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March 2017 Corporate Presentation – Kelt Exploration Ltd.

Kelt Exploration Ltd. · Mar 1, 2017 · 44 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. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 1
    Corporate Presentation March 2017 David J. Wilson, President & Chief Executive Officer Sadiq H. Lalani, Vice President & Chief Financial Officer www.KeltExploration.com
  2. March 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 during the 2008-2009 period with Celtic Exploration Ltd., sold in…
  3. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 3
    Common Share Information 2 Stock Exchange listing TSX Trading symbol KEL Market capitalization 1.1 billion 52-week trading range 2.81 7.49 Common shares issued ( Mar/6/2017 ) 175.7 million D&Os have participated in all nine…
  4. March 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. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 5
    Capital Expenditures 4 2017 2017/16 ( millions ) 2015 2016 Forecast Change Drilling & Completions 100.9 47.4 105.0 + 122% Facilities, Equipment & 56.0 28.5 32.0 + 12% Pipeline Infrastructure Land, Seismic & Asset 26.1 28.3 8.0…
  6. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 6
    2017 Drilling Program 5 Notes: Gross Net Average 2017 Drills Wells Wells WI % [1] Alberta drilling prospects include : Grande Prairie : - Montney - Doig Alberta [1] 9 6.8 76% - Halfway - Charlie Lake Grande Cache : British…
  7. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 7
    Production Outlook 6 2017 2017/16 2015 2016 Forecast Change Oil ( bbls/d ) 5,091 5,070 6,700 32% NGLs ( bbls/d ) 1,607 2,709 2,500 - 8% Gas ( mcf/d ) 71,272 79,009 82,800 5% Combined ( BOE/d ) 18,577 20,947 23,000 10% Per…
  8. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 8
    Annual 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 20,947 120 121 20,000 120 18,577 105…
  9. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 9
    Commodity Prices 8 2017/16 ( CA , unless otherwise specified ) 2015 2016 2017 (E) Change WTI Crude Oil ( USD/bbl ) US 48.80 US 43.32 US 52.00 + 20% CLS Crude Oil ( CAD/bbl ) 57.45 52.79 65.24 + 24% NYMEX Natural Gas ( USD/mmBtu )…
  10. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 10
    Netbacks 9 2017/16 ( / BOE ) 2015 2016 2017 (E) Change Oil & gas revenue 26.45 24.08 32.12 + 33% Realized hedging gain ( loss ) ( 0.12 ) 0.02 0.00 - Royalties ( % of revenue ) ( 10.6% ) ( 8.6% ) ( 11.2% ) + 30% Transportation…
  11. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 11
    Financial Outlook 10 2017 2017/16 2015 2016 Forecast Change Revenue, before royalties ( MM ) 179.3 184.6 270.0 + 46% Adj. funds from operations ( MM ) [1] 56.5 58.4 128.0 + 119% Per share diluted ( /share ) 0.36 0.34 0.73 + 115%…
  12. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 12
    2017 Commodity Price Sensitivities 11 2017 (E) Adjusted 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…
  13. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 13
    Reserves 12 DEC/31 DEC/31 NPV 10% BT 2015 2016 Percent DEC/31/2016 ( MMBOE ) ( MMBOE ) Change ( MM ) Proved Developed 33.8 34.5 + 2% 422.8 Producing Total Proved 83.8 108.2 + 29% 940.2 Proved plus Probable 150.5 194.1 + 29%…
  14. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 14
    Finding, Development & Acquisition Costs 13 Proved As at December 31, 2016 Developed Proved Proved + Producing Probable 2016 capital expenditures + change 98,268 155,509 177,684 in FDC expenditures ( M ) Reserve additions, net (…
  15. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 15
    Core Areas 14 Inga / Fireweed ( BC ) : Montney condensate-rich gas Doig condensate-rich gas Baldonnel light oil Inga / Fireweed Grande Prairie ( AB ) : Grande Prairie Montney light oil Grande Cache Montney gas Doig gas…
  16. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 16
    Kelt Land Fairway 15 Fireweed Corporate Land Holdings Inga Flatrock Dec/31 Net Net 2016 Acres Sections Stoddart Oak Developed 208,984 326 Fort St. John Undeveloped 647,770 1,012 Progress Total 856,754 1,338 Pouce Coupe…
  17. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 17
    British Columbia Montney Lands 16 LAND (Montney Rights) Gross: 264,115 acres ( 412 sections ) Net: 259,658 acres ( 406 sections ) Fireweed OPERATIONS Kelt has successfully delineated the upper Montney at Inga/Fireweed and…
  18. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 18
    British Columbia Montney Wells 17 PRODUCTION RESERVES Kelt Montney Drills: slick-water completions Typical well EURs: Top IP30 Wells ( gross sales, BOE/d ): Inga/Fireweed Upper/Middle Montney: (1) Fireweed c-31-I/94-A-12 UM [a] 2,068…
  19. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 19
    Inga / Fireweed Montney Lands 18 LAND Montney Rights: c-26-A (sfc a-6-A) Gross: 188 sections Net: 186 sections c-85-I (sfc a-65-I) OPERATIONS Fireweed c-31-I Montney wells completed using slick- a-58-I (sfc d-A79-I) (sfc…
  20. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 20
    Inga / Fireweed Montney Type Curve 19 ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 725 MBOE 100 47% Oil 53% Gas 10 10 5 0 1 3 5 7 9 11 13…
  21. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 21
    Inga / Fireweed Montney Gas Well Economics 20 [ Economics are for a well East of the B.C. royalty line ] Sproule Futures Strip Dec/31/2016 Feb/16/2017 Capital expenditures drill, complete & tie-in ( MM ) 6.1 6.1 Production IP30 sales…
  22. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 22
    Inga / Fireweed Baldonnel Lands 21 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…
  23. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 23
    Alberta Montney Lands 22 LAND Montney Rights: Gross: 159,040 acres ( 248 sections ) Net: 141,517 acres ( 221 sections ) Pouce Coupe OPERATIONS Kelt has successfully delineated the lower- Progress middle and the upper-middle…
  24. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 24
    Alberta Montney Wells 23 PRODUCTION RESERVES Kelt Montney Drills Typical well EURs: Top 10 Wells IP30 (gross sales, BOE/d): (1) Pouce Coupe/Progress Montney Oil: (1) Pouce Coupe 14-25-077-13W6 MM [a] 1,400 ( 95% gas ) Sproule 2P EUR =…
  25. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 25
    Pouce Coupe / Progress 24 14-14 MM (50%) 15-13 MM (50%) Progress Progress Gas Plant Pouce 8-18 LMM (20% WI) 13-8 Coupe 8-18 UMM LMM 14-25 MM 14-8 LMM 13-3 MM (50%) 16-11 H2O Disposal Spirit 13-32 River Doig/UM 15-5…
  26. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 26
    Pouce Coupe / Progress Montney Oil Type Curve 25 ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 550 MBOE 58% Oil 42% Gas 10 10 5 0 1 3 5…
  27. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 27
    Pouce Coupe / Progress Montney Oil Well Economics 26 Sproule Futures Strip Dec/31/2016 Feb/16/2017 Capital expenditures drill, complete & tie-in ( MM ) 5.3 5.3 Production IP30 sales ( BOE / d ) 990 ( 58% oil ) 990 ( 58% oil ) EUR 2P…
  28. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 28
    Valhalla / La Glace and Pipestone / Wembley 27 Targeting the Montney formation. Kelt Ownership in pipeline La Glace Facility infrastructure, oil battery, gas (100% WI) Encana Sexsmith compression and minor interests in 13-33…
  29. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 29
    Valhalla / La Glace Montney Oil Type Curve 28 ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 575 MBOE 100 71% Oil 29% Gas 10 10 5 0 1 3 5 7…
  30. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 30
    Valhalla / La Glace Montney Oil Well Economics 29 Sproule Futures Strip Dec/31/2016 Feb/16/2017 Capital expenditures drill, complete & tie-in ( MM ) 4.6 4.6 Production IP30 sales ( BOE / d ) 1,090 ( 78% oil ) 1,090 ( 78% oil ) EUR 2P…
  31. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 31
    Net Asset Value 30 Dec/31 Dec/31 % ( millions ) 2015 2016 change P&NG reserves, NPV10% BT 1,185.2 1,730.7 + 46% Decommissioning obligations, NPV10% BT [1] ( 13.0 ) ( 9.5 ) - 27% Undeveloped land 168.7 212.5 + 26% Net bank debt ( 211.5 )…
  32. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 32
    Future Considerations 31 KELT: the Company has numerous potential future drilling opportunities on its existing lands that will provide for continued growth in the years to come. the Company has amassed vast Montney acreage in new…
  33. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 33
    Management 32 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,…
  34. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 34
    Board of Directors 33 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),…
  35. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 35
    APPENDIX 34 2017 PRODUCT MIX QUARTERLY PRODUCTION GROWTH MONTHLY FORECAST OF 2017 WTI & AECO PRICES MAP OF NORTH AMERICAN NATURAL GAS HUBS GAS MARKETING & TRANSPORTATION CONTRACTS HEDGING SPROULE P+P RESERVES 3 YEAR CASH FLOW…
  36. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 36
    2017 Product Mix 35 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…
  37. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 37
    Quarterly Production Growth ( since inception ) 36 PRODUCTION ( BOE / d ) 32,000 Crude Oil NGLs 28,000 Gas 24,000 20,000 16,000 12,000 8,000 4,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Exit [E] 2013 2014 2015…
  38. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 38
    Kelts 2017 Forecast - WTI & AECO Prices 37 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…
  39. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 39
    North American Natural Gas Hubs 38 Station 2 AECO-C Sumas Empress Emerson Kingsgate Waddington Stanfield Boston Dawn Opal TGP Marcellus Malin Ventura Chicago Socal San Juan Permian Henry Hub Natural Gas Price Hub
  40. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 40
    Gas Marketing / Transportation Contracts 39 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…
  41. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 41
    Hedging 40 ( 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 Feb/1/17 to 500 OPIS Conway Propane 50% WTI USD Dec/31/17 bbls / day SOCAL NYMEX Henry…
  42. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 42
    Sproule P+P Reserves 3 Year Cash Flow Forecast 41 PRODUCTION ( BOE / d ) ( MM ) 2017 2018 2019 60,000 Production ( BOE / d ) 22,600 32,200 42,000 + 30% 50,000 Oil / Gas 41% / 59% 44% / 56% 40% / 60% 42,000 Annual Growth 8% 42%…
  43. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 43
    Sproule P+P Reserves FDC 42 FDC Net HZ FDC / well December 31, 2016 ( MM ) Wells ( MM ) Alberta Montney wells 163.5 31.8 5.1 B.C. Montney wells 312.5 51.0 6.1 TOTAL Montney wells 476.0 82.8 5.7 Other formation wells 339.4 74.7…
  44. March 2017 Corporate Presentation – Kelt Exploration Ltd. – slide 44
    Corporate Presentation March 2017 Suite 300, 311 6th Avenue SW Calgary, Alberta, Canada T2P 3H2 www.KeltExploration.com

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