Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (September 2023)
29 slides from Rubellite Energy's investor presentation, Sep 11, 2023
Slide 1: Rubellite Energy Inc. Corporate Overview
Rubellite Energy Inc. Corporate Overview September 11, 2023
Slide 2: Corporate Profile
Corporate Profile High growth-focused, pure play Clearwater E&P company (TSX:RBY) Since 2018, Perpetual / Rubellite has executed 50+ separate transactions to assemble access to 315 net sections across the Clearwater fairway ▪ Rubellite acquired all of Perpetual’s Clearwater Assets for total consider
Slide 3: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater play ▪ High growth-focused, pure play Clearwater E&P company Expanding ▪ ~315 net sections of prospective Clearwater lands and ~200 Development / Step-out drilling locations Pure Play ▪ Multiple exploration prospects captured
Slide 4: Clearwater Play Landscape
Clearwater Play Landscape Amongst the best single well economics of any play in North America Clearwater Play Evolution Clearwater Play ▪ Since 2017, > 1,250 wells have been drilled, growing play production from nil to ~121,000 bbl/d by Q2 2023 • ~75% of production at Marten Hills and Nipisi • Addit
Slide 5: Rubellite Asset Profile
Rubellite Asset Profile 315 net sections of prospective land; ~200 development / step-out Clearwater locations Asset Map Asset Summary: Land Well Count Production Q2 2023 Area (net sections)(1) (net producing)(3) (bbl/d)(4) Cadotte Figure Lake 122 34.0 1,798 Ukalta 34.5 26.0 677 Marten Hills(3)(5) 0
Slide 6: Corporate Performance: Operational Momentum
Corporate Performance Operational Momentum Production (bbl/d) Q2 2023 Production 3,285 bbl/d By Area 3,500 368 3,000 677 2,500 Q2 2023(1) Field Estimate 2,000 2,844 bbl/d 1,500 100% Heavy Oil 1,000 1,798 500 0 (1) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 H2 August Marten Hills Figure
Slide 7: Southern Clearwater
Southern Clearwater Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway RBY Play History Figure Lake – Development & Step- out Delineation - Poised for Growth ▪ 1,798 bbl/d Q2 2023 sales ▪ One 2.5-leg producing well drilled in early stage of play by a predecessor opera
Slide 8: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake Pool Development and Extension Asset Map Asset Summary Working Interest: 100% Figure Lake Q2 2023 Production: 1,798 bbl/d heavy oil ▪ 29 multi-laterals on sales production (including 3 exploratory wells at Skeleton and Alpen) 2023 Strategy ▪ Grow production with
Slide 9: Figure Lake: Ongoing drilling results refining type curve
Rubellite Asset Profile | Figure Lake Ongoing drilling results refining Figure Lake type curve Type Curve and Production Results Type Curve Assumptions Figure Lake Development / Stepout wells Assumptions Tier 1 Tier 2 (8-leg multi-lateral ~9,000m) McDaniel PUD McDaniel PPUD McDaniel PAUD ▪ 12 wells
Slide 10: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta Evaluating Enhanced Recovery and Secondary Zones Asset Map Asset Summary Working Interest: 100% Q2 2023 Production: 677 bbl/d heavy oil ▪ 26 Primary Zone multi-laterals on sales production 2022 Strategy ▪ Evaluate optimal well design (number of laterals, overall leng
Slide 11: 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 sections at 50% BPO / 30% APO WI Q2 2023 Production(1): 368 bbl/d heavy oil ▪ Converted to after payout working interest May 1, 2023 2022 Strategy
Slide 12: Marten Hills: Strong production from Q4 2022 drilling program
Rubellite Asset Profile | Marten Hills Strong production performance from Q4 2022 drilling program Type Curve and Production Results Type Curve Assumptions Assumptions: Lower Stack Clearwater McDaniel PPUD Marten Hill Q4 2022 Development Wells (8-leg multi-lateral, 12,800m) YE 2022 (1) ▪ 3 (0.9 net)
Slide 13: 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 14: Rubellite Guidance
Rubellite Guidance Development plan is funded out of Adjusted Funds Flow at current strip prices Guidance (August 10, 2023) Development Parameters H1 2023 2023 ▪ Single pad batteries with minimal infrastructure Development Capital Expenditures (1)(3) ($ MM) $24.6 $47 - $52 ▪ Oil sales from new wells
Slide 15: Commodity Price Risk Management
Commodity Price Risk Management WCS price protection on an average of 1,700 bbl/d in Q4 2023 at ~$81.38 Cdn/bbl and 1,500 bbl/d in Cal24 at ~$83.48 Cdn/bbl Risk Management Philosophy and Strategy Commodity Price Hedge Positions (as at Sept 11, 2023) Q4 2023 Cal 24 Cal 25 Oil Hedges WTI USD/bbl Swap
Slide 16: ESG Excellence
ESG Excellence Strong ESG performance driven by living our values Water ▪ No fracture stimulation required in Clearwater play with multi-lateral drilling technology ▪ Minimal fresh water usage Land Environment ▪ Surface footprint minimized with multi-well pad development ▪ Onsite drill cutting clean
Slide 17: 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 18: Creating Differentiated Value for Shareholders
Creating Differentiated Value for Shareholders Fully funded growth opportunity in the prolific Clearwater play Robust Organic Production Growth Profile Expanding Conservative Pure Play Capitalization Clearwater and Risk Asset Base Mitigation Fully Funded Management Development Alignment and Unlockin
Slide 19: 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 20: Slide Notes
Slide Notes Slide 1 1. Current shares outstanding as at August 9, 2023, 2.7 million share awards outstanding and 4.0 million share purchase warrants (5-year term; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in
Slide 21: Slide Notes (continued)
Slide Notes (continued) Slide 5 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, a
Slide 22: Slide Notes (continued)
Slide Notes (continued) Slide 9 1. See “Drilling Locations” in the Advisories Slide 10 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 ev
Slide 23: Slide Notes (continued)
Slide Notes (continued) Slide 13 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 24: Slide Notes (continued)
Slide Notes (continued) Slide 14 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 25: Advisories
Advisories General The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of the Company and of the information contained
Slide 26: Advisories (continued)
Advisories (continued) Non-GAAP and Other Financial Measures (continued) “Capital expenditures”, “Capital”, “E&D capital expenditures”, “Development capital expenditures”, or “Exploration capital expenditures” are used to measure its capital investments compared to the Company’s annual capital budge
Slide 27: Advisories: Forward Looking Information
Advisories Forward Looking Information Certain information in this presentation including management's assessment of future plans and operations, and including, without limitation the information contained under the headings “Investment Highlights”, “Rubellite Guidance”, “Rubellite Management”, “Rub
Slide 28: Advisories (continued)
Advisories (continued) Drilling Locations This presentation discloses Rubellite’s estimated drilling locations in two categories: (i) booked locations and (ii) unbooked development / step-out locations. Booked locations are proved and probable locations, are derived from the McDaniel Reserve Report
Slide 29: Advisories (continued)
Advisories (continued) Third Party Information This presentation includes market, industry and economic data which was obtained from various publicly available sources and other sources believed by Rubellite to be true. Although Rubellite believes it to be reliable, it has not independently verified
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