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July 2015 Investor Presentation – Valeura Energy Inc.

Valeura Energy Inc. · Jul 20, 2015 · 61 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. July 2015 Investor Presentation – Valeura Energy Inc. – slide 1
    A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION UNLOCKING TURKEYS UNCONVENTIONAL GAS POTENTIAL CORPORATE PRESENTATION JULY 2015
  2. July 2015 Investor Presentation – Valeura Energy Inc. – slide 2
    Corporate Profile Valeura Energy Inc. (VLE TSX) is a Canada-based oil and gas company with assets in Turkey Interests in 21 leases & licences in Turkey: 0.9 MM acres (gross); 0.38 MM acres (net) (1) Focused on development of…
  3. July 2015 Investor Presentation – Valeura Energy Inc. – slide 3
    Capital Structure July 1, 2015 Basic shares outstanding at July 1, 2015 57,906,135 Common shares purchasable pursuant to outstanding: Financial warrants (5.50 exercise price per share) 13,269,217 Options (0.72 weighted average…
  4. July 2015 Investor Presentation – Valeura Energy Inc. – slide 4
    Q1 2015 Financial & Operating Highlights (1) 3 MONTHS 3 MONTHS 3 MONTHS RESULTS ENDED ENDED ENDED MAR 31, 2015 Dec 31, 2014 MAR 31, 2014 Production Crude oil & NGLs (bbl/d) 10 10 7 Natural gas (Mcf/d) 7,273 7,022 7,605 boe/d 1,223…
  5. July 2015 Investor Presentation – Valeura Energy Inc. – slide 5
    Why Turkey Prospective Proven petroleum systems TBNG-PTI Under-explored & under-exploited conventional & TBNG-PTI acquisition unconventional plays Acquisition (natural gas & light/medium oil) opportunity Opportunity to deploy…
  6. July 2015 Investor Presentation – Valeura Energy Inc. – slide 6
    Turkey YE 2014 Reserves (Company Gross) MMboe 5% and 9% year-over-year increase in 1P 14 Possible and 2P reserves, respectively, in Turkey Probable 12 Proved Primarily natural gas reserves in Thrace 10.3 10.4 3P Basin on TBNG-PTI JV…
  7. July 2015 Investor Presentation – Valeura Energy Inc. – slide 7
    Thrace Basin Transactions (1) Bulgaria 2010 Otto asset purchase (Edirne) Black Sea E17-b4-1 (Valeura 35% WI) E17-c1-1 E17-c2-1 Turkey 2013 Banarli licence award (Valeura 100% WI) 5122 3659 2926 F19- F18- F19- d4-2 F17-…
  8. July 2015 Investor Presentation – Valeura Energy Inc. – slide 8
    TBNG-PTI JV (Valeura 40% WI - Non-Operated) I-8 Rig Drilling at TDR-9 8
  9. July 2015 Investor Presentation – Valeura Energy Inc. – slide 9
    TBNG-PTI JV Interests in 14 leases & licences in Thrace Basin (0.51 MM gross acres onshore) Well established shallow gas production and marketing business: - 65 producing wells (gross) in 15 gas fields in onshore lands - Owned…
  10. July 2015 Investor Presentation – Valeura Energy Inc. – slide 10
    TBNG-PTI JV Shallow Gas Business 2013 shallow gas program: Spudded 1 new drill (evaluating) Completed 14 workovers (11.0 MMcf/d aggregate initial 7-day rate); 3 well re-entry fracs Acquired 232 km2 of new 3D seismic in Osmanli area…
  11. July 2015 Investor Presentation – Valeura Energy Inc. – slide 11
    Osmanli Area Conventional Gas Drilling Banarli Merged Osmanli & Tekirdag 3D seismic Gurgen-1 area Osmanli Gurgen-2 Gurgen-3 Dogu Guney Osmanli-1 Osmanli-3 Tavanli-1 Karaevli Kayi Gazi Recent drills Biyikali-2 ST Tekirdag…
  12. July 2015 Investor Presentation – Valeura Energy Inc. – slide 12
    TBNG-PTI JV Shallow Gas & Tight Gas Plays SHALLOW GAS Akcahalil-1 Inecik- Aydede-1 YAGCI-8 ND-1 TDR-2 TS-18 DTD-1 KAYI-7 BATI GAZI-1 BATI Danismen & Osmancik 2 KARAEVLI-1 SOUTHWEST NORTHEAST 5 re-entry fracs since DANISMEN…
  13. July 2015 Investor Presentation – Valeura Energy Inc. – slide 13
    TBNG-PTI JV Tight Gas Proof-Of-Concept Program Phases 1. Recompletion fracs (750-2,000 m depth) Identify gas bearing zones in Mezardere, Teslimkoy & Kesan formations that require fracs to achieve commercial rates focusing initially on…
  14. July 2015 Investor Presentation – Valeura Energy Inc. – slide 14
    Thrace Basin Tight Gas Learning Curve 2011 2015 YTD 3 OSMANLI THRACE BASIN Cumulative Exploration DISCOVERIES Program capex (1) 65MM (net) Horizontal Drills 6 Hz MEZ/TES/KESAN DRILL & FRACS & Fracs Vertical Drills & DEVELOP 12…
  15. July 2015 Investor Presentation – Valeura Energy Inc. – slide 15
    Teslimkoy/Kesan Multi Frac Type Curves (Vertical Wells) (1)(2) Type Curve - Vertical Wells 1200 120 D&M Vertical Well, 2P - 0.8 Bcf, Rate vs. Time 1100 1000 D&M Vertical Well, 2P - 0.8 Bcf, Cum. Recovery vs. Time 100 900…
  16. July 2015 Investor Presentation – Valeura Energy Inc. – slide 16
    Mezardere Multi Frac Type Curve (Horizontal Wells) (1)(2) Type Curve Comparisons - Horizontal Wells 3000 120 2500 100 CUMMULATIVE RECOVERY - % OF EUR 2000 80 PRODUCTION RATE - Mcf/d VLE HZ Type 2, Reserves - 1.0 Bcf,…
  17. July 2015 Investor Presentation – Valeura Energy Inc. – slide 17
    Tekirdag Area Horizontal Drilling 2nd HZ well BTD-4H 1st HZ well DTD-19H Teslimkoy U. Kesan 655 m lateral 425 m lateral 10-stage frac 7-stage frac IP30 rate 3.0 MMcf/d IP30 rate 0.4 MMcf/d 5th HZ well TDR-11H Mezardere TDR-14…
  18. July 2015 Investor Presentation – Valeura Energy Inc. – slide 18
    Tekirdag Area 2011-2015 YTD Mezardere/Teslimkoy/Kesan Frac Results & Potential Vertical Well Development (1) KAYI-14 Guney Kayi-1 Kayi Derin-1 KAYI-7 5.0 MMcf/d 1.8 MMcf/d 0.7 MMcf/d 3.4 MMcf/d KAYI-12 KAYI-14 1.6 MMcf/d 5.4…
  19. July 2015 Investor Presentation – Valeura Energy Inc. – slide 19
    Potential Mezardere Play Fairway Mezardere Prospective Depth Structure Mezardere play fairway Hayrabolu Banarli Tekirdag Tekirdag area Mezardere exploitation program 10 km New slope fan play in Mezardere Formation showing…
  20. July 2015 Investor Presentation – Valeura Energy Inc. – slide 20
    Banarli (Valeura 100% WI) 3D Seismic Acquisition on Banarli May 2015 20
  21. July 2015 Investor Presentation – Valeura Energy Inc. – slide 21
    Potential Basin-Centered Gas Play Fairway Mezardere Mezardere Depth Structure Potential kitchen area Kazanci-5 Hayrabolu-10 Banarli Gurgen-1 Tekirdag 10 km Banarli licence awarded to Valeura (100% WI) in April 2013 (480…
  22. July 2015 Investor Presentation – Valeura Energy Inc. – slide 22
    Recent Osmancik & Mezardere Results & Potential Extension of Play Types into Banarli Potential Pressure Seal Hayrabolu-10 Banarli 2015 3D: 152 km2 Gurgen-1 IP30: 3.3 MMcf/d (Osm) Gurgen-2 IP30: 3.3 MMcf/d (Osm)…
  23. July 2015 Investor Presentation – Valeura Energy Inc. – slide 23
    Robust Netbacks & Competitive Costs Drive Attractive Natural Gas Economics in Turkey Cost Structure USMM (gross) FUTURE Operating Netbacks /boe CURRENT POTENTIAL 80 CONVENTIONAL GAS VERTICAL WELL (1) Royalty Opex Drill & Case 1.7 1.7…
  24. July 2015 Investor Presentation – Valeura Energy Inc. – slide 24
    Turkey Natural Gas Indicative Well Economics (1) PHYSICAL PARAMETERS PER WELL ECONOMICS PER WELL BEFORE TAX (5) PROGRAM RESERVES (2) IP30 (3) CAPEX (4) IRR PAYOUT NPV10 RECYCLE (Bcf) (MMcf/d) (USMM) (%) (MONTHS) (USMM) RATIO (6)…
  25. July 2015 Investor Presentation – Valeura Energy Inc. – slide 25
    Turkey Net Capital Budget Outlook 2015 (1) 2015 work program and budget targeting to: Achieve 2015 net sales from the TBNG-PTI JV lands of 1,120 1,170 boe/d (mid-point flat with 2014) Drill up to seven (gross) gas wells on the TBNG-PTI…
  26. July 2015 Investor Presentation – Valeura Energy Inc. – slide 26
    Summary Owning Valeura provides exposure to a natural gas-focused, pure play in Turkey, which benefits from: 9-10/Mcf natural gas prices, 12.5% government royalty & 40/boe operating netbacks Large land position of 0.9 MM acres…
  27. July 2015 Investor Presentation – Valeura Energy Inc. – slide 27
    A GLOBAL ENERGY COMPANY FOCUSED ON EXCEPTIONAL VALUE CREATION SUPPLEMENTARY INFORMATION
  28. July 2015 Investor Presentation – Valeura Energy Inc. – slide 28
    Our Heritage Senior Management Board of Directors 32
  29. July 2015 Investor Presentation – Valeura Energy Inc. – slide 29
    Past Successes of Management & Board Sold 2009 360 mm Market Cap 3x ROI (04-09) 672 mm CAGR 22% Market Cap at Trust Conversion Sold in 2008 916 mm 202 mm 35x ROI (94-03) 4x ROI (05-08) CAGR 51% CAGR 89% Sold in 2006 Sold in…
  30. July 2015 Investor Presentation – Valeura Energy Inc. – slide 30
    Organization Structure BOARD OF DIRECTORS Abby Badwi Tim Marchant Bill Fanagan Jim McFarland Claudio Ghersinich Ron Royal Stephanie Stimpson, Corporate Secretary PRESIDENT & CEO ASSISTANT Jim McFarland Shari Lemon VP VP VP…
  31. July 2015 Investor Presentation – Valeura Energy Inc. – slide 31
    Officers President & CEO: Jim McFarland, P. Eng. 42 years oil & gas experience Former President & CEO, director and co-founder, Verenex Energy (Libya light oil) Former Managing Director, Southern Pacific Petroleum (Australian shale…
  32. July 2015 Investor Presentation – Valeura Energy Inc. – slide 32
    Officers (Contd) VP Engineering: Don Shepherd, P. Eng. 41 years oil & gas experience Former General Manager, Verenex Energy Area 47 Libya based in Tripoli 13 years with Saudi Aramco as Asset Management Team Leader and Senior…
  33. July 2015 Investor Presentation – Valeura Energy Inc. – slide 33
    Managers VP Business Development: Barry Wihak, P. Geol. 31 years oil & gas experience Former President & CEO, director and co-founder, Cangea Energy (private, Colombia focus) 5 years with Vermilion Energy Trust as Business Development…
  34. July 2015 Investor Presentation – Valeura Energy Inc. – slide 34
    Managers (Contd) Country Representative (Ankara, Turkey): Mehmet Ekinalan 7 years oil & gas experience Former Resident Representative of Thrace Basin Natural Gas Turkiye Corporation 21 years telecommunications experience (Turkey and…
  35. July 2015 Investor Presentation – Valeura Energy Inc. – slide 35
    Board of Directors Abby Badwi, P. Geol. Vice-Chairman, Bankers Petroleum Ltd. Former President & CEO, Bankers Petroleum Ltd. Geological background Bill Fanagan, CA (Chair) Former Chairman, Verenex Energy Inc. Former President & CEO,…
  36. July 2015 Investor Presentation – Valeura Energy Inc. – slide 36
    Turkey YE 2014 Reserves (Company Gross) TOTAL OIL LIGHT & MEDIUM NATURAL GAS NPV10 BEFORE TAX NPV10 AFTER TAX CATEGORY EQUIVALENT OIL (Mbbl) (Bcf) (USMM) (USMM) (Mboe) PROVED DEVELOPED 7 3.8 639 19.1 19.1 PRODUCING PROVED DEVELOPED…
  37. July 2015 Investor Presentation – Valeura Energy Inc. – slide 37
    Turkey YE 2012 Contingent Resources (Company Gross) 302% year-over-year increase in 2C contingent resources in Turkey (YE 2012 MMboe compared to YE 2011) 3C Contingent Resources 2C Contingent Resources Natural gas in six discovered…
  38. July 2015 Investor Presentation – Valeura Energy Inc. – slide 38
    Land Position In Turkey At July 1, 2015 LEASES & VALEURA NET GROSS AREA TRANSACTION LICENCES (1) AREA (acres) () (acres) THRACE BASIN TBNG-PTI JV - Onshore (2) 14 425,155 170,062 TBNG-PTI JV - Offshore - 116,508 17,476 Banarli…
  39. July 2015 Investor Presentation – Valeura Energy Inc. – slide 39
    TBNG-PTI JV 2011 Frac Results PEAK 24-HOUR INITIAL 7-DAY CUMULATIVE FRAC DATE NET PAY (1) POROSITY (1) ON-STREAM AVERAGE IP30 RATE PRODUCTION TO WELL (d/m/y) (m) (%) RATE ON-STREAM RATE (MMcf/d) JUNE 30, 2015 (MMcf/d) (MMcf/d)…
  40. July 2015 Investor Presentation – Valeura Energy Inc. – slide 40
    TBNG-PTI JV 2012 Frac Results INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) JUNE 30, 2015 (MMcf/d) (MMcf/d)…
  41. July 2015 Investor Presentation – Valeura Energy Inc. – slide 41
    TBNG-PTI JV 2012 Frac Results (Contd) INITIAL 7-DAY CUMULATIVE (1) (1) PEAK 24-HOUR FRAC DATE NET PAY POROSITY AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) JUNE 30, 2015 (MMcf/d)…
  42. July 2015 Investor Presentation – Valeura Energy Inc. – slide 42
    TBNG-PTI JV 2013 Frac Results INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) JUNE 30, 2015 (MMcf/d) (MMcf/d)…
  43. July 2015 Investor Presentation – Valeura Energy Inc. – slide 43
    TBNG-PTI JV 2013 Frac Results (Contd) INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) JUNE 30, 2015 (MMcf/d)…
  44. July 2015 Investor Presentation – Valeura Energy Inc. – slide 44
    TBNG-PTI JV 2013 Frac Results (Contd) INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) JUNE 30, 2015 (MMcf/d)…
  45. July 2015 Investor Presentation – Valeura Energy Inc. – slide 45
    TBNG-PTI JV 2014 Frac Results INITIAL 7-DAY CUMULATIVE PEAK 24-HOUR FRAC DATE NET PAY (1) POROSITY (1) AVERAGE IP30 RATE PRODUCTION TO WELL ON-STREAM RATE (d/m/y) (m) (%) ON-STREAM RATE (MMcf/d) JUNE 30, 2015 (MMcf/d) (MMcf/d)…
  46. July 2015 Investor Presentation – Valeura Energy Inc. – slide 46
    TBNG-PTI JV New Drill Spuds In 2012 - 2015 YTD Hayrabolu-10 Kazanci-5 Guney Atakoy-2 Dogu Kayi Derin-1 Karya-1, Sig-1 Kuzey Atakoy-1 Gurgen- Kayi-16 Koseilyas-1 1,2,3 Hayrabolu Deep Guney Exploration Guney Karababa-1 Kayi-1…
  47. July 2015 Investor Presentation – Valeura Energy Inc. – slide 47
    TBNG-PTI JV New Drill Spuds In 2012 SPUD RIG RELEASE TD STATUS WELL LICENCE WELL TYPE (d/m/y) (d/m/y) (m) JUNE 30, 2015 Baglik-1 3931 10/03/2012 06/05/2012 Unconventional 3,594 Producing Dogu Karya-1 3934 04/04/2012 23/04/2012…
  48. July 2015 Investor Presentation – Valeura Energy Inc. – slide 48
    TBNG-PTI JV New Drill Spuds 2013 - 2015 YTD SPUD RIG RELEASE TD STATUS WELL LICENCE WELL TYPE (d/m/y) (d/m/y) (m) JUNE 30, 2015 TDR-14 3931 29/01/2013 22/02/2013 Unconventional 1,749 Producing Hayrabolu-10 2926 08/02/2013 10/04/2013…
  49. July 2015 Investor Presentation – Valeura Energy Inc. – slide 49
    DTD-19H Horizontal Upper Kesan Reservoir Upper Kesan reservoir horizon (Baglik-1 producing zone) TD 1626 m MD Spud June 3, 2013 (34 drill 1096 m TVD -976 m SSTVD days) 1,096 m TVD; 1,626 m MD GR Mud gas 425 m horizontal leg…
  50. July 2015 Investor Presentation – Valeura Energy Inc. – slide 50
    BTD-4H Horizontal - Teslimkoy Reservoir Teslimkoy BTD-2 producing zone Spud July 27, 2013 (36 drill days) 1,004 m TVD; 1,774 m MD 655 m horizontal leg Total 308 m of sand 10-stage frac Packers Plus assembly 5,815 bbls X-linked…
  51. July 2015 Investor Presentation – Valeura Energy Inc. – slide 51
    BTD-5H Horizontal - Teslimkoy Reservoir Teslimkoy BTD-2 producing zone Spud Nov 19, 2013 (15 drill days) 974 m TVD; 1,519 m MD 403 m horizontal leg Total 89 m of sand 4-stage frac Packers Plus assembly (3 fracs completed) 583…
  52. July 2015 Investor Presentation – Valeura Energy Inc. – slide 52
    BTD-2H Horizontal - Mezardere Reservoir Mezardere DTD-6 producing zone Spud February 3, 2014 (13 drill BTD-2 DTD-6 days) 635 m TVD; 1,246 m MD Lateral section: 476 m Total sand encountered: 242 m 8-stage frac Packers Plus…
  53. July 2015 Investor Presentation – Valeura Energy Inc. – slide 53
    TDR-11H Horizontal - Mezardere Reservoir Mezardere TS-18 producing zone Spud February 20, 2014 (11 drill days) 518 m TVD; 1,291 m MD Lateral section: 678 m Total sand encountered: 394 m 10-stage frac Packers Plus assembly 4,754…
  54. July 2015 Investor Presentation – Valeura Energy Inc. – slide 54
    TDR-5H1 Horizontal - Teslimkoy Reservoir Teslimkoy C producing zone Spud July 28, 2014 (12 drill TDR-5 TDR-5H days) 991 m TVD; 1,698 m MD Lateral section: 569 m Total sand encountered: 35 m Total silt encountered: 103 m 8-stage…
  55. July 2015 Investor Presentation – Valeura Energy Inc. – slide 55
    Mezardere Slope Fan Model Mezardere consists of a north-easterly pro- grading slope fan complex, deposited within delta front and pro-delta setting Potential reservoirs include: Porous channel and basin floor sands Interlaminated…
  56. July 2015 Investor Presentation – Valeura Energy Inc. – slide 56
    Thrace Basin Seismic 10 km 2015 Banarli 3D (152 km2) Drilling on 2D seismic only prior to 2012 2013 Osmanli 3D (232 km2) 2011 & 2013 3D seismic (645 km2) guiding TBNG- 2011 Tekirdag/Hayrabolu 3D (413 km2) PTI JV drilling…
  57. July 2015 Investor Presentation – Valeura Energy Inc. – slide 57
    Gaziantep Licences Alibey-1 Horizontal 152,111 gross acres (Valeura 26% WI) in Anatolian Basin N39-a1 Operated by TransAtlantic New Licence Areas Alibey-1 Hz drilled in July 2012 as 414 m horizontal side-track in original Alibey-1…
  58. July 2015 Investor Presentation – Valeura Energy Inc. – slide 58
    Turkey Natural Gas Infrastructure 62
  59. July 2015 Investor Presentation – Valeura Energy Inc. – slide 59
    Turkey Oil Infrastructure 63
  60. July 2015 Investor Presentation – Valeura Energy Inc. – slide 60
    Thrace Basin Turkey Stratigraphic Column Tertiary basin 9,000 m of tertiary age sediments Depositional environment Deltaic sands Turbidite sands Reef development on Paleozoic highs Key reservoirs Danismen - gas Osmancik gas…
  61. July 2015 Investor Presentation – Valeura Energy Inc. – slide 61
    SE Turkey Stratigraphic Column Reservoirs Sinan/Garzan reefs (Tertiary/Upper Cretaceous) Karabogaz & Mardin (Mid Cretaceous) Bedinan (Ordovician) Source Rocks Karabogaz (Cretaceous) Dadas (Silurian) Seals Germav (Upper…

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