Skip to main content July 2015 Investor Presentation – Birchcliff Energy Ltd. | Shale Experts
Loading...
Pm

July 2015 Investor Presentation – Birchcliff Energy Ltd.

Birchcliff Energy Ltd. · Jul 20, 2015 · 57 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 – Birchcliff Energy Ltd. – slide 1
    CORPORATE PRESENTATION July 2015
  2. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 2
    PEOPLE, FOCUS & EXECUTION Unconventional Natural Gas Resource Player Unconventional Light Oil Resource Player 2
  3. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 3
    INVESTMENT HIGHLIGHTS 2014 average production of 33,734 boe/d, 300 million cash flow and 114 million net income. 2015 average production forecast 38,000 40,000 boe/d (13% 19% Y/Y average production growth). Focused assets in the…
  4. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 4
    CORPORATE SNAPSHOT Production 2014 Average Production (boe/d) 33,734 (84% gas) Q1 2015 Average Production (boe/d) 38,416 (85% gas) 2014 Year End Reserves 2P Reserves 465 MMboe (18% PDP) 2P FD&A Cost (Including FDC) 10.45/boe 2P Recycle…
  5. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 5
    CREDIT FACILITY SUMMARY Effective May 11, 2015: Credit capacity has been increased to 800 million based on year end 2014 reserves which includes PDP reserves of 84.7 MMboe. In conjunction with expanded credit capacity, Birchcliff has…
  6. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 6
    BIRCHCLIFF HISTORY A Track Record of Execution
  7. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 7
    KEYS TO SUCCESS Executives with proven track record, continuity since inception and significant ownership. Management Highly experienced Management Team with excellent technical knowledge and a long history with the company. Over 170…
  8. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 8
    PRODUCTION HISTORY 45,000 40,000 38,000 40,000 Compound annual growth of 32% per year since 2005 35,000 33,734 Average Production (boe/d) 30,000 25,829 25,000 22,802 20,000 18,136 15,000 13,079 11,216 10,148 10,000…
  9. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 9
    CORPORATE RESERVES SUMMARY 500,000 450,000 400,000 PDP, 1P and 2P compound annual growth of 16%, 26% 350,000 and 27% per year since 2005 Reserves (Mboe) 300,000 250,000 PDP 200,000 TP 150,000 2P 100,000 50,000 0…
  10. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 10
    CORPORATE NPV10 (BT) 4,000 3,500 2014 year end 2P NPV10 (BT) was 3.8 billion 3,000 NPV10 (million) 2,500 PDP 2,000 TP 1,500 2P 1,000 500 0 YE 2005 YE 2006 YE 2007 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 YE…
  11. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 11
    PROVEN TRACK RECORD AS A LOW COST PRODUCER Even in 2012, the lowest natural gas price in 10 years, Birchcliff was still able to generate profit. 3 Year Profitability Breakdown: 2012 2013 2014 Average Average AECO (CAD/GJ) 2.27 2.99…
  12. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 12
    PROVEN TRACK RECORD AS A LOW COST FINDER 20 PDP FD&A 1P FD&A 2P FD&A Cash flow netback recycle FD&A Cost (/boe) 0.9x 15 1.2x ratios 1.4x 1.5x 1.6x 1.2x 1.5x 1.9x 10 1.9x 1.3x 1.2x 2.1x 2.3x 2.5x 2.2x 2.2x 2.3x 5 3.1x…
  13. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 13
    PROVEN TRACK RECORD OF PER SHARE GROWTH 40,000 240 600 4,000 Annual Production (boe/d) P+P Reserves per Share (boe/1,000 35,000 210 525 3,500 Annual Production (boe/d) Production per Share Proved (boe/d/million…
  14. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 14
    DECLINE & CAPITAL EFFICIENCY AVERAGE DECEMBER TO DECEMBER PRODUCTION; NOT IPS Dec Avg. 45,000 40,454 Additions boe/d 40,000 Dec Avg. Base 28,749 35,000 Dec Avg. boe/d Production (boe/d) Total Production 27,142 30,000 boe/d…
  15. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 15
    2014 ACCOMPLISHMENTS Drilled 57 (56.0 net) horizontal wells including 41 (41.0 net) Montney/Doig horizontal natural gas wells and 12 (12.0 net) Charlie Lake horizontal light oil wells. Four successful exploration wells drilled in…
  16. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 16
    LOOKING FORWARD 2015 Plans & Beyond
  17. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 17
    LONG TERM GROWTH PROFILE 120,000 100,000* 100,000 Production (boe/d) 80,000 Last common share equity 60,000 offering 14.2 million shares April 2012. 38,000 - 40,000 40,000 33,734 25,829 22,802 18,136 20,000…
  18. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 18
    2015 GOALS Deliver annual average production of 38,000 40,000 boe/d (13% 19% Y/Y average production growth). Deliver reserve growth in all categories while progressing strategic exploration projects. Maintain financial…
  19. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 19
    2015 BUDGET 2015 CAPITAL BUDGET: 266.7 MILLION Gross Wells Net Wells Net Capital (million) (1) Drilling & Development Montney D1 Horizontal Gas Wells 14.0 14.0 90.8 Montney D4 Horizontal Gas Wells 4.0 4.0 25.4 Basal Doig/Upper…
  20. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 20
    MONTNEY/DOIG NATURAL GAS RESOURCE PLAY A Significant Position in a World Class Play
  21. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 21
    MONTNEY/DOIG - A WORLD CLASS RESOURCE PLAY Resource density. Stacked resource up to 300 meters thick. Large areal extent. Extends over 50,000 square miles. Exceptional fracability. Low clay content, Birchcliff Montney/Doig low Poissons…
  22. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 22
    BIRCHCLIFF MONTNEY/DOIG Large contiguous land base with 876.3 net sections prospective for the Montney/Doig over our current intervals. Stacked resource in some of the thickest Montney with 3,346.3 net potential locations…
  23. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 23
    POUCE COUPE AREA Proven asset in development phase. Wells in the area show Montney C high initial deliverability, low Exploration Horizontal terminal decline and stable long term production. Recent exploration success in the…
  24. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 24
    ELMWORTH DEVELOPMENT Second Exploration Birchcliff has drilled two Horizontal successful exploration horizontal wells into the Montney D4 interval, both of which are expected to result in follow up First Exploration drilling and…
  25. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 25
    STACKED RESOURCE PROVIDES SUBSTANTIAL FUTURE UPSIDE Birchcliff Montney/Doig Natural Gas Resource Play Full Development Plan: Hexastack Basal Doig / Upper Montney (D5) 305.1 (288.4 net) sections 2P reserves booked on 28% of land…
  26. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 26
    PCS GAS PLANT The Engine for Future Growth
  27. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 27
    Production Processed through 2012 2013 2014 Q1 2015 the PCS Gas Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 59,327 91,666 132,808 153,633 Oil & NGLs (bbls) 204 527 1,065 1,284 Total boe (6:1) 10,092 15,805…
  28. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 28
    Corporate Operating Costs vs. % of Natural Gas Sales Volumes Processed at the PCS Gas Plant KEY STRATEGIC 10.00 100% Corporate Operating Cost (/boe) Volume Through PCS Gas Plant ADVANTAGES 8.00 6.00 80% 60%…
  29. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 29
    MONTNEY/DOIG RESERVES Drilled 41 HZ M/D wells 450,000 159 (158.9 net) Montney/Doig Drilled 25 HZ M/D wells 400,000 horizontal natural gas wells Drilled 22 HZ drilled as of Dec 31, 2014 M/D wells 350,000 Drilled 23 HZ…
  30. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 30
    2014 MONTNEY/DOIG RESOURCE ASSESSMENT Summary of Birchcliff Reserves and Resources(1)(2)(3) Reserves and Resource Volumes (Bcfe) Resource Class Low Estimate Case Best Estimate Case High Estimate Case Cumulative Production(4) 216.3…
  31. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 31
    LOW DECLINE PRODUCTION All wells are choked initially for better operational efficiency, higher ultimate recovery and reservoir management. This leads to lower declines and subsequently less wells required to maintain production…
  32. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 32
    MONTNEY/DOIG REPRESENTS 81% OF PRODUCTION AND 89% OF 2P RESERVES Production (boe/d) 2P Reserves (MMboe) 40,000 500 Corporate Production Corporate Reserves Montney/Doig Production Montney/Doig Reserves 400 30,000 300 20,000 200…
  33. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 33
    PCS GAS PLANT HIGHLIGHTS 100% owned & operated. Current processing capacity of 180 MMcf/d. Fabrication of Phase V expansion 22% underway; will add 80 MMcf/d bringing total processing capacity to 260 MMcf/d. Started planning for…
  34. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 34
    DRILLING & 2015 Montney/Doig Wells COMPLETION 2014 Montney/Doig Wells INITIATIVES Achieved steady reduction in both drilling time & costs. Continue to monitor and refine current drilling & completion practices to improve…
  35. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 35
    NEW COMPLETION TECHNIQUES IMPROVING WELL RESULTS 2014 Well Results vs. Deloitte Type Curves Year End 2014 Deloitte Tier 1 Type Curve IP: 5.2 MMcf/d 2P EUR: 6.0 Bcfe Avg. Cost: 5.5 million 35
  36. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 36
    ONE OF THE LARGEST MONTNEY LAND HOLDERS 1,400 1,200 Birchcliff has one of the largest land positons in the entire Montney/Doig Montney Acres (000's) 1,000 Natural Gas Resource Play 800 600 400 200 0 CIOC…
  37. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 37
    PCS GAS PLANT Scenario Analysis
  38. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 38
    IMPROVED PCS GAS PLANT ECONOMICS As of July 15, 2015, DCCET costs on our Montney/Doig horizontal natural gas wells have decreased to 4.5 million from 5.8 million largely due to significant cost savings on drilling and completion…
  39. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 39
    ILLUSTRATIVE 60 MMcf/d PCS GAS PLANT BUILD & FILL SCENARIO The chart to the right depicts the Montney/Doig Wells to keep 60 MMcf/d Gas estimated Montney/Doig wells Plant Full for 30+ Years(1) required to keep 60 MMcf/d plant 25 80…
  40. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 40
    The table below presents on an annual basis the internally estimated (1) facilities and DCCET capital requirements, (2) operating cash flow and (3) free cash flow (FCF) from a 60 MMcf/d PCS Gas Plant under various AECO natural gas…
  41. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 41
    PROXIMAL TO INFRASTRUCTURE WITH LONG TERM EXPOSURE TO LNG EXPORT Montney/Doig Birchcliff Pouce Coupe Production Montney/Doig & PCS Gas Plant Owned Infrastructure PCS Gas Plant Nova Pipeline System North American Market…
  42. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 42
    ENOUGH RESOURCE TO FILL A ONE Bcf/d LNG TRAIN FOR OVER 20 YEARS X X = 1 Bcf/d LNG 365 Days 20 Years 7.3 Tcf Train BIR Remaining BIR Contingent Reserves Resource + / = 1 Bcf/d LNG 2.5 Tcf 7.9 Tcf 28 Years Train Birchcliff…
  43. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 43
    CHARLIE LAKE LIGHT OIL RESOURCE PLAY Dependable Light Oil Production
  44. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 44
    WORSLEY CHARLIE LAKE LIGHT OIL Essentially 100% W.I. with operatorship and control of wells, pipelines and facilities. Own over 190 net sections with 200+ horizontal locations currently identified. Mature, predictable, long life…
  45. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 45
    WORSLEY CHARLIE LAKE LIGHT OIL ACCOMPLISHMENTS SINCE SEPTEMBER 2007 ACQUISITION 2P reserves have increased over 160% to 40.2 MMboe from 15.1 MMboe. Production increased over 45% to 4,991 boe/d in 2014 from 3,400 boe/d. 2014 year end…
  46. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 46
    WORSLEY AREA RESERVES 45,000 40,000 35,000 30,000 Reserves (Mboe) 25,000 PDP 20,000 TP 15,000 2P 10,000 5,000 0 YE 2007 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 PDP 6,018 6,395 6,008 6,757 7,102…
  47. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 47
    WORSLEY AREA NPV10 (BT) VS. DELOITTE OIL PRICE FORECAST 1,200 120 1,000 100 5 Year WTI Average /bbl 800 80 NPV (million) 600 60 400 40 200 20 0 YE 2007 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 0…
  48. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 48
    PROGRESS Birchcliff Non-Confidential Land CHARLIE LAKE Birchcliff Recent Exploration Horizontal Wells Charlie Lake Producing Wells LIGHT OIL Successfully drilled first Charlie Lake light oil exploration horizontal at Progress…
  49. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 49
    10 YEAR HIGHLIGHTS Celebrating 10 Years of Success
  50. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 50
    Birchcliffs average daily production was 33,734 boe/d in 33,734 boe/d 2014 compared to 2,793 boe/d in 2005, a compounded annual growth rate of 32% per year during those 10 years. 2,793 boe/d 1 2 3 4 5 6 7 8 9 10 11 12 2004 2005…
  51. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 51
    Production Growth boe/d/million wtd. avg. shares 40,000 300 30,000 225 Birchcliff has increased production at a compound annual growth rate of boe/day 20,000 150 32% over the past 10 years. 10,000 75 0 0 2005 2006…
  52. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 52
    Cash Flow from Operations 300 3.00 250 2.50 200 2.00 On average, cashflow and cash flow millions /share 150 1.50 per common share have increased 100 1.00 by 35% and 29%, respectively, over 50 0.50 the past five years. -…
  53. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 53
    Reserves Growth 500 3,500 400 2,800 Birchcliff has added significant low cost reserves boe/1,000 shares over the last 10 years of operations. On a per 300 2,100 common share basis, PDP, 1P and MMboe 200 1,400 2P…
  54. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 54
    THANK YOU TEAM BIRCHCLIFF Jeffrey Akeroyd, Karen Allen, Camille Ashton, Rainer Augsten, Gates Aurigemma, Al Basnett, Angela Belbeck, Charmaine Belley, Tyrus Bender, Tim Berg, Perry Billard, Myles Bosman, Jeff Boswell, Robyn…
  55. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 55
    APPENDIX
  56. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 56
    PEER COMPARISONS 2014 PDP FD&A Summary (/boe) Top 15 50.00 5.0 PDP FD&A Recycle on 2014 CF/BOE (Right Axis) 40.00 4.0 30.00 3.0 20.00 2.0 10.00 1.0 0.00 0.0 BIR SGY TBE CQE PPY PEY WCP LRE…
  57. July 2015 Investor Presentation – Birchcliff Energy Ltd. – slide 57
    PEER COMPARISONS Historical FD&A Costs 2P (/boe) 20.00 2014 3-Year Average 16.00 12.00 8.00 4.00 0.00 VII BIR KEL PEY AAV PPY ARX NVA CR TOU SRX Source: Cormark Securities…

From the store

Browse maps, data & reports in the Shale Experts store