Canuc Resources Corporation · TSXV:CDA
Canuc Resources — Full Circle (FC) Energy — Investor Presentation (May 2018)
16 slides from Canuc Resources's investor presentation, May 9, 2018
Slide 1: Full Circle (FC) Energy Ltd.
Full Circle (FC) Energy Ltd. Opportunistic Acquisition in a Proven Field
Slide 2: Why Invest?
Why Invest? • High ROR, high value opportunity (potential for 300% ROR on new wells) • Opportunistic Acquisition (successful crown land bid 6th Feb, 2018) • Offsetting production directly to the North • Low cost oil development: single well battery, vertical wells, trucked oil • Rapid execution from
Slide 3: SW Saskatchewan Oil Exploitation Summary
SW Saskatchewan Oil Exploitation Summary • Potential for 300% before tax ROR on new drills • High permeability shoreline reservoir exploitable with vertical wells • Reservoir mappable with 3D seismic • Secondary recovery potential with waterflood • Medium gravity 22 API oil • Large tracts of open cr
Slide 4: Full Circle acreage Gardenhead Upper Shaunavon pool
Full Circle acreage Gardenhead Upper Shaunavon pool Currently producing 429 bbl/d, 4.4 MMbbl total oil produced Acquired lands fall along a Upper Shaunavon shoreline / beach trend over 40 miles (64km) long, mostly open crown Next slide zoomed in area 6 miles, ~10km
Slide 5: Full Circle lands, 6 sq. miles between T5 and T6
Full Circle lands, 6 sq. miles between T6 Existing Upper known production Shaunavon producer 125,000 bbl total oil Held Crown Husky Freehold Proprietary 3D Seismic Area T5 Potential Oil Pool Outline Shale plug Abandoned well 8-3 3m bypassed pay 1 mile; 1.6km Abandoned well 16-3 55,000 bbl R23 R22 R2
Slide 6: Potential new well location
Potential new T6 well location Full Circle lands (6 secs) Existing Upper Farm-in lands (1.5 secs) Shaunavon producer 100% WI, 7.5% GORR 125,000 bbl total oil Area of Mutual Interest T5 lands (4.8 secs) 75% WI Proprietary 3D Seismic Area R22W3 1 mile
Slide 7: 3D Seismic on Farm-in and AMI lands: Isochron
3D Seismic on Farm-in and AMI lands: Isochron Hotter colours = thicker A measurement (in milliseconds) of Upper Shaunavon thickness Thickness increases occur in a trend (ancient shoreline) and interpreted to be related to thickening of the reservoir sand Thick areas appear to extend south onto Full
Slide 8: 3D Seismic on Farm-in and AMI lands: Trough Amplitude
3D Seismic on Farm-in and AMI lands: Trough Amplitude Hotter colours = higher amplitudes Higher amplitudes suggest higher porosities in the reservoir sandstone The higher amplitude readings correlate well with the previous isochron map High amplitude areas extend south onto Full Circle land Seismic
Slide 9: Next Steps / Value Development Plan
FC Energy Ltd. Next Steps / Value Development Plan Acquire 6 section license Complete Design 3D seismic program for FCE acreage Complete Execute Farm-in agreement with known drilling location Complete Environmental assessment and surface access for 3D June 2018 Transaction into pubco. (monetization
Slide 10: Knollys – Capital Requirement
Knollys – Capital Requirement $1 million capex • Drill, complete, equip well #1 - $695,000 • Six section 3D program - $315,000 Well Number 1: projected economics 1m pay: 2m pay: • $695K capex • $695K capex • 83% before tax ROR • 299% before tax ROR • BT NPV10 $2.0 million • BT NPV10 $4.2 million • <
Slide 11: FC Interim Board & Consultants
FC Interim Board & Consultants Chris Berlet BSc, CFA Director & President Mr. Berlet has several years of capital market and mineral project development experience. Dave Manuel, P.Geol. Director, Independent Mr. Manuel is a professional geologist with over 30 years of exploration and development exp
Slide 12: Appendix
Appendix 1. New Vertical Well Capital Costs 2. New Well 1m and 2m Pay Type Curve 3. New Well Cash Flow Model (1m Pay) 4. New Well Cash Flow Model (2m Pay) 5. Combined Primary/Waterflood Recovery Factors
Slide 13: New Vertical Well Capital Costs
1.New Vertical Well Capital Costs 6 Day Drill • Drill & Abandon: $349K incl. $15K contingency (~4.5%) • Drill & Case: $425K incl. $15K contingency (~3.7%) Completion • $120K incl. $5.5K contingency (~4.6%) Surface Equip • $150K for pumpjack and tankage All In: $695K with room to trim boilers, swabbi
Slide 14: New Well 1m and 2m Pay Type Curve
2.New Well 1m and 2m Pay Type Curve 80 Annualized Daily Production (bbl/d) 70 60 50 40 30 20 10 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 Year 1m typecurve actual 2m typecurve
Slide 15: New Well Cash Flow Model (1m pay)
3. New Well Cash Flow Model (1m pay)
Slide 16: New Well Cash Flow Model (2m pay)
4. New Well Cash Flow Model (2m pay)
Full Circle (FC) Energy — Investor Presentation (May 2018) on 6ix