Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (August 2024)
37 slides from Rubellite Energy's investor presentation, Aug 8, 2024
Slide 1: Corporate Overview
Rubellite Energy Inc. Corporate Overview August 8, 2024
Slide 2: Corporate Profile
Corporate Profile Growth-focused, pure play heavy oil multi-lat E&P company (TSX:RBY) Since inception in 2021, Rubellite has grown from 350 bbl/d to >7,000 bbl/d and assembled access to ~580 net sections across the Clearwater and Mannville Stack play fairways ▪ Rubellite acquired all of Perpetual’s
Slide 3: Buffalo Mission Energy Corp. Acquisition – Closed August 2, 2024
Buffalo Mission Energy Corp. Acquisition – Closed August 2, 2024 Strategic Entry into the Mannville Heavy Oil Stack at Cold Lake Acquisition Highlights ▪ $97.5 million total consideration • $23.5 million of assumed net debt • $62.7 million in cash • 5 million shares of Rubellite at a deemed value of
Slide 4: Rubellite & Buffalo Mission Pro Forma Asset Snapshot
Rubellite & Buffalo Mission Pro Forma Asset Snapshot Highly Complimentary Asset Base to Rubellite’s Existing Operations Production(1) (boe/d) Alberta SK Fort McMurray 56% Dawson CLEARWATER Net Development Inventory(2) (#) FAIRWAY Marten Hills Nixon 35% Figure Lake Cold Lake Net Acreage (‘000s acres)
Slide 5: Buffalo Mission Asset Profile
Buffalo Mission Asset Profile Adds close to 23,200 Net Acres and 2,500 bbl/d of heavy oil production Asset Highlights Buffalo Mission Assets ⚫ Buffalo Mission has been highly active, drilling 24 gross (14.25 net) wells in 2023 and 21 gross wells (15.0 net) 2024 to date ⚫ Primarily targeting the Wase
Slide 6: Buffalo Mission Asset Profile | Frog Lake First Nation
Buffalo Mission Asset Profile | Frog Lake First Nation 2024 Results and Project Economics Type Curve and Production Results Type Curve Assumptions(1) Resource Development on First Nation Lands Waseca Waseca Waseca Figure South North Central Lake(2) • Activity on Frog Lake First Nation subject to Joi
Slide 7: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater and Mannville Stack multi-lat plays Expanding ▪ Growth-focused, pure play heavy oil multi-lat E&P company Pure Play ▪ Access to over 580 net sections of prospective Clearwater and Mannville Stack lands Heavy Oil ▪ Multiple ex
Slide 8: Rubellite Asset Profile (Pro forma Buffalo Mission Energy Corp.)
Rubellite Asset Profile (Pro forma Buffalo Mission Energy Corp.) 7,000 bbl/d of heavy oil production with access to 580 net sections of land Asset Map Asset Summary Land Well Count Production Q2 2024 Area (net sections)(1) (net producing)(2) (bbl/d)(3) Figure Lake/Edwand 242.8 68.0 3,813 Ukalta 34.0
Slide 9: Corporate Performance (Thru Q2 2024 & Pro forma Buffalo Mission)
Corporate Performance (Thru Q2 2024 & Pro forma Buffalo Mission) Operational Momentum Continues Adjusted Funds Flow and Sales Production (bbl/d)(4) Q2 2024 Pro forma Buffalo Mission Production By Area(4) 7,400 – 7,800 bbl/d(1) Adjusted Funds Flow ($M) 8,000 24,000 7,000 Production (bbl/d) 20,000 Fig
Slide 10: Highly Economic Development Inventory
Highly Economic Development Inventory 316 Booked and Unbooked Drilling Location Inventory(1) Returns(2) for Rubellite(3) + Buffalo Mission(4) Pro Forma Waseca South >200% IRR Top half inventory Rubellite contribution Buffalo Mission BMEC RBY 41% 59 % Waseca North Figure Lake Waseca Central Ukalta Ma
Slide 11: Deep Exploration Inventory
Deep Exploration Inventory Exploration prospects with significant success scenario inventory for Rubellite + Buffalo Mission Pro Forma Rubellite Rubellite Exploration Plays being advanced: Buffalo Mission Figure Lake Sparky • New pool mapped Figure Lake • Horizontal test well anticipated in 2025 Spa
Slide 12: Southern Clearwater Play History
Southern Clearwater Play History Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway Play History Figure Lake – Development & Step-out Delineation Fueling RBY Growth ▪ 3,813 bbl/d Q2 2024 sales Exploration and Development History ▪ One 2.5-leg producing well drilled in
Slide 13: Rubellite Asset Profile | Greater Figure Lake
Rubellite Asset Profile | Greater Figure Lake Pool Development and Extension – Q2 2024 Activity Update Asset Map Asset Summary Working Interest: 100% Q2 2024 Production: 3,813 bbl/d heavy oil ▪ 68.0 net multi-laterals on sales production Figure Lake H1 2024 Activity ▪ Drilled and rig released 14.0 n
Slide 14: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake 2024 Development Drilling Performing at Type Curve Type Curve Assumptions H1 2024 Development Drilling Results Assumptions Tier 1 Tier 2 McDaniel PUD McDaniel PPUD McDaniel PAUD • 14 wells drilled and rig released (8-leg multi-lateral ~9,500m) YE 2023 (1) YE 202
Slide 15: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta Evaluating Enhanced Recovery and Secondary Zones Asset Map Asset Summary Working Interest: 100% Q2 2024 Production: 461 bbl/d heavy oil ▪ 25 gross (25.0 net) Primary Zone multi-laterals on sales production ▪ Harvest free funds flow to fund growth at Figure lake Prosp
Slide 16: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | Marten Hills Secondary Recovery Schemes to Maximize Recovery and Value Asset Map Asset Summary Working Interest: 30% ▪ 3 gross (0.9 net) sections ▪ Converted to after payout working interest May 1, 2023 Q2 2024 Production(1): 229 bbl/d heavy oil ▪ 11 gross (3.3 net) wells o
Slide 17: Dawson - Northern Clearwater Exploration
Dawson - Northern Clearwater Exploration Encouraging early results at Dawson Asset Map Opportunity Summary Dawson Exploration: ▪ 1 earning well (50% WI) drilled in Q1 2023 • ~7,500m horizontal open hole • IP30 81 bbl/d ▪ 5-16 well on production in Q1 2023 for 47 days at an average rate of 80 bbls/d
Slide 18: Rubellite Guidance
Rubellite Guidance Development plan funded out of Adjusted Funds Flow at current strip prices Guidance (August 2, 2024) Development Parameters Q4 2024 2024 ▪ Single pad batteries with minimal infrastructure (1)(2)(3) ▪ Oil sales from new Clearwater wells forecast approximately 5 E&D Capital Expendit
Slide 19: Commodity Price Risk Management
Commodity Price Risk Management Price protection on ~3,117 bbl/d at an avg WCS price of ~$84.35 Cdn/bbl over Bal2024 and 1,000 bbl/d at avg ~$81.95 Cdn/bbl over Cal25 2024 Oil Price Management Commodity Price Hedge Positions (as at Aug 8, 2024) Q3 24 Q4 24 Cal 25 Current RBY Hedges WTI CAD/bbl Swap
Slide 20: Operational Excellence
Operational Excellence Striving for continuous performance improvement Water ▪ Oil-based mud drilling system generally used with no fresh-water-based fracture stimulation in Clearwater play Land ▪ Surface footprint minimized with multi-well pad development Environment ▪ Onsite drill cutting cleaning
Slide 21: Creating Differentiated Value for Shareholders
Creating Differentiated Value for Shareholders Fully funded growth opportunity in the prolific Clearwater and Mannville Stack Multi-lat plays Robust Organic Production Growth Profile Expanding Conservative Pure Play Capitalization Heavy Oil and Risk Multi-lat Mitigation Asset Base Fully Funded Manag
Slide 22: Experienced Management and Independent Board of Directors
Experienced Management and Independent Board of Directors Cost-effectively managed under a Management and Operating Services Agreement with Perpetual Overview of MSA with Perpetual Independent Board of Directors (Non-Executive) ▪ Full overlap of Perpetual and Rubellite Executive Officers Tamara MacD
Slide 23: Additional Information
Additional Information Sue Riddell Rose, President & CEO Ryan Shay, Vice President, Finance & CFO 3200, 605 – 5 Avenue SW Calgary, Alberta Canada T2P 3H5
Slide 24: Slide Notes
Slide Notes Slide 1 1. Current shares outstanding as at August 8, 2024, 3.8 million share awards outstanding and 4.0 million share purchase warrants (expire September 2026; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financial Me
Slide 25: Slide Notes (continued)
Slide Notes (continued Slide 3 1. See “Drilling Locations” in the Advisories 2. All the land and the drilling locations shown are net to Rubellite’s working interest 3. Pro forma results shown net of the Buffalo Mission Energy Corp. acquisition that closed on August 2, 2024 4. Pro forma inventory in
Slide 26: Slide Notes (continued)
Slide Notes (continued) Slide 5 1. See “Drilling Locations” in the Advisories 2. Capital is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. “Internally generated reserves analysis” means the internal reserves analysis of the acquired Buffalo Mission assets, gener
Slide 27: Slide Notes (continued)
Slide Notes (continued) Slide 8 1. Net asset value is non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. Operating netback per boe is determined by deducting royalties, production and operating expenses, and transportation costs form oil and natural gas revenue, as de
Slide 28: Slide Notes (continued)
Slide Notes (continued) Slide 12 1. See “Drilling Locations” in the Advisories 2. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 3. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserve
Slide 29: Slide Notes (continued)
Slide Notes (continued) Slide 14 1. See “Drilling Locations” in the Advisories 2. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 3. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserve
Slide 30: Slide Notes (continued)
Slide Notes (continued) Slide 17 1. See “Drilling Locations” in the Advisories 2. Development and exploration capital expenditures is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. Heavy oil wellhead differential is a non-GAAP measure. See “Non-GAAP and Other Fi
Slide 31: Slide Notes (continued)
Slide Notes (continued) Slide 18 1. Prices reported are the weighted average prices for the period 2. Western Canadian Select (“WCS”) 3. Adjusted funds flow is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 4. Capital is a non-GAAP measure. See “Non-GAAP and Other
Slide 32: Slide Notes (continued)
Slide Notes (continued) Slide 20 1. Free funds flow is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories Slide 21 1. G&A per BOE is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories Refer to Slide Notes and Advisories 31
Slide 33: Advisories
Advisories General This presentation is for discussion and information purposes only and any unauthorized use is strictly prohibited. These materials should be read in conjunction with the Company's Annual Information Form for the year ended December 31, 2023 and the Management's Discussion and Anal
Slide 34: Advisories (continued)
Advisories (continued) “Free funds flow” is calculated by taking adjusted funds flow and subtracting capital expenditures, excluding acquisitions and dispositions. Management uses certain industry benchmarks, such as free funds flow, to analyze financial and operating performance. Management believe
Slide 35: Advisories (continued)
Advisories (continued) “Transportation costs” is comprised of transportation expense, as determined in accordance with IFRS, divided by the Company’s total sales oil production. “Heavy oil wellhead differential” represents the differential the company receives for selling its heavy crude oil product
Slide 36: Advisories (continued)
Advisories (continued) Oil and Gas Industry Metrics This presentation contains certain oil and gas industry metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not
Slide 37: Advisories (continued)
Advisories (continued) Reserve Estimates The Rubellite reserves estimates contained in this presentation are as at December 31, 2023 and are based on based on an independent reserves evaluation report prepared by McDaniel & Associates Consultants Ltd. in accordance with NI 51-101. The reserves conta
Rubellite Energy — Investor Presentation (August 2024) on 6ix