Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (March 2023)
29 slides from Rubellite Energy's investor presentation, Mar 9, 2023
Slide 1: Corporate Overview
Rubellite Energy Inc. Corporate Overview March 9, 2023
Slide 2: Corporate Profile
Corporate Profile Newly created, growth-focused, pure play Clearwater company (TSX:RBY) Since 2018, P erpetual / R ubellite has ex ecuted 50+ separate transactions to assem ble access to 345 net sections across the Clearw ater fairw ay Rubellite acquired all of Perpetual’s Clearwater Assets for to
Slide 3: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater play High growth, pure play Clearwater explorer/producer Expanding ~345 net sections of prospective Clearwater lands and ~200 Development / Step-out drilling locations Pure Play Multiple exploration prospects captured w
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, > 1,000 wells have been drilled, growing play production from nil to ~118,000 bbl/d by Q4 2022 • ~80% of production at Marten Hills and Nipisi • Addit
Slide 5: Rubellite Asset Profile
Rubellite Asset Profile 345 net sections of prospective land; ~200 development / step-out Clearwater locations Asset Map Asset Summary: Land Well Count Production Feb 15-28 Area Net Net 2023 (sections)(1) (producing)(3) (bbl/d)(4) Figure Lake 120.9 23.0 1,850 Cadotte Ukalta 35 25.0 720 Cranberry Lak
Slide 6: Gaining Operational Momentum and Focus
RUBELLITE ENERGY INC. Gaining Operational Momentum and Focus Production (bbl/d) Current Production By Area 3,000 410 2,500 720 2,000 Feb 15-28, 2023 1,500 3,000 bbl/d 1,000 100% Heavy Oil 500 1,870 0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023E Marten Hills Figure Lake Ukalta Operating Expense (
Slide 7: Southern Clearwater
Southern Clearwater Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway RBY Play History Ukalta –Development with Secondary Zone Exploration Six 6-leg wells on production at RBY Summerland inception 25 (25.0 net) wells onstream (March 2023) • ~720 bbl/d (Feb 15 – 2
Slide 8: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta 2022 Focused on Primary Zone Development, Pool Extensions and Secondary Zone Evaluation Asset Map Asset Summary Working Interest: 100% Current Production: ~720 bbl/d heavy oil February 15 – 28, 2023 Field Estimate 25 Primary Zone multi-laterals on sales productio
Slide 9: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake Pool Extension-focused drilling program in H2 2022 to delineate Development Location inventory Asset Map Asset Summary Working Interest: 100% Current Production: ~1,870 bbl/d heavy oil February 15 – 28, 2023 Field Estimate 23 multi-laterals on sales producti
Slide 10: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake Ongoing drilling results refining Figure Lake type curve Type Curve and Production Results Type Curve Assumptions Figure Lake Development wells Tier 1 Tier 2 Assumptions 14 wells on production for 30+ day in 2022 (8-leg multi-lateral ~9,000m) McDaniel PUD McDa
Slide 11: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | M arten Hills Developing to Maximize Value Asset Map Asset Summary Working Interest: 30% 3 gross sections at 50% BPO / 30% APO WI Net Production(1): ~410 bbl/d heavy oil February 15 – 28, 2023 Field Estimate 2022 Strategy Develop with 8 – 9 leg open hole multi-lateral
Slide 12: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | M arten 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: Peavine/Dawson - Northern Clearwater Exploration
P eavine/ Daw son - Northern Clearwater Exploration Drilled 3 exploration wells in winter 2023 Asset Map Opportunity Summary Peavine/ Daw son area attracting significant attention from industry 2022 Crown land sale bonuses > $90 million Significant competitor drilling activity ongoing Peavine St
Slide 14: Rubellite Guidance
Rubellite Guidance Exploration and Development plan is fully funded at current strip prices Guidance (M arch 9, 2023) Development Parameters Single pad batteries with minimal infrastructure Q4 2022 2022 Q1 2023 Oil sales from new wells forecast approximately two months post Development Capital E
Slide 15: Risk Management
Risk Management WCS price protection on an average of 867 bbl/d in Q2-Q4 2023 at ~$81.95 Cdn/bbl Risk Management Philosophy and Strategy Current WTI and WCS hedge positions (as at M arch 9, 2023) Physical forward sales contracts and financial derivatives used to: Increase certainty in adjusted f
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 Surface footprint minimized with multi-well pad development Onsite drill cutting cleaning and oil-
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 March 9, 2023, 2.4 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 expense per boe" is comprised of production and operating expense, as determined in accordance with IFRS, divided by the Company's total sales oil pro
Slide 22: Slide Notes (continued)
Slide Notes (continued) 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 evaluation of the crude oil, natural gas and NGL reserve
Slide 23: Slide Notes (continued)
Slide Notes (continued) Slide 13 1. Development and exploration capital expenditures is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. Heavy oil wellhead differential is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. "Royalt
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. Hedge positions current to March 9, 2023. Full hedge positions by product are as follows: As at March 9, 2023, the Company had entered into the following commodity
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 M easures (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 budg
Slide 27: Advisories
Advisories Forw ard Looking I nform ation 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”,
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 P arty I nform ation 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 verif
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