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Corporate Presentation – Rock Energy Inc.

Rock Energy Inc. · Oct 31, 2014 · 38 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. Corporate Presentation – Rock Energy Inc. – slide 1
    CONTINUING THE CONVERSATION WHATS NEW AND EXCITING AT ROCK For starters, we are exploring in an area we can afford to be in and, we have a solid foundation of production and cash flow to finance our growth. October 2014 RE:TSX…
  2. Corporate Presentation – Rock Energy Inc. – slide 2
    Rock Energys Vision Develop a suite of assets that can provide a solid platform of predictable, sustainable cash flow with a long reserve life and low decline rates Focus on plays Develop a and reservoirs foundation of Implement…
  3. Corporate Presentation – Rock Energy Inc. – slide 3
    Rock Energys Strategy Explore new Find plays technology to Focus on OIL that are Drill 60-80 increase exploration scalable and wells per year recovery and repeatable that we can factors from development where Rock afford…
  4. Corporate Presentation – Rock Energy Inc. – slide 4
    Corporate Profile Stock exchange TSX Symbol RE Current stock price trading range 7.00-7.50/share Capital structure Common stock (basic) 40.4 MM (fully diluted) 43.5 MM Market capitalization 300 MM Total debt (June 30, 2014) 16.8 MM…
  5. Corporate Presentation – Rock Energy Inc. – slide 5
    Rocks Focus and Future LUSELAND ONWARD Southwest Saskatchewan PRAIRIEDALE KERROBERT PLENTY Mantario EOR project DODSLAND NORTH Horizontal Viking project at Onward COLEVILLE SMILEY DODSLAND Ongoing exploration activities…
  6. Corporate Presentation – Rock Energy Inc. – slide 6
    Mantario Exploration and Development Upside Drilled discovery well at 12-30 in October 2011 Assembled 30 sections of land on the play Shot 70 sq km of 3D Drilled an additional 39 wells into the main pool Proceeding with EOR…
  7. Corporate Presentation – Rock Energy Inc. – slide 7
    Mantario Current Status Even before the royalty holiday, these wells pay out in less than 6 months Type Wells Vertical Horizontal Cost (DCET) 750k 900k IP Rate (bopd) (unrisked) 85 150 Reserves(Mstb/well) (unrisked) 90 130…
  8. Corporate Presentation – Rock Energy Inc. – slide 8
    Mantario Exploration and Development Upside 2014 Plans Drilling 16 million 10 additional vertical locations 9 horizontal producers 9 water injector conversions Facilities 27 million Main battery 6 Satellites Pipeline…
  9. Corporate Presentation – Rock Energy Inc. – slide 9
    Mantario Chemical/Polymer Flood Mantario Production Forecast 4,000 3,500 3,000 Total EOR Project (June 2014) 2,500 Total Cost 63M Rate (boe/d) 2,000 Production 3,300 bopd 1,500 NPV 200M 1,000 IRR 380% 500 - 2014 2015 2016…
  10. Corporate Presentation – Rock Energy Inc. – slide 10
    Mantario Exploitation Plans Next Steps Phase 1 Phase 2 Phase 3 Drill another Drill 9 Construct 5-6 vertical horizontal surface 40-acre step- producers facilities and out locations and complete gathering to continue 9 injector…
  11. Corporate Presentation – Rock Energy Inc. – slide 11
    Mantario Exploration Near the Main Pool Rocks Mantario pool is essentially a shore face deposit that is geologically Clearbrook older in age than the original pool Polymer Flood discovery by Grad and Walker The analog pool…
  12. Corporate Presentation – Rock Energy Inc. – slide 12
    Mantario Exploration The exploration fairway contained between the Swift Current platform and the Sweetgrass Arch is prospective for Mannville oil and has not been explored SWIFT CURRENT Mannville mineral rights south of…
  13. Corporate Presentation – Rock Energy Inc. – slide 13
    Onward, Saskatchewan Viking Resource Play Mannville Lloyd Oil Current light oil production Current Mannville oil approximately 600 bpd production 500 bopd Light oil, high netback Low viscosity heavy oil Over 43 net sections Water…
  14. Corporate Presentation – Rock Energy Inc. – slide 14
    Onward Viking Play 15 development locations in 2014 Rock Land Rock Drilled Viking Horizontals on Production Completed Viking Vertical Oil Well Vertical Viking Penetrations Rock Viking lands de-risked with original Viking…
  15. Corporate Presentation – Rock Energy Inc. – slide 15
    Onward Viking Well Production Performance Onward Well Performance (Twp 34 Rge 24W3) 80 2013/14 (14 Wells) 70 Tier 4 Tier 5 60 Tier 6 Oil Rate (bbl/d) 50 40 30 20 10 0 0 30 60 90 120 Days On Production…
  16. Corporate Presentation – Rock Energy Inc. – slide 16
    Onward Viking Type Well Economics (unrisked) (GLJ Jan 2014 prices) Crown Freehold Sections 32 9 Costs Drill 400K 400K Complete 450K 450K Equip &Tie-in 150K 150K Total 1,000K 1,000K IP 30 (bopd) 50 50 URR (Mbbls) 36.6 36.6 Payout…
  17. Corporate Presentation – Rock Energy Inc. – slide 17
    Onward Viking Current Status Over 43 net 34 HZ wells Current production sections drilled approximately 600 bopd from 24 wells Average IP 30 Over 34 sections 500 potential approximately de-risked development 50 bopd locations…
  18. Corporate Presentation – Rock Energy Inc. – slide 18
    Onward 2014 Viking Plans Spend 40 MM De-risk the remaining lands Begin to develop a production base Drill 15 Horizontal development locations TSX: RE:CA w w w. r o c k e n e r g y. c a
  19. Corporate Presentation – Rock Energy Inc. – slide 19
    Onward Viking Play Potential Development Scheme Build Production to 1,500 bopd Drill to hold flat for 5 yrs and then decline…
  20. Corporate Presentation – Rock Energy Inc. – slide 20
    Onward Mannville More exploration targets Rock Land Rock Producing Lloydminster wells Rock New Lloydminster Pool discovery well Rock Future Potential wells Exploration wells TSX: RE:CA w w w. r o c k e n e r g y. c a
  21. Corporate Presentation – Rock Energy Inc. – slide 21
    Onward Mannville Program Current Status Current production 500 bopd New Lloyd pool discovered with 11-16 (West Onward) New Bakken pool discovered with 7-16 2014 Plans Spend 4-6 MM Drill 4 follow-up locations to the discovery…
  22. Corporate Presentation – Rock Energy Inc. – slide 22
    2014 Capital Budget Total 2014 Capex: 110 MM 72 net wells planned 6 MM New Acquisition 16 MM 14 MM Mantario Drilling Exploration 7 MM Mannville 27 MM Mantario Facilities 40 MM Onward Viking TSX: RE:CA w w w. r o c k e n…
  23. Corporate Presentation – Rock Energy Inc. – slide 23
    Western Canada Select Price 1,000 bpd hedged until December 31, 2014 at average 100.00 WCS price of Cdn84.70/bbl 90.00 80.00 Cdn/bbl 70.00 60.00 50.00 40.00 TSX: RE:CA w w w. r o c k e n e r g y. c a
  24. Corporate Presentation – Rock Energy Inc. – slide 24
    Premium Markets for Rocks Oil Rock transports 2,000-2,500 bopd via rail Bypass pipeline bottlenecks Deliver crude oil directly to the U.S. Gulf Coast Active part of our hedging strategy Provides an average of 6/bbl price…
  25. Corporate Presentation – Rock Energy Inc. – slide 25
    Q2/2014 Operating Netback (/boe) Corporate Mantario Viking Average Average realized 82.45 84.50 101.00 price () Royalties () 19.81 20.33 6.77 Operating expense 14.82 11.62 20.74 () Field netback () 47.82 52.55 73.49…
  26. Corporate Presentation – Rock Energy Inc. – slide 26
    Results and Guidance 2012 2013 2014 Actual Actual Q1 2014 Q2 2014 Forecast Production Avg. (boepd) 2,377 3,559 4,899 4,988 4,900-5,100 % oil 77 90 94 95 95 Realized Price (/boe) 53.53 62.91 73.58 82.45 78.90 Operating Costs (/boe)…
  27. Corporate Presentation – Rock Energy Inc. – slide 27
    Sustainability Model Base Production Mantario 3,300 Onward Viking 1,500 Total 4,800 Total Viking Decline (bopd) 600 Viking Wells Drilled to Arrest Decline 20/yr Capital Required to Arrest Decline 20 M Corporate Cash flow…
  28. Corporate Presentation – Rock Energy Inc. – slide 28
    Rock Energy Essentials We are an oil company with a solid growth platform An oil pool at A new Viking light Numerous A strong balance Mantario being oil discovery at exploration sheet, with less developed with a Onward in the prospects…
  29. Corporate Presentation – Rock Energy Inc. – slide 29
    SUPPLEMENTARY INFORMATION R ET:STXS:X R E : C A w w w. r o c k e n e r g y. c a
  30. Corporate Presentation – Rock Energy Inc. – slide 30
    Strong Management Team/Board Management Team Directors Allen J. Bey Stuart G. Clark President and CEO Chairman of the Board Jeffrey G. Campbell Richard J. S. Wigington Senior Vice President and COO Robert A. Maitland Todd Hirtle…
  31. Corporate Presentation – Rock Energy Inc. – slide 31
    Market Profile TSX Stock Symbol RE USA OTC RENFF Shares Outstanding Basic 40.4 million Fully diluted 43.5 million Ownership Basic Fully Diluted Management & Directors 7.1% 10.9% Recent Trading Range 7.00 - 7.50 Market…
  32. Corporate Presentation – Rock Energy Inc. – slide 32
    Drilling Results 2012 2013 2014 YTD August 12, 2014 Mannville Oil 17 (17.0 net) 31 (30.0 net) 13 (13.0 net) Light Oil 10 (10.0 net) 15 (15.0 net) Natural Gas Nil Nil Nil D&A 3 (3.0 net) 4 (4.0 net) 2 (2.0 net) Service Wells 3…
  33. Corporate Presentation – Rock Energy Inc. – slide 33
    Regional Viking Play Rocks Viking lands are very LUSELAND similar in net pay, porosity, and permeability to those in the existing Kerrobert pool ONWARD On trend and up dip extension KERROBERT to Kerrobert oil pool PRAIRIEDALE…
  34. Corporate Presentation – Rock Energy Inc. – slide 34
    Onward Viking Play Viking Area Cross Section Rock Energy land Rocks land produces from an older stratigraphic sand when compared to the Prairiedale lands PRAIRIEDALE ONWARD Explains why the Viking Rock Energy land sand is oil…
  35. Corporate Presentation – Rock Energy Inc. – slide 35
    Canadian Heavy Oil Price History Maya (USGC) and WCS Pricing (US/bbl) 130.00 120.00 The Differential is 110.00 stabilizing 100.00 90.00 80.00 70.00 60.00 50.00 40.00 MAYA 30.00 WCS 20.00 10.00 0.00 Ma…
  36. Corporate Presentation – Rock Energy Inc. – slide 36
    WCS Differential Explained A bottleneck of crude oil in the Solution is to expand pipeline Chicago/Cushing area has been capacity to new markets to the caused by expanding North south, east and west Dakota (Bakken) and Canadian…
  37. Corporate Presentation – Rock Energy Inc. – slide 37
    Market Expansion Projects Approved Projects Size Potential Date BP Whiting Refinery Expansion 250 mbpd On stream Q1/2014 Keystone South Gulf Coast Expansion 700 mbpd Q1/2014 Seaway Expansion Phase 2 450 mbpd Q3/2014 (July) Enbridge…
  38. Corporate Presentation – Rock Energy Inc. – slide 38
    Analyst Coverage Company Rating Analyst FirstEnergy Out Perform B. Fitzmartyn Alta Corp Out Perform T. Matthews Paradigm Capital Buy K. Lin GMP Capital Buy G. Daunheimer Acumen Buy T. Reynolds PI Financial Buy A. Toward Dundee…

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