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April 2018 Corporate Presentation – Blackpearl Resources, Inc.

Blackpearl Resources, Inc. · Apr 2, 2018 · 23 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. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 1
    Continuing Success in Heavy Oil Corporate Presentation April 2018
  2. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 2
    Our Core Asset Groups Ramping up to 12,000 bbl/d; 20,000+ Saskatchewan Thermal bbl/d potential Top decile economics Growth can be internally funded AB SK 4,000 bbl/d Conventional Heavy Generates cash flow to cover corporate…
  3. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 3
    Why Invest in BlackPearl Free cash flow generation Low sustaining capital requirements Thermal represents 60% of corporate production, going to 75%+ 80% of operating income from thermal is free cash flow Low decline, low cost…
  4. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 4
    Free Cash Flow Generation Saskatchewan thermal has best in class development economics Higher quality oil = better wellhead price Lower capital costs than AB oil sands Similar operating cost structure Estimated Net Revenues (1)(2)…
  5. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 5
    Low Decline, Low Cost Production Onion Lake thermal has reserves of 139 mm bbls Supports 20,000 bbl/d for over 20 years Low sustaining capital of 4-6/bbl Low cost operations. In 2017, thermal operating costs…
  6. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 6
    Financial Discipline Fiscally disciplined with a strong balance Debt peaks at 130 140 mm during sheet Onion Lake Phase 2 thermal expansion By the end of 2019 debt is expected Cautious use of debt to fund investment to…
  7. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 7
    Growth Potential Over the next 12 months we will grow from 10,000 bbl/d to 16,000 bbl/d In the next 10 years our existing projects have the potential to get us to over 40,000 bbl/d Development of future phases at Blackrod could take…
  8. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 8
    Share Price Appreciation Potential Reserves (1) Risked Best Estimate Contingent (NPV 10% BT) Resources (NPV 10% BT) 1,900 5.65 1,500 4.46 1,500 4.46 1,000 2.97 1,000 2.97 /share (4) /share (4) mm mm 500 1.49 500…
  9. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 9
    Company Risks Cost Risk Project capital has been dropping over the last few years in the oil sands as well as thermal projects in Athabasca Blackrod Saskatchewan. We have built two phases at Onion Lake Peace River (SAGD) on…
  10. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 10
    Onion Lake Thermal The Basics 2P Reserves - 139 mmbbl 11 API oil, will flow conventionally 10% IRR at US40/bbl (25% WCS differential) Phase 1 (6,000 bbl/d) On production since Sept 2015 ISOR 2.5 Operating…
  11. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 11
    Blackrod SAGD The Basics Located in the Athabasca oil sands 1 mile 100% owned and operated Grand Rapids reservoir Current Status Successful pilot operated since 2012 Pilot well has produced 675,000 bbl Working Interest Lands…
  12. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 12
    Financial Strength Debt Capital 120mm Syndicated Credit Facility ATB, National, Canadian Western Reserve based lending Floating rate, currently 3.5% 75mm Senior 100 mm undrawn at Dec 31, 2017 100mm Notes undrawn on credit…
  13. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 13
    2018 Guidance 2018 Estimates Funds Flow Sensitivities (mm) 2017 2018e 80 Production (boe/d) Average 10,199 11-12,000 60 Exit 10,500 14,000 40 Capital expenditures (mm) 170 80-85 20 Adjusted funds flow (mm) 59 60-65 0 Y/E debt (mm)…
  14. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 14
    Oil Prices WTI Oil Price (US/bbl) Rebound in WTI oil prices over the last 70.00 four months 60.00 Supply/demand rebalancing in the 50.00 market 40.00 30.00 Heavy oil differentials have widened 20.00 10.00 during the same period -…
  15. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 15
    Improved Market Access Three major North American pipelines are approved and scheduled to start-up in less than 3 years which will help to alleviate the current Canadian heavy oil discount Kinder Morgan Trans Mountain Expansion…
  16. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 16
    Hedging Program We use oil hedging to mitigate downside risk to support our capital program and debt repayment Oil price is hedged out for the forward 18 months We have also hedged approximately 25% of our natural gas consumption…
  17. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 17
    Appendices
  18. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 18
    Company Overview Corporate Symbol: PXX, PXXS Ownership Exchanges: TSX, OMX Shares Outstanding (mm) (1) Burgundy Asset Management Basic 337 Fully Diluted 364 18% Current Share Price (/share) 1.08 Franklin Templeton Market…
  19. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 19
    2017 Oil and Gas Reserves - Summary 24% increase in 1P reserves year over year Yearend 2017 (1) Volume BT PV10% (mmboe) (mm) Reserves added at Onion Lake 48% increase in 1P reserve value Proved Reserves 94 1,085 2P reserve value is…
  20. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 20
    Contingent Resources - Summary Risked Contingent Resource Volume BT PV10% Volume Breakdown (1) Area Class (mmboe)(1) (mm)(1) Onion Lake, Dev 4% Blackrod Phase 1 169 555 Mooney, 2% Pending Dev Blackrod Phases 2 & 3 436 n/a (2) On…
  21. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 21
    2018 Guidance 2018 Capital Spending ( mm) Our 2018 focus will be on completing the phase 2 expansion at Onion Lake as well Blackrod, 2 as sustaining capital (one additional well Other, 13 pad) We will resume our conventional Onion…
  22. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 22
    Design Capacity 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Onion Lake Thermal Mar-16 Apr-16 May-16 Initial steam injection Jun-16 Jul-16 Aug-16…
  23. April 2018 Corporate Presentation – Blackpearl Resources, Inc. – slide 23
    Blackrods Regional Reach Illustrated below are 48 well logs encompassing 16 Blackrod sections Homogeneous + Continuous = Predictable + Scalable 24

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