Calima Energy — Investor Presentation (February 2022)
34 slides from Calima Energy's investor presentation, February 2022
Slide 1: Investor Update
INVESTOR UPDATE FREE CASH FLOW, GROWTH-FOCUSED CANADIAN OIL & GAS PRODUCER FEBRUARY 2022 Not for release to US wire services or distribution in the United States
Slide 2: Corporate Disclaimer
2 CORPORATE DISCLAIMER This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Calima Energy Ltd (the “Company”) - in any j
Slide 3: Assets & Operational Highlights
3 ASSETS & OPERATIONAL HIGHLIGHTS • Conventional oil & gas producer focused on generating free cash flow from the responsible development of high-quality assets in Western Canada • January exit Production of 4,300 boe/d (74% Oil) • At US$80 WTI, high netback production drives significant operating p
Slide 4: Equity Raising Structure
4 EQUITY RAISING STRUCTURE Calima undertaking an equity placement to raise A$20 million at 20 cents ASX Trading Symbol CE1 Shares on Issue 514,084,228 New Shares 100,000,000 Total Post Placement 614,084,228 Raising Dilution on Ord Shares 16% Post Raise Market Cap (20c) A$120 million Net debt (post r
Slide 5: Equity Raising Timetable
5 EQUITY RAISING TIMETABLE EVENT DATE Trading halt 7 February 2022 Announcement of Transaction and Placement 9 February 2022 Settlement of New Shares under Placement 16 February 2022 Allotment and normal trading of New Shares under the Placement 17 February 2022 ASX: CE1
Slide 6: Corporate Snapshot
6 CORPORATE SNAPSHOT Calima is a returns and growth-focused energy producer with top tier assets, positive cash flow and is ESG goal orientated FINANCIAL INFORMATION January Exit Production 4,300 boe/d H1 2022 AVG. DAILY PDP RESERVES2 Oil Weighting 74% PRODUCTION 2021 Revenue 2021 Adjusted EBITDA A$
Slide 7: Management & Board
7 MANAGEMENT & BOARD LEADERSHIP Jordan Kevol Braydin Brosseau Mark Freeman Managing Director & CEO CFO & VP Finance - Canada Finance Director - Australia • 9 years at Blackspur (Founder & CEO) • 7 years at Blackspur • >20 years oil and gas development and • Geology background with 15+ years • 15 yea
Slide 8: Calima Quarterly Performance
8 CALIMA QUARTERLY PERFORMANCE December 2021 Quarterly Highlights A$19.8 million in oil & gas sales 3,200 boe/d Q4 2021 average production A$9.4 million Q4 2021 adjusted EBITDA ASX: CE1
Slide 9: Near-Term Operational Timelines
9 NEAR-TERM OPERATIONAL TIMELINES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Pisces #1 on production Pisces #2 on production Pisces #3 completion, equip and on production Gemini #5 completion, equip and on production Gemini #6 completion, equip and on production Gemini #7 completion, equip and
Slide 10: Calima Guidance
10 CALIMA GUIDANCE Corporate Guidance & Sensitivity for the 6 month period ended June 30, 20221 WTI US$/bbl $70 $80 $90 Average production (boe/d) 4,000 – 5,000 4,000 – 5,000 4,000 – 5,000 Revenue (A$ million) 48 – 59 55 – 66 60 – 74 Operating netback (A$ million) 29 – 35 34 – 40 39 – 48 Adjusted EB
Slide 11: Equity Financing
11 Equity Financing Proposed A$20 million placement to provide greater operational flexibility and improve access to accretive M&A opportunities Use of Proceeds: • In the immediate term, the net proceeds will reduce the amount drawn on the Company’s revolving credit facility which also reduces hedgi
Slide 12: H1 2022 Indicative Forecast - C$19 million capital program
12 H1 2022 Indicative Forecast - C$19 million capital program Pre-Raise Forecast • H1 2022 capital program of C$19 million • Net debt forecast at June 30 of C$20 million H1 2022 forecasted production is based on current PDP production, plus production additions from 3 Sunburst and 3 glauconitic well
Slide 13: Brooks
13 BROOKS • Large resource in place with multiple oil pools identified, delineated and developed • ~67.5 net sections across ~43,200 net acres in total, with year-round access and >60 wells drilled to date • Owned and operated infrastructure; large production growth capacity • 130 net locations iden
Slide 14: Brooks Economics
14 BROOKS BROOKS ECONOMICS 1,2,3,4 Brooks Type Curve Economics Glauconitic – 1 mile lateral Sunburst Conventional Sources: Company disclosure, geoSCOUT US$70 WTI US$70 WTI • Current production ~2,450 boe/d (1/2/22) EUR – Oil & Liquids/Well Mbbl 115 168 • Open hole Sunburst wells have top tier econom
Slide 15: Brooks Optimization Project and Near Term Development
15 BROOKS OPTIMIZATION PROJECT AND NEAR TERM DEVELOPMENT Overview • Construct a key pipeline connecting Blackspur’s 02-29 battery in the northern portion of Brooks asset to our wells, lands, and gathering system in the southern portion of the Company’s asset base • C$4.3 million cost estimated cost
Slide 16: Brooks Waterflood Expansion
16 BROOKS WATERFLOOD EXPANSION Overview – J2J Sunburst Oil Pool • In-depth technical work completed including a classical reservoir study followed by a full field 3D reservoir simulation built to assess field optimization strategies Injector Conversion • Reservoir characteristics evaluated under sim
Slide 17: Thorsby
17 THORSBY • Current production 1,850 boe/d (1/2/22) • 3 Thorsby development wells were drilled in Q3 2021 Leo #4 and commenced flowback in mid November • 1 (0.5 net) well drilled in North Thorsby January 2022 • ~98 net sections on ~62,900 net acres total • 15 wells drilled since 2014 • Multi-well p
Slide 18: Thorsby Economics
18 THORSBY THORSBY ECONOMICS 1,2 Tier 1 (a) Sparky Type Curve Economics Tier 2 (b) Illustrative 40 T/Stage (c) Sources: Company disclosure, geoSCOUT US$70 WTI US$70 WTI US$70 WTI • Significant type curve outperformance by select wells in the EUR – Oil & Liquids/Well Mbbl 318 283 360 Sparky Formation
Slide 19: Calima's Footprint in the Montney
19 CALIMA’S FOOTPRINT IN THE MONTNEY • 100% interest in >33,643 acres of Montney drilling rights in BC, with 10-year continuation lease over 49 sections due to successful 2019 drilling campaign • Owns Tommy Lakes facilities and pipeline infrastructure with replacement cost estimated at A$85 million
Slide 20: Calima – Future Development Opportunity
20 CALIMA – FUTURE DEVELOPMENT OPPORTUNITY • Strategy to prepare for future development while unlocking value short term via joint ventures, partnerships or an asset transaction • Montney remains a strategic source for oil & gas for Eastern Canada and the US market as evidenced with the recent wave
Slide 21: Calima Investment Summary
21 CALIMA INVESTMENT SUMMARY Quality free-cash flowing assets, low-leverage and significant exposure to rising oil and gas prices PRODUCTION GROWTH Continue development drilling to achieve ~4,500 boe/d1 Increase production to ~6,000 boe/d through development in H1 2022, drilling Drilled 6 Brooks wel
Slide 22: Contact Us
Contact Us For further information visit www.calimaenergy.com or contact: CALIMA ENERGY LIMITED HEAD OFFICE - BLACKSPUR AUSTRALIAN OFFICE - CALIMA Suite 1000, 205 5 Ave SW 4/246-250 Railway Parade, Calgary, AB T2P 2V7, Canada West Leederville WA 6007 Phone: +1-403-460-0031 Phone: +61 8 6500 3270 Jor
Slide 23: Appendices
ENERGY CALIMA Appendices
Slide 24: Key Risks
24 KEY RISKS This section sets out some key risks associated with any investment in Calima, which may affect the value of shares in Calima. The risks set out are not listed in order of importance and do not constitute an exhaustive list of all risks involved with an investment in Calima. Before inve
Slide 25: Key Risks (cont.)
25 KEY RISKS (cont.) • Calima may be required to raise additional funds in the future, in respect of the Calima Lands development or otherwise. There is no guarantee that Calima will be able to raise such additional capital when it is Requirements to Raise required, or on terms satisfactory to Calim
Slide 26: Key Risks (cont.)
26 KEY RISKS (cont.) • Oil and gas operations have inherent risks and liabilities associated with ensuring operations are carried out in a manner that is responsible to the environment. Although Calima operates within the prevailing environmental laws and regulations, such laws and regulations are c
Slide 27: International Selling Restrictions
27 INTERNATIONAL SELLING RESTRICTIONS This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, i
Slide 28: International Selling Restrictions
28 INTERNATIONAL SELLING RESTRICTIONS • WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong pu
Slide 29: International Selling Restrictions
29 INTERNATIONAL SELLING RESTRICTIONS • Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as a
Slide 30: Robust Hedge Position to Mitigate Downside Price Exposure
30 ROBUST HEDGE POSITION TO MITIGATE DOWNSIDE PRICE EXPOSURE Hedge volume per day Gross hedge (365 day Average 2022 hedge position volume average) price Units WTI (bbl/d) 440,800 1,208 81.68 C$/bbl WCS basis (bbl/d) 429,800 1,178 (17.07) C$/bbl AECO (gj/d) 792,200 2,170 3.20 C$/GJ ASX: CE1
Slide 31: Commitment to ESG
31 COMMITMENT TO ESG GHG Emissions Safe Operations Corporate Governance & Policies Strive to prevent workplace injuries, Strive to establish and maintain strong Strive to minimize fuel, flare and vent emissions reduce the risks associated with corporate policies which promotes from the Company’s oil
Slide 32: Credit Facility Terms
32 CREDIT FACILITY TERMS Interest Pricing Grid Terms Revolving Credit Facility Canada Prime Rate + Banker’s Net Debt / Cash basis points per Acceptance + basis Facility Size Flow below points per below Standby fees • C$27 million ≤ 1.0x 150 275 20 Provider • National Bank of Canada > 1.0x - ≤ 1.5x 1
Slide 33: Glossary
33 GLOSSARY Abbreviation Description Abbreviation Description WI Working Interest B Prefix – Billions C Contingent Resources – 1C/2C/3C – low/most likely/high MM Prefix - Millions NRI Net Revenue Interest (after royalty) M Prefix - Thousands Net Working Interest after Deduction of Royalty Interests
Slide 34: Glossary
34 GLOSSARY Terms Description Adjusted EBITDA Adjusted EBITDA is calculated as net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortisation, and adjusted to exclude certain non-cash, extraordinary and non-recurring items primarily relating to barga
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