Corporate Presentation May 2020 KeltExploration.com David J. Wilson President & Chief Executive Officer Sadiq H. Lalani Vice President & Chief Financial Officer www.keltexploration.com 0
Current Economic Environment COVID-19 PANDEMIC Kelts highest priority remains the health and safety of its employees, partners and the communities where it operates. The Company has introduced measures to protect the well-being of…
Why Invest in Kelt VALUE CREATION Kelt focuses on value creation resulting in annual growth in production and funds from operations per share over the long-term. The Company emphasizes low-cost land accumulation in resource-style…
Environment, Social and Governance ( ESG ) Environment Social Governance Kelt is committed to minimalizing impacts on the Health and safety are a high Kelt is committed to strong environment. priority and Kelt maintains a HS&E…
Capital Structure Stock Exchange listing TSX Trading symbol KEL Market capitalization ( effective May 6, 2020 ) 270 million Enterprise value 730 million 52-week stock trading range 0.67 5.62 Common shares issued 187.9 million Stock…
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…
Capital Expenditures Jan-Mar ( millions ) 2018 2019 2020 Drilling & Completions 168.7 184.7 51.7 Equipment, Facilities, & Pipeline 117.7 129.0 39.6 Infrastructure [1] Land, Seismic & Asset Acquisitions, net of ( 0.9 ) 1.9 ( 0.2…
Drilling Program 2018 2019 Jan-Mar 2020 Drills Gross / Net Wells Gross / Net Wells Gross / Net Wells Alberta 16 15.1 8 8.0 0 0.0 British Columbia 17 17.0 25 25.0 9 9.0 Total [1, 2, 3] 33 32.1 33 33.0 9 9.0 2018 2019 Jan-Mar 2020…
Product Mix Production Operating Income Operating Income 2019 Split ( MM ) Split Oil & NGLs 46% 170.9 83% Gas 54% 35.6 17% Total 100% 206.5 100% Production Operating Income Operating Income Jan-Mar 2020 Split ( MM ) Split Oil &…
Commodity Prices ( CA, unless otherwise specified ) 2018 2019 Jan-Mar 2020 WTI Crude Oil ( USD/bbl ) [1] US 64.94 US 56.98 US 45.65 MSW Crude Oil ( CAD/bbl ) [2] 69.29 69.19 51.34 WTI-MSW Basis Differential ( CAD/bbl ) ( 14.98 or 18%…
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…
Hedging Commodity Index Term Quantity Fixed Price WTI Apr/2020 to CA 77.55/bbl Crude Oil 4,000 bbls/d Fixed Price Jun/2020 [ equivalent to US 55.20 at the forecasted Apr-Jun CAD/USD exchange rate of 1.405 ] WTI to MSW Apr/2020 to WTI…
Financial Jan-Mar 2018 2019 2020 Revenue ( MM ) 389.3 394.4 70.9 Operating income ( MM ) [1] 202.6 206.5 32.9 Adjusted funds from operations ( MM ) [1] 186.8 182.5 27.4 Per share diluted ( /share ) 1.01 0.99 0.15 Capital…
Focused on per Share Growth PRODUCTION PER MILLION SHARES ( BOE / d ) ADJUSTED FUNDS FROM OPERATIONS PER SHARE ( diluted ) 250 1.25 CAGR CAGR Since Since 2013 2013 = 21% 200 = 21% 1.00 1.01 0.99 163 0.93 148 150 0.75 120 121 125…
Reserves December 31 NPV 10% BT NPV 10% BT 2019 Dec/31/2019 Dec/31/2019 ( MBOE ) ( MM ) ( / BOE ) Proved Developed Producing 48,854 514 10.53 Total Proved 224,582 1,900 8.46 Proved plus Probable ( P+P ) 460,981 3,988 8.65 Oil…
P+P Reserves Future Development Capital December 31, 2019 FDC Net HZ ( MM ) Wells Alberta Montney wells 582 101 B.C. Montney wells 1,463 270 TOTAL Montney wells 2,045 371 Other formation wells 355 85 Other expenditures 54 -…
Finding, Development & Acquisition Costs As at December 31, 2019 Proved Proved + Probable 2019 capital expenditures + change in FDC ( M ) 822,972 1,295,973 Reserve additions, net ( MBOE ) 77,053 169,217 FD&A cost ( /BOE ) 10.68…
Operating Divisions Inga/Fireweed Montney light oil/condensate-rich gas Doig condensate-rich gas Oak/Flatrock Montney light oil/condensate-rich gas Inga/ Fireweed Oak/ Flatrock Pouce Coupe/Progress Pouce Coupe/Progress…
Kelt Land Fairway R13 R11 R9 R7 R5 R3 R1W6 R24W5 94-A-13 94-A-14 94-A-15 94-A-16 Fireweed Corporate Land Holdings T90 94-A-12 94-A-11 94-A-10 94-A-9 T88 Inga T88 [ as at January 2020 ] Flatrock T86 T86 Developed + Gross Net…
Kelt Montney Framework 21
British Columbia Montney Lands MONTNEY LAND HOLDINGS Extrapolation of previous BC Crown Land Sale Prices to Gross: 368,618 acres ( 576 sections ) Kelts Inga / Fireweed Montney Lands (139,963 acres) Net: 363,852 acres ( 569 sections )…
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) Inga (B5-9) 05/16-33-087-23W6 UM 2,148 ( 80%…
Inga / Fireweed Division Delineation Drilling 94-A-13 94-A-14 F A-65-I MM G B-90-A UM H E F G MONTNEY LAND HOLDINGS 02/A-65-I UM (sfc C-10-H) 03/A-65-I UM Gross: 141,543 acres ( 221 sections ) 94-A-13 94-A-14 B-65-I UM…
Inga / Fireweed - Montney CGR (Condensate to Gas Ratio) 94-A-13 94-A-14 94-A-13 94-A-14 F G H E F G H F G H E F G H 94-A-13 94-A-14 94-A-13 94-A-14 C B A D C B A C B A D C B A 02/14-24 02/15-33 IP30 1,609 BOE IP30…
Inga / Fireweed Division Development Drilling 94-A-13 94-A-14 THE MONTNEY CUBE F G H E F G MULTIPLE STACKED MONTNEY HORIZONS 94-A-13 94-A-14 C B A D C B Fireweed 5-well Montney pad Fireweed 5-well 4 UM & 1 MM 94-A-12…
Inga 6-Section / 3-Pad / 72-Well Montney Development Plan Kelts 2019 / 2020 capital expenditures included 24 drills at Inga on the Companys first 24-well multi-layer Montney cube pad that included eight Upper, seven IBZ, eight Middle…
Inga 24-well Montney Cube Pad Initial Results Aggregate combined sales volumes from the first six wells (5-9 Group 1) for initial production of 30 days (720 operating hours) was 6,569 BOE per day (77% oil and NGLs). Aggregate combined…
Inga Gas Processing & Liquids Handling KELT FACILITY ( Inga 2-10 Facility ): The Company constructed a 100 MMcf/d compression, dehydration, liquids handling and frac water facility located at Inga which is currently in operation. The…
Oak / Flatrock Division 00/1-9 UM 00/4-10 UM MONTNEY LAND HOLDINGS (sfc 5-33) 00/14-24 UM 00/16-6 UM 00/13-5 MM 02/13-13 UM (sfc 13-12) 00/12-2 MM Gross: 206,260 acres ( 322 sections ) (sfc 5-31) (sfc 10-27) T87 Net: 204,988 acres…
Alberta Montney Lands MONTNEY LAND HOLDINGS T80 Gross: 193,600 acres ( 303 sections ) Net: 167,674 acres ( 262 sections ) OPERATIONS Pouce Coupe Kelt commenced development of the Montney oil play at T78 Pouce Coupe with its first…
Alberta Montney Wells PRODUCTION RESERVES Kelt Alberta Montney OIL Drills Typical Well EURs Top 10 IP30 Wells ( gross sales, BOE/d ): Wembley Montney GAS Sproule 2P (1) Pouce Coupe 03/07-18-078-11W6 LMM (D1) 2,045 ( 66% oil/ngls ) EUR =…
Wembley / Pipestone / La Glace Division Middle Montney Kelt 14-29 MONTNEY LAND HOLDINGS La Glace Facility (100% WI) 1-5 MM Gross: 110,880 acres ( 173 sections ) 02/13-33 MM 15-33 UM Sexsmith T75 Net: 107,155 acres ( 167 sections )…
Future Considerations 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 to…
Appendix Convertible Debentures Environment, Social and Governance ( ESG ) Corporate Governance - Board of Directors Management Abbreviations Disclaimers 36
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 75.00 115.00 D&Os purchased 14.7…
Environment, Social & Governance ( ESG ) Health & Safety Safety is paramount in Kelts corporate culture. The Company is committed to safe and environmentally responsible operations for the benefit of its employees, contractors and the…
Environment, Social & Governance ( ESG ) Environment and Air Quality Kelt is committed to ensuring that its operational activities comply with all environmental regulatory standards and requirements. By conducting due diligence, Kelt…
Environment, Social & Governance ( ESG ) Kelt supports innovative strategies, clean technology (including alternative energy and renewable energy), green products and utilizing lower emitting solutions to meet industry targets. GHG…
Environment, Social & Governance ( ESG ) Corporate Governance The following documents relating to the Companys corporate governance matters are available on the internet at www.keltexploration.com: Advance Notice Policy Disclosure,…
Corporate Governance - Board of Directors Robert J. Dales [ 2, 3, 4, 7 ] Geri L. Greenall [ 2, 3, 6 ] President, Valhalla Ventures Inc. Chief Financial Officer, Return Energy Inc. Common shares 1,794,255 Common shares 38,500…
Management David J. Wilson Sadiq H. Lalani Douglas J. Errico President & Chief Executive Officer Vice President & Chief Financial Officer Vice President, Land Common shares 18,940,775 Common shares 1,665,233 Common shares 463,842…
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 52
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