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February 2016 Corporate Presentation – Gear Energy Ltd

Gear Energy Ltd · Feb 17, 2016 · 20 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. February 2016 Corporate Presentation – Gear Energy Ltd – slide 1
    Corporate Presentation February 2016
  2. February 2016 Corporate Presentation – Gear Energy Ltd – slide 2
    5,015 boe/d 2015 Q4 Production 98% oil Conventional cold flow heavy Resource Drilling inventory dominated by low risk bypassed vertical reservoirs that produce successfully with horizontal wells Horizontal wells Predictable…
  3. February 2016 Corporate Presentation – Gear Energy Ltd – slide 3
    Exceptional 2015 capital results were realized due to reduced costs and improved production from new wells Development activity for 2016 will be deferred to the second half, pending oil price recovery Approximately 500 bbl/d shut-in…
  4. February 2016 Corporate Presentation – Gear Energy Ltd – slide 4
    A conservative plan has been implemented for the first half of 2016 due to current low prices Drilling activity will be reconsidered during the second half of 2016 if oil prices are greater than US40/bbl WTI 2015 Estimates H1 2016…
  5. February 2016 Corporate Presentation – Gear Energy Ltd – slide 5
    2016 WTI average prices of US36 /bbl CAD50/bbl 2016 GXE average price of CAD26./bbl WTI Risk Management Gear oil price estimate = (WTI WCS Diff) x exchange 2016 500 bbl/d 68.00 CAD swap 4.75 quality adjustment 2016 H1 500…
  6. February 2016 Corporate Presentation – Gear Energy Ltd – slide 6
    Significant hedging gains will be generated if oil prices remain low through 2016. Gear is forecast to enter 2016 with net debt of approximately 66 million (51 million debt and working capital plus 15 million of 2020 convertible…
  7. February 2016 Corporate Presentation – Gear Energy Ltd – slide 7
    Base production cash flow is supported by three core area, low cost assets representing a third of corporate production. In total approximately 50% of production comes from lower cost horizontal wells 2016 cash flow will be optimized by…
  8. February 2016 Corporate Presentation – Gear Energy Ltd – slide 8
    Significant cost reductions per unit were realized despite an approximate 30% reduction in production 8
  9. February 2016 Corporate Presentation – Gear Energy Ltd – slide 9
    12 well drill program was 100% successful Estimated Risked Estimated Costs improved materially throughout the year Production Capital Capital IP 365 Efficiency 3 Paradise Hill McLaren Hz 1. 1,020k 80 bbl/d 12,750/boe/d Paradise Hill…
  10. February 2016 Corporate Presentation – Gear Energy Ltd – slide 10
    Total estimated capital of 15 million through 2015 drilled 12 wells and performed 20 recompletions All-in capital efficiency of approximately 13,500/bbl/d (15 million/1,100 boe/d for the first five peak months) 2015 Capital…
  11. February 2016 Corporate Presentation – Gear Energy Ltd – slide 11
    4.5% of Gear Q3 production 4% Royalty (Crown) Four McLaren B wells all averaging above 7.00/boe Op costs risked type curve. McLaren Sands First McLaren A well (194/2-11) also GXE Drills producing above type curve Low Risk, Low…
  12. February 2016 Corporate Presentation – Gear Energy Ltd – slide 12
    McLaren A McLaren A & B McLaren B 6.5 Section undeveloped land base Two overlapped sandstones, 3m per zone Current potential inventory 65 McLaren horizontals 8 booked as proven undeveloped GXE drills Inventory 2 booked as…
  13. February 2016 Corporate Presentation – Gear Energy Ltd – slide 13
    8.5% of Gear Q3 production Quad lateral unlined well successfully drilled and on 3.6% Royalty (Crown) 7.65/boe Op costs production in 2015 with first six months averaging 250% of the oil from the adjacent 5 single lateral wells…
  14. February 2016 Corporate Presentation – Gear Energy Ltd – slide 14
    19% of Gear Q3 production 3.4% Royalty Fourteen (12.5 net) Lloyd horizontal wells have 8.50/boe Op costs GXE 2015 Drills been drilled since 2014 with average results above risked type curve Inventory at Jan 2015 was 23 Lloyd…
  15. February 2016 Corporate Presentation – Gear Energy Ltd – slide 15
    Over 20 undeveloped sections of crown land were acquired through 2015 for approximately 1 million, Gear is targeting material future potential horizontal drilling inventory. Highlights are shown below Potential Sections Targets…
  16. February 2016 Corporate Presentation – Gear Energy Ltd – slide 16
    Common Shares (incl. Nov 2015 common equity raise) 85.5 million Bank Capacity (incl. 14.8 million convertible debentures) 75 million Net Debt Q3 (incl. convertible debentures) 62 million Production Q3 5,430 boe/d Cash Flow Netback…
  17. February 2016 Corporate Presentation – Gear Energy Ltd – slide 17
    Gears 4 year history of successfully growing value per debt adjusted share was impacted by 2015 oil prices Estimated 5 year CAGR/DA share is 4% Production growth and 17% Cash flow growth Cash flow metric shown is the non-GAAP cash…
  18. February 2016 Corporate Presentation – Gear Energy Ltd – slide 18
    Executive Experience Ingram Gillmore VP Engineering - ARC Energy Trust, Talisman President & CEO, Director Yvan Chretien VP Land - ARC Energy Trust, CNRL VP Land Bryan Dozzi Engineering Manager - Gear Energy, Rock Energy Inc. VP…
  19. February 2016 Corporate Presentation – Gear Energy Ltd – slide 19
    Research Analysts Altacorp Thomas Matthews Cormark Garett Ursu Desjardins Jamie Kubik FirstEnergy Bob Fitzmartyn GMP Aaron Swanson Haywood Darrell Bishop Industrial Alliance Michael Charlston Peters and Co Dale Lewko 19
  20. February 2016 Corporate Presentation – Gear Energy Ltd – slide 20
    Price forecast for evaluations was 40, 45 and 50 Flat US WTI, with 0.75 CAD/US foreign exchange, a heavy oil differential of 30% off of WTI and a Gear oil quality discount of CAD 4.75 Paradise Hill Cummings Morgan Capital 700k Capital…

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