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Investor Presentation – Rock Energy Inc.

Rock Energy Inc. · Mar 19, 2015 · 34 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. Investor Presentation – Rock Energy Inc. – slide 1
    CONTINUING THE CONVERSATION HOW IS 2015 SHAPING UP FOR ROCK These are trying times, but we are positioned with a solid balance sheet, a foundation of assets with low decline rates, and focused on reducing our costs. March 19,…
  2. Investor Presentation – Rock Energy Inc. – slide 2
    Non GAAP Disclosures This document contains the terms operating netback and total net capital expenditures which do not have any standardized meaning prescribed by GAAP and may not be comparable with the calculation of similar measures…
  3. Investor Presentation – Rock Energy Inc. – slide 3
    Additional GAAP Disclosures Funds from operations This document contains the term funds from operations which does not have any standardized meaning prescribed by GAAP and should not be considered an alternative to, or more meaningful…
  4. Investor Presentation – Rock Energy Inc. – slide 4
    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…
  5. Investor Presentation – Rock Energy Inc. – slide 5
    Rock Energys Strategy Find plays Explore new Focus on OIL that are Preserve and technologies exploration scalable and build our to increase and repeatable development recovery development where Rock drilling factors…
  6. Investor Presentation – Rock Energy Inc. – slide 6
    Corporate Profile Stock exchange TSX Symbol RE Current stock price trading range 2.202.30/share Capital structure Common stock (basic) 46.9 M (fully diluted) 50.0 M Market capitalization 110115 M Net debt (December 31, 2014) 69.0 M…
  7. Investor Presentation – Rock Energy Inc. – slide 7
    Net Asset Value and Reserves (December 31, 2014) Net Asset Value (Proved plus Probable) Reserves (MBOE) Reserve Value*(M) 216.8 Total Proved 8.7MBOE Undeveloped Land(M) 21.0 Proved plus Probable 12.5MBOE Net Debt(M) 69.0 FDC 2015 25.9M…
  8. Investor Presentation – Rock Energy Inc. – slide 8
    Why Buy Rock 4 Questions to think about 1. How is your Balance Sheet Will you be around when prices recover 2. What are you doing to get your costs down Can you adapt to survive at these prices 3. What kind of torque does your stock…
  9. Investor Presentation – Rock Energy Inc. – slide 9
    Balance Sheet Year end 2014 net debt is 69.0 million Rock has moved proactively to guard the balance sheet: Reduced the 2015 capital program to 25 million Completed a 15.1 million equity raise in March 2015 We are now forecasting…
  10. Investor Presentation – Rock Energy Inc. – slide 10
    Cost Initiatives Rock is working to reduce our capital, operating and royalty costs to accommodate a lower price environment 45 40 35 Interest /boe 30 G&A 25 Royalties 20 Op. Costs 15 10 2012 2013 2014 2015 Forecast…
  11. Investor Presentation – Rock Energy Inc. – slide 11
    Torque 3 for 1 Share Price by Valuation Multiples 12.00 10.00 8.00 8.37 Share Price 6.64 6.00 4.90 4.00 3.15 2.00 1.22 1.66 2.09 0.79 45.00 55.00 65.00 75.00 85.00 WTI FLAT PRICING 3X 4X 5X Forecast Cash…
  12. Investor Presentation – Rock Energy Inc. – slide 12
    Assets Rocks assets have a low base decline rate of < 20% The company's producing asset base can generate positive funds from operations as low as WTI 35.00 US/bbl. Corporate Funds From Operations vs. WTI 100 90 Corporate Cash…
  13. Investor Presentation – Rock Energy Inc. – slide 13
    Rocks Focus and Future Our Assets LUSELAND ONWARD Southwest Saskatchewan PRAIRIEDALE KERROBERT PLENTY Mantario EOR project DODSLAND NORTH Onward Horizontal Viking project COLEVILLE SMILEY DODSLAND Ongoing exploration…
  14. Investor Presentation – Rock Energy Inc. – slide 14
    Mantario Foundation of Production and Cash Flow Proceeding with EOR project to maximize reserves and manage decline rates Vertical Type Well* DCET 700k NPV 1,470k Pay Out 9 months IRR 200% *Assumes GLJ Jan 2015 Price…
  15. Investor Presentation – Rock Energy Inc. – slide 15
    Mantario Exploration and Development Upside 2015 Plans Drilling 10 million B 3 Vertical locations 3 Horizontal producers 10 water injector conversions Facilities 8 million Pipeline gathering system Polymer injection system…
  16. Investor Presentation – Rock Energy Inc. – slide 16
    Mantario Chemical/Polymer Flood (EOR) Mantario Production Forecast 4,000 3,500 3,000 2,500 Rate (boe/d) 2,000 1,500 1,000 500 2014 2015 2016 2017 2018 Polymer Injection began on March 11, 2015 EOR Royalty program…
  17. Investor Presentation – Rock Energy Inc. – slide 17
    Onward, Saskatchewan Viking Resource Play Mannville Lloyd Oil Current light oil production Current Mannville oil production over 1,200 bopd approximately 500 bopd Light oil, high netback Low viscosity heavy oil Over 47 net…
  18. Investor Presentation – Rock Energy Inc. – slide 18
    Onward Viking PlayLarge drilling inventory Gas/Oil Contact Rock Land Rock Drilled Viking Horizontals to Date (52) Completed Viking Oil Wells Vertical Viking Penetrations Hz wells which could be drilled in 2H of 2015 (10)…
  19. Investor Presentation – Rock Energy Inc. – slide 19
    Onward Viking Well Production Performance More fracs per well is making a big difference Onward Viking Well Performance 15 Stage Fracs vs. 18+ Stage Fracs 70 15 Stage (14 Wells) 18 Stage (32 Wells) 60 Tier 5 Tier 6 Tier 7 50…
  20. Investor Presentation – Rock Energy Inc. – slide 20
    Onward Viking We have validated the play Results with new completion techniques are yielding initial production rates 35% better than before With an expanded gas/oil contact and 40 sections derisked, we now have 600 potential…
  21. Investor Presentation – Rock Energy Inc. – slide 21
    Onward Mannville 3D seismic program to further develop pools and confirm exploration leads Rock Land Rock Producing Lloydminster wells Rock New Lloydminster Pool discovery well Rock Future Potential wells Existing 3D New…
  22. Investor Presentation – Rock Energy Inc. – slide 22
    Onward Mannville Typical Well Characteristics Vertical Horizontal Cost (DCET) 650K 800K Reserves (2P) 67 mboe 97 mboe Initial Production Rate 50 boepd 100 boepd IRR 57% 139% NPV (Btax 10%) 760K 1,400K Pay Out 23 months 12…
  23. Investor Presentation – Rock Energy Inc. – slide 23
    Onward Mannville Program Current Status Current production 500 bopd New Lloyd pool discovered with 1116 (West Onward) New Bakken pool discovered with 716 2015 Plans Interpret 30 section 3D seismic program Develop exploration…
  24. Investor Presentation – Rock Energy Inc. – slide 24
    Play Type Netbacks All our plays generate positive cash netbacks down to WTI = 45.00 US/bbl 90.00 80.00 70.00 60.00 Netback (Cdn/bbl) 50.00 40.00 30.00 20.00 10.00 0.00 45.00 55.00 65.00 75.00 85.00 WTI…
  25. Investor Presentation – Rock Energy Inc. – slide 25
    Prudent Stewardship of Capital Rock is focused on the higher rate of return projects first At WTI 45.00 50.00 US/bbl (flat) the Mantario vertical and Onward horizontal Mannville wells generate a ROR 25% As prices exceed WTI…
  26. Investor Presentation – Rock Energy Inc. – slide 26
    Drilling Inventory Economic Drilling locations (10% ROR) Drilling Inventory 700 600 500 400 Locations 300 200 100 0 45.00 55.00 65.00 75.00 85.00 WTI Flat (US/bbl) Mantario Vertical Onward Hz Mannville Onward…
  27. Investor Presentation – Rock Energy Inc. – slide 27
    2015 Capital Budget Total net capital expenditures 2015 Capex: 25 MM 9 net wells planned 4 MM Exploration 10 MM 3 MM Mantario Drilling Onward Viking 8 MM Mantario Facilities TSX: RE:CA w w w. r o c k e n e r g y. c a
  28. Investor Presentation – Rock Energy Inc. – slide 28
    Results and Guidance Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Actual 2015 Forecast Production Avg. (boepd) 4,899 4,988 4,747 5,328 4,991 4,600-5,000 % oil 94 95 95 97 95 95 Realized Price (/boe) 73.58 82.45 75.76 60.09 72.63 46.00…
  29. Investor Presentation – Rock Energy Inc. – slide 29
    Rock Energy Essentials We are an oil company with a solid production platform Our Balance Our Team has Our Assets have Sheet is intact. been through a low decline rate, this before. and provide a solid foundation of cash flow.…
  30. Investor Presentation – Rock Energy Inc. – slide 30
    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
  31. Investor Presentation – Rock Energy Inc. – slide 31
    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…
  32. Investor Presentation – Rock Energy Inc. – slide 32
    Market Profile TSX Stock Symbol RE USA OTC RENFF Shares Outstanding Basic 46.9 million Fully diluted 50.0 million Ownership Basic Fully Diluted Management & Directors 7.6% 10.9% Recent Trading Range 2.20 2.30 Market…
  33. Investor Presentation – Rock Energy Inc. – slide 33
    Drilling Results 2012 2013 2014 Heavy Oil 17 (17.0 net) 31 (30.0 net) 30 (30.0 net) Light Oil _ 10 (10.0 net) 39 (39.0 net) Natural Gas Nil Nil Nil D & A 3 (3.0 net) 4 (4.0 net) 6 (6.0 net) Service Wells 3 (3.0 net) 1 (1.0…
  34. Investor Presentation – Rock Energy Inc. – slide 34
    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 Dundee Buy C. Ellison Haywood…

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