: 43 EUR: 547 mmboe Prod.: 15 mboe/d LEGEND VIM-1 PXT Land/Block COVENAS Pipeline Ports Apply same Refineries…
  15. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 15
    Leveraging Portfolio Flexibility Whats New for Parex 1. Cash cost reductions & improved netbacks 2. 80 mm net WC 3. 200 mm bank facility 4. Rumba oil discovery Going forward plan 1. Expand Rumba 2. Leverage LLA-32/34 success 3. Repeat…
  16. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 16
    2015 Exploration Drilling Program Prospect/Well Block Timing / Status 1 Rumba-1 LLA-26 Tested 2,158 bopd from Mirador 2 Bazar-1 LLA-26 Drilling (exploration satellite to Rumba) 3 Rumba-2 LLA-26 Rumba / Bazar follow-up 4 Taringa-1…
  17. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 17
    Rumba Key Take-aways Core Competencies 1. Identify large potential resources 2. Social engagement boots on the ground 3. Be a low cost operator Rumba oil sales 2015 Annual General Meeting 17
  18. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 18
    Rumba Case Study 1. Background 2008 Bid Round Suspended operations 2. Community Engagement Development plan 3. Rumba-1 Drilling Operational plan 4. Lessons Learned Identify large resources Social engagement Be a low cost…
  19. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 19
    Rumba Background (1) Background 1. Block LLA-26 had the highest commitment value in 2008 Bid Round at 40.2 mm 2. Original Operations Drilling exploration well Chirinola-1 Community halted drilling March 2012 Farm-out to Parex in…
  20. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 20
    Rumba Community (2) Key Steps to Community Support 1. Explain the project plan and its local benefits 2. Educate and overcoming communities negative biases towards drilling impacts and environment oil activities 3. Engage local…
  21. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 21
    Rumba Engaging Stakeholders Meetings: Meetings with local stakeholders: environment, Topics environmental impact local employment and paved road and services Civil Works Drill Dec-Jan Mar 25-Apr 21 2015 Annual General…
  22. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 22
    Rumba Operations Plan (3) 1. Rumba-1 Spud Mar. 25, 2015 Tested oil 2 zones Mirador 19 API Final rates 2,158 bopd Natural flow 2. Bazar-1 Drilling Une target 3. Build LTT 4. Appraisal Well 2015 Annual General Meeting 22
  23. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 23
    2015 Exploration: Building on Success 1. Explore where we have a CARMENTEA track record of finding oil Carcay LLA32 CALONA Xorop Guepardo KANANASKIS 2. LLA-32: 2 exploration wells LLA34 MAX Chenchena TILO 3. LLA-34 TAROTARO…
  24. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 24
    Magdalena Basin: Opportunity to Accelerate Cesar Growth Options: VIM-1 Rancheria 1. VIM-1 Acquire 3D seismic Lower Drill in 2016 Magdalena 2. VMM-9 EIA underway Catatumbo 3. VMM-11 Leverage 3D seismic acquired in 2014 Middle…
  25. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 25
    Lower Magdalena: VIM-1 1. Take advantage of the lower cost environment to acquire 3D seismic in VIM-1 2. Block provides exposure to: Light oil play (e.g. El Dificil field 44-47API) The Poquero Turbidite Gas/Condensate play 3.…
  26. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 26
    Middle Magdalena Basin: New Play Concepts VMM-9 & VMM-11 (100% WI, Operator) 1. Testing of new play concepts: 1. Teriatry Structure Cold heavy oil production (CHOPS) Fairway OPON Conventional structure/sub-thrust (CHOPS) 2. Subcrop…
  27. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 27
    Capachos Farm-in Cano Limon 1. Ecopetrol partnership 2. ANH royalty contract 3. Large structure, light oil 4. Leverage our strengths: low cost drilling strong operator working with communities 2015 Annual General Meeting 27
  28. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 28
    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 Rumba-1 Location 2015 Annual General Meeting 28
  29. May 2015 Annual General Meeting – Parex Resources, Inc. – slide 29
    Thank you for your support 2015 Annual General Meeting 29

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