Skip to main content EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. Investor Presentation | Shale Experts
Loading...
Pm

EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc.

Rock Energy Inc. · Aug 18, 2015 · 36 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. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 1
    SEIZING THE CHALLENGE EnerCom Oil and Gas Conference 20, August 17-19, 2015
  2. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 2
    Focus on plays Develop a and reservoirs where we can foundation of Implement assets with growth with the Develop a suite of assets apply emerging predictable drill bit and that can provide a solid technology to cash flow, through…
  3. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 3
    Find plays Focus on OIL that are Preserve and Explore new technologies exploration scalable and build our to increase and repeatable development recovery development where Rock drilling programs can control inventory factors and…
  4. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 4
    TSX:RE STOCK TRADING Stock exchange TSE Symbol: RE Corporate Current stock price trading range 2.40 2.60/share Profile CAPITAL STRUCTURE Common stock (basic) 47.2 M Common stock (full diluted) 51.5M Market capitalization 125 135 M…
  5. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 5
    ROCK ENERGY VALUE PROPOSITION Why buy Rock 9
  6. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 6
    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 assets do you have…
  7. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 7
    We enter 2015 with low debt Year end 2014 net debt is 69.0 million Rock moved proactively to guard the Balance Sheet balance sheet early in the year Proactively protecting shareholder value Reduced the 2015 capital program to 25…
  8. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 8
    Declining Cost of Lowering Our Total Cost of Production Production 45.00 Interest Implementing the EOR project at Cost Initiatives 40.00 -0.07 5.67 0.23 Mantario in 2015 has reduced our 3.16 0.46 Rock is working to reduce its…
  9. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 9
    2015 Corporate Funds from Sustainability Operations vs. WTI Because of our low decline rate, at WTI 50.00US/bbl 50.00 for 2016 the company is Assets 45.00 42.00 46.00 generating enough funds Rocks assets have a low base Capital…
  10. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 10
    Netbacks by Play at Various WTI Prices 90.00 Play Type 80.00 Netbacks 70.00 All our plays generate positive 58.39 60.00 cash netbacks down to WTI 45.00 US/bbl Netback (/bbl) 50.00 47.16 40.00 35.93 30.00 24.69 20.00…
  11. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 11
    Share Price by Torque in Action Valuation Multiples Hedges in 2015 provide down 9.00 1.80 side protection, and we still have significant torque in 2016. Torque 8.00 1.60 In 2016 if Rock holds production Our hedges protect the down…
  12. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 12
    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…
  13. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 13
    MANTARIO/LAPORTE Foundation of production and cash flow 17
  14. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 14
    VERTICAL INFILL WELL* DCET 625k NPV 2.5MM Pay Out 7 months Mantario IRR 460% *Assumes GLJ July 2015 Price Foundation of production and Forecast and EOR royalty of 1%. cash flow. Infill locations generate robust rates of return (28%)…
  15. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 15
    2015 Drilling 6 million Mantario/Laporte 3 Horizontal producers 2015 Plans 12-16 water injector 10-20 potential infill locations. conversions B 6-8 potential step-out locations. 2015 Facilities 14 million Pipeline gathering…
  16. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 16
    ONWARD SASKATCHEWAN VIKING & MANNVILLE PLAYS Growth opportunities through continued development of this light oil, high netback, stacked horizons play
  17. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 17
    Viking Resource Play Mannville Lloyd Oil Current light oil production Current Mannville oil Onward over 1,000 bopd production approximately Saskatchewan Light oil, high netback 400-450 bopd Area is highly prospective for new pools in…
  18. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 18
    Onward Viking Play Large drilling inventory GAS/OIL CONTACT New gas/oil contact has been confirmed with vertical wells and 3D seismic. Play has been established over 40 sections of land generating over 600 unbooked drilling locations…
  19. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 19
    Onward Viking Well Performance 18+ Stage Wells Onward Viking 80 Well Production ONWARD VIKING TYPE WELL* IP30 50-60 boepd Performance 70 EUR 35 mboe (P+P) More fracs per well, and better DCET 875k 60 placement within the zone is NPV…
  20. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 20
    Better production rates Results with new completion techniques are yielding initial production rates 35% better than before Onward Viking We have got our costs down We have validated the play Drill and Case 310k Complete 420k Total…
  21. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 21
    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…
  22. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 22
    Onward ONWARD MANNVILLE WELL Mannville CHARACTERISTICS VERTICAL HORIZONTAL Typical Well Characteristics Cost (DCET) 650K 775K Reserves (2P) 70 MBOE 100 MBOE Initial Production Rate 50 BOEPD 80 BOEPD IRR 60% 225% NPV (Btax 10%) 745K…
  23. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 23
    Current Status 2015 Plans Onward Current production 450- Interpret 30 section 3D Mannville 500 bopd seismic program Program New Lloyd pool discovered Develop exploration with 11-16 (West Onward) prospects New Bakken pool Review…
  24. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 24
    LOOKING FOWARD 2015 CAPEX program and go-forward strategy
  25. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 25
    Rock is focused on the higher rate of return projects first Prudent 1. Mantario/Laporte EOR project and vertical wells Stewardship of Capital 2. Onward Viking Wells Protected with Hedges Focused on value creation over 3. Onward…
  26. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 26
    Drilling Locations 700 Drilling Inventory 600 As oil prices improve, Rock has a 500 significant amount of drilling inventory to provide growth. Laporte Infill Mannville Horizontal The Company's engineering firm 400 Laporte Step…
  27. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 27
    Total Net Capital Expenditures for 2015 2015 Capital 4mm Exploration Budget Expanded on May 12, 2015 to accomplish our strategic 6mm objectives. Protected with hedges Mantario Drilling 40mm 16mm 2015 Capex Onward Viking…
  28. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 28
    2015 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Forecast Production Avg. (boepd) 4,988 4,747 5,328 5,155 3,974 4,300 4,500 Results and % oil Realized Price (/boe) 95 82.45 95 75.76 97 60.09 97 37.65 95 50.38 97 42.50…
  29. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 29
    Our Assets have a low Our Balance Our Team has decline rate, Sheet is intact, been through and provide a and is our this before. solid primary focus. foundation of cash flow. We have the Our Stock Assets that We are price has…
  30. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 30
    SUPPLEMENTARY INFORMATION 34
  31. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 31
    Management Team Directors Strong Allen J. Bey Stuart G. Clark Management President and CEO Chairman of the Board Team/Board Jeffrey G. Campbell Richard J. S. Wigington Senior Vice President and COO Robert A. Maitland Todd Hirtle…
  32. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 32
    TRADING TSX Stock Symbol RE Market Profile USA - OTC RENFF SHARES OUTSTANDING Basic 47.2 MM Fully diluted 51.5 MM MANAGEMENT & DIRECTORS Basic 7.6% Fully diluted 12.3% RECENT TRADING RANGE 2.40 2.60 MARKET CAPITALIZATION…
  33. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 33
    Drilling Results WELLS DRILLED 2013 2014 2015YTD Heavy Oil 31 (30.0 net) 30 (30.0 net) 3 (3.0 net) Light Oil 10 (10.0 net) 39 (39.0 net) 16 (16.0 net) Natural Gas - - - D&A 4 (4.0 net) 6 (6.0 net) - Service Wells 1 (1.0 net) - -…
  34. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 34
    Hedging Summary Stream Volume (bpd) Price (CDN/bbl) Term Fair Market Value at July 31, 2015 WCS 1,000 60.40 July Dec 2015 was 6.3 MM MSW 1,000 71.18 July Dec 2015 MSW 500 69.50 Jan Dec 2016 38
  35. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 35
    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…
  36. EnerCom The Oil and Gas Conference 2015 – Rock Energy Inc. – slide 36
    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…

From the store

Browse maps, data & reports in the Shale Experts store