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September 2016 Corporate Presentation – Blackpearl Resources, Inc.

Blackpearl Resources, Inc. · Sep 30, 2016 · 22 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. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 1
    BLACKPEARL RESOURCES INC. CORPORATE PRESENTATION Sept 2016
  2. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 2
    Company Overview THE BASICS Corporate: Symbol: PXX, PXXS o Our focus is heavy oil and oil sands Exchanges: TSX, OMX Shares Outstanding (MM) (1): o Exposure to long life low decline reserves Basic 335.6 o Significant management…
  3. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 3
    2016 Highlights the Transition o Our long term strategy has always been to transition the Company from a conventional heavy oil operator to a major thermal heavy oil producer o With the successful construction and start-up of the first…
  4. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 4
    Why the shift to Thermal o Long life, low decline assets o At 12,000 b/d our 2P reserve life at Onion Lake is 20 yrs o Top quartile economics o Cash break-even…
  5. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 5
    2015 Reserve and Contingent Resource - Summary o PDP reserves increased 127% Volume BT PV10% o Onion Lake thermal is on production (MMboe) ( mm) o 2P reserve value is equivalent to 6/sh 2P Reserves (1) 294 2,215 o 2C risked contingent…
  6. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 6
    Three Core Properties CORE PROPERTIES o All are in heavy oil and oil sands regions o All projects have been delineated and Blackrod Athabasca (SAGD) Peace piloted River o All projects employ proven technologies: Cold Lake…
  7. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 7
    OPERATIONS REVIEW 8
  8. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 8
    Onion Lake - Primary THE BASICS o Active in the region since 2006 o Over 300 wells drilled o Expect initial production of 40 60 b/d o Expect 40,000 80,000 bbls per well o Capex of 0.5mm per well CURRENT STATUS o Producing 2,000 b/d o…
  9. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 9
    Onion Lake - Thermal PHASE 1 (6,000 b/d) Future o Built on time and on budget 225mm Phase o 35,000 per b/d o Producing 6,400 b/d o ISOR = 2.6 PHASE 2 (6,000 b/d) Phase 1 & 2 o Regulatory approval in place to expand to 12,000 b/d o…
  10. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 10
    Onion Lake - Thermal ECONOMICS ESTIMATED OPERATING INCOME(1)(2) o Royalties of 10% (pre-payout) (mm/yr) o Operating costs (including energy) of 10 100 15/bbl o Sustaining capital of 4 6/bbl 80 o Break-even wellhead price…
  11. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 11
    Blackrod SAGD - Overview THE BASICS o Located in the Athabasca oil sands o 100% owned and operated o Grand Rapids reservoir CURRENT STATUS o Successful pilot operated since 2012 o WP2 producing 550 b/d o Regulatory approval pending for…
  12. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 12
    Blackrod SAGD Successful Pilot Second Well Pair FIRST WELL PAIR 800 8 o Production peak rates of 400 b/d; ISOR of 3 700 7 o Produced 250,000 bbls 600 6 o Confirmed the SAGD process is appropriate for the reservoir 500 5 SECOND…
  13. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 13
    Blackrod Commercial Development COMMERCIAL o Approval of 80,000 b/d commercial development application is imminent 1 mile o Project to be built in phases, with the first phase planned for 20,000 b/d o Phase 1 capital cost estimate…
  14. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 14
    Mooney - ASP Flood THE BASICS o Bluesky reservoir Phases 3 & 4 Phase 2 o Drilled over 90 horizontal wells Phase 1 Phase 2 o Phase 1 of the ASP flood initiated in 2011; production increased from 300 to 2,000 b/d o Recoveries expected…
  15. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 15
    Relative Economics of Our Projects o Estimated economics (/bbl) for each of our major projects is as follows: Onion Lk Onion Lk Mooney Blackrod (Thermal) (Primary) (ASP flood) (Commercial) (/bbl) Sales Price 52.50 52.50 52.00 47.00…
  16. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 16
    Comparative SOR Performance Last 12 Months Trailing SOR (July 2015 - June 2016) *instantaneous SOR presented for newer projects still in ramp-up phase 7.0 1st quartile 2nd quartile 3rd quartile 4th quartile 6.0 5.0 4.0 3.0…
  17. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 17
    FINANCIAL REVIEW 18
  18. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 18
    Lowering our cost structure Operating Costs - /boe OPEX 30.00 o Lowered service provider costs 20.00 21% o Improved processes 10.00 25.24 19.94 36% o Shut-in high cost production (Mooney, 12.80 primary at Onion Lake) 0.00 2014…
  19. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 19
    Strong Financial Position BANK CREDIT FACILITIES o Strong balance sheet o Continue to pay down debt during a very low oil price period o Disciplined capital spending Available (1) 40 million Utilized (1) Net debt / Trailing 12…
  20. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 20
    Risk Management Volumes Hedged (Swaps) o We use oil hedging to mitigate price 4000 volatility and provide a base level of cash flow 3000 C48.75 WCS o 30% of estimated 2H 2016 volumes (b/d) 2000 C49.75 WCS hedged; 20% of…
  21. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 21
    Funding Onion Lake Thermal Expansion Funding Requirements (mm)1 o Funding the expansion of our successful Onion Lake thermal project is our priority Funding Gap Estimated 1 yr Existing o Financing the expansion at Onion Lake is…
  22. September 2016 Corporate Presentation – Blackpearl Resources, Inc. – slide 22
    Key Takeaways o Our priority is to continue our transition to long life thermal production with Phase 2 thermal development at Onion Lake and initiate commercial development at Blackrod o Estimated 6/share of reserve value and 4/share…

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