SEPTEMBER 2017 PETERS & CO. LIMITED 2017 ENERGY CONFERENCE
CORPORATE SUMMARY Basic shares outstanding 135.8 MM Options1 13.5 MM Performance warrants2 33.9 MM Fully diluted shares 183.2 MM Basic Management ownership 7 % Fully diluted Management ownership 29 % Current Credit Facility 25.0…
KARVE LEGACY ASSET
CORPORATE SUMMARY LEGACY ASSET BASE Source: Karve Energy Inc. 5
OVERVIEW LEGACY ASSET BASE Karve Viking Rights Waterflood Gas Units 2017 DUC Producing Current Production: 2,400 BOE/d (91% oil) Source: IHS AccuMap 184 gross sections of high working interest, under developed…
OIL FAIRWAY LEGACY ASSET BASE Viking Oil Fairway OMEGA Karve Land North Unit Viking Petroleum Unit 2017 DUC (18 wells) On Production (34 wells) OMEGA South Unit Source: IHS AccuMap 7
ACTUAL RESULTS VS SPROULE TYPE CURVE Source: Karve Energy Inc. See Reader Advisories Oil and Gas Information 8
TYPE WELL DRILLING ECONOMICS Sproule Tier 5 100% CROWN WTI FX EDM Par Capex EUR BT NPV 10 IRR Payout US/bbl US/CDN CDN/bbl M/Well Mbbl M % Months 40 0.77 47.42 825 50 118 19% 39 45 0.77 53.35 825 50 304 34% 26 50 0.77 59.28 825 50…
ACQUISITION SUMMARY
VIKING EXPERIENCE The Karve team has Cutpick Energy significant experience Viking Oil Fairway within the Viking fairway in Alberta and Saskatchewan Acquisition Lands including its last 3 companies: Plenty (Meridian)…
THE ACQUISITION Total acquisition price = 118.0 MM (effective January 1, 2017) Acquisition metrics: 18,150 per BOE/d (based on 6,500 BOED/d) 7.02 per BOE (P+PDP) 4.6 times cash flow (based on H1 2017 annualized NOI) 1.1 MM acres of…
OPPORTUNITY RICH ASSET August 2017 W.I. estimated production of 6,435 BOE/d, 42% liquids; base decline of 14% (18% oil, 10% gas) Oil & liquids: 2,685 bbl/d; natural Gas: 22.5 MMcf/d Source: IHS Accumap See Reader Advisories Oil and…
ACQUISITION PROVOST AREA LAND MAP 1,200,000+ gross acres of land (92% WI) Only 21 sections expiring in the next 5 years 164,000 acres of fee acreage Working interest in 12 Units; royalty interest in 6 more Karve…
VETERAN UPSIDE AND ASSET OVERVIEW Management identified 330 locations (200 metre spacing) 105 primary depletion 225 waterflood supported Several productive sands with significant undeveloped upside; up to 15 metres of Viking…
EAST PROVOST UPSIDE AND ASSET OVERVIEW No horizontal Viking wells drilled by previous operator since early 2014; older completion style with 14 or less stages per well Karve has identified 500+ locations (200 metre spacing)…
ALLIANCE HALKIRK UPSIDE AND ASSET OVERVIEW No wells drilled by operator since early 2014; full mile wells with 15 or less stages Karve has identified over 350 half mile (650m) Viking locations (200 metre spacing) on…
ACQUISITION FACILITY AND INFRASTRUCTURE OVERVIEW Kessler Viking Gas Unit Brownfield Gas Unit North Provost Gas Unit Provost Viking Sand Gas Unit Sullivan Lake Gas Unit No. 1 Large network of operated infrastructure…
PROFORMA CORPORATE SUMMARY
CORPORATE PRODUCTION REVIEW CONTD August 2017 field estimated production of 8,765 BOE/d (4,800 bbl/d liquids, 23.8 MMcf/d gas) Currently bringing on drilled uncompleted inventory of 20 wells Forecast exit production of 10,300 to…
CORPORATE PRODUCTION REVIEW 21
CORPORATE VIKING PRODUCTION Combined cum. prod. of 32 MMbbls of over 1.4 billion estimated in place (management estimates) Recent growth all represented through drilling of 34 HZ Viking wells by Karve Now producing at…
CORPORATE RESERVE SUMMARY 497% increase in reserve value on original asset base 360% increase in reserve volumes Combined reserves of 21.5 MMBOE (52% liquids) with BT NPV10% of 215.7 MM Source: Sproule Associates Limited Reserves…
CORPORATE RESERVE SUMMARY Karve Energy Inc. The Acquisition Pro Forma Company BTax 10% Company BTax 10% Company BTax 10% Gross (MBOE) (M) Gross (MBOE) (M) Gross (MBOE) (M) Proved Developed Producing 1,691 42,502 12,724 83,984…
DEVELOPMENT PLAN Initial drilling and growth will be focused within the Veteran and East Provost assets Drill a total of 70 horizontal wells proforma in 2017 (4045 on legacy asset and remaining wells on newly acquired acreage) Drill…
OFFICERS: DIRECTORS: Bob Chaisson Chief Executive Officer Don Engle Chairman and Independent Director Derek Kreba President Bob Chaisson Karve Energy CEO Ken McNeill Executive Vice President, Corporate Development Howard Crone…
APPENDIX VIKING EXPERIENCE
VIKING EXPERIENCE The Karve team has significant experience Cutpick Energy within the Viking fairway in Alberta and Viking Oil Fairway Saskatchewan including its last 3 Karve Energy companies: Plenty (Meridian) Halkirk…
SUMMARY OF BEAUMONT ENERGY INC. Started in Dec. 2012 with 668 BOE/d capitalized with 135.5MM at 2.00 per share Sold to Whitecap Resources Inc. in May 2015 with 5,100 BOE/d for 587.5MM or 5.62 per fully diluted share Fully diluted per…
SUMMARY OF CUTPICK ENERGY INC. Started in July 2009 with 774 BOE/d capitalization over the life of the Company with 144MM at a weighted average price of 3.96 per share Sold to Crescent Point Energy Corp. in June 2012 with 5,600 BOE/d…
SUMMARY OF PLENTY ENERGY INC. Started in 2008 with 70 BOE/d capitalized over the life of the Company with 26.6MM at a weighted average of 0.64 per share. Initial financing raise 4.6MM at 0.25 per share Sold to NAL Resources…
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