TSX:RE STOCK TRADING Stock exchange TSE Symbol: RE Corporate Current stock price trading range 1.25 1.35/share Profile CAPITAL STRUCTURE Common stock (basic) 47.5 M Common stock (full diluted) 51.1M Market capitalization 60 65 M…
ROCK ENERGY VALUE PROPOSITION Why Buy Rock 5
Why buy Rock Strong Oil prices are poised to recover Investment Case Industry is reducing drilling activity world wide Rig counts are falling Non-OPEC production is in decline OPEC is running at capacity As a low-cost producer with…
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…
We are now forecasting year-end 2015 net debt to be less than 60 million against bank Balance Sheet Proactively protecting lines of 80 million. shareholder value Assuming WTI averages 45.00US/bbl for the remainder of the year. Hedges…
Declining Cost of Lowering Our Total Cost of Production Production 45.00 Implementing the EOR project at Cost Initiatives Interest -0.07 40.00 0.23 Mantario in 2015 has reduced our 5.67 Rock is working to reduce its 35.00 3.16…
2016 Corporate Funds from Sustainability Operations vs. WTI With our low decline rate, at Funds from Operations(MM) WTI 45.00US/bbl for 2016 the company is generating enough Assets 50.0 funds from operations to hold Rocks assets have…
Share Price by Torque in Action Valuation Multiples Hedges in 2015 provide down 6.00 1.20 side protection, and we still have significant torque in 2016. Torque 3:1 5.00 1.00 In 2016 if Rock holds production In 2016 if we hold our…
VERTICAL INFILL WELL* DCET 575-625k NPV 1.6-2.5MM Pay Out 10-14 months Mantario IRR 200%-120% *Assumes GLJ Oct 2015 Price Foundation of production and Forecast (WTI=50.00US/bbl in cash flow. 2016) and EOR royalty of 1%. Discovered a…
Free cash flow WTI50.00US/bbl Mantario/Laporte = 23.00CDN/bbl Netback 2015 Plans Average Production Developing a new pool extension to of 2,200-2,400 bopd the North West Annual Cash flow of 10-20 potential infill locations. 18-20…
Gas/Oil Ratio (GOR) How do we The GOR at Mantario/Laporte has increased from 25 m3/m3 to a peak of 75m3/m3, but has stabilized…
Before polymer Conversion of 12 Production increase without Projected production injection producers to injectors replacing 12 injector wells plateau with infills 4,000 3,200-3,500 bbl/d 2,200 bbl/d 2,200-2,400 bbl/d 2,650 bbl/d…
Viking Resource Play Mannville Lloyd Oil Current light oil production Current Mannville oil Onward over 800-850 bopd production approximately Saskatchewan Light oil, high netback 350-400 bopd Area is highly prospective for new pools in…
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…
Onward Viking Well Performance Onward Viking Wells drilled after June 2014 (18 stages) Well Production 70 ONWARD VIKING TYPE WELL* Performance 60 Last 41 Wells Drilled IP30 50-60 boepd More fracs per well and better EUR 35 mboe…
Better production rates Results with new completion techniques are yielding initial production rates 35% better than before Onward Viking We brought our per-well costs down We have validated the play Drill and Case 260K Complete…
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…
Current Status 2015 Plans Onward Current production Interpret 30 section 3D Mannville approximately 350-400 seismic program Program bopd Develop exploration New Lloyd pool discovered prospects with 11-16 (West Onward) Review…
LOOKING FOWARD 2015 CAPEX program and go-forward strategy
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 the long term…
Ready to grow Un-risked Drilling Locations rapidly 700 Drilling As oil prices Inventory improve, Rock has a 600 Prepared to capitalize quickly on significant amount improved oil prices of drilling inventory 500 to provide…
Total Net Capital Expenditures for 2016 2016 Capital 2mm Budget Exploration Holding production while we test a few exploration leads, and 12mm further reduce our debt. Mantario Drilling 20mm 6mm 2016 Capex Onward Viking 29
Our Balance Sheet is Our Assets Have a Low Intact Decline Rate of 15-20% Spending less than Stable foundation of cash flow in 2H/2015 cash flow Forecasting D/CF at Can generate enough year-end of 1.8 times cash flow at WTI 45.00…
SUPPLEMENTARY INFORMATION 32
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…
TRADING TSX Stock Symbol RE Market Profile USA - OTC RENFF SHARES OUTSTANDING Basic 47.5 MM Fully diluted 51.1 MM MANAGEMENT & DIRECTORS Basic 7.1% Fully diluted 11.5% RECENT TRADING RANGE 1.25 1.35 MARKET CAPITALIZATION 60…
Hedging Stream Volume (bpd) Price (CDN/bbl) Term Summary WCS 1,000 60.40 July Dec 2015 MSW 1,000 71.18 July Dec 2015 MSW 500 69.50 Jan Dec 2016 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…
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