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Q3 2016 Results – Kelt Exploration Ltd.

Kelt Exploration Ltd. · Nov 11, 2016 · 38 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. Q3 2016 Results – Kelt Exploration Ltd. – slide 1
    Corporate Presentation November 2016 David J. Wilson, President & Chief Executive Officer Sadiq H. Lalani, Vice President & Chief Financial Officer www.KeltExploration.com
  2. Q3 2016 Results – Kelt Exploration Ltd. – slide 2
    Why Invest in Kelt 1 CREATING VALUE DURING DOWNTURNS The Kelt management team has a track record of creating shareholder value during downturns, previously in the 2008- 2009 period with Celtic Exploration Ltd., sold in February…
  3. Q3 2016 Results – Kelt Exploration Ltd. – slide 3
    Common Share Information 2 Stock Exchange listing TSX Trading symbol KEL Market capitalization 1.0 billion 52-week trading range 2.51 6.98 Common shares issued ( Nov/10/2016 ) 175.6 million D&Os have participated in all nine…
  4. Q3 2016 Results – Kelt Exploration Ltd. – slide 4
    Convertible Debentures 3 TSX trading symbol KEL.DB Principal amount outstanding 90.0 million Coupon / Maturity date 5.0% / May 31, 2021 52-week trading range 105.50 146.00 D&Os purchased 15.0 million (17%) of the total Debenture…
  5. Q3 2016 Results – Kelt Exploration Ltd. – slide 5
    Capital Expenditures 4 2016 2017 2017/16 ( millions ) 2015 Forecast Budget Change Drilling & Completions 100.9 46.5 100.0 + 115% Facilities, Equipment & 56.0 28.8 26.0 - 10% Pipeline Infrastructure Land, Seismic & Asset 26.1…
  6. Q3 2016 Results – Kelt Exploration Ltd. – slide 6
    Drilling Program 5 Notes: Gross Net Average [1] Alberta drilling prospects include: 2017 Drills Wells Wells WI % Grande Prairie ( Pouce Coupe / Progress / Spirit River / La Glace ): - Montney - Doig Alberta [1] 8 7.5 94% - Charlie…
  7. Q3 2016 Results – Kelt Exploration Ltd. – slide 7
    Production Outlook 6 2016 2017 2017/16 2015 Forecast Budget Change Oil ( bbls/d ) 5,091 5,130 6,550 28% NGLs ( bbls/d ) 1,607 2,700 2,800 4% Gas ( mcf/d ) 71,272 79.020 81,900 4% Combined ( BOE/d ) 18,577 21,000 23,000…
  8. Q3 2016 Results – Kelt Exploration Ltd. – slide 8
    Production Growth ( since inception ) 7 PRODUCTION ( BOE / d ) PRODUCTION PER MM SHARES ( BOE / d ) 28,000 160 CAGR since CAGR since 2013 = 55% 2013 = 25% 24,000 23,000 131 21,000 120 121 120 20,000 18,577 105 16,000 13,650 78…
  9. Q3 2016 Results – Kelt Exploration Ltd. – slide 9
    Commodity Prices 8 2017/16 ( CA , unless otherwise specified ) 2015 2016 (E) 2017 (E) Change WTI Crude Oil ( USD/bbl ) US 48.80 US 43.25 US 52.00 + 20% CLS Crude Oil ( CAD/bbl ) 57.45 52.92 65.24 + 23% NYMEX Natural Gas (…
  10. Q3 2016 Results – Kelt Exploration Ltd. – slide 10
    Forecast 2017 WTI & AECO Prices 9 WTI US/bbl AECO CA/GJ 60.00 5.00 53.00 53.00 53.00 53.00 53.00 53.00 52.00 52.00 51.00 51.00 50.00 49.80 50.00 4.00 3.53 3.32 3.22 3.14 40.00 3.05 3.00 2.80 2.84 2.84 2.84 2.71 2.60…
  11. Q3 2016 Results – Kelt Exploration Ltd. – slide 11
    Hedging 10 ( CA unless otherwise specified ) Period Quantity Fixed Price Jul/2/15 to Interest Rate Swap [1] CA 100 MM 0.925% Jun/30/17 Note: [1] The interest rate swap fixes the B/A rate at 0.925% for two years. Using current…
  12. Q3 2016 Results – Kelt Exploration Ltd. – slide 12
    Netbacks 11 2017/16 ( / BOE ) 2015 2016 (E) 2017 (E) Change Oil & gas revenue 26.45 23.85 31.92 + 34% Realized hedging gain ( loss ) ( 0.12 ) 0.02 0.00 Royalties ( % of revenue ) ( 10.6% ) ( 9.2% ) ( 10.8% ) + 17% Transportation…
  13. Q3 2016 Results – Kelt Exploration Ltd. – slide 13
    Financial Outlook 12 2016 2017 2017/16 2015 Forecast Budget Change Revenue, before royalties ( MM ) 179.3 183.3 268.0 + 46% Funds from operations ( MM ) [1] 56.5 56.0 124.0 + 121% Per share diluted ( /share ) 0.36 0.32 0.70 + 119%…
  14. Q3 2016 Results – Kelt Exploration Ltd. – slide 14
    Product Mix 13 2017 (E) 2017 (E) Product Income Production Operating Split Split BOE/d Income (MM) Oil 6,550 28% 86.8 61% NGLs 2,800 12% 11.4 8% Gas 81,900 60% 43.3 31% Combined 23,000 100% 141.5 100% G&A and interest expense (…
  15. Q3 2016 Results – Kelt Exploration Ltd. – slide 15
    Core Areas 14 Inga / Fireweed / Stoddart ( BC ) : Montney/Doig condensate rich gas exploration/development Baldonnel oil exploration/development Grande Prairie ( AB ) : Inga / Fireweed Montney/Doig gas development / Stoddart…
  16. Q3 2016 Results – Kelt Exploration Ltd. – slide 16
    Reserves 15 DEC/31/2014 DEC/31/2014 DEC/31/2015 DEC/31/2015 ( MM ) ( MMBOE ) NPV 10% BT ( MMBOE ) NPV 10% BT Proved Developed 26.8 404 33.8 364 Producing Total Proved 61.1 669 83.8 661 Proved plus Probable 99.1 1,072 150.5 1,185 (…
  17. Q3 2016 Results – Kelt Exploration Ltd. – slide 17
    Land Holdings 16 Sep/30/2016 Gross Acres Net Acres Average WI Net Sections Developed 392,044 211,780 54% 331 Undeveloped 717,641 596,957 83% 932 Total 1,109,685 808,737 73% 1,263 Note: Growth in net land holdings since March…
  18. Q3 2016 Results – Kelt Exploration Ltd. – slide 18
    Kelt Land Fairway 17 Fireweed Inga Stoddart Fort St. John Progress Pouce Coupe Spirit River Valhalla / La Glace Grande Prairie Karr Kelt Lands British Columbia Alberta
  19. Q3 2016 Results – Kelt Exploration Ltd. – slide 19
    British Columbia Properties 18 PRODUCTION RESERVES Kelt Drills - Slick-water Completions Typical well EURs: Top Ten IP30 ( gross sales, BOE/d ): (1) Inga/Fireweed Doig (1) Inga 10-21-087-23W6 Doig 2,043 ( 27% gas ) Sproule 2P EUR = 930…
  20. Q3 2016 Results – Kelt Exploration Ltd. – slide 20
    British Columbia DOIG Lands 19 LAND Fireweed 16 MMcf/d Doig Rights: Compressor/ Facility (100% WI) Gross: 190 sections Net: 181 sections Fireweed b-76-I OPERATIONS 13-15 (sfc a-65-I) Recent Doig wells completed using (sfc…
  21. Q3 2016 Results – Kelt Exploration Ltd. – slide 21
    BC Doig Type Curve Slick-water Completed Wells 20 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 100 10 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23…
  22. Q3 2016 Results – Kelt Exploration Ltd. – slide 22
    BC Doig Type Curve - Average Well 21 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 1,000 Kelt 2P EUR 1,015 MBOE 24% Oil 17% NGLs 59% Gas Sproule 2P EUR 100 930 MBOE 23% Oil 19% NGLs 58% Gas 10 10 5 0 1 3 5…
  23. Q3 2016 Results – Kelt Exploration Ltd. – slide 23
    British Columbia MONTNEY Lands 22 LAND Montney Rights: c-26-A Gross: 188 sections (sfc a-6-A) Net: 186 sections Fireweed c-85-I OPERATIONS (sfc a-65-I) Montney wells completed using slick- New Location a-58-I b-41-I water…
  24. Q3 2016 Results – Kelt Exploration Ltd. – slide 24
    BC Montney Type Curve - All Wells 23 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 100 10 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28…
  25. Q3 2016 Results – Kelt Exploration Ltd. – slide 25
    BC Montney Type Curve - Average Well 24 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 1,000 Kelt 2P EUR 700 MBOE 31% Oil 19% NGLs 50% Gas 100 Sproule 2P EUR 650 MBOE 24% Oil 18% NGLs 58% Gas 10 10 5 0 1 3 5…
  26. Q3 2016 Results – Kelt Exploration Ltd. – slide 26
    British Columbia MIDDLE MONTNEY Isopach 25 OPERATIONS Kelt has drilled its first horizontal Middle Montney well in BC located at 7-17 (surface 7-29) Fireweed The Inga 7-17 well had an IP 30 rate of 905 BOE/d (69% liquids) New The…
  27. Q3 2016 Results – Kelt Exploration Ltd. – slide 27
    British Columbia BALDONNEL Lands 26 LAND Birch Baldonnel Rights: Gross: 169 sections Baldonnel C Oil Pool (CTD 5.0 MM barrels of oil) Net: 158 sections OPERATIONS Fireweed Oil exploration activity with plans to drill initial…
  28. Q3 2016 Results – Kelt Exploration Ltd. – slide 28
    Alberta Properties 27 PRODUCTION RESERVES Kelt Drills Top Ten IP30 Wells Typical well EURs: (gross sales, BOE/d): (1) Pouce Coupe Doig/Montney Gas (1) Karr 15-28-065-03W6 Upper Montney 1,490 ( 79% oil ) Sproule 2P EUR = 1,380 MBOE (…
  29. Q3 2016 Results – Kelt Exploration Ltd. – slide 29
    Pouce Coupe / Progress 28 14-14 (50%) MM Gross IP30 875 BOE/d (73% oil) 15-13 (50%) MM Gross IP30 920 BOE/d Progress Progress (57% oil) Gas Plant (20% WI) Pouce 8-18 LMM Coupe 13-8 8-18 UMM LMM 14-25 MM 14-8 LMM 16-11…
  30. Q3 2016 Results – Kelt Exploration Ltd. – slide 30
    Pouce Coupe Montney Oil Type Curve - All Wells 29 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 100 10 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23…
  31. Q3 2016 Results – Kelt Exploration Ltd. – slide 31
    Pouce Coupe Montney Oil Type Curve - Average Well 30 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 1,000 Kelt 2P EUR 865 MBOE 36% Oil 16% NGLs 48% Gas 100 Sproule 2P EUR 485 MBOE 61% Oil 6% NGLs 33% Gas 10 10…
  32. Q3 2016 Results – Kelt Exploration Ltd. – slide 32
    Valhalla / La Glace 31 Targeting the Montney formation. Encana Ownership in pipeline Sexsmith Gas Plant infrastructure, oil battery (0.3% WI) 16-32 and gas compression. 13-33 15-33 UM Ownership interest (0.3%) in the…
  33. Q3 2016 Results – Kelt Exploration Ltd. – slide 33
    La Glace Montney Type Curve - All Wells 32 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 100 10 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26…
  34. Q3 2016 Results – Kelt Exploration Ltd. – slide 34
    La Glace Montney Type Curve - Average Well 33 ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 1,000 Kelt 2P EUR 685 MBOE 63% Oil 9% NGLs 28% Gas 100 Sproule 2P EUR 675 MBOE 62% Oil 8% NGLs 30% Gas 10 10 5 0 1…
  35. Q3 2016 Results – Kelt Exploration Ltd. – slide 35
    Net Asset Value 34 Dec/31 Dec/31 ( millions ) 2014 2015 P&NG Reserves, NPV10 BT 1,072.3 1,185.2 Decommissioning Obligations, NPV10 BT [1] ( 12.8 ) ( 11.7 ) Undeveloped Land 103.2 168.7 Net Bank Debt ( 104.4 ) ( 212.1 ) Proceeds…
  36. Q3 2016 Results – Kelt Exploration Ltd. – slide 36
    Future Considerations 35 FUTURE DRILLING POTENTIAL: Kelt estimates that it has numerous potential future drilling opportunities on its existing lands that will provide for continued growth in the years to come. CRUDE OIL PRICES: the…
  37. Q3 2016 Results – Kelt Exploration Ltd. – slide 37
    Management 36 David J. Wilson, President & CEO Sadiq H. Lalani, Vice President & CFO Douglas J. Errico, Vice President, Land Patrick Miles, Vice President, Exploration Douglas O. MacArthur, Vice President, Operations Alan G. Franks,…
  38. Q3 2016 Results – Kelt Exploration Ltd. – slide 38
    Board of Directors 37 Robert J. Dales Compensation (Chair), Nominating, Audit, Reserves William C. Guinan Chairman of the Board, HSE Eldon A. McIntyre Reserves (Chair), Nominating, Audit, Compensation Neil G. Sinclair Audit (Chair),…

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