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January 2017 Corporate Presentation – Kelt Exploration Ltd.

Kelt Exploration Ltd. · Jan 9, 2017 · 40 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. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 1
    Corporate Presentation January 2017 David J. Wilson, President & Chief Executive Officer Sadiq H. Lalani, Vice President & Chief Financial Officer www.KeltExploration.com
  2. January 2017 Corporate Presentation – 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. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 3
    Common Share Information 2 Stock Exchange listing TSX Trading symbol KEL Market capitalization 1.2 billion 52-week trading range 2.51 7.49 Common shares issued ( Dec/31/2016 ) 175.7 million D&Os have participated in all nine…
  4. January 2017 Corporate Presentation – 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 105.50 150.02 D&Os purchased 15.0 million (17%) of the total Debenture…
  5. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 5
    Capital Expenditures 4 2016 2017 2017/16 ( millions ) 2015 Forecast Forecast Change Drilling & Completions 100.9 46.5 104.6 + 125% Facilities, Equipment & 56.0 28.8 32.0 + 11% Pipeline Infrastructure Land, Seismic & Asset 26.1…
  6. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 6
    Drilling Program 5 Notes: Gross Net Average 2017 Drills Wells Wells WI % [1] Alberta drilling prospects include: Grande Prairie ( Pouce Coupe/Progress /La Glace ): - Montney - Doig Alberta [1] 9 6.8 76% - Halfway Spirit River:…
  7. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 7
    Production Outlook 6 2016 2017 2017/16 2015 Forecast Forecast Change Oil ( bbls/d ) 5,091 5,130 6,700 31% NGLs ( bbls/d ) 1,607 2,700 2,500 -7% Gas ( mcf/d ) 71,272 79,020 82,800 5% Combined ( BOE/d ) 18,577 21,000 23,000…
  8. January 2017 Corporate Presentation – 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% 25,000 2013 = 25% 24,000 23,000 131 21,000 120 121 20,000 120 18,577 105 14,000…
  9. January 2017 Corporate Presentation – 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. January 2017 Corporate Presentation – 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. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 11
    Gas Marketing / Transportation Contracts 10 Volume Market Term of Firm Service Market Index ( mmBtu/d ) Hub Nov/1/2016 Mar/31/2018 43,600 NIT AECO 5A ( CAD/GJ ) Apr/1/2018 Mar/31/2019 55,500 Nov/1/2016 Mar/31/2017 24,300 Chicago…
  12. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 12
    Hedging 11 ( CA unless otherwise specified ) Period Quantity Fixed Price Jan/1/17 to US 1 MM / USD Currency Swap [1] CAD 1.330 Dec/31/17 month Jul/2/15 to Interest Rate Swap [2] CA 100 MM 0.925% Jun/30/17 Notes: [1] The USD…
  13. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 13
    Netbacks 12 2017/16 ( / BOE ) 2015 2016 (E) 2017 (E) Change Oil & gas revenue 26.45 23.85 32.12 + 35% Realized hedging gain ( loss ) ( 0.12 ) 0.02 0.00 - Royalties ( % of revenue ) ( 10.6% ) ( 9.2% ) ( 11.2% ) + 22%…
  14. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 14
    Financial Outlook 13 2016 2017 2017/16 2015 Forecast Forecast [4] Change Revenue, before royalties ( MM ) 179.3 183.3 270.0 + 47% Funds from operations ( MM ) [1] 56.5 56.0 128.0 + 129% Per share diluted ( /share ) 0.36 0.32 0.73…
  15. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 15
    Product Mix 14 2017 (E) 2017 (E) Product Income Production Operating Split Split BOE/d Income (MM) Oil 6,700 29% 88.5 62% NGLs 2,500 11% 9.7 7% Gas 82,800 60% 44.4 31% Combined 23,000 100% 142.6 100% G&A and interest expense (…
  16. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 16
    2017 Commodity Price Sensitivities 15 2017 (E) FFO per WTI AECO Funds from Share Crude Oil Nat Gas Operations Diluted ( USD/bbl ) ( CAD/GJ ) ( MM ) () 2017 Forecast 52.00 2.95 128.0 0.73 WTI plus 10% 57.20 2.95 140.1 0.80 +…
  17. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 17
    Core Areas 16 Inga / Fireweed / Stoddart ( BC ) : Montney/Doig condensate rich gas exploration/development Inga / Fireweed Baldonnel oil exploration/ / Stoddart development Grande Prairie Grande Prairie ( AB ) : Grande Cache…
  18. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 18
    Reserves 17 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 (…
  19. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 19
    Kelt Land Fairway 18 Fireweed Inga Stoddart Fort St. John Progress Pouce Coupe Spirit River Valhalla / La Glace Grande Prairie Karr - subject to disposition Jan/2017 Kelt Lands British Columbia…
  20. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 20
    Land Holdings 19 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…
  21. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 21
    British Columbia Properties 20 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…
  22. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 22
    British Columbia DOIG Lands 21 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…
  23. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 23
    BC Doig Type Curve Slick-water Completed Wells 22 ( 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. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 24
    BC Doig Type Curve - Average Well 23 ( 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…
  25. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 25
    British Columbia MONTNEY Lands 24 LAND c-26-A Montney Rights: (sfc a-6-A) Gross: 188 sections c-85-I Net: 186 sections Fireweed (sfc a-65-I) OPERATIONS New Location a-58-I c-31-I (sfc b-B62-I) Montney wells completed…
  26. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 26
    BC Montney Type Curve - All Wells 25 ( 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…
  27. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 27
    BC Montney Type Curve - Average Well 26 ( 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…
  28. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 28
    British Columbia MIDDLE MONTNEY Isopach 27 OPERATIONS Kelt has drilled its second horizontal Middle Montney well in BC located at 14-24 (surface A12-36) Fireweed The Inga 14-24 well had an IP 22 rate of 1,461 BOE/d (71% liquids)…
  29. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 29
    British Columbia BALDONNEL Lands 28 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…
  30. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 30
    Alberta Properties 29 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 (…
  31. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 31
    Pouce Coupe / Progress 30 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…
  32. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 32
    Pouce Coupe Montney Oil Type Curve - All Wells 31 ( 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…
  33. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 33
    Pouce Coupe Montney Oil Type Curve - Average Well 32 ( 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…
  34. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 34
    Valhalla / La Glace 33 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…
  35. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 35
    La Glace Montney Type Curve - All Wells 34 ( 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…
  36. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 36
    La Glace Montney Type Curve - Average Well 35 ( 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…
  37. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 37
    Net Asset Value 36 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…
  38. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 38
    Future Considerations 37 FUTURE DRILLING POTENTIAL: Kelt 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 number of rigs…
  39. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 39
    Management 38 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,…
  40. January 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 40
    Board of Directors 39 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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