Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Peters & Co. Conference 2024
29 slides from Rubellite Energy's conference presentation, Jan 16, 2024
Slide 1: Corporate Overview
Rubellite Energy Inc. Corporate Overview January 16, 2024
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 530 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 ▪ 530 net sections of prospective Clearwater lands and ~250 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, >1,510 wells have been drilled, growing play production from nil to ~150,000 bbl/d by November 2023 • ~75% of production at Marten Hills and Nipisi •
Slide 5: Rubellite Asset Profile Figure Lake
Rubellite Asset Profile 530 net sections of prospective land; ~250 development / step-out Clearwater locations Asset Map Asset Summary: Land Well Count Production Q4 2023 Area (net sections)(1) (net producing)(2) (bbl/d)(3) Figure Lake/Edwand 229 59.0 3,400 Cadotte Ukalta 34.5 26.0 534 Marten Hills(
Slide 6: Corporate Performance: Operational Momentum
Corporate Performance Operational Momentum Sales Production (bbl/d) Q4 2023 Production By Area 3 5,000 4,700 bbl/d(1) Q4 2023 4,500 534 272 4,000 4,209 bbl/d Field Estimate 3,500 100% Heavy Oil 3,000 2,500 2,000 1,500 1,000 500 0 3,400 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan-24 2021 2022 2022 2022 2022 2023
Slide 7: Southern Clearwater
Southern Clearwater Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway Play History Figure Lake – Development & Step-out Delineation Fueling RBY Growth ▪ 3,400 bbl/d Q4 2023 sales, including 436 bbl/d sales contribution from Acquired Lands for the quarter ▪ 3,972 bbl/
Slide 8: Asset Acquisition
Asset Acquisition P&S executed October 19, 2023 – Closed November 8, 2023 Asset Acquisition Summary ❑ Purchase Price: $34.0 MM – Effective Oct 1, 2023 ❑ Production: 800 bbl/d (estimated at closing November 8, 2023) ▪ 15 producing wells in Greater Figure Lake ▪ Contributed 436 bbl/d to RBY Q4 2023 sa
Slide 9: Rubellite Asset Profile | Greater Figure Lake
Rubellite Asset Profile | Greater Figure Lake Pool Development and Extension Asset Map Asset Summary Working Interest: 100% Q4 2023 Production: 3,400 bbl/d heavy oil 2023 Strategy ✓ Grow production with sweet-spot focused drilling program ✓ Manage land continuations & surface access restrictions Fig
Slide 10: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake 2023 Development Results Outperforming Type Curve; Q4/23 Step-outs expanding development inventory Type Curve and Production Results Type Curve Assumptions 2023 Development Drilling Program Assumptions Tier 1 Tier 2 (8-leg multi-lateral ~9,000m) McDaniel PUD McD
Slide 11: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta Evaluating Enhanced Recovery and Secondary Zones Asset Map Asset Summary Working Interest: 100% Q4 2023 Production: 534 bbl/d heavy oil ▪ 26 gross (26.0 net) Primary Zone multi-laterals on sales production ▪ Harvest free cash flow to fund growth at Figure lake Prospe
Slide 12: 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 Q4 2023 Production(1): 272 bbl/d heavy oil ▪ 11 gross (3.3 net) wells o
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 (November 9, 2023) Development Parameters Q1 - Q3 ▪ Single pad batteries with minimal infrastructure 2023 2023 (1)(3) ▪ Oil sales from new wells forecast approximately two Development Capital Ex
Slide 15: Commodity Price Risk Management
Commodity Price Risk Management Price protection on an average of 2,150 bbl/d in Cal24 at an average WCS price of ~$83.45 Cdn/bbl Risk Management Philosophy and Strategy Commodity Price Hedge Positions (as at Jan 17, 2024) Cal 24 Cal 25 2024 Oil Price Management WTI USD/bbl Swap 2,400 100% Volume (b
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 therefore minimal fresh water usage Land ▪ Surface footprint minimized with multi-well pad development Environment ▪ Onsite drill cutti
Slide 17: 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 18: 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 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 January 15, 2024, 3.7 million share awards outstanding and 4.0 million share purchase warrants (expire October 5, 2026; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financial
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. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 2. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserves, prepared by McDaniel with an effective date
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
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 27: 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 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 Rubellite McDaniel Reser
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