Skip to main content December 2018 Corporate Presentation – Kelt Exploration Ltd. | Shale Experts
Loading...
Pm

December 2018 Corporate Presentation – Kelt Exploration Ltd.

Kelt Exploration Ltd. · Dec 7, 2018 · 61 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. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 1
    Corporate Presentation December 2018 KeltExploration.com David J. Wilson President & Chief Executive Officer Sadiq H. Lalani Vice President & Chief Financial Officer www.keltexploration.com 0
  2. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 2
    Why Invest in Kelt 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., eventually sold in…
  3. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 3
    Common Share Information Stock Exchange listing TSX Trading symbol KEL Market capitalization 800 million 52-week trading range 4.04 10.01 Common shares issued ( Nov/2018 ) 184.0 million Stock options ( 9.9 MM ) & RSUs ( 1.1 MM )…
  4. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 4
    Convertible Debentures TSX trading symbol KEL.DB Principal amount issued 90.00 million Principal amount outstanding 89.91 million Coupon / Maturity date 5.0% / May 31, 2021 52-week trading range 106.50 186.05 D&Os purchased 14.7…
  5. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 5
    Insider Commitment Insider Purchases Offering / Market Purchases Date Shares (MM) Amount (MM) Price/share 13.9 MM Equity Private Placement Feb-2013 3.7 8.7 2.32 94.4 MM Equity Private Placement Apr-2013 5.7 31.5 5.55 92.0 MM Equity…
  6. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 6
    Capital Expenditures 2018 2019 2019/18 ( millions ) 2017 Forecast Budget Change Drilling & Completions 154.7 178.5 201.0 + 13% Equipment, Facilities, & 78.0 110.0 60.0 45% Pipeline Infrastructure Land, Seismic & Asset Acquisitions…
  7. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 7
    Drilling Program 2018 Gross 2018 Net 2019 Gross 2019 Net Drills Wells Wells Wells Wells Alberta 16 14.6 9 8.0 British Columbia 19 19.0 25 25.0 Non-operated Properties 0 0.0 0 0.0 Total [1] 35 33.6 34 33.0 2018 Gross 2018 Net 2019…
  8. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 8
    Behind Pipe Production and DUCs The following wells are expected to be drilled The following wells are expected to be drilled but not & completed as at December 31, 2018, completed (DUCs) as at December 31, 2018. These wells are however,…
  9. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 9
    Production Outlook 2018 2019 2019/18 2017 Forecast Budget Change Oil ( bbls/d ) 6,634 8,500 9,100 11,200 11,800 30% 32% NGLs ( bbls/d ) [1] 2,608 3,000 3,300 4,300 4,600 39% 43% Gas ( Mcf/d ) 77,330 90,000 97,000 105,000 112,000…
  10. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 10
    Product Mix Production Operating Income Operating Income 2018 Realized Price Split (MM) Split Oil & NGLs 62.63/bbl 42% 176.3 84% Gas 3.19/Mcf 58% 33.3 16% Total 37.44/BOE 100% 209.6 100% Production Operating Income Operating Income…
  11. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 11
    Annual Production Growth ( since inception ) PRODUCTION ( BOE / d ) 45,000 CAGR since 2013 = 43% 40,000 33,500 35,000 34,500 27,000 30,000 28,000 25,000 17,500 22,130 18,600 20,947 20,000 18,577 15,000 16,100 15,000…
  12. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 12
    Annual Production per Share Growth ( since inception ) PRODUCTION PER MILLION SHARES ( BOE / d ) 250 CAGR since 2013 = 22% 200 174 179 148 153 150 120 121 125 91 97 105 82 88 100 73 77 76 69 53 50 81 85 42 63 68 43 45…
  13. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 13
    2018 Forecasted Commodity Prices ( CA, unless otherwise specified ) JanSep OctDec (E) 2018 (E) WTI Crude Oil ( USD/bbl ) [1] US 66.74 US 69.17 US 67.50 CLS Crude Oil ( CAD/bbl ) [2] 74.52 60.15 70.93 WTI-CLS Basis Differential (11.44…
  14. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 14
    Commodity Prices ( CA, unless otherwise specified ) 2017 2018 (E) 2019 Budget YOY Change WTI Crude Oil ( USD/bbl ) [1] US 50.95 US 67.50 US 67.50 CLS Crude Oil ( CAD/bbl ) [2] 61.85 70.93 66.97 6% WTI-CLS Basis Differential (4.28 or…
  15. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 15
    Gas Market Risk Management GAS MARKET DIVERSIFICATION The Company has taken a diversified approach to selling its natural gas in order to reduce exposure to single market risk. Kelt has entered into several contracts that result in…
  16. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 16
    North American Natural Gas Hubs Kelt 2019 Gas Netback Forecast Station 2 Hub Price [1] Netback [2] Netback [2,3] Gas Hub % US/MMBtu US/Mcf CA/Mcf AECO Sumas NYMEX 3.00 Empress Emerson Kingsgate Waddington Dawn 21% 2.90 2.01 2.58…
  17. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 17
    Hedging Commodity Index Term Quantity Fixed Price NYMEX to Dawn Basis Jan/2019 to Natural Gas 10,000 MMBtu/d Minus US0.0975/MMBtu Differential Dec/2019 NYMEX to Chicago Basis Jan/2019 to Natural Gas 10,000 MMBtu/d Minus…
  18. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 18
    2019 Commodity Price Sensitivities Kelt Kelt Kelt CAD/USD 2019 Oil Price NGLs Price Gas Price Exchange Rate Forecast minus 10% minus 10% minus 10% minus CAD 0.05 Kelt Oil Price ( CAD/bbl ) 67.01 60.31 - 10% 67.01 n/c 67.01 n/c 64.43…
  19. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 19
    2019 Pro-forma Commodity Prices ( CA, unless otherwise specified ) 2019 Budget 2019 Pro-forma Difference Percent Change WTI Crude Oil ( USD/bbl ) [1] US 67.50 US 50.00 17.50 26% CLS Crude Oil ( CAD/bbl ) [2] 66.97 46.82 20.15 30%…
  20. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 20
    Netbacks 2019/18 2019 ( / BOE ) 2017 2018 (E) 2019 (E) Change Pro-forma Revenue/Price 31.51 37.56 37.50 32.46 Realized hedging gain ( loss ) ( 0.13 ) 0.02 0.13 + 550% ( 0.11 ) Royalties ( % of revenue/price ) ( 9.3% ) ( 9.4% ) ( 10.2% )…
  21. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 21
    Financial Outlook 2018 2019 2019/18 2019 2017 Forecast Budget Change Pro-forma Revenue ( MM ) 257.6 375.8 473.9 + 26% 401.0 Operating income ( MM ) [1] 123.4 209.6 261.5 + 25% 206.5 Adj. funds from operations ( MM ) [1] 108.0 193.0…
  22. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 22
    Core Areas Fort St. John ( BC ) : Inga/Fireweed & Oak/Flatrock Stacked Montney light oil and condensate-rich gas Doig condensate-rich gas Grande Prairie ( AB ) : Fort St. John Pouce Coupe/Progress, Valhalla/La Glace & Grande Prairie…
  23. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 23
    Kelt Land Fairway Fireweed Corporate Land Holdings Inga August Net Net Flatrock 2018 Acres Sections Stoddart Oak Developed 224,313 351 Fort Undeveloped 636,727 995 St. John Total 861,040 1,346 Pouce Coupe Progress Montney…
  24. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 24
    Kelt Montney Framework 24
  25. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 25
    British Columbia Montney Lands Land (Montney Rights) Gross: 368,038 acres ( 575 sections ) Net: 363,087 acres ( 567 sections ) Fireweed Operations Stoddart Kelt has been successful delineating the Flatrock Upper and Middle Montney…
  26. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 26
    British Columbia Montney Wells PRODUCTION RESERVES Kelt British Columbia Montney Drills Typical Well EURs Top 10 IP30 Wells ( gross sales, BOE/d ): Inga/Fireweed Upper Montney (UM) (1) Fireweed 00/C-31-I/94-A-12 UM 2,068 ( 68% oil/ngls…
  27. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 27
    B.C. - Stacked Montney Resource Potential THE MONTNEY CUBE Kelt has been successful MULTIPLE STACKED MONTNEY HORIZONS delineating the Upper and Middle Montney at Inga/Fireweed. Initial results from the Montney IBZ have been encouraging…
  28. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 28
    Inga 6-Section / 3-Pad / 72-Well Development Plan Kelts 2018/2019 capital expenditures to include 24 drills at Inga from the Companys first 24-well multi-layer Montney cube pad that will include 8 Upper, 8 IBZ and 8 Middle Montney…
  29. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 29
    Inga / Fireweed Montney Lands A-65-I MM B-90-A UM LAND (Montney Rights) 02/A-65-I UM 03/A-65-I UM (sfc C-10-H) 220 gross sections ( 218 net sections ) B-65-I UM (sfc B-33-I) C-26-A UM A-58-I UM (sfc D-A79-I) (sfc A-6-A)…
  30. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 30
    Inga Gas Processing & Liquids Handling KELT FACILITY (Inga 2-10 Facility): The Company is currently constructing a 100 MMcf/d compression, dehydration, liquids handling and frac water facility located at Inga which is expected to be in…
  31. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 31
    Inga / Fireweed Upper Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 795 MBOE 54% Oil/Ngls 46% Gas 10 15 10 5 0 1…
  32. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 32
    Inga / Fireweed Middle Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 645 MBOE 59% Oil/Ngls 41% Gas 10 10 5 0 1 3…
  33. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 33
    Oak / Flatrock Montney Lands LAND 00/7-3 Montney Rights: (sfc 10-27) Gross: 206,913 acres ( 323 sections ) Net: 205,641 acres ( 321 sections ) 02/13-13 (sfc 13-12) OPERATIONS Oil and gas exploration activity targeting the Upper…
  34. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 34
    Alberta Montney Lands LAND Montney Rights: Gross: 174,560 acres ( 273 sections ) Net: 150,195 acres ( 235 sections ) Pouce OPERATIONS Coupe Kelt continues with development of the Lower-Middle Progress (D1) and the Middle (D2)…
  35. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 35
    Alberta Montney Wells PRODUCTION RESERVES Kelt Alberta Montney OIL Drills Typical Well EURs Top 10 IP30 Wells ( gross sales, BOE/d ): Pouce Coupe Montney OIL Sproule (1) Pouce Coupe 03/07-18-078-11W6 LMM (D1) 2,045 ( 66% oil/ngls ) 2P…
  36. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 36
    Pouce Coupe / Progress 15-13 MM OPERATIONS 920 BOE/d IP30 (KEL 50%) Kelt recently completed its first well 14-14 MM 875 BOE/d IP30 (03/5-18) at Pouce Coupe in the Upper- Pouce (KEL 50%) Middle Montney (D4). Coupe Progress…
  37. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 37
    Pouce Coupe / Progress Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well 2P EUR Type Curve [2] Well Count 1,000 2P EUR [2] 600 MBOE 45% Oil/Ngls 100 55% Gas 10 15 10 5 0 1…
  38. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 38
    Valhalla / La Glace and Wembley / Pipestone OPERATIONS Ownership in pipeline infrastructure, minor interests in gas plants and 100% interest in the Kelt La Glace Facility Kelt 14-29 La Glace which has a handling capacity of 3,500…
  39. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 39
    La Glace Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION ( Well Count [1] ) 5,000 Average Well Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 590 MBOE 61% Oil/Ngls 39% Gas 10 10 5 0 1 3 5 7 9 11 13…
  40. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 40
    2017 Montney Development Wells Paybacks Drill & Actual Cumulative to Dec 31, 2017 [3] Remaining to Payback [4] Last Months Initial Production Payback Production Complete Operating Well Test Start Operating Operating Production Period…
  41. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 41
    Net Asset Value Dec/31 Dec/31 % ( millions ) 2016 2017 change P&NG reserves, NPV10% BT 1,730.7 2,111.5 + 22% Decommissioning obligations, NPV10% BT [1] ( 9.5 ) ( 12.8 ) + 35% Undeveloped land 212.5 239.1 + 13% Net bank debt ( 138.0…
  42. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 42
    Future Considerations 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 plays…
  43. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 43
    Management David J. Wilson, President & CEO Sadiq H. Lalani, Vice President & CFO Douglas J. Errico, Vice President, Land Alan G. Franks, Vice President, Production Bruce D. Gigg, Vice President, Engineering David A. Gillis, Vice…
  44. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 44
    Board of Directors Robert J. Dales Lead Director, Compensation (Chair), Audit, Reserves Geri L. Greenall Reserves (Chair), Audit, Nominating William C. Guinan Chairman of the Board, HSE Michael R. Shea Nominating (Chair),…
  45. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 45
    Appendix Quarterly Forecast of 2019 WTI Oil & NYMEX Gas Prices Quarterly Production Growth Quarterly Cash Costs Reserves FD&A Costs plus Future Development Capital Spirit River Charlie Lake Light Oil/Gas Property Grande Cache…
  46. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 46
    Kelts 2019 Oil Price Forecast ( CA/bbl ) ( US/bbl ) 100.00 100.00 KELT Realized WTI 95.00 ( 2018 Average = CA71.32 ) ( 2018 Average = US67.50 ) ( 2019 Average = CA67.01 ) ( 2019 Average = US67.50 ) 95.00 90.00 85.00 90.00 80.00…
  47. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 47
    Kelts 2019 Gas Price Forecast ( CA/Mcf ) ( US/MMBtu ) 4.50 4.50 KELT Realized NYMEX Henry Hub ( 2018 Average = CA3.19 ) ( 2018 Average = US2.95 ) 4.00 ( 2019 Average = CA3.28 ) 4.07 ( 2019 Average = US3.00 ) 3.99 4.00 3.50 3.20…
  48. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 48
    Quarterly Production Growth ( BOE / d ) PRODUCTION 36,000 Oil Ngls 32,000 Gas 28,000 24,000 20,000 16,000 12,000 8,000 4,000 0 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 Q4 [E] 48
  49. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 49
    Quarterly Cash Costs ( / BOE ) CONTROLLING COSTS 22.00 G&A 20.00 Interest Production & Transportation 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 Q4…
  50. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 50
    Reserves NPV 10% BT Dec/31/2016 Dec/31/2017 Percent Dec/31/2017 ( MMBOE ) ( MMBOE ) Change ( MM ) Proved Developed 34.5 37.9 + 10% 423 Producing Total Proved 108.2 133.0 + 23% 1,093 Proved plus Probable 194.1 235.6 + 21% 2,112…
  51. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 51
    Reserves LIQUIDS WEIGHTING CONTINUES TO GROW: 2017 proved plus probable reserve additions, before dispositions, were weighted 63% to oil/ngls and 37% to gas compared to 40% and 60% respectively in 2016. The 2018 drilling program will…
  52. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 52
    Finding, Development & Acquisition Costs Proved + As at December 31, 2017 Proved Probable 2017 capital expenditures + change in FDC ( M ) 315,436 343,953 Reserve additions, net ( MBOE ) 32,837 49,592 FD&A cost ( /BOE ) 9.61 6.94…
  53. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 53
    Sproule P+P Reserves FDC December 31, 2017 FDC ( MM ) Net HZ Wells Alberta Montney wells 176 37 B.C. Montney wells 638 103 TOTAL Montney wells 814 140 Other formation wells 342 74 Other expenditures 7 - TOTAL 1,163 214…
  54. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 54
    Spirit River Charlie Lake Land 13-34 Gross: 30,560 acres ( 48 sections ) CL Pad: 14-22 (60%) 15-22 (60%) Net: 23,151 acres ( 36 sections ) 13-33 16-22 (60%) Charlie Lake: 20.25 net sections 16-11 H2O Disposal Charlie Lake:…
  55. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 55
    Grande Cache LAND Modern 13-4 Gross: 128,160 acres ( 200 sections ) Narraway 135 MMcf/d Gas Plant IP30: 9 MMcf/d Falher/Wilrich TOU 4-29 IP30: 20 MMcf/d Net: 90,824 acres ( 142 sections ) OPERATIONS (7% WI) Falher/Wilrich…
  56. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 56
    2017 B.C. Inga DOIG Development Wells Paybacks Kelt drilled two Doig wells in 2017 where 2P Type Curves target an IP30 of 2,000 BOE/d (26% gas / 74% oil/ngls) and EURs of 1,080 MBOE (49% gas / 51% oil/ngls). Kelt has 31 (28.4 net)…
  57. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 57
    Inga / Fireweed Upper Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 795 MBOE 54% Oil/Ngls 46% Gas 10 15 10 5 0 1 3 5 7 9 11 13 15…
  58. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 58
    Inga / Fireweed Middle Montney Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 645 MBOE 59% Oil/Ngls 41% Gas 10 10 5 0 1 3 5 7 9 11 13 15 17…
  59. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 59
    Pouce Coupe / Progress Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 2P EUR Type Curve* Well Count 1,000 2P EUR* 600 MBOE 45% Oil/Ngls 100 55% Gas * Sproule has a 795 MBOE and a 514 MBOE type…
  60. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 60
    La Glace Montney Oil Type Curve ( BOE / d ) TOTAL RAW PRODUCTION (Well Count) 5,000 Sproule 2P Type Curve Well Count 1,000 Sproule 2P EUR 100 590 MBOE 61% Oil/Ngls 39% Gas 10 10 5 0 1 3 5 7 9 11 13 15 17 19 21 23 25…
  61. December 2018 Corporate Presentation – Kelt Exploration Ltd. – slide 61
    Corporate Presentation KeltExploration.com Kelt Exploration Ltd. Suite 300, East Tower 311 Sixth Avenue SW Calgary, Alberta Canada T2P 3H2 Phone: 403-294-0154 Fax: 403-291-0155 Website: www.KeltExploration.com 69

From the store

Browse maps, data & reports in the Shale Experts store